Actis raises over $1 bln for third energy fund

Emerging markets investment firm Actis has closed $1.15 billion for its third energy fund. The pool’s initial target was $750 million. The fund will focus on electricity generation and distribution companies in Latin America, Asia and Africa. Its investors include public pension funds, sovereign wealth funds and families from the US, Europe and Asia.

PRESS RELEASE

London, 9th December 2013 – Actis, the global pan-emerging markets investment firm, today announced that it has closed its third energy fund, Actis Energy 3. The fund was heavily oversubscribed, raising a total of $1.15 billion, exceeding its original target of $750 million by 50%.
Actis Energy 3’s investor base includes public pension funds, sovereign wealth funds and families from the US, Europe and Asia. Discretionary co-investment capital worth $262 million is also available to the fund.
Actis Energy 3 will invest in electricity generation and distribution businesses in Latin America, Africa and Asia. The Actis energy team of 19 dedicated investment professionals has already started building the fund’s portfolio, committing US$560m worth of investment to date.
The four deals announced by the Fund in 2013 include Atlantic Energias Renovaveis S/A, a Brazilian renewable energy company and Aela Energía, which will be Chile’s largest wind and solar electricity provider. Subject to regulatory approval, Actis Energy 3 will also own a majority stake in Cameroon’s national grid and in March signed an agreement to acquire Morocco’s water, waste water and electricity services.
These most recent investments in renewable technologies are a response to an increasing demand for competitively priced energy powered by abundant natural resources.
Torbjorn Caesar, Co-Head of Energy at Actis said: “This successful fundraising is a sign of confidence from our investors in our focused strategy. Electricity in the emerging markets faces high demand growth but remains a scarce commodity in Latin America, Asia and Africa. We provide access to the resulting investment opportunity with a proven approach. Such is the demand, especially in the renewables space, that the team has already put half of the new fund to work.”
Paul Fletcher, Senior Partner at Actis, commented: ‘The closing of our energy fund, well above its target reflects Actis’s track record. Over the last decade we’ve deployed over $1bn in the energy space. Over the coming years Actis looks forward to continuing to contribute to the energy mix of the fast growing nations we serve.”
Notes to Editors:
Since 2002 Actis has deployed in excess of $1.4 billion in 26 energy transactions across power generation and distribution businesses.
Over the last 3 years, Actis has invested in 10 wind and solar assets in six emerging markets, as well as having a long track record of thermal generation investments since 2002.
Actis has a strong track record in energy investments in Latin America and Africa, including developing Cerro de Hula, the largest wind farm in Central America and Umeme, a power distribution company in Uganda. Last year, Actis successfully floated 40% of Umeme’s shares on the Ugandan Stock Exchange.
Actis partnered with Mainstream Renewable Power to invest in Aela Energía, with Actis holding 60% of the stake.
About Actis
Actis invests exclusively in the emerging markets with a growing portfolio of investments in Asia, Africa and Latin America; it currently has US$6 billion funds under management. Combining the expertise of over 120 investment professionals on the ground in nine countries, Actis identifies investment opportunities in three areas: private equity, energy and real estate. It operates under the highest standards of ESG in the industry and helped the United Nations to define the code for responsible investing. Actis is proud to actively and positively grow the value of those companies in which it invests and in so doing contribute to broader society. www.act.is