Former Tata group veterans Mukund Rajan and Govind Sankaranarayanan will launch a $1 billion public equities fund partnering with Quantum Advisors Private to invest in companies on the basis of Environmental, Social and Governance (ESG).
The joint venture with a distinctive style of engagement comparable to a private equity approach, to influence strategy and enhance ESG performance at India Inc.
The fund will take meaningful stakes in a range of listed companies and adopt an active approach to work with promoters, boards and managements through a slate of senior operating partners and a blue-chip advisory board.
The fund will collaborate with other stakeholders who can help advance the ESG agenda, including other investors, the government, the regulators and multi-lateral institutions.
“Every day the number of companies and founders one can trust and rely on to build sustainable, profitable institutions is declining,’’ says Quantum Advisors founder Ajit Dayal.
‘’This pool of capital in the fund will act as a catalyst to force businesses to think hard about their choices and offers a viable path to promoters who wish to add value to the communities they work in – and long-term benefits to their shareholders.”
The proposed joint venture will be chaired by D Mukund Govind Rajan, former Chief Ethics Officer of the Tata Group, and others include former Tata Capital Chief Operating Officer, Govind Sankaranarayanan, and former Tata Sons Director, Alan Rosling.
Other members of the team include HV Harish, who built the financial and advisory services practice in Grant Thornton India, Shankar Venkateswaran, who was Chief of Sustainability at the Tata Group, and several others.
Quantum Advisors will direct the investment activities of the fund through a dedicated team of investment professionals led by Dayal.
This post was originally published in The Economic Times dated Jan 28, 2019