fund level – in order to enhance competition for the business and thereby maximise the return to its investors at the relevant time . As the number of successful exits delivered increase , so too does the strength of the private equity house ’ s track record and thereby , its fundraising capability .
Examples of such platforms include Globeleq , which has been realised by private equity house Actis . At the time that Actis exited Globeleq , which was launched in 2002 , it operated a portfolio of assets with a total of 1,234MW of generating capacity in more than seven countries across Africa . This platform was in a fund managed by Actis that achieved a US $ 750m close in late 2009 . Other Actis energy platforms include Azura Power , Lekela Power and BioTherm Energy . These platforms were established using capital from funds managed by Actis that raised a total of US $ 1.14bn in 2013 and US $ 2.75bn in 2017 .
African Infrastructure Investment Managers ( AIIM ) has also established platforms such as AIIM Hydroneo , a hydro power platform and BBOXX , an off-grid utility platform . These platforms were established using capital from a fund managed by AIIM that raised a total of US $ 399m in 2019 . Others that can be seen adopting this approach include Helios Investment Partners , Denham Capital and Harith General Partners .
Conclusion A growing number of private equity houses are aggregating energy assets into scalable regional platforms in Africa . This approach enables them to overcome the challenges associated with the renewable energy sector as well as providing them with the flexibility to deliver successful exits , and thereby the desired level of return for their investors . This then provides such private equity houses with a strong track record that enables them to attract the private capital that the continent requires to further develop . Establishing , building and realising value from these platforms , regardless of size , requires legal as well as financial and tax advisers who are adept at navigating the nuances and complexity of these structures . •
Footnotes 1 The Economist Special Report , April 28 2020 2 Africa in 50 Years ’ Time , The Road Towards Inclusive Growth , African Development Bank , Tunis , Tunisia , September 2011 3 The African Development Bank , last accessed on February 22 2021 4 African Economic Outlook 2020 , last accessed on February 22 2021 5 See footnote 1 6 See footnote 1 7 The AVCA 2020 H1 African Private Equity Data Tracker , September 30 2020 8 See footnote 1 9 Africa 2030 : Roadmap for a Renewable Energy Future , International Renewable Energy Agency , last accessed February 22 2021 10 AIP Conference Proceedings 1734 , 110002 ( 2016 ) published online May 31 2016
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68 Project Finance International March 10 2021