In brief: Impact firm launches multi-strategy ESG fund

Aavishkaar, a Mumbai-headquartered impact firm, will make equity and debt investments to improve companies’ ESG standards.

Aavishkaar Capital, a Mumbai-headquartered impact investment firm, has launched an ESG fund targeting $250 million.

The ESG First Fund is targeting a 50:50 portfolio mix of private equity and private debt investments, a source told New Private Markets. It seeks “commercial returns and positive impact outcomes”, the source added.

The fund will “help businesses improve their ESG standards”, Livemint reports, and pursue investments in midmarket businesses in Africa and Asia with revenues between 500 million rupees ($6.7 million; €5.9 million) and 2.5 billion rupees. The vehicle has a 15-year term life.

German state-owned development bank KfW has made a $55 million anchor commitment in the fund.