Global Environment Fund to expand

The fund, which has a corpus of $1 billion, is set to actively scout for such opportunities in India. It recently hired Raj Pai as managing director for the firm's investment activities in India and South Asia. He will be based in Mumbai.

The fund, prior to its direct presence in India, had invested in Bangalore-based Reva Electric Car Company, when the electric car manufacturer raised $20 million from three investors during late 2006.

Global Environment Fund is a Washington, DC-based firm founded in 1990 with three distinct investment teams focused on clean technology, emerging markets and international forestlands.

The move to have a direct presence in India comes at a time when venture capital and private equity funds channelled in $210 million during 2007, a 58 per cent increase over the 2006 levels.

According to an independent research report, the momentum is expected to continue through the coming years. The $190 million invested in Q4 2007 represents a 171 per cent increase over the amount invested in Q4 of 2006.

Global Environment Fund's enhanced focus on India comes close on the heels of The Cleantech Group, a network of investors and companies in the clean technology industry, setting up its direct presence in India. This group, prior to this, had a presence in North America, China and Europe.

Cleantech has some 8,000 clean technology investors including GEF, 9,500 companies and professional services organisations worldwide and a core group of 1,300 members with assets exceeding $6 trillion.

They include venture capital firms, investment banks, limited partners, governments and major corporations via offices in North America, Europe, China and India.