Revego Fund Managers is in advanced discussions to merge with H1 Holdings (Pty) Ltd, a move that would create one of South Africa’s largest renewable energy investment platforms with assets exceeding R13.3 billion ($807 million). As part of the transaction, H1 will increase its stake in Revego from the current 36% to a majority 51%, becoming the largest shareholder.
The proposed transaction would combine Revego’s Africa Energy Fund portfolio with H1 Holdings’ portfolio, resulting in a consolidated entity managing 36 renewable energy projects across solar, wind, hydro, and battery storage in southern Africa.
H1 CEO Reyburn Hendricks said the merger would enable the combined group to invest in new greenfield infrastructure projects while allowing existing sponsors and investors to recycle capital. Regulatory approvals for the deal are anticipated by 2028.
Revego, an open-ended fund that launched in August 2021 and is backed by Investec, currently manages a portfolio valued at R2.4 billion. Its investors include British International Investment, Alexander Forbes, Eskom Pension and Provident Fund, and UK Climate Investments. The fund currently holds 10 investments in South Africa. Upon completion of the merger, it will incorporate H1’s 26 projects, significantly enhancing scale and diversification for investors.
Revego Chief Investment Officer Ziyaad Sarang said the merged vehicle is targeting a return of inflation plus 5% to 7%. The group has a substantial pipeline of up to R10 billion in green projects in South Africa and a further $100 million across the rest of the continent.
With the increased assets under management, Revego plans to nearly double its staff to 12 people over the next 18 months, establishing dedicated teams for fundraising, deal origination, and asset management.
The merger also brings Revego closer to its goal of listing on a stock exchange once it reaches $1 billion in assets under management. While the original target was eight to ten years, Sarang indicated the listing could now happen in three to five years, possibly as early as 2031.
The move reflects a broader trend of consolidation in South Africa’s renewable energy sector, driven by rising electricity demand, persistent power shortages, and accelerating decarbonisation efforts across the region.
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