Actis LLP, a London-based private-equity company, raised $1.15 billion from pension and sovereign wealth funds to invest in electricity businesses, exceeding its target by more than 50 percent.
The Actis Energy 3 fund will focus on power generation and distribution in Latin America, Africa and Asia, the company said today in a statement. It beat a goal to raise $750 million after picking up institutional investors in the U.S., Europe and Asia.
Actis is seeking expansion in emerging markets where energy use is outpacing production as populations expand while resources decline. Global demand is set to rise by a third by 2035, driven by consumption in India and Southeast Asian countries, the International Energy Agency said in November.
“Electricity in the emerging markets faces high demand growth but remains a scarce commodity in Latin America, Asia and Africa,” Torbjorn Caesar, Actis co-head of energy, said in the statement.
The fund has already committed $560 million. Purchases this year include a stake in Brazilian renewable-energy company Atlantic Energias Renovaveis SA and an interest in Chilean wind and solar power provider Aela Energia.
In Africa, Actis agreed in March to buy Veolia Environnement SA’s Moroccan water and electricity services. It’s also set to take ownership of a majority stake in Cameroon’s national grid, subject to approval.
The fund can tap $262 million of “discretionary co-investment” if needed, according to today’s statement.
