Asset management company Stanlib Asset Management has announced the first close of the Stanlib Khanyisa Energy Transition Fund, with R5-billion raised to date.

The fund aims to mobilise capital from long-term investors to help finance South Africa’s just energy transition ambitions.

Launched in November 2023 with an undertaking of seed funding from Standard Bank and Liberty, the Stanlib Khanyisa Energy Transition Fund seeks to contribute to investment in transformational energy and infrastructure assets in South Africa.

In December 2025, the fund recorded its first close at R5-billion of capital raised, which has been deployed across 14 operating assets being developed under the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).

Johan Marnewick, head of fixed income private markets at Stanlib Asset Management and the fund’s portfolio manager, says the fund represents a unique opportunity to access mature, cash flow generating assets that have been packaged to provide yield-enhancing outcomes for investors.

“The first close of the fund represents a significant milestone for Stanlib and the wider Standard Bank Group as we leverage our strengths to raise more developmental capital into the country,” he says.

“Energy transition and related developmental infrastructure has been a large capital formation theme in the country for a number of years; however, in many ways the industry is still nascent, with enormous potential to unlock growth and empower businesses and residents alike through ongoing investment.

“Reaching this point drew on our technical expertise and rigorous investment processes – the future success will depend on ongoing skills in sourcing and selecting the right assets and a focused approach to downside risk management,” he adds.

Over time, the company says, the fund is expected to grow to R18-billion, with assets in renewable energy; decentralised energy such as rooftop solar; developmental and related infrastructure; minerals critical to the energy transition; green hydrogen; and the transport revolution, which includes, for example, battery technology, electric vehicle infrastructure and sustainable mobility solutions.

The Stanlib Khanyisa Energy Transition Fund aims to support one of the central themes of COP29: mobilising climate finance to help developing countries address climate change, including adaptation and mitigation efforts.

The fund is part of the Stanlib Khanyisa Suite of Funds, which includes the Stanlib Khanyisa Impact Investment Fund.

Stanlib notes that the latter invests in various themes that contribute to fulfilling the UN Sustainable Development Goals, demonstrating Stanlib’s commitment to social and environmental impact.

The company explains that Stanlib Khanyisa Energy Transition Fund’s target investors are retirement funds, life insurance companies and investors such as fixed income asset managers and development finance institutions.

The company says the fund seeks to deliver compelling risk-adjusted returns from a portfolio of credit instruments that include investment-grade South African corporate debt, asset-backed finance, and development and project finance.

“The fund invests in credit assets which offer predictable cash flows within lower-risk parameters to meet the return objectives of investors.

“These assets are often not available on listed, more traditional markets and provide access to real economy business opportunities that have diversification benefits for investment portfolios,” says Marnewick.

“In constructing a diversified portfolio, we are demonstrating that a commitment to socioeconomic stewardship and the pursuit of good financial returns are not mutually exclusive.”

Stanlib Fixed Income Private Markets is part of Stanlib’s Fixed Income investment team which manages R375-billion in assets.

The private markets team manages R60-billion in assets and has originated transactions worth more than R150-billion. This team also manages the Stanlib Khanyisa Impact Investment Fund and the SA Diversified Credit Fund.

Stanlib says it is committed to having a positive impact on the rebalancing of South Africa's economy for a sustainable future.

“By harnessing the experience and strength of its financial services industry, South Africa has the potential to be a trailblazer in energy transition industries in the Global South, making a successful transition to clean, sustainable energy technologies that are more efficient than the pre-existing fossil heavy technologies and in this way allow the economy to compete at a global level, providing the jobs and socioeconomic cushion so often sought in the context of the energy transition debate,” says Marnewick.