Written By: Emma Websdale
Actis, a London-based private-equity company, has raised $1.15 billion for a third energy fund, to strengthen clean energy and power distribution in Africa, Asia, and Latin America.
Actis’s third energy fund, Actis Energy 3, has exceeded its original target of $750 million by 50% and has raised $1.15 billion in all. Investors include public pension funds, sovereign wealth funds, and individuals in the United States, Asia, and Europe. The fund also has discretionary co-investment capital worth $262 million.
Already supplying electricity daily to 10 million customers, Actis says it will use its third energy fund to respond to the increasing demand for competitively priced renewable-energy sources in Latin America, Africa, and Asia.
“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”, says Torbjorn Caesar, co-head of Energy at Actis. “Such is the demand, especially in the renewables [sector], that the team has already put half of the new fund to work.”
The new fund follows Actis’s recent clean-energy investment of $290 million to build five wind and solar plants within Chile. Once complete, the plants will provide 600 megawatts (MW) of affordable power to its inhabitants. Actis has also established Aela Energia, a wind and solar electricity provider in Chile, which plans to increase the country’s installed energy capacity by 3.6%—providing clean energy to power over 131,000 Chilean homes.
In March 2013, Actis agreed to buy Morocco’s water, wastewater, and electricity services. And, if approved by the Cameroon government, Actis Energy 3 will acquire the majority interest in three power assets in Cameroon for $220 million.
Also stimulating clean-energy investment is the European Investment Bank, which made its single largest equity venture in clean energy this year. The bank invested $68.6 million in Glennmont Partner’s second clean-energy infrastructure fund, aimed at providing long-term capital to renewable-energy sectors across Europe.