Actis targets $4bn for fifth energy fund

The energy-focused vehicle will have a similar strategy to the firm’s previous fund, which is now fully invested.

Emerging markets investor Actis is planning to begin raising the firm’s next energy-focused fund in the coming months, targeting $4 billion from institutional investors, according to a source familiar with matter.

The London-based private equity firm plans to launch Actis Energy 5 in the first quarter of this year and will market a strategy similar to those of its previous energy investment vehicles, the source told Infrastructure Investor. The firm has already filed a regulatory document with the UK’s Companies House on 20 January registering the fund as a limited partnership.

According to the source, Actis Energy 5 will focus largely on renewable energy assets and will be managed by Torbjorn Caesar, a senior partner at the firm who led Actis’s previous energy fundraises.

Actis has invested $5 billion across a series of funds to build platform companies managing power generation and electricity distribution assets in Latin America, Africa and South-East Asia.

The firm closed its fourth energy fund on $2.75 billion in March 2017. This vehicle drew commitments from LPs including the New York City Fire Department Pension Fund, Teachers’ Retirement System of the City of New York, Allstate Life Insurance and the International Finance Corporation. Actis Energy 4 was generating an 18.6 percent net return as of March 2019, according to a document published by the NYC Fire Department pension.

Actis Energy 4 has fully committed its capital to develop platform companies, including Atlas Renewable Energy, which builds and manages solar and wind projects in Latin America, and a wind-focused business called Echoenergia in Brazil.

In August, Actis closed its first dedicated infrastructure fund after raising $1.23 billion. The firm has described its Actis Long Life Infrastructure Fund as a “complementary strategy” to its energy vehicles. It pitched the fund as an opportunity for LPs to gain exposure to low-risk operational assets in markets that are not as risky as previously perceived. The vehicle has a 15-year lifespan and will invest in operating power, transmission, generation and distribution assets.

Actis declined to comment for this story.