British emerging markets-investor Actis has filed documents to register its first Mexico-based, 50-year CERPI investment fund, according to public filings.
In a 7 March prospectus, the company revealed that Actis Gestor de Capital Mexico will administer the CERPI vehicle with a view to raising capital to invest directly or indirectly in Actis’ existing and future funds.
The fund will have a six-year investment period and is seeking gross returns of between 14%-16% in infrastructure and 20% gross returns on energy and financial services investments.
The fund will adhere to Actis’ investment strategies in infrastructure, energy and financial services and must contribute at least 10% of its investment to Mexican companies or projects through Actis’ vehicles.
Credit Suisse is the placement agent for the CERPI certificates while Creel, García-Cuéllar, Aiza y Enríquez are the legal and tax advisors. Ritch, Mueller, Heather y Nicolau are Credit Suisse’s legal advisors.
The asset manager administers USD 9.2bn across circa 230 investments in more than 40 countries in Africa, Asia and Latin America as of 31 December 2018.
According to the prospectus, Actis’ four energy funds to date have achieved the following results:
|Fund||Vintage||Investments/Exits||Capital invested (USD m)||Capital distributed (USD m)||Net IRR|
|Actis Energy I||2002||16/16||606||1,349||20%|
|Actis Energy II||2007||6/5||717||1,398||16%|
|Actis Energy III||2013||6/1||869||503||10%|
|Actis Energy IV||2016||6/0||1,300||–||18%|
|Long Life Infrastructure Fund||2017||1/0||70||–||–|
Inframation reported in February that Actis has raised USD 900m to date for its first infrastructure-focused fund Actis Long Life Infrastructure Fund.
The Long Life fund made its first investment in the 110MW El Pelicano solar PV plant in Chile in January 2018.
The company is also in the process of selling 800MW renewables platform company Zuma Energía in Mexico, which is co-owns with Central American firm Mesoamerica (30%).
Actis Energy IV paid USD 1.26bn for the acquisition of the 2.2GW Intergen gas and wind portfolio in April 2018, converting the acquired projects into platform company Saavi Energía.
According to the prospectus, Actis’ strategy involves the acquisition, maintenance and improvement of long-term contracted, operational infrastructure across Africa, Asia and Latin America.
Actis aims to hold controlling stakes in assets for a minimum of ten years, so as to invest in and upgrade assets to achieve greater returns. The company principally seeks electricity generation or distribution and transmission projects as well as energy projects like pipelines.