Growth investor General Atlantic has agreed to acquire UK-based private equity firm Actis in a move to create a $96bn assets under management (AUM) diversified, global investment platform.
The financial terms of the deal were not revealed.
According to the terms of the definitive agreement, Actis will become the sustainable infrastructure arm within the global investment platform of General Atlantic.
Through the acquisition of Actis, General Atlantic intends to enhance its strategic diversification, incorporating sustainable infrastructure as a unique and complementary offering to complement its existing capabilities in growth, credit, and climate.
Besides, the deal will offer immediate scale and develop a larger set of investment solutions for investors.
Established in 1980, General Atlantic has deployed over $60bn in global growth companies.
General Atlantic chairman and CEO Bill Ford said: “Addressing the global paradigm shift toward sustainability requires an economic transformation and a capital investment on a massive scale.
“With the addition of Actis, we are taking a significant step forward to add a sustainable investment capability which positions General Atlantic to capture this opportunity set for our investors.”
Upon the completion of the proposed deal, Actis will continue to be headed by its chairman and senior partner Torbjorn Caesar.
The UK-based company will also maintain autonomy over its investment decisions and processes, with its funds operating under the established Actis brand.
Caesar said: “We are very excited to be joining forces with General Atlantic. The combined firm brings together distinct but highly complementary strategies that unlock long-term value for our investors across key structural themes including the energy transition and digital transition.
“The whole is greater than the sum of the parts. Both firms also have a hands-on approach to building businesses and platforms, and a shared commitment to sustainability.”
The proposed deal has been unanimously approved by the respective management committees of General Atlantic and Actis.
Subject to regulatory, anti-trust approvals, investor consents, and other customary conditions, the transaction is anticipated to be completed in Q2 2024.
Morgan Stanley & Co is the lead financial adviser to General Atlantic.
J.P. Morgan Securities is the financial adviser, while Paul, Weiss, Rifkind, Wharton & Garrison and Ashurst are serving as legal counsel to General Atlantic.
Goldman Sachs and Campbell Lutyens are financial advisers, and Kirkland & Ellis is legal counsel to Actis.
