Emerging markets specialist Actis sealed its largest single acquisition to date after completing the purchase of energy developer InterGen’s Mexico portfolio for $1.26 billion.
Actis agreed to buy InterGen’s 2.2GW portfolio of six combined-cycle natural gas facilities and a stake in a 155MW wind project, the firm said in a statement. The asset will be rebranded as a portfolio company called Saavi Energia, Actis said.
InterGen is co-owned by the Canadian pension Ontario Teachers’ Pension Plan and the China Huaneng Group. The company owns more than 3GW of generation assets in Latin America, Europe and Australia.
London-based Actis invested through its fund Actis Energy 4, which closed last March on $2.75 billion. The fund’s strategy is to acquire large stakes in electricity generation and distribution businesses in Latin America, Africa and Asia.
Before this acquisition, Actis created another platform company, Zuma Energia, in 2014 to develop renewable energy projects in Mexico. It also manages the company Atlas Renewable Energy, which it launched in 2016, to invest in Latin American assets. To date, the company has a presence in Mexico, Brazil, Chile and Uruguay.
Michael Harrington, Actis’s lead partner in Mexico, said acquiring InterGen’s portfolio “cements our commitment” to the Mexican power sector. He said the plan is to continue building the company into “a leading platform in the region”.
Since the final close of Actis’s fourth energy fund, the firm has pledged more than half of its capital to projects in Africa and Latin America. It has launched two renewable energy platforms in Latin America: a vehicle operating 578MW of solar projects and 1GW of early-stage developments; and a Brazil-focused wind platform seeded with two projects generating a combined 346MW.
Actis is also known to be raising a $2 billion infrastructure fund that will invest in operating power assets, instead of the greenfield or developing projects its earlier funds have targeted.