Private equity firm Actis has raised US$1.15bn through its third energy fund, which will be used for investment in electricity generation and distribution businesses in Latin America, Africa and Asia
Actis currently has US$1.4bn worth of investments in its global energy portfolio, which includes 10 wind and solar power projects. The Actis Energy 3 fund has investments of about US$560mn.
According to the investment firm, it had initially expected to raise US$750mn through this offering, but the fund was oversubscribed.
Investors for Actis Energy 3 are public pension funds, sovereign wealth funds and other individuals from the United States, Europe and Asia. Discretionary co-investment capital in the fund has amounted to US$262mn, Actis said.
The Actis Energy 3 fund is currently involved in four deals across the globe, which includes a preliminary agreement to purchase a majority stake in three power assets in Cameroon and buying some of Morocco’s water, waste water and electricity services.
The company's energy segment has invested in the Azito power plant project in Côte d'Ivoire and the Tsavo Power Company in Kenya, to name a few.
The equity firm is also partnering with Brazil’s Atlantic Energias Renovaveis and Aela Energía, which is touted to become Chile’s largest wind and solar electricity provider.
Actis co-head of energy department, Torbjorn Caesar, said, “There is high demand for electricity in the emerging markets, but it remains a scarce commodity in Latin America, Asia and Africa. Based on the demand in the renewables space, our team has already invested half of the proceeds from the new fund into projects.”
The company’s senior partner Paul Fletcher said, “The closing of our energy fund, well above its target, reflects Actis’s track record. In the coming years, Actis looks forward to continue contributing to the energy sectors of fast growing nations.”
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