US growth equity major General Altantic has agreed to acquire Actis, a UK infrastructure investor, in a merger that would add about $12.5 billion in assets spanning energy transition, digitalisation transition, and supply-chain transformation to the firm.
The deal will create a combined platform of $96 billion in assets under management for General Atlantic, which will integrate Actis as its sustainable infrastructure arm, according to a Tuesday statement.
Actis, however, will continue to operate under the leadership of its current chairman Torbjorn Caesar and retain independent investment decisions and processes of its funds under the same brand, the statement added.
The transaction is expected to close in the second quarter of 2024. Other financial particulars were not disclosed.
“The combined firm brings together distinct but highly complementary strategies that unlock long-term value for our investors across key structural themes including energy transition and digital transition,” said Caesar.
Founded in 2004, Actis has over 140 investment professionals across its 17 global offices and over $25 billion in capital raised. Its investment strategies range from real assets to private equity.
The merger will complement Global Atlantic’s investment solutions that range from real assets and growth equity to private credit. The firm, which reportedly filed for a US IPO in 2023, has participated in climate investing through a fund managed by a sector-focused platform BeyondNetZero, which was launched in 2021.
The merger news comes just days after the $12.5-billion deal between BlackRock and GIP announced on Friday which would elevate BlackRock to one of the world’s biggest investment platforms.
Known as the latecomer in the world of private alternative investments, infrastructure has become one of the hottest sectors for money managers looking to diversify their portfolios amid rising economic uncertainties.
The combined platform will also address the world’s energy transition segment that is expected to require approximately $2.4 trillion in annual investment by 2030, the statement said.
“Addressing the global paradigm shift towards sustainability requires an economic transformation and a capital investment on a massive scale. With the addition of Actis, we are taking a significant step forward to add a sustainable investment capability which positions General Atlantic to capture this opportunity set for our investors,” said Bill Ford, Chairman and CEO of General Atlantic, in a statement.
Should the transaction be completed, General Atlantic will be joining several of its US industry peers with dedicated funds investing across different spectrum of infrastructure such as Blackstone, KKR, and I Squared Capital.