Emerging market specialist Actis has received a $75 million commitment from Teacher Retirement System of Texas last month for its debut infrastructure vehicle, according to an investment disclosure.
The vehicle, Actis Long Life Infrastructure Fund, hit its final close at $1.23 billion in August, after securing investments from institutional investors across North America, Europe, Latin America, Middle East, and Asia. The vehicle will invest in emerging markets, including Asia, Africa and Latin America.
Actis 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.
The infrastructure fund has a 15-year life instead of a typical buyout fund life of 10 years and will invest in energy assets, including renewable power, electricity, natural gas and others. Prior to this, Actis has been investing out of its fourth energy vehicle that closed at $2.75 billion in 2017.
Upon the final close of Actis Long Life Infrastructure Fund, the private equity firm said it has already identified and prioritised an executable pipeline of approximately $8 billion and has committed to investments which include a 100MW solar PV plant in the Atacama region of Chile which sells power to the Santiago Metro transit system and 137MW of operational wind generation assets located in Brazil.
We also reported the UK-based private equity firm is gearing up to launch its second Asian real estate fund, Actis Asia Real Estate II and may start fundraising by year-end. Its first Asia realty fund, Actis Asia Real Estate I, was closed at $750 million last July.
The new real estate fund will explore all segments of real estate investments, including residential, commercial aand logistics. Most of Actis Asia Real Estate I was used to acquire the principal finance real estate business of Standard Chartered’s private equity arm, which was looking to shut shop.
Actis also recently took over two private equity funds previously managed by collapsed buyout firm Abraaj, in a deal aimed at strengthening its position in the Middle East and Africa. The deal includes investments in 14 portfolio companies across the two funds.
Formerly part of the British government’s development arm CDC, Actis is a global platform offering a multi-asset strategy through private equity, energy, infrastructure, and real estate. Founded in 2004, it has since raised $15 billion in its life and invested $7.8 billion across the four asset classes.