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Distributed Energy
Solar Commercial & Industrial Alternative Investment Fund (AIF)

Solar Commercial & Industrial Alternative Investment Fund (AIF)

India.2020

15 %

IRR

INR 

Currency

1.8 X

Target total return

10 years

Target investment period

Solar Commercial & Industrial Alternative Investment Fund (AIF)

India.2020

15 %

IRR

INR 

Currency

1.8 X

Target total return

10 years

Target investment period

What is this Fund?

India’s First Renewable Energy Alternative Investment Fund (AIF)

Overview

At Distributed Energy (“DE”), we want to accelerate the deployment of renewable energy and provide a clean path to growth for developing countries across a broad range of impactful sectors. Solar Commercial & Industrial Investments Scheme I is part of an AIF Category II Fund – SEBI Registration Pending. This is India’s first Renewable Energy AIF open to sophisticated investors. In partnership with Hamsa Asset Management Pvt Ltd, Distributed Energy is the Asset Manager for this Fund.

Investment Objective

This AIF will target 15% IRR over 10 years. It will have an impact in accelerating deployment of solar assets across commercial and industrial sectors in India.

Investment Highlights

This is a unique opportunity to invest in India’s first Renewable Energy AIF with target 15% IRR over 10 years.

The deployment period for this Fund is one of 36 months. The Fund length is 10 + 2 years. Minimum size of this Fund is Rs. 20 Cr with a target size of Rs. 50 Cr and a green shoe option of an additional Rs. 20 Cr. All project opportunities evaluated as part of this Fund will target an unleveraged IRR of greater than 16%. With leverage, the IRR will improve to upwards of 19%.

Our objective involves focusing on deployment of solar in the private sector. We will identify, review and sign Power Purchase Agreements (PPAs) with industries, businesses and commercial organisations. We will focus on a minimum cumulative project size of 100 kW and a maximum of 10 MW.

Structure and Governance

This AIF is in partnership with Hamsa Asset Management Pvt Ltd. Distributed Energy is the asset manager for the Fund. There is a high performing investment committee and leadership team. Various stakeholders including a trust, auditor, etc have been finalised. The Fund is waiting for SEBI approval.

Capital Requirements

The minimum investment size is Rs. 1 Cr (10 Million).

Risk Factors

The following risk factors are not exhaustive and do not purport to be a complete explanation of all the risks and considerations involved in investing in this AIF – asset risks and structure risks. We have covered these details in our Investment Memorandum / Prospectus.

Why Renewable Energy?

Renewable energy returns are less volatile and more stable. They offer non-correlated annuity style returns. Given the cost of solar vis a vis cost of electricity from the grid, the customers incentive to transition to solar is high. A culmination of these factors makes a convincing case for this AIF to be a part of any investment portfolio.

Next Steps

While the Fund is pending registration, we are inviting interest from prospective investors. We encourage you to contact us to find out more about this unique, path-breaking opportunity.

 

 

 

 

Distributed Energy