Global growth investment firm General Atlantic is creating an infrastructure division with the acquisition of $12.5bn (€11.5bn) global sustainable infrastructure manager Actis.
General Atlantic has agreed to buy Actis to create a diversified, global investment platform with $96bn in combined assets under management (AUM).
Financial details were undisclosed.
Once the transaction, which is subject to approvals, is completed, Actis will become the sustainable infrastructure arm within General Atlantic’s global investment platform.
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, the companies said.
Actis which has more than 140 investment professionals across its 17 global offices, backs structural themes that support long-term, equitable growth in critical infrastructure across the energy transition, digital transition, and supply chain transformation.
According to IPE Real Assets Top 100 ranking of infrastructure fund managers, Actis ranked 50th last year.
General Atlantic, founded in 1980, has deployed more than $60bn in global growth companies. In addition to its flagship growth equity strategy, the firm’s investing activities span credit and climate solutions.
Bill Ford, chairman and CEO of General Atlantic, said: “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.”
Ford said the transaction brings together two 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.
Caesar said: “The combined firm brings together distinct but highly complementary strategies that unlock long-term value for our investors across key structural themes including the energy transition and digital transition.
“The whole is greater than the sum of the parts. Both firms also have a hands-on approach to building businesses and platforms, and a shared commitment to sustainability.”
Gabriel Caillaux, co-president, head of EMEA, and head of climate at General Atlantic, said: “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.”
Michael Harrington, CIO of Actis, said: “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.”
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