IFC, part of the World Bank Group, has announced it is to invest in Actis Energy 4.
IFC proposed a equity commitment of up to US$65 million for IFC’s account and up to US$35 million for AMC’s account in the Fund.
Actis Energy 4 is a fund which plans to invest in power generation and distribution assets in emerging markets in Africa, Asia and Latin America. The target size of the fund is US$2 billion, to be raised over one or more closings.
The fund will be comprised of one or more limited partnerships established under the laws of England and Wales and will be managed by Actis GP LLP, a private equity investor in emerging markets which is authorized and regulated by the United Kingdom Financial Conduct Authority.
The fund is a 4th generation successor fund to: Actis Energy 1, a US$606m portfolio of assets established in 2002; Actis Infrastructure 2, a US$752 million fund closed in 2007; and Actis Energy 3, a US$1.15 billion fund closed in 2013.
IFC's commitment would help to stimulate the much needed investment in energy infrastructure in emerging markets, including markets such as Africa, which have large infrastructure investment needs. In addition, IFC's investment in the fund would contribute to increasing access to electricity in developing markets, which would help to drive growth in business activity and job creation.
IFC is an existing investor in two Actis–managed real estate funds, Actis Africa Real Estate 2 and Actis Africa Real Estate 3.