General Atlantic (a leading global growth investor) and Actis (a leading global investor in sustainable infrastructure) announced that the firms have entered into a definitive agreement under which General Atlantic will acquire Actis, creating a diversified, global investment platform with approximately $96 billion in combined assets under management (AUM). The financial terms for the transaction are not being disclosed.
With about $12.5 billion in AUM, Actis has a track record of delivering competitive returns for institutional investors and a positive impact on the countries, cities, and communities in which it operates. And Actis, a firm with more than 140 investment professionals across its 17 global offices and over $25 billion in capital raised since inception, backs structural themes that support long-term, equitable growth in critical infrastructure across the energy transition, digital transition, and supply chain transformation.
Under the terms of the deal, Actis will become the sustainable infrastructure arm within General Atlantic’s global investment platform. And Actis will continue to be led by its Chairman and Senior Partner, Torbjorn Caesar, and will retain independence over its investment decisions and processes with its funds operating under the existing Actis brand.
General Atlantic launched in 1980 and deployed over $60 billion in global growth companies. Along with its flagship growth equity strategy, the firm’s investing activities span credit and climate solutions.
Actis and General Atlantic together will be uniquely positioned to unlock opportunities for investors that lie at the intersection of the energy transition, digitization, and the shift in economic dynamism to growth markets and beyond. And this partnership reinforces Actis and General Atlantic’s similar cultures and investment philosophies.
This deal creates a more diversified investing platform, bolstering General Atlantic and Actis as strategic long-term partners to both investors and management teams. And the acquisition advances General Atlantic’s strategic diversification by adding sustainable infrastructure as a distinct, complementary offering alongside its existing capabilities in Growth, Credit and Climate. Plus, General Atlantic expanded into Credit in 2020 with the creation of Atlantic Park, a joint venture, and formally established General Atlantic Credit in 2023. The firm established its inaugural Climate growth fund, BeyondNetZero, in 2021.
The deal delivers immediate scale and creates a broader set of investment solutions for investors. And following the combination, General Atlantic will manage approximately $96 billion of AUM across sustainable infrastructure, real estate, growth equity and credit. The partnership advances both firms’ strategic diversification, combining real assets with a range of investment strategies.
The deal brings together two global investors with a collective commitment to sustainability and supporting the energy transition. And the energy transition is a growing segment of the global economy that is expected to require annual investment of approximately $2.4 trillion by 2030. To address this need, the deal will strengthen the combined organization’s focus on delivering renewable power and scaling sustainable infrastructure.
The deal enhances General Atlantic and Actis’ capability to offer a global platform with deeper localized expertise. And Actis’ embedded, on-the-ground local teams bring expertise in building businesses and platforms across Asia, Latin America, the Middle East, and Africa. Plus, General Atlantic has been a pioneer in emerging market investing for 43 years, including in India, Latin America, and Southeast Asia. Together, the firms share local knowledge and operational experience in growth markets.
The deal aligns a strong strategic and cultural fit across the organizations. And General Atlantic and Actis are active company builders, operators, and partners to the businesses in which they invest, with a shared focus on value creation. Plus, the firms share a long-term view, global orientation, and talented teams committed to operational and investment excellence.
The deal is subject to customary closing conditions, including regulatory and anti-trust approvals and investor consents. And the transaction has been unanimously approved by General Atlantic and Actis’ management committees, respectively, and is expected to close in Q2 of 2024.
Morgan Stanley is serving as lead financial advisor to General Atlantic. And J.P. Morgan Securities LLC is also serving as financial advisor, and Paul, Weiss, Rifkind, Wharton & Garrison LLP and Ashurst LLP are serving as legal counsel to General Atlantic. Goldman Sachs and Campbell Lutyens are serving as financial advisors, and Kirkland & Ellis LLP is serving as legal counsel to Actis.
KEY QUOTES:
“Addressing the global paradigm shift toward 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. Torbjorn and the Actis team have built a business recognized for its talent, domain expertise, and commitment to investment excellence. This transaction brings together two highly complementary firms and enhances General Atlantic’s global investment platform with greater scale, broader strategies, and deeper and more local capabilities for deal sourcing and company building.”
— Bill Ford, Chairman and Chief Executive Officer of General Atlantic
“We have a shared commitment to deploying capital in sustainable infrastructure and the energy transition in the decades to come. The acquisition of Actis extends our global footprint and diversifies our offering with an experienced investing team that has built a business on core tenets that align with ours: a thematic approach to investing, focus on innovation and company-building, and long-term orientation. We look forward to creating value for our investors and management teams.”
— Gabriel Caillaux, Co-President, Head of EMEA, and Head of Climate of General Atlantic
“As active builders and operators embedded in local markets, we are excited to team up with a firm that shares our investment ethos and approach. This partnership has the potential to enhance our offering through our combined expertise, networks, and geographical scope.”
— Michael Harrington, Chief Investment Officer of Actis
