MC EXCLUSIVE Eversource Capital in talks to raise $700 million for second green fund

Green energy and infra

• Eversource Capital aims to raise $700M for its second green fund
• Fund to invest in mid-market green infrastructure in South Asia
• Key areas: renewable energy, transportation, waste management

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Eversource Capital, the climate and sustainability-focused investment platform backed by the Everstone Group, is in talks with investors to raise $700 million for its second fund, people aware of the development have told Moneycontrol.

The proposed fund will continue Eversource’s strategy of investing in mid-market green infrastructure and energy transition businesses across India and South Asia, spanning segments such as renewable power, electric mobility, energy efficiency, water and wastewater treatment and waste management.

“Infrastructure and energy continue to be attractive asset classes for both global and domestic investors. Several Indian fund managers, including Eversource, are currently on the road to raise new funds ,” one of the people cited above said.

An email sent to Eversource Capital remained unanswered at the time of publication.

Domestic investor appetite for infrastructure has seen a sharp growth in recent years and domestic capital has become a strong source of capital for fund managers, the source said.

Eversource Capital raised about $750 million for its first green fund, Green Growth Equity Fund I, which achieved a final close in 2021.

The fund was anchored by the National Investment and Infrastructure Fund (NIIF), with participation from global institutional investors, including pension funds and sovereign-backed entities.

The second fundraise comes at a time when global capital is increasingly being channelled towards climate-linked assets, even as fundraising conditions remain challenging for private equity firms amid higher interest rates and geopolitical uncertainty. Investors, however, continue to show strong appetite for platforms offering exposure to operating green assets and scalable sustainability businesses in high-growth markets such as India.

Through its first fund, Eversource Capital has built a portfolio of platforms across renewable energy and sustainability segments. Key investments include Ayana Renewable Power, a large-scale solar and wind power producer, which was sold to a consortium of ONGC and NTPC Green in 2025. While EverEnviro focuses on bioenergy and waste-to-energy solutions, Radiance supplies renewable power to commercial and industrial establishments.

The firm has also backed businesses in areas such as energy services, electric mobility infrastructure, and water and wastewater treatment.

Also Read: Radiance Renewables raises $100 million to fuel expansion

Sources said the second fund is expected to broadly mirror the investment approach of the first, focusing on control and co-control investments in operating businesses with stable cash flows, while also backing growth-stage platforms aligned with India’s energy transition and decarbonisation agenda.

Eversource Capital is a joint venture between Everstone Group and Lightsource bp, the global renewable energy developer backed by oil major BP.