New York-based growth equity firm, General Atlantic, managing $83 billion in assets, has agreed to acquire London-based energy infrastructure investor Actis, in a move to deepen its investment in sustainable infrastructure.
The deal, expected to conclude in the second quarter of 2024, will result in a combined platform with $96 billion in assets under management (AUM), spanning sustainable infrastructure, real estate, growth equity, and credit.
While financial terms of the acquisition are yet to be disclosed, the joint statement released by the companies stressed the creation of a diversified global platform.
Head of EMEA, and Head of Climate of General Atlantic, Co-President, Gabriel Caillaux, has expressed optimism about the deal, stating, “the acquisition of Actis extends our global footprint and diversifies our offering with an experienced investing team that has built a business on core tenets that align with ours.”
Actis currently manages $12.5 billion in assets across 17 countries, and is known for its investments in energy infrastructure projects in Africa. Notable projects include Accra Mall, Ikeja City Mall, Rack Centre, and the Azura Energy Project. Over the past two decades, Actis has invested over $2 billion in Africa’s energy infrastructure, focusing on utility-scale renewable projects, commercial and industrial solar plants, and power generation with natural gas.
Chief Investment Officer of Actis, Michael Harrington, also noted that the partnership with General Atlantic could potentially “enhance our offering through our combined expertise, networks, and geographical scope.”
Under the acquisition, Actis is set to become the sustainable infrastructure arm within General Atlantic’s investment platform. Actis will maintain its independence in investment decisions and processes, operating under its existing brand and continuing to be led by Chairman and Senior Partner, Torbjorn Caesar.
The deal reflects the growing interest among global investors in infrastructure investments, particularly in energy transition projects and data centres. The renewable energy sector, a significant segment of the global economy, is expected to require an annual investment of around $2.4 trillion by 2030.
General Atlantic’s acquisition of Actis follows an industry trend, as demonstrated by American multinational investment company, BlackRock Inc.’s recent agreement to acquire Global Infrastructure Partners (GIP) for approximately $12.5 billion. GIP, managing $100 billion, is owned by Nigerian banker-turned-investor Adebayo Ogunlesi.