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Actis closes fourth energy fund at $2.75 billion, exceeding its target

A solar energy farm in Africa.

Actis closed its private equity energy fund Actis Energy 4 at the hard cap of $2.75 billion, exceeding its $2 billion target, in just more than seven months.

The fund was significantly oversubscribed, said a news release Monday.

The fund invests in select countries in Latin America, Africa and Asia, and targets control investments in electricity generation and distribution businesses.

The fund already has a strong pipeline of deals, which require $2 billion of deal equity and are either completed or in late stages. The firm's previous global energy fund, Actis Energy 3, closed at $1.15 billion in 2013.

“The demand for new investment within the electricity sector is $1.5 billion every day with renewable energy generating $500 million of investments per day in non-OECD countries,” said Mikael Karlsson, partner and co-head of energy business at the firm, in the news release.

Investors include the $8.3 billion Arizona Public Safety Personnel Retirement System, Phoenix; and $7.6 billion New Hampshire Retirement System, Concord.

Actis, which launched in 2004, has raised $12 billion since inception, a spokeswoman said.