General Atlantic, the growth equity firm headquartered in New York boasting $83 billion in assets under management (AUM), has entered into an agreement to acquire Actis, an energy infrastructure investor based in London with a focus on projects in Africa. The acquisition is part of General Atlantic’s strategic move to deepen its investments in sustainable infrastructure.
Expected to be finalized in the second quarter of 2024, the deal will result in the creation of a diversified global platform with a combined AUM of $96 billion, according to a joint statement released by both companies on Tuesday. While specific financial details remain undisclosed, the acquisition expands General Atlantic’s portfolio to encompass sustainable infrastructure, real estate, growth equity, and credit.
Gabriel Caillaux, Co-President, Head of EMEA, and Head of Climate at General Atlantic, highlighted the significance of the acquisition, 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, managing $12.5 billion in assets across 17 countries, has made substantial investments in infrastructure projects in Africa, including the Accra Mall, Ikeja City Mall, Rack Centre, and the Azura Energy Project. Notably, Actis has dedicated over $2 billion to energy infrastructure in Africa, contributing to utility-scale renewable projects, commercial and industrial solar plants, and power generation with natural gas over the past two decades.
Michael Harrington, Chief Investment Officer of Actis, expressed optimism about the partnership with General Atlantic, emphasizing that it will “enhance our offering through our combined expertise, networks, and geographical scope.” As part of the acquisition, Actis is set to become the sustainable infrastructure arm within General Atlantic’s investment platform. The company will maintain its independence over investment decisions and processes, with its funds continuing to operate under the Actis brand. Torbjorn Caesar, Chairman and Senior Partner of Actis, will retain leadership of the company.
This strategic move comes at a time of heightened interest in infrastructure investments, as global investors increasingly recognize opportunities in energy transition projects and data centers. The renewable energy sector, in particular, is gaining momentum and is projected to require an annual investment of approximately $2.4 trillion by 2030. Just last week, BlackRock Inc., the world’s largest asset manager, announced its agreement to acquire Global Infrastructure Partners (GIP) for around $12.5 billion. GIP, managing $100 billion, is owned by Adebayo Ogunlesi, a Nigerian banker turned investor.
As sustainability becomes a focal point for investors globally, the General Atlantic-Actis deal underscores the commitment of major financial players to contribute to the transition toward greener and more resilient infrastructure. The combined resources and expertise of General Atlantic and Actis position the newly formed entity to play a significant role in addressing the challenges and opportunities presented by the evolving landscape of sustainable investments.
In conclusion, the acquisition reflects a strategic alignment of values and expertise between General Atlantic and Actis, paving the way for a formidable force in the realm of sustainable infrastructure investment. As global markets continue to prioritize environmentally conscious initiatives, the newly formed entity is poised to make a meaningful impact on the development and advancement of green projects around the world.
Source: Techcabal