Aavishkaar & Germany’s KfW launch $250 mn ESG First Fund

Impact investment firm Aavishkaar Capital in partnership with German state-owned investment and development bank KfW, has launched a $250 million ESG First Fund.
The fund will focus on investing in Asia and Africa to strengthen the Environmental, Social, and Governance (ESG) practices of mid-cap businesses and offer them growth capital for expansion, the companies said in a statement.
The fund will provide transformational capital to businesses to improve their ESG standards and meet increasing demands on corporate due diligence especially for access to European markets.
“As we launch this fund, we exhort other development finance institutions looking to enhance ESG impact to join us in delivering significant impact and generate attractive returns whilst bringing about a significant positive change in the lives of the people,” said Vineet Rai, founder and chairman, Aavishkaar Group.
The ESG First Fund will focus on sectors with high exports towards Europe.
“With our investment of €50 million, we want to help set up a fund that demonstrates that increased respect for ESG can be a viable investment and business model,” said Anosha Wahidi, on behalf of BMZ, Federal Ministry for Economic Cooperation and Development, Germany.