Actis to receive US$100m from Korea’s National Pension Service for green energy projects

GLOBAL– UK based private equity firm, Actis LLP has secured a funding commitment from The National Pension Service of Korea for investment in green energy projects across Africa, India and Latin America.

A report by Africa Energy Portal indicated that the National Pension Service committed to investing between US$100 million and US$200 million in the private equity firm.

Actis LLP said it will invest in renewable energy projects that include wind and solar power in emerging markets across Latin America, Africa, India, and others.

The equity firm further noted that respective countries are expected to provide guarantees for the investments given the risk in these markets, despite huge growth potential.

The Actis Energy 5, the private equity’s fifth green energy infrastructure fund, is aiming to raise $4 billion in total for investments in renewable energy projects across the globe.

The fund has so far raised $2.9 billion in its first round of fundraising, with commitments from around 20 institutional investors.

Some of the funds notable investors include the Employees Retirement System of Texas and Denmark’s Industriens Pension.

In addition to offering high returns, the energy fund also encompasses Environmental, Social, and Governance (ESG) criteria, which have increasingly become the global investment standard.

Earlier this year the South Korean pension fund added “sustainability” to its fund management guidelines, alongside efforts to steadily increase ESG investments in its portfolio.

This shift investment policy might have greatly influenced the National Pension Service to commit to investing in the Actis 5 green energy fund.

“The fund is popular among institutions because it covers ESG standards and also provides satisfying returns,” said a source from the investment banking industry.

The NPS previously invested into Actis Energy Fund 4, which completed its funding in 2017 with $2.75 billion.

Actis has been active in its Korea-bound investments and in May, Actis offloaded Young City, a grade-A twin-tower office building in Mullaedong, western Seoul, for $447.4 million.

Later in June, the private equity firm was selected as the preferred bidder to acquire Pfizer Korea’s office building in Myeongdong, Seoul.

In 2004, Actis spun off from the Commonwealth Development Corporation to specialize in emerging countries’ energy and infrastructure investments and as of 2020, Actis manages $12 billion of assets under management.

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