Emerging markets investor Actis raises US$2.9bn capital commitment for its latest fund

AFRICA – Actis, an emerging markets investor, has raised nearly US$3 billion so far for its latest fund Actis Energy 5 LP dedicated to renewable-energy investments in emerging markets, according to Wall Street Journal.

The London private-equity firm recently held a first close of Actis Energy 5 LP with US$2.9 billion in capital commitments from more than 20 institutional investors, a person familiar with the matter said, citing a letter the firm sent to investors. Actis is seeking US$4 billion for the fund.

Actis plans to invest the new energy fund primarily in wind and solar projects across Latin America, Africa and parts of Asia, the person said. The strategy is similar to one the firm followed for its predecessor vehicle, Actis Energy 4 LP, which closed in 2017 with US$2.75bn.

In one deal out of that fund, Actis committed US$525m to form solar energy company Atlas Renewable Energy in 2017, following the acquisition of Latin American assets out of bankrupt energy company SunEdison Inc. Across Latin America, Atlas operates in Brazil, Chile, Mexico and Uruguay.

The firm’s latest fundraising effort began earlier this year and has benefited from increased investor appetite for renewable energy, the person said.

Investors are gravitating to the steady income offered by renewable energy as rising consumer demand for low-carbon energy and cheaper costs associated with solar panels and wind turbines have increased the sector’s attractiveness.

Actis manages funds across four strategies—energy, private equity, real estate and infrastructure. Last year, the firm raised US$1.23bn for its first infrastructure fund that would hold assets for much longer periods than the firm does through its energy funds.

The long-life fund backed a 100-megawatt solar photovoltaic plant in the Atacama region of Chile and 137 megawatts of operational wind generation assets in Brazil, the firm said in a press release last year.

Since Actis was founded in 2004, the team has shifted strategy from a generalist regional approach to a global sectoral approach, allowing us to spot emerging trends across all our markets and harness the relevant specialist expertise across the group to pursue investment opportunities.

Their current capital in Fund IV is global and is investing exclusively in consumer businesses, healthcare, and financial services.

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