Swedfund invests USD 25 million in Indian growth fund for climate investments
Introduction
Swedfund has invested USD 25 million in the Indian fund South Asia Growth Fund III (SAGF III), managed by GEF Capital. The fund has a broad mandate to invest in various sectors, where the focus is on climate benefits and resource efficiency in everything from the agricultural sector to industrial solutions, primarily in India, and to some extent in Southeast Asia.
In both India and Southeast Asia, there is great growth potential in many sectors. In addition, there are several challenges with high levels of CO2 emissions since India has a large and growing population and great dependency on fossil energy sources. Swedfund’s investment via this fund aims to support long-term sustainable growth in multiple industries where there is an opportunity to reduce the climate footprint through green solutions.
Through Swedfund's investment, we see good opportunities to mobilize additional private capital, which through the fund can scale up the companies and do even more for the green transition in the region.
- Through the investment in South Asia Growth Fund III, Swedfund plays an important role in the mobilization of capital with the aim of creating climate benefits in India and Southeast Asia, says Swedfund's Gunilla Nilsson.
About the fund
SAGF III is managed by GEF Capital, whose previous fund South Asia Growth Fund II raised close to USD 200 million (of which Swedfund invested USD 15 million). The management team is based in Mumbai, and the SAGF III investment mandate is a continuation of the strategy developed in connection with the launch of the manager's previous fund.