Fundraising - MARCH 6, 2017

Actis raises $2.75b for fourth energy fund

by Jody Barhanovich

Actis has raised $2.75 billion for Actis Energy 4, reaching its hard cap four months after its initial $2 billion close.

The global energy fund was oversubscribed and saw sizable follow-on commitments as well as new commitments from a diversified investor base including pension funds, insurance companies, endowments, sovereign wealth funds and other institutional investors from across the globe.

Actis Energy 4, which launched in October 2016, will invest in select countries in Latin America, Africa and Asia targeting control investments in electricity generation and distribution businesses. The fund already has a strong pipeline with $2 billion of deal equity either completed or in late stage, including four large-scale regional platforms. The fund received a $200 million commitment from the $132.7 billion Teacher Retirement System of Texas in January.

Demand for electricity and quality infrastructure in growth markets is high and rising, according to the firm. “The demand for new investment within the electricity sector is $1.5 billion every day, with renewable energy generating $0.5 billion of investments per day in non-OECD countries,” says Mikael Karlsson, partner and co-head of the energy business at Actis.

The fund’s predecessor, Actis Energy 3, held a final close in 2013, raising $1.15 billion in equity commitments and surpassing its $750 million fundraising target. Since inception, Actis has raised more than $5.6 billion in total commitments and has committed to more than 30 transactions in the fund’s target markets, according to the firm’s website.

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