Pan-African private equity firm Inspired Evolution has announced the final close of its Evolution III Fund, securing USD 238 million in commitments to support renewable energy projects across the continent.
The fund will target utility-scale, grid-connected independent power producers, decentralized commercial and industrial energy solutions, off-grid technologies, and energy-as-a-service microgrid infrastructure.
Evolution III reached its first close in March 2023, raising USD 199.4 million from prominent institutional investors, including the European Investment Bank (EIB), FMO, the African Development Bank (AfDB), Finnfund, Swedfund, and the Swiss Investment Fund for Emerging Markets (SIFEM). A second close in May 2024 added ten new investors, such as the Mauritius Investment Corporation (MIC) and impact-focused partners via Align Impact.
The final close attracted additional backing from Oesterreichische Entwicklungsbank (OeEB) and the International Finance Corporation (IFC), further expanding the fund’s investor base. Building on the success of its predecessors, Evolution III will focus on clean energy infrastructure, energy efficiency, and expanding energy access to drive sustainable development in Africa.
“Reaching a final close with commitments of USD 238 million from 19 investors is 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 Wayne Keast, Co-Founder and Managing Partner at Inspired Evolution.
The Evolution III Fund has already invested in two companies. Its first investment, made in September 2023, was in Red Rocket Group, a major renewable energy company that builds and operates large-scale solar, wind, and hydropower projects, mainly in South Africa. The fund and its partners bought a 75% stake in Red Rocket and provided $160 million to help grow the company’s pipeline of projects, which could generate over 10 gigawatts of clean energy.
In February 2024, the fund made its second investment in Equator Energy Ltd, a top solar power provider for businesses in East Africa. Evolution III joined other investors to take a minority stake in the company, supporting its expansion plans to reach 300 megawatts of solar capacity within the next four to five years.
Commenting on behalf of the IFC, 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. IFC’s investment in the Evolution III fund is a step towards achieving Mission 300, an ambitious World Bank Group initiative to accelerate the pace of electrification in Africa, while targeting more diversified sources of energy.”
