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Actis holds $1.15bn final close for oversubscribed third energy fund

9 Dec 2013

fire flame burn heat energyGlobal emerging markets investor Actis has confirmed it has held a $1.15bn final close for its heavily-oversubscribed third energy fund.

A source revealed to AltAssets last month that Actis Energy 3 was poised to pull in between $1bn and $1.25bn, well above its $750m target.

They added that the fund was likely to close in November alongside the London-headquartered firm’s new Actis 4 buyout fund, which has gathered about $1.7bn.

That is well down on the $2.9bn Actis collected for its private equity pools in 2008, and a sharp drop on the $3.5bn it initially hoped to collect across a global fund and separate vehicles for India, Africa and China.

Actis said the new energy vehicle would be used to invest in electricity generation and distribution businesses in Latin America, Africa and Asia, and has already invested $560m.

The four deals announced by the firm so far include Brazilian renewable energy company Atlantic Energias Renovaveis and Aela Energía, which will be Chile’s largest wind and solar electricity provider.

Actis Energy 3 will also own a majority stake in Cameroon’s national grid subject to regulatory approval, and in March signed an agreement to acquire Morocco’s water, waste water and electricity services.

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.”

Actis senior partner Paul Fletcher added, “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.”

Actis, the former development capital arm of the UK government, became fully independent in May 2012 after it bought back its remaining 40 per cent stake in a deal which netted taxpayers more than £60m.

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