H1 Holdings (H1) and Revego Fund Managers (RFM) have announced plans to explore a strategic merger that would create one of South Africa’s largest dedicated renewable energy equity investment platforms, with a combined asset base of approximately R13.3 billion.

The proposed transaction would combine H1 Holdings’ portfolio of predominantly operating renewable energy assets with RFM’s institutional investment platform, including the Investec-backed Revego Africa Energy Fund.

The combined platform is expected to focus on long-term ownership of renewable energy infrastructure and support the continued development of South Africa’s renewable energy market as institutional investor participation grows.

“South Africa’s renewable energy sector is entering a new phase of maturity, marked by a growing base of operational assets and increasing participation from institutional investors,” said Ziyaad Sarang, Chief Investment Officer at Revego Fund Managers.

Sarang said the market is seeing increased demand for platforms capable of acquiring and managing mature renewable energy assets as early investors begin to exit their holdings.

“The proposed merger is designed to directly address this opportunity by creating a platform with the scale, structure and capital access required to support secondary market activity, while helping institutionalise ownership of operating renewable energy assets, recycle capital into new projects and expand domestic participation in South Africa’s energy transition,” he said.

H1’s portfolio includes interests in 26 projects spanning wind, solar, battery storage and hydroelectric power. The company has focused on developing, acquiring and optimising infrastructure assets, while RFM manages institutional infrastructure investments through a regulated fund structure.

The merged entity would offer investors access to a diversified, open-ended renewable energy investment vehicle with the capacity to raise additional capital and expand its portfolio.

“Beyond scale, the transaction is expected to strengthen the depth and efficiency of South Africa’s renewable energy market through the creation of a stronger long-term ownership platform for renewable energy infrastructure,” said Reyburn Hendricks, Chief Executive Officer of H1 Holdings.

“The transaction allows H1 to continue doing what it does best, which is originating, developing, acquiring and optimising infrastructure assets, while helping build a larger institutional platform capable of owning and supporting those assets over the long term,” he said.

Investec, which is both a shareholder in Revego Fund Managers and an investor in the Revego Africa Energy Fund, said it supports the proposed combination.

“Investec has been a committed partner in the development of the Revego platform since its inception, as both a shareholder in Revego Fund Managers and an investor in the Revego Africa Energy Fund,” said Andre Wepener, Head of Structured Finance Solutions at Investec Corporate and Investment Banking.

“The combination of H1's operational depth and proven track record with Revego's institutional investment platform creates a compelling proposition for South African pension funds and institutional investors seeking credible, long-term exposure to operating renewable energy infrastructure,” he said.

The companies said the merged platform would be positioned to participate in expected industry consolidation from 2028 onwards and provide institutional investors, including pension funds and insurers, with greater access to long-duration infrastructure investments linked to renewable energy assets.

The proposed transaction remains subject to regulatory, lender and stakeholder approvals. Both organisations will continue operating independently while the merger process is evaluated.