**GEF Capital Partners Plans $600 Million Fund Following Premier Energies Exit**
GEF Capital Partners, which invests in the US, Brazil, and India, is set to launch a $600 million fourth fund, bolstered by a significant partial exit from Premier Energies, a solar module manufacturer. This information comes from a source familiar with the situation who requested anonymity. The new fund could potentially reach $1 billion when factoring in co-investments from investors, which allow them to increase their exposure alongside the main private equity fund.
Recently, GEF Capital made a partial exit from its investment in Premier Energies by selling a 5.5% stake through a block deal valued at ₹2,625 crore. The firm initially invested approximately ₹177 crore (around $23.5 million) in Premier Energies in September 2021, led by GEF partner Abhishek Loonker and co-founder Raj Pai. This investment is projected to yield profits of nearly ₹8,000-8,500 crore (over $1 billion), including the retained 5.5% stake.
The block sale occurred at ₹1,051.60 per share, representing a remarkable 52-fold increase from the original price of ₹20 per share, according to another source. GEF Capital has previously executed two partial exits, including a sale in August 2024 during Premier Energies’ public market debut. Notable buyers in these transactions include major financial institutions such as Goldman Sachs, Morgan Stanley Asia, Nomura Singapore, Societe Generale, and Blackstone Aqua.
The firm, which focuses on climate-related investments, did not respond to requests for comment. GEF Capital Partners was established in March 2018 after spinning out from the Global Environment Fund.
The success of Premier Energies is expected to generate substantial returns for GEF Capital. “Premier Energies is likely to generate phenomenal carry for the firm,” noted one source. Carry refers to the profits a private equity firm earns after returning the principal capital and a preferred return of around 8%.
Prateek Jhawar, managing director and head of infrastructure and real assets investment banking at Avendus Capital, highlighted the growing interest from investors in various decarbonization themes, including solar module manufacturing, green hydrogen production, and electric vehicles. He emphasized that the renewable energy sector, particularly solar power, is poised for sustained growth over the next 40-50 years. Companies that focus on backward integration along the value chain, from modules to polysilicon, are expected to gain a competitive advantage, supported by favorable policies.
Shivam Bajaj, CEO of Avener Capital, suggested that implementing regulations similar to the Approved List of Models and Manufacturers (ALMM) could further enhance the sector’s growth.
**FAQ**
*What is GEF Capital Partners’ focus in its investments?*
GEF Capital Partners primarily focuses on climate-related investments, including renewable energy sectors such as solar power, green hydrogen, and electric vehicles.
