Inspired Evolution, a prominent pan-African private equity firm dedicated to clean energy investments, has announced the successful final close of its Evolution III Fund, which has garnered total commitments amounting to $238 million. This significant milestone marks a crucial step in the firm’s mission to drive sustainable energy solutions across the continent.
The final close was bolstered by additional commitments from key investors, including the Austrian development bank Oesterreichische Entwicklungsbank and the International Finance Corporation (IFC). These contributions not only enhance the fund’s financial capacity but also diversify and strengthen its investor base, reflecting a growing interest in clean energy initiatives in Africa.
The Evolution III Fund initially closed its first round of fundraising in March 2023, securing $199.4 million from a variety of institutional investors. Notable contributors included the European Investment Bank, FMO, the African Development Bank, Finnfund, Swedfund, the Swiss Investment Fund for Emerging Markets, and the Emerging Markets Climate Action Fund. Following this, a successful second close in May 2024 attracted 10 new investors, among them the Mauritius Investment Corporation and a consortium of impact-driven investors represented by Align Impact.
To date, the fund has made two significant investments. Its inaugural investment was in the Red Rocket Group, a vertically integrated independent power producer specializing in renewable energy. Red Rocket develops, designs, constructs, and operates utility-scale grid-connected renewable energy projects, including wind, solar, and hydropower, primarily in South Africa and select eligible countries across Africa. Through this investment, the Evolution III Fund, along with its co-investors, acquired a 75% stake in Red Rocket, injecting $160 million in fresh capital to recapitalize the company and support the expansion of its renewable energy pipeline.
In February 2024, the Evolution III Fund also completed a noteworthy minority co-investment in Equator Energy, a leading commercial and industrial solar provider operating in East Africa. This investment further underscores the fund’s commitment to enhancing renewable energy access in the region.
Cláudia Conceição, the IFC’s regional director for Southern Africa, commented on the importance of the fund’s mission, stating, “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.”
Sabine Gaber, a member of the executive board of OeEB, expressed pride in supporting the Evolution III Fund, emphasizing the need for sustainable development and climate solutions in Africa. She noted, “Developing and emerging countries are disproportionately affected by climate change. This is why we have strengthened our strategic focus on green finance and aim to further grow our engagement in Africa. We are proud to cooperate with Inspired Evolution, an experienced partner who shares this commitment.”
Wayne Keast, co-founder and managing partner at Inspired Evolution, highlighted the significance of reaching a final close with commitments of $238 million from 19 investors, stating, “This 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. 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.”
Christopher Clarke, also a co-founder and managing partner at Inspired Evolution, added, “We are proud to see the continued momentum and strong institutional backing for Evolution III, reflecting the growing urgency to address Africa’s energy transition needs. The successful closes and strategic investments made to date underscore our commitment to financing and scaling high-impact renewable energy solutions across the continent. Our focus remains on fostering sustainable economic growth, increasing energy access, and reducing carbon emissions in alignment with global climate goals.”
