AFRICA – Fortis Green Renewables Investment Management, an investment firm providing capital to small-scale renewable energy assets in Sub-Saharan Africa, has recently held the initial close in its Green Fund I.
The Fund is raising capital from American individuals, family offices, and wealth management firms.
The Fund raised US$6 million thus far and was aiming to raise US$10 million by end of August 2021, according to Jonathan Shafer, Managing Director and Co-founder.
Overall, the Fund is targeting US$20 million.
Green Fund I was formed to invest equity and equity-like capital in greenfield and operating small-scale renewable energy assets located in Sub-Saharan Africa, with an initial focus on East Africa.
Multiple power-producing technologies will be considered, but an initial focus will be placed on run-of-the-river hydropower operating and greenfield assets.
Shafer said that 600 million people in Africa still lack access to power, and it is largely a matter of woefully insufficient supply.
“Developers working on small-scale renewable energy assets in Africa can struggle to raise equity because most firms will not make investments under US$10 million”
“There simply is nowhere near enough power relative to demand. We are excited to address this shortfall via responsible generation technologies while also pioneering a way for American individuals and family offices to invest for both profit and impact in these types of green African infrastructure assets.”
Benito Grimaudo, Managing Director and Co-founder added: “Developers working on small-scale renewable energy assets in Africa can struggle to raise equity because most firms will not make investments under US$10 million. Also, very few firms investing equity are also interested in creating tailored equity-like packages for their clients (i.e. mezzanine equity).”
“We have an opportunity to create something to help developers, while also increasing the supply of available power in Sub-Saharan Africa.”
Fortis Green Renewables Investment Management invests in responsible power for Africa’s future by providing flexible equity and equity-like capital to both greenfield and operating renewable energy assets.
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