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IDFC Alternatives to create a platform for renewable energy assets

IDFC Alternatives, a unit of infrastructure-focused lender IDFC Ltd, is currently expanding its team with senior executives. The company had previously created such an aggregation platform in the roads sector which has now grown into a 20-member team.“We believe that creation of independent aggregation platforms offers better and more efficient portfolio management, enables taking controlling stakes, allows for optimization of common operating costs and offers easier liquidity through public markets and/or strategic sales. Sectoral operating platforms allow for in-house technical expertise while also ensuring a greater control over the eventual destiny,” Aggarwal said.

IDFC is currently investing out of its second infrastructure fund wherein it picks controlling or a 100% equity stake in operating infrastructure assets. The firm has already committed over $325 million and is looking to deploy an additional $300 million over the next one year, he added. “Our approach would remain the same; we are looking to aggregate controlling stakes in operating capacities under an experienced technical team,” Aggarwal stated. “The beauty of renewables is that it offers opportunities across investment sizes and based on our strategy of accumulating projects and the benefit of a common operating platform, we are happy to evaluate opportunities sized anywhere from 10 MW to 1,000 MW.”