Clean energy and resource efficiency specialised fund manager Inspired Evolution is exiting a number of its renewable-energy investments, held under its Evolution One Fund portfolio, as the renewable-energy industry reaches maturity.
The $90-million Evolution One Fund, which focuses on the clean energy and environment sectors, has now sold its stake in three assets to an entity controlled by TriAlpha Investment Management’s clients.
Another indirect stake in a fourth asset, the 138.6 MW Cookhouse wind farm, was sold to Old Mutual Life Assurance, an existing shareholder in the project.
The successful exit of these assets and other earlier exits has allowed Inspired Evolution to return Evolution One’s entire capital back to its investors – all in just over six years from its final close.
To date, Inspired Evolution has been involved in 913 MW of renewable-energy generation projects and would now pursue a pipeline of new clean energy projects across sub-Saharan Africa at various stages of development.
“We are looking to adapt and replicate our successful active investment management approach, strengthening our position as a leading equity partner in the region with proven credentials,” said Inspired Evolution joint managing partner Christopher Clarke.
Moreover, this exit milestone comes simultaneously with the first closing of Inspired Evolution’s successor fund, Evolution II.
Evolution II achieved its first closing within one year after formally going to market, having raised $90-million from international investors, with one remaining investor commitment conditional on a final approval in early March.
Joint managing partner Wayne Keast said the fund’s investors comprised a mix of strategic international development finance institutions, specialised fund-of-funds and a family office.
Evolution II, a ten-year closed-ended fund, is targeting $250-million for a final closing by the end of the year. It targets sub-Saharan African countries where growth prospects, ease of doing business, policy and regulatory certainty, and political stability and bankability offer compelling investment opportunities.
The fund will contribute to addressing the growing need to replace ageing and inefficient carbon-intensive power plants, as well as contribute to building least-cost, low-carbon, clean and sustainable energy generation capacity to address the estimated 130 GW of suppressed demand across sub-Saharan Africa’s high-growth countries.
Evolution II will also contribute to the need for improved energy and resource efficiency measures across business activities that span key sectors in sub-Saharan Africa.