General Atlantic to acquire Actis in strategic $96bn AUM merger

General Atlantic, a leading global growth investor, and Actis, a key player in sustainable infrastructure investment, have announced a definitive agreement for General Atlantic to acquire Actis. This deal, pivotal in the investment world, creates a diversified global investment platform with approximately $96 billion in combined assets under management (AUM).

Actis: A Track Record of Success and Positive Impact

Actis, with approximately $12.5 billion in AUM, is renowned for delivering competitive returns and creating positive impacts in its operational regions. The firm has raised over $25 billion since inception, focusing on long-term, equitable growth in critical infrastructure areas, including the energy transition, digital transition, and supply chain transformation.

Strategic Integration within General Atlantic’s Platform

Under the agreement, Actis will integrate into General Atlantic’s global investment platform as the sustainable infrastructure arm. Led by Chairman and Senior Partner, Torbjorn Caesar, Actis will maintain independence over its investment decisions and continue to operate under its brand.

Major Investment Merger: General Atlantic to Acquire Actis, Expanding Sustainable Infrastructure

General Atlantic’s Growth and Investment Prowess

Founded in 1980, General Atlantic has deployed more than $60 billion in global growth companies. Its investing activities span credit and climate solutions, alongside its flagship growth equity strategy.

Synergy of Actis and General Atlantic

The partnership between Actis and General Atlantic is uniquely positioned to explore opportunities at the intersection of energy transition, digitization, and economic dynamism in growth markets. This merger underscores the firms’ similar cultures and investment philosophies, focusing on long-term value creation.

Leadership Perspectives on the Merger

Bill Ford, Chairman and CEO of General Atlantic, emphasized the global shift towards sustainability and how Actis’s addition enhances General Atlantic’s investment capabilities in this domain. Torbjorn Caesar expressed excitement about joining forces with General Atlantic, citing the complementary strategies that unlock long-term value. Gabriel Caillaux, Co-President, Head of EMEA, and Head of Climate at General Atlantic, highlighted the shared commitment to sustainable infrastructure investment.

Strategic Rationale Behind the Merger

The merger brings a diversified investment platform, enhancing long-term partnerships with investors and management teams. It combines real assets with a range of investment strategies, from sustainable infrastructure and real estate to growth equity and credit. Together, the firms will address the growing need for renewable power and sustainable infrastructure, which is crucial for the global economy.

Closing Conditions and Approvals

Subject to customary closing conditions, including regulatory and anti-trust approvals, the transaction is expected to close in Q2 2024. It has received unanimous approval from both management committees.

Advisors for the Transaction

Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC served as financial advisors to General Atlantic, with legal counsel from Paul, Weiss, Rifkind, Wharton & Garrison LLP and Ashurst LLP. Goldman Sachs and Campbell Lutyens advised Actis, with Kirkland & Ellis LLP as legal counsel.

This merger marks a significant step in the evolution of global investment strategies, creating a powerhouse in sustainable infrastructure and diversified investment solutions.