Emerging markets specialist Actis expects to hold the final close of its debut infrastructure vehicle at over $1.5 billion, including co-investments from its limited partners (LP), an industry executive aware of the development told DealStreetAsia.
The vehicle, Actis Long Life Infrastructure Fund, will invest in emerging markets, including Asia, Africa and Latin America. Its final close primarily depends on how soon a couple of LPs can close capital commitments or co-investments, the executive said.
The infrastructure fund, which will have a 15-year life instead of a typical buyout fund life of 10 years, will invest in energy assets, including renewable power, electricity, natural gas and others.
When contacted, an Actis spokesperson declined to comment for this story.
An established energy investor, Actis is currently investing out of its fourth energy vehicle that closed at $2.75 billion in 2017.
The PE firm started raising its inaugural infrastructure fund almost a year and a half ago with a target to gather $2 billion. It is understood that the target corpus was reduced to provide LPs with more opportunities for co-investments.
Actis is witnessing healthy demand for co-investments for the infrastructure vehicle, which makes the firm confident of gathering over $1.5 billion in total investable capital, said another executive.
The firm’s LP base for the fund includes a large number of non-Asian investors and a few prestigious Asian investors. Last month, it was reported that the South Carolina Retirement System had approved a commitment of $75 million to the fund.
Early last year, the infrastructure fund completed an investment in El Pelicano Solar Company SpA, a renewable energy producer owning a 110-megawatt (DC) solar plant in Chile.
The fund is currently exploring potential investments in Asia. It is learnt that Actis is particularly looking at deals in India, a country where it has already made several investments out of its fourth energy fund.
Other investments from its energy fund include those in Latin American firm Atlas Renewable Energy, pan-African energy player Azura, India-based SPRNG Energy, Saavi Energia in Mexico and Echoenergia in Brazil.
Actis is also an investor in real estate and technology, apart from energy and infrastructure. Formerly part of CDC, the UK government’s development arm, Actis is a global platform offering a multi-asset strategy through private equity, energy, infrastructure, and real estate. It has raised $15 billion in total capital and invested $7.8 billion so far.
The firm is also preparing to launch its second Asia-focused real estate vehicle, which follows Actis Asia Real Estate I, a $750-million vehicle that was closed in July 2018. It was raised largely to acquire the principal finance real estate business of Standard Chartered’s private equity arm.