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:
- 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.
- 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.
- 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).
- Land Agreement with Eskom:
- Red Rocket secured a groundbreaking land agreement with Eskom, a significant achievement in advancing renewable energy projects.
- 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.
- 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.
- 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.
- 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.
- 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.
