H1 Holdings and Revego Fund Managers have announced plans to explore a strategic merger that could create one of South Africa’s largest dedicated renewable energy equity investment platforms, with a combined asset base of about R13.3 billion ($805 million).
The proposed transaction is expected to strengthen South Africa’s renewable energy sector by creating a larger and more efficient platform for long-term investment in operating renewable energy assets. Industry leaders believe the move could help attract more institutional capital into the sector while supporting the country’s ongoing energy transition.
The merger would combine H1 Holdings’ diversified portfolio of renewable energy assets with the Investec-backed Revego Africa Energy Fund. H1’s portfolio includes interests in 26 projects across wind, solar, battery storage and hydro energy, while Revego brings an established institutional investment platform with strong governance structures and a track record of raising and deploying long-term infrastructure capital.
According to Ziyaad Sarang, Chief Investment Officer at Revego, South Africa’s renewable energy sector is entering a more mature phase as operational assets increase and institutional investors become more active participants.
“As early investors begin to exit mature portfolios, demand is rising for scaled, well-governed platforms capable of acquiring and managing these assets over the long term,” he said. Sarang added that the proposed merger is designed to support this opportunity by creating a platform with the scale and capital access needed to facilitate secondary market activity, recycle capital into new renewable energy projects and increase domestic participation in the country’s energy transition.
The combined platform would provide investors with access to a diversified, open-ended renewable energy investment vehicle, creating new opportunities for long-term investment and future growth.
H1 Holdings Chief Executive Officer Reyburn Hendricks said the transaction goes beyond increasing scale. He noted that it is expected to improve the depth and efficiency of South Africa’s renewable energy market by creating a stronger ownership platform for renewable energy infrastructure. Hendricks said the deal would allow H1 to continue focusing on originating, developing, acquiring and optimising infrastructure assets while supporting a larger institutional platform that can own and manage those assets over the long term.
Investec Corporate and Investment Banking has also expressed support for the transaction. Andre Wepener, Head of Structured Finance Solutions, said the combination of H1’s operational expertise and Revego’s institutional investment platform would create a strong investment proposition for pension funds and other institutional investors seeking long-term exposure to renewable energy infrastructure.
