Inspired Evolution, a Pan-African private equity firm specializing in clean energy infrastructure, energy access and energy transition investments, has announced the final close of its Evolution III Fund on March 3, 2025, securing total commitments of $238m. 

The final close saw additional commitments from Oesterreichische Entwicklungsbank (OeEB), the Development Bank of Austria, and the International Finance Corporation (IFC), further diversifying and strengthening the fund’s investor base. 

Cláudia Conceição, IFC’s Regional Director for Southern Africa, said: “Africa’s growing population means it will soon be home to one-fifth of the world’s population, so the case to ramp up the supply of clean energy on the continent is clear. IFC’s investment in the Evolution III fund is a step towards achieving Mission 300, an ambitious World Bank Group initiative to accelerate the pace of electrification in Africa, while targeting more diversified sources of energy.”

Sabine Gaber, Member of the Executive Board of OeEB, added: “We are proud to support Evolution III in driving sustainable development and advancing climate solutions in Africa. Developing and emerging countries are disproportionately affected by climate change. This is why we have strengthened our strategic focus on green finance and aim to further grow our engagement in Africa. We are proud to cooperate with Inspired Evolution, an experienced partner who shares this commitment.” 

Evolution III builds on the success of its predecessor funds, focusing on clean energy infrastructure, resource and energy efficiency, and energy access investments that drive sustainable development across Africa.

Evolution III had its first close in March 2023, securing $199.4m from institutional investors, including the European Investment Bank (EIB), FMO, the Dutch Development Bank, African Development Bank (AfDB), Finnfund, Swedfund, the Swiss Investment Fund for Emerging Markets (SIFEM), and Emerging Markets Climate Action Fund (EMCAF). 

A successful second close in May 2024 brought in ten new investors, including the Mauritius Investment Corporation (MIC) and a consortium of impact-driven investors through Align Impact.

Wayne Keast (pictured), Co-Founder and Managing Partner at Inspired Evolution, said, “Reaching a final close with commitments of  $238m from 19 investors is a significant achievement in the current fundraising environment and demonstrates the confidence that leading global and regional investors have in our strategy and execution capabilities." 

"With Evolution III, we are positioned to accelerate Africa’s transition to a clean energy future, driving impact through scalable, commercially viable renewable energy projects that deliver long-term value to communities and investors alike," he said.

The fund has made two investments to date. 

The fund’s first investment was finalised in September 2023 into Red Rocket Group, a vertically integrated renewable energy independent power producer (“IPP”) that develops, designs, constructs and operates utility-scale grid-connected renewable energy projects (wind, solar and hydropower) across select eligible countries in Africa, but predominantly South Africa. 

Together with its co-investors, Evolution III Fund acquired 75% of the group, adding $160m of fresh capital to recapitalise and support Red Rocket in the development of its 10+ GW renewable energy pipeline. 

In February 2024, Evolution III Fund concluded a significant minority co-investment in the majority holding consortium of Equator Energy, a commercial and industrial (C&I) solar provider in East Africa where its capital will support the platform to scale operations to 300 MWs over the next 4-5 years.

Christopher Clarke, also Co-Founder and Managing Partner at Inspired Evolution, said: "We are proud to see the continued momentum and strong institutional backing for Evolution III, reflecting the growing urgency to address Africa’s energy transition needs. The successful closes and strategic investments made to date underscore our commitment to financing and scaling high-impact renewable energy solutions across the continent. Our focus remains on fostering sustainable economic growth, increasing energy access, and reducing carbon emissions in alignment with global climate goals."