According to this report, Gam has launched its long-slated clean-tech Ucits-compliant fund, following the hiring last year of Paul Udall, an environmental funds specialist brought on to develop and portfolio-manage the product.
The offering, called the Gam Star GEO USD Fund, launched with $20m and focuses on stocks with the potential to benefit from the increasing scarcity of natural resources and environmental sustainability.
Key areas that the fund will focus on include alternative power sources, water, energy efficiency, green transport and environmental resources. The new fund has significant exposure to emerging markets, including China and India.
There have been a number of equity players with keen interest in this space and Panchabuta understands that there is a lot of interest from both private equity players and hedge funds in acquiring and aggregating clean energy assets in India.
Most recently, Raja Parthasarathy, MD, IDFC PE, has said that cleantech in India will be in clean energy initially and based on this investment thesis IDFC has invested in a developer in this area. As funds start chasing assets in this area, there is bound to be valuation issues and hygiene factor being compromised in some of these deals. This trend was observed in the power sector a few years ago.