Actis closes $1.7bn fund to expand emerging markets infrastructure play

Actis, the UK-based private equity firm specialising in infrastructure, has closed its second Actis Long Life Infrastructure Fund (ALLIF2) with $1.7 billion in investor commitments. The fund targets brownfield infrastructure assets across high-growth regions, including Asia, Latin America, Central and Eastern Europe, the Middle East, and Africa.

ALLIF2 focuses on sectors such as renewable energy, electricity transmission and distribution, district cooling, toll roads, and digital infrastructure. Its strategy prioritises operational improvements over capital-intensive development, aiming to deliver long-term, stable returns through moderate leverage and predictable cash flows.

The firm has already deployed close to half the fund’s capital. In March 2025, it acquired 100% of Stride Climate Investments, a portfolio of 21 solar assets in India. This followed two separate acquisitions of electricity transmission assets in Brazil in December 2024 as Actis expanded its Latin American transmission platform.

The fund drew backing from both existing and new limited partners, including pension funds, sovereign wealth funds, insurers, and funds of funds from Europe, North America, Asia, and the Middle East.

“Investors are looking for the resilience, scale, and relevance that our long-life infrastructure platform offers – and we are gratified by the strong endorsement of this strategy,” said Torbjorn Caesar, chairman and senior partner at Actis.

“It’s clear from our experience that regions outside the West, in the more populated and faster-growing parts of the world, are where compelling infrastructure opportunities can be found. That remains the case today.”

Actis raised $1.3 billion for its first long-life infrastructure fund in 2019. The firm has raised more than $26 billion since inception, with investments in energy, infrastructure, and real estate. In October 2024, it merged with US private equity firm General Atlantic, creating a global investment platform with $108 billion in assets under management.

Analysis: UK and European institutional investors are accelerating their shift towards infrastructure in high-growth markets, drawn by macroeconomic divergence, portfolio diversification needs, and increasing ESG constraints. Capital is flowing into operational assets — particularly those in energy, digital, and transport infrastructure — that offer long-term, inflation-linked income with limited development risk.

Global unlisted infrastructure fundraising reached $149 billion in 2023, nearly double 2020 levels, according to Preqin. European investors accounted for more than 25% of this total, with rising interest in assets aligned with energy transition goals and digital connectivity. Defined benefit pension funds and sovereign vehicles, under pressure to match long-dated liabilities, are prioritising infrastructure strategies offering stable, absolute returns.

Growth markets are a particular focus. India’s economy is projected to expand by 6.5–7% annually through 2027, with infrastructure at the core of its development model. The country is targeting 500GW of non-fossil fuel capacity by 2030 and adding nearly 100GW of solar by 2027.

Brazil, meanwhile, plans to expand its electricity transmission network by more than 10,000km over five years, with private capital playing a central role. In Africa, the infrastructure investment gap remains substantial —estimated at $68–$108 billion per year — creating opportunities in the power, digital, and transport sectors.

This divergence presents a compelling macro backdrop for UK and European investors facing sub-1% GDP growth at home. Infrastructure in growth markets benefits from favourable demographics, rising consumption, and structural demand for energy and logistics — all within sectors insulated from short-term business cycles. Many assets are regulated or benefit from long-term offtake agreements, offering visibility on cash flows.

ESG compliance is now integral to allocation decisions. In the EU, sustainable investment rules such as the Sustainable Finance Disclosure Regulation (SFDR) are reshaping portfolio composition. Funds qualifying under Article 8 or 9 are increasingly mandated.

As a result, infrastructure platforms with demonstrable environmental benefits — solar, grid resilience, energy efficiency, and fibre networks — are gaining favour, particularly when supported by strong governance and impact metrics.

Investors are also seeking geographical diversification. Public infrastructure pipelines across continental Europe are often delayed by bureaucracy, limited by political constraints, or already oversubscribed with competing projects. In contrast, markets in Southeast Asia, sub-Saharan Africa, and parts of Latin America offer scale, growth, and faster deployment timelines — especially for experienced operators with a local footprint. These markets also present a degree of decoupling from developed-world monetary cycles and offer uncorrelated sources of return.

The calculus for institutional allocators is increasingly clear — low-growth domestic markets, tightening ESG regulations, and high volatility across traditional asset classes make real assets in emerging economies a strategic priority.

Infrastructure offers a rare combination of resilience, long-duration income, and alignment with global priorities such as the energy transition and climate goals. With investor appetite broadening and operational capability deepening, growth market infrastructure is no longer niche — it is rapidly moving into the institutional mainstream.