ECube, founded by a team with deep operating, financial and business experience, is well positioned to launch a pioneering climate finance company, ECube Climate Finance (ECF), as well as India’s first active engagement ESG Fund focused on mid-market listed equities. Our climate finance strategy recognises India’s role as the third largest greenhouse gas emitter in the world, and seeks to lend to companies to reduce any adverse impact they may create on the climate. Our strategy for the Fund is to enhance shareholder and stakeholder value by taking a private equity approach to our investments and generating returns by helping to enhance the ESG metrics of our investee companies..
Manage investments in public and private markets, typically through active engagement strategies while taking minority stakes in investee firms.
Create a pioneering climate focussed lending company to support the adoption of climate-friendly business practices by Indian companies.
Advocate and champion higher ESG standards through in-depth research, advocacy and engagement in policy debates and discussions.
ECube stands for “Engage and Empower for ESG” – the 3 Es have yielded ECube, our name, and summarise our Vision.
The colors in our logo represent what we stand for - Green for protecting the Environment, Brown indicating our concern for the Earth and our focus on Society, and Blue representing Water.
The unfolding and upwardly directional leaves represent the growth that we seek to achieve in our endeavours. The cube is a three dimensional square representing stability and permanence.
The logo represents our firm’s rootedness in seeking inclusive and rapid growth in our drive towards profit with purpose, underlined by the core values of trust and integrity.
We have announced India’s first active engagement public markets ESG fund through a joint venture partnership with Quantum Advisors, pioneers of research-based investment in India. Quantum, founded by Ajit Dayal in 1990, has over 28 years of research and fund management experience, with $2.7 bn AUM as on July 2019. For more on Quantum visit quantumamc.com
We are also finalising the details of ECF and plan to launch operations soon. ECF’s principal focus will be on lending in the areas of Electric Vehicles (EVs) and the EV ecosystem, Green Construction, the Industrials’ sector where companies seek to reduce their adverse climate impact, and Water Treatment. ECF will be a profitable business which seeks to reduce carbon emissions through its targeted lending.
• Conduct intensive due diligence of companies by applying our proprietary ESG assessment framework and assist investee companies to enhance their ESG metrics to generate significantly higher risk-adjusted returns.
• Acquire significant minority stakes (up to 10%) in under-researched mid and small-cap listed companies for whom ESG could be an important value-lever.
• Actively engage with investee companies through a very experienced team and operating partners – a PE-style approach.
• Senior team having experience and networks across geographies with requisite and complementary skills in building highly successful businesses, Sustainability, ESG, Lending, Risk Management, Treasury & Investments and a good grasp of Technology
• Focus on Climate Change is growing internationally and in India, the space beyond large scale renewables like solar and wind are yet unexplored. ECF intends to be the first mover in this space and grow this segment.
• ECF’s expertise and partnerships will help craft unique financing solutions. Initial focus will be to develop leasing and standardizing opex models.
• ECF will develop a cost effective cutting-edge credit underwriting system backed by monitoring process enabled by new technologies, including AI/ML, so that better decisions can be taken swiftly and emerging issues flagged early.
• ECF’s specialist leadership will enable the identification of larger scale lending opportunities which can be syndicated to partner banks. ECF’s credit reputation will enable it to bundle assets and sell these to a market seeking both ESG-compliant opportunities and yield.
• ECF’s treasury operations will have a specialist focus towards accessing funds dedicated to make an impact in climate change, to lower the cost of debt capital and also various guarantee structures.