Actis exceeds target to raise $4.7 bn for emerging markets energy fund

 Actis exceeds target to raise $4.7 bn for emerging markets energy fund

Actis, an emerging markets private equity firm, said Thursday it has made a final close of its new energy fund after significantly exceeding its $4 billion target.

The Actis Energy 5 (AE5) secured $4.7 billion of commitments and co-investment opportunities, and its investment team expects to deploy around $6 billion of investable capital in this vintage.

The fundraise saw several limited partners upping the size of their contributions as well as new commitments from a high-quality, diversified investor base, Actis said.

The LP base includes pension funds, insurance companies, endowments, sovereign wealth funds and other investors from across the globe. The fundraise was conducted entirely during the global Covid-19 pandemic, requiring ‘virtual’ site visits and remote management team meetings, the PE firm said.

Actis had held a first close for the fund in July 2020 after garnering $2.9 billion in capital commitments from more than 20 institutional investors, The Wall Street Journal reported at the time, citing a letter by the firm to its investors.

Energy portfolio

In the energy sector, Actis has struck around 25 deals so far. Of these, 15 are current. Several of its portfolio companies were created with an embedded buy-and-build strategy. These include names like Ostro, a wind energy firm it created from scratch in India and sold four years later in 2018 to ReNew Power.

In India, Actis also has another similar venture where it created solar energy venture Sprng Energy in 2017.

The PE firm also counts an investment in GVK Energy, a legacy bet made way back in 2010. GVK Energy’s projects are fired by coal, gas and hydro sources.

The PE firm has around 10 energy portfolio companies in Africa, of which half are realised investments. Its current energy portfolio in the continent includes Azura, BioTherm, Eneo, Lekela and Okavango.

Actis has a strong energy portfolio in Latin America, which houses nearly half of its current energy investments.

Vivek Sinha

The Capital Quest