South African private equity firm Inspired Evolution, focussed on clean energy, has achieved financial close of its Evolution III Fund, raising $238mn for investment on the continent.

The Cape Town-headquartered entity announced on March 26 that the close attracted commitments from Oesterreichische Entwicklungsbank (OeEB), the Development Bank of Austria, and the World Bank's International Finance Corporation (IFC).

Evolution III targets investments in clean energy infrastructure, resource and energy efficiency, and energy access that seek to propel sustainable development across Africa.

The fund had its first close in March 2023 after it had secured $199mn from about seven investors including the European Investment Bank (EIB), FMO, the Dutch Development Bank and the African Development Bank (AfDB).

So far, the fund has made two investments in September 2023 and February 2024.

The first one was into Red Rocket Group, a renewable energy independent power producer which develops, designs, constructs and operates utility-scale grid-connected wind, solar and hydropower projects on the continent.  It, together with other investors acquired 75% of the group, adding $160mn of fresh capital to support Red Rocket in the development of its 10-plus gigawatt renewable energy pipeline.

In February 2024, Evolution III Fund concluded an investment in Equator Energy Ltd, a commercial and industrial solar provider in East Africa where its capital will support the platform to scale operations to 300 megawatts over the next 4-5 years.

Wayne Keast, Co-Founder and Managing Partner at Inspired Evolution said securing the $239mn from 19 investors is a "significant" achievement.

"With Evolution III, we are positioned to accelerate Africa’s transition to a clean energy future, driving impact through scalable, commercially viable renewable energy projects that deliver long-term value to communities and investors alike,” said Keast.

Cláudia Conceição, IFC’s Regional Director for Southern Africa said, “Africa’s growing population means it will soon be home to one-fifth of the world’s population, so the case to ramp up the supply of clean energy on the continent is clear.”