Private equity investment firm EverSource Capital has secured an equity commitment for its second fund – a $1bn renewable energy fund which it is gearing up to launch in 2025 – from the United States International Development Finance Corp (DFC), according to a report by Mint.
The report cites CEO Dhanpal Jhaveri as confirming that,
in a departure from its usual focus on debt investments, DFC plans to provide equity funding for EverSource’s new initiative. The firm, a joint venture between India’s Everstone Capital and the UK-based Lightsource BP, specialises in renewable energy infrastructure investments.
This commitment follows DFC’s recent activity in India’s renewable energy sector, including a $50m debt investment in Northern Arc’s inaugural Climate Fund in November and a broader emphasis on partnerships in the region, as highlighted by DFC Deputy CEO Nisha Biswal during a September visit to India.
Having raised $741m for its first fund in 2022 from investors including the National Investment & Infrastructure Fund and British International Investment, EverSource is now targeting energy storage as a key growth area.
The new fund will focus on companies specialising in static battery storage, mobile batteries for electric vehicles (EVs), and backup power solutions for businesses, especially in smaller cities prone to frequent power outages.
Beyond energy storage, the fund will also target opportunities in mass transportation electrification, commercial mobility, and industrial decarbonisation. Jhaveri also highlighted EverSource’s plans to expand beyond India into Southeast Asian markets such as Indonesia, the Philippines, Vietnam, and Bangladesh.
While the fund is expected to attract significant backing from international investors, Jhaveri noted that India’s investment landscape tends to prioritise short-term, liquid opportunities like venture capital and pre-IPO deals, with sustainable and long-term investments, which require “purpose capital” and “patient capital,” remaining underdeveloped in the country.
