GREEN INDIA VENTURE FUND – II (GIVF-II)
OBJECTIVE OF THE FUND
These would include companies that provide products and services offering solutions to -
- Environmental problems
- Improve the efficiency of natural resource use
- Reduce or eliminate negative ecological impact
- Improve the productive and responsible use of natural/renewable resource
- Promote use of alternative/ non-conventional use of resources
- Synchronising business practices for maintaining ecological balance and sustainable environment
NEED FOR SUCH FUND
The Fund will focus on investing in companies which would provide the support infrastructure for a “Green Economy” This would include manufacturers/producers of renewable/ non-conventional energy systems , organic chemicals, emission control products, energy efficiency products, water & waste management solutions. As this is an evolving theme newer business models are expected to develop during the course of time. The main focus would be to identify the next generation of winners from the small and midcap space. In continuation of this strategy GIVF-II would primarily focus in the small and midcap space to identify companies which fit into the Green theme.
CONSTITUTION / STRUCTURE OF FUND
GIVF-II is SEBI registered AIF Category -II fund. IFCI Venture has been appointed as Investment Manager of the Fund.
SIZE OF FUND
The corpus size of the fund is INR 500 Crore with Green Shoe option of Rs. 250 Crore. IFCI Ltd. is the Sponsor and Settlor of the Fund. IFCI as a Sponsor and Investor has committed to contribute upto Rs. 50 Crore (Rs. 5 Crore as Sponsor contribution as specified under AIF Regulations and Rs. 45 Crore as the lead investor) in GIVF-II. The balance fund corpus is being raised from other financial institutions/banks/companies/multilateral agencies and foreign investors.
LIFE OF FUND
8 years with two prolongation options of 1 year each
The Fund will focus on investing in companies which would provide the support infrastructure for a “Green Economy” This would include manufacturers/producers of renewable/ non-conventional energy systems, organic chemicals, emission control products, energy efficiency products, water & waste management solutions. The main focus of GIVF-II would be to identify the next generation of companies/entrepreneurs which fit into the Green theme.
The investments would be made in the Indian companies from the following sectors:
- Renewable & Alternative energy
- Energy efficiency
- Water infrastructure & technologies
- Pollution reduction
- Waste recycling and management
- Environmental support services
- Green Chemicals
These sectors are only indicative and we might look at companies beyond these sectors which form part of the Green Economy.
The Segments of Companies would be broadly selected from the following sectors:
1. Renewable & Alternative energy
2. Energy efficiency
3. Water infrastructure & technologies
4. Pollution reduction
5. Waste recycling and management
6. Environmental support services
7. Green Chemicals
These sectors are only indicative of our current thinking and it is entirely possible that as our research progresses we might look at companies beyond these sectors. But in all cases the Green theme would be the underlying basis for selection.
- Well maintained infrastructure, resources, and support of sponsor IFCI Ltd.
- GIVF-II team has experience in handling the complete cycle of PE/VC funding, monitoring and exit.
- Well-equipped experienced Investment Team in the Private Equity and Venture Capital Platform.
- A detailed business modelling.
- Comprehensive Due Diligence of the business/project.
Small and Medium Advantage Fund (SMEAF)