Inspired Evolution Fund, FMO, and STOA Acquire 75% Stake in Red Rocket Group

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Inspired Evolution’s Evolution III Fund, in collaboration with Dutch Development Bank FMO and STOA Infra and Energy, has successfully completed the acquisition of a 75% stake in the Red Rocket Group. This new consortium of buyers plans to inject $160 million to revitalize and elevate Red Rocket into one of Africa’s leading renewable energy independent power producers (IPPs).

Key Points:

  1. Strategic Investment in Clean Energy:
    • The acquisition of Red Rocket aligns with Inspired Evolution’s clean energy transition mandate and platform investment strategy, marking its first investment with a capital commitment of up to $80 million.
  2. Prior Investment in IPP Platform:
    • Evolution II, a predecessor fund from 2017, already holds a significant shareholding in the reconfigured IPP platform. It will continue to be part of the new buyer consortium.
  3. Red Rocket’s Track Record:
    • Red Rocket has been a prominent advocate for sustainable energy solutions, achieving significant milestones in the renewable energy sector, including the development and ownership of South Africa’s first PV project, the Kathu project (75 MW).
  4. Land Agreement with Eskom:
    • Red Rocket secured a groundbreaking land agreement with Eskom, a significant achievement in advancing renewable energy projects.
  5. Winning Solar Projects Under REIPPPP:
    • In 2022, Red Rocket secured the majority share in Round 6 of South Africa’s renewable energy independent power producer procurement program (REIPPPP), with 440 MW of solar projects.
  6. Recent Financial Close on REIPPPP Projects:
    • In February 2023, Red Rocket reached financial close on three Round 5 REIPPPP projects, totaling 364 MW. More privately procured projects are expected to achieve this milestone by year-end.
  7. Backing a Professional Team:
    • Inspired Evolution is supporting a skilled and successful professional team to accelerate the deployment of utility-scale clean energy infrastructure in targeted African countries.
  8. Shared Vision for Red Rocket:
    • Inspired Evolution, along with new partners FMO and STOA, shares the vision for Red Rocket to become one of Africa’s leading private clean energy utilities.
  9. Comments from Key Figures:
    • Christopher Clarke, Managing Partner at Inspired Evolution, emphasized the mission to accelerate clean energy infrastructure in Africa.
    • Steven Faure, Partner at Inspired Evolution, expressed excitement about further investing in Red Rocket and its robust business model.
    • Red Rocket CEO Matteo Brambilla expressed satisfaction in partnering with Inspired Evolution and its funds, along with new partners FMO and STOA, to elevate Red Rocket to a premier utility-scale IPP platform in Africa.

Conclusion:
The acquisition of a 75% stake in the Red Rocket Group by Inspired Evolution Fund, FMO, and STOA is a significant step toward bolstering Africa’s renewable energy sector. With a track record of successful projects and a vision for sustainable energy solutions, Red Rocket is poised to play a pivotal role in advancing clean energy access across the continent. This strategic investment marks a positive milestone in Africa’s transition towards a more sustainable energy future.

AGF

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