Page 31 - Construction Vision Dec-Jan 2024 Issue

type environment. So the investment is where it is already a major investor in the want to do more in,” said Caesar.
just enormous,” added Caesar. renewable space, building large utility
scale power plants running into several Beyond energy and infrastructure, Actis
INDIA STANDS OUT gigawatts of capacity. Actis is currently is also looking to deploy significant sums
Caesar added that Actis feels that India is building its third renewable energy of capital into spaces such as data
one of the best places currently to deploy platform in India under the name centres and industrial warehousing.
capital toward infrastructure investments. Bluepine Energy. The investor is now
also planning to explore investments in DATA CENTERS
“Every single dollar that we invest in India other spaces in the energy sector. “In data centres, you're looking at an
is not here because we have an Indian overlap between green energy and data.
fund and therefore we are forced to “We're going to do transmission and We are a leader in renewables and we
invest in India. No, we invest here distribution because those are sectors have competence in building green
because it's the best place to invest on a where you have long term contracted, certified buildings and that can unlock a
global basis at that point in time. So of all regulated cash flows. We prefer that we lot of opportunities on that side. And on
the opportunities, we want to put the have that downside protection with long the real estate side, if you look at India's
capital here because it's very attractive. term contracted cash flows. pharmaceutical sector, which is a huge
We've put a significant amount of capital production facility for the whole world, so
to work in India and that shows India in a We own a large electricity distribution building purpose-built pharmaceutical
competitive preferential light compared to business in Turkey and we own one in real estate, that it's something that we
other markets,” he said. Africa and we have had several in Africa are really excited about,” said Caesar.
and Latin America.
Actis' bullishness on the Indian As part of the firm's transition to
infrastructure space comes on the back We own a number of electricity becoming an energy and infrastructure
of several reforms by the Indian transmission systems, specifically in focused investor, Actis is also winding
government in the sector over the last Brazil. So those are very interesting down its existing private equity portfolio,
decade that have helped the country sectors for us, but it depends on the which currently has an AUM of
attract more capital for infrastructure regulatory framework to make sure that approximately over $1 billion today.
assets, said Caesar. they become attractive investment
destinations,” said Caesar. In India, Actis' private equity investments
“When we started Ostro back in 2013, include a minority position in payments
the world looked pretty different and it The C&I (commercial and industrial) firm Pine Labs and Profectus Capital, an
was not that easy to attract capital to segment of the renewable energy sector NBFC that Actis incubated.
come into India. But if you look at India is another area that Actis is interested in
over the last 10 years, we have seen investing in here. C&I power providers “We've a number of private equity
many reforms in the power sector and in supply green energy to industrial units, investments and clearly we're looking
the road sector - the transparent, commercial real estate etc. after our private equity LPs (limited
predictable, regulatory framework such partners - investors in PE funds).
as feed in tariffs for electricity and power. “I think it will be massive over time in We've had around one exit a month in
At the time of Ostro, there was pretty India. If you have the right regulatory that private equity portfolio and we want
much no one else than us at that point framework for then that can be a really to make sure we can deliver the returns
who was investing into that sectorNow, of attractive proposition. and value to our investors even as we
course, many others are coming, and then focus on sustainable infrastructure
there have been many success stories. I am completely convinced that it will going forward,” said Caesar.
So I think it's a phenomenal and exciting come and I think that will also drive
opportunity to invest, and it will continue distributed power generation to a “The fact that we are moving out of
to be,” said Caesar. different level. So whenever you see us private equity is by no means whatsoever
doing that in India, you know that India is some sort of a fire sale activity. We are
Bulk of Actis' investment of $2.5 billion in the best place on the global basis to do it. there driving value, take whatever time it
India will go towards the energy sector, C&I is something we really like and we takes,” the added.

CONSTRUCTION VISION 29 DECEMBER-JANUARY 2024