Inspired Evolution, a Cape Town-based private equity focused on clean energy, closed its third Evolution Fund at $238 million. That’s just over half of the fund manager’s $400 million goal – a signal of the continued tough fundraising environment.
Nearly 20 investors participated, including fresh commitments from the Development Bank of Austria and the International Finance Corp. The fund, which launched in 2022, also drew funding from the Swiss Investment Fund for Emerging Markets, the Emerging Markets Climate Action Fund, the African Development Bank, the Mauritius Investment Corp. and nine investors via advisory firm Align Impact.
The fundraise represents “a significant achievement in the current fundraising environment and demonstrates the confidence that leading global and regional investors have in our strategy and execution capabilities,” said Inspired Evolution’s Wayne Keast.
Energy transition
Evolution III provides growth equity for clean energy infrastructure, energy access and efficiency projects across Africa. The fund in 2023 invested $80 million in South African independent power producer Red Rocket as part of a larger $160 million co-investment it led with FMO and French infrastructure impact fund STOA Infra and Energy.
The fund’s predecessor, Evolution II, previously held a majority stake in Red Rocket Group, following a 2020 buy-out and rebrand of Building Energy.
The funding secured the group’s 75% stake in Red Rocket’s utility-scale clean energy infrastructure. It has also invested, alongside STOA and Mauritian renewable energy developer IBL Energy, in Equator Energy which provides commercial and industrial solar solutions in East Africa.
