EQT’s latest global infrastructure fund has teamed up with Singapore sovereign wealth fund Temasek to invest $500m (€381m) in the renewable energy sector in India.
The EQT Infrastructure IV fund and Temasek have created the O2 Power platform, led by Parag Sharma as CEO, and committed the capital to the venture to be deployed over the coming years.
With this transaction, the EQT fund – which raised €9bn in March last year – is expected to be 60-65% invested, the manager said.
EQT said the management team will include Peeyush Mohit as COO, Nimish Agrwal as head of solar and Rakesh Garg as head of wind.
O2 Power will focus on developing utility-scale renewable projects across solar, wind, and hybrid with good quality off-takers via both greenfield project development as well as mergers and acquisitions.
Fabian Gröne, partner at EQT Partners and investment advisor to EQT Infrastructure, said: “India presents significant investment opportunities being the second largest renewable energy market in the world and EQT is delighted about teaming up with Temasek and O2 Power.
“CEO Parag Sharma and his management team have a successful track record and EQT looks forward to work together in creating a future-proofed renewable energy platform. This is not only EQT Infrastructure’s first investment in India, it is also well in line with our ambitions to contribute to a cleaner future.”
Nagi Hamiyeh, joint head, investment group at Temasek, said: “We seek opportunities to invest in solutions that contribute to a better and more sustainable world.
“The partnership with EQT to establish O2 Power is consistent with our focus on sustainable living, and in particular, the development of eco-conscious energy solutions.”