Actis raises $2.75b for emerging markets energy fund
Actis Capital has closed its fourth emerging markets energy fund at the hard cap of $2.75 billion, after just seven months in the market. It will invest in Asia, Africa and Latin America.
The vehicle, which launched last July with a target of $2 billion, was significantly oversubscribed. It received a combination of re-ups and new commitments from institutional investors, including pension funds, insurance companies, endowments, and sovereign wealth funds. Actis closed its previous energy fund at $1.15 billion in 2013.
The International Finance Corporation (IFC) is among the disclosed investors. The development finance institution said last October that it would commit $100 million to the vehicle – $65 million from its own account and $35 million from IFC Asset Management, which comprises third-party capital managed IFC. In addition, IFC hopes to provide other types of funding to portfolio companies.
Actis Energy 4 will concentrate on control investments in electricity generation businesses offering scale, diversification and growth as well as market-leading electricity distributors. An estimated $10 trillion of investment is required by 2035 across non-OECD countries to meet future energy demand.
“As the leading growth market investor in the energy sector we have never seen a more compelling market opportunity. The demand for new investment within the electricity sector is $1.5 billion every day with renewable energy generating $500 million of investments per day in non-OECD countries,” Mikael Karlsson, partner and co-head of energy at Actis, said in a statement.
The private equity firm’s existing energy investments in Asia largely focus on renewables. Actis launched its first renewable energy platform in the region – and fifth globally – with a $230 commitment to India-based Ostro Energy in 2015. The platform’s acquisitions include Prathamesh Solarfarms, a solar power project developed by Suzlon Energy.
Actis also holds a stake in GVK Energy, one of the first independent power developers in India. The company has more than 3,000 megawatts of operational capacity across coal, gas and hydroelectric power. Actis committed $77 million to the company in 2010.
More on South Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.