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Actis Energy 4 hits $2bn target

The emerging markets firm has yet to hold a first close on the vehicle, which is backed by the likes of New York's TRS and Texas' ERS.

Actis has reached its $2 billion target size for its latest energy fund, Infrastructure Investor has learned.

Actis Energy 4, for which the firm started fundraising in the third quarter of 2016, hit the milestone thanks to a flurry of commitments from institutions including the Teachers’ Retirement System of the City of New York, Allstate Life Insurance and the Employees Retirement System of Texas, according to Companies House filings.

The International Finance Corporation agreed to invest $100 million in the fund in November, comprising $65 million from its own account and a $35 million capital injection on behalf of the IFC Asset Management Company.

It is understood that the company has not held a first close on Actis Energy 4.

Actis declined to comment for this story.

The fund's predecessor, Actis Energy 3, beat its $750 million target to close on $1.15 billion in 2013. The fund is now invested in five power generation platforms and two electricity distribution businesses in Latin America and Africa. Actis Energy 1 launched in 2002 and raised $800 million, while Actis Infrastructure 2, its successor, closed on $752 million in 2007.

Actis currently has $6.3 billion in assets under management. The emerging markets specialist has concentrated its investments in Latin America and Africa, operating from investment platforms established in selected countries. These include tie-ups with Mainstream Renewable Power, its partner on joint ventures like Lekela Power, a pan-African renewable energy platform, and Aela Energia, based in Chile.

In December, Actis announced the sale of one of its Latin American platforms, Globeleq Mesoamerica Energy, to Guatemala-based Corporacion Multi Inversiones. The unit has built and operated wind and solar projects in 13 countries since 2004, when it completed its first transaction.