UK-based emerging markets specialist Actis has closed its third energy fund, Actis Energy 3, on $1.15 billion, well above its $750 million target.
The oversubscribed fund attracted public pensions, sovereign wealth funds and family offices from the US, Europe and Asia. Discretionary co-investment capital of $262 million is also available to the fund, according to a statement. Approximately 75 percent of investors re-upped to the firm’s third energy fund.
Actis Energy 3 will invest in electricity generation and distribution businesses in Latin America, Africa and Asia. The fund has already deployed $560 million. It has completed four investments this year, including an investment in Atlantic Energias Renovaveis, a Brazilian renewable energy company, and Aela Energía, a Chilean wind and solar electricity provider. Actis Energy 3 has also agreed to invest in Cameroon’s national integrated utility, Société Nationale d’Electricité, and signed an agreement to acquire Morocco’s water, waste water and electricity services.
“Electricity in the emerging markets faces high demand growth but remains a scarce commodity in Latin America, Asia and Africa,” Torbjorn Caesar, co-head of energy at Actis, said in the statement. “Such is the demand, especially in the renewables space, that the team has already put half of the new fund to work.”
Actis has deployed more than $1 billion in the energy sector during the past decade.
The fund close comes shortly after Actis wrapped up fundraising for its fourth flagship buyout fund, which closed on $1.7 billion in October.