Actis has announced that it completed fundraising for the flagship Actis Long Life Infrastructure Fund (ALLIF). The ALLIF fund was raised by the in-house team at Actis and represents over $1.23 billion of fund commitments. Along with co-investment, it delivers up to approximately $2 billion of investable capital for this new strategy. The fund is a complementary strategy to Actis’ existing energy business and will originate operating infrastructure assets across Latin America, Africa and Asia while driving operational improvements over a long term holding period. According to Actis, the resultant stable contractual cash flows will make these highly attractive assets for investors seeking stable cash yields over time.
It will be the first time they have raised capital for the built environment with African investments in mind since closing their 3rd opportunistic private real estate fund, Actis Africa Real Estate Fund 3 (ARE3) in mid-2016 with commitments totalling more than $500 million, exceeding their original $400 million target.
According to the Actis team, ALLIF 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 will await news on pipeline deals on the African continent.
Actis has committed over US$5 billion to 34 investments across 25 countries – generating 25GW and providing electricity to nearly 90 million customers.
Torbjorn Caesar, a Senior Partner at Actis, said: “Actis is uniquely positioned to deliver the ALLIF strategy- it is entirely complementary to the experience and reputation we have amassed in our existing Energy business, now in its fourth vintage. ALLIF provides an attractive risk reward profile to invest longer term in a sector and in markets that we know extremely well. It is fantastic that our investors share our vision for the strategy which I believe will be a significant part of Actis’ future.”
Neil Brown, Partner and Head of the Investor Development Group at Actis also added: “Actis has always been a pioneer in mobilising capital to invest in the growth markets. I am enormously proud that we have brought such thoughtful investors on-board for the first vintage of ALLIF – the deep engagement during the fundraise and the appetite for co-invest is a real testament to the strength of the team and the strategy.”
Fund counsel was provided by Weil, Gotshal & Manges LLP.