Kiamahindu Hydrobox Run-of-the-River
Fund Overview
Fortis Green Renewables Green Fund I (“Fund”) provides capital for small-scale renewable energy assets in Sub Saharan Africa. The Fund invests in operational and development assets, each offering unique and potentially competitive return profiles. Green Fund I bolsters power to the national grid, establishes private grids, and directly supplies power to commercial, industrial, and household off-takers. The Fund portfolio is cultivated through strategic relationships and institutional co-investors spanning various countries, renewable energy technologies, and user bases.
6
African Countries
20+
Hydropower and Solar Assets
54 MW
Generated Power Capacity
40,600
CO2 Tons Reduction
Why Power for Africa?
Power is Transformational
Access to stable, high-quality, and clean power is foundational to economic and social development. 600M Africans (52%) still lack power access.[1] In its absence, economic growth slows and health & education outcomes decline.
Powering Rapid Growth
The second most populous continent is extremely young and growing rapidly. Its economies are getting stronger, and with over $500B needed to meet its power goals,[1] Africa’s power need is enormous and getting bigger.
Clear Market Opportunity
Green Fund I provides capital to small-scale renewable energy assets across Sub-Saharan Africa. This market has large capital gaps, which Green Fund I is addressing in order to unlock more clean power for Africa.
Asset Highlights
Hydrobox Asset Holding Company
The Hydrobox Asset Holding Company owns eight hydropower projects in Central and Western Kenya. Operating under an innovative ABC (Anchor, Business, Consumer) model, these assets sell the majority of their power to large Anchor customers, and to a lesser extent, to Business and Consumer customers. In addition to the potential for attractive returns, these assets aim to transform the region through access to affordable, reliable, and clean energy.
Rwaza Hydro Power Plant
The Rwaza 2.6MW Hydro Power Plant is located in Musanze District, Rwanda and draws water from the Mukungwa River through an environmentally safe weir and intake structure. Utilizing a 1km channel, the water flows to the powerhouse’s two turbines to produce clean and steady electricity for the country’s 13 million people.
Spark Energy Services Company
Spark will finance a portfolio of up to 40MWp in captive solar generation and energy efficiency projects in Africa’s commercial and industrial (C&I) sector – helping business, particularly SMEs, increase their overall competitiveness while achieving their low carbon growth plans.
Story of Impact
Central Highlands Tea, marketed under the Kiriti brand, is a farmer owned tea processing facility located in Central Kenya, in the foothills of the Aberdare Mountains. Employing 56 people and purchasing tea from 2,700 farmers, the factory plays a vital role in the local and regional economy. Faced with difficult access to reliable energy from the Kenyan utility, the tea factory was connected to projects jointly owned by Hydrobox and Fortis Green.
Key Offering Terms
- Strategy: Small scale renewables-based power generation, including solar, run-of-the-river hydropower, and wind.
- Geographic Focus: Sub Saharan Africa, with initial focus on East Africa
- Asset Class: Private equity and equity-like capital
- Fund Manager: Fortis Green Renewables
- Target Fund Size: $15M, with option to expand up to $25M
- Investment Size: Approximately 5 to 8 investments at $3M average ticket size
- Fund Term: 10 years total + 1 year extension (5 year investment period)
- Preferred Return: 8% annual return, cumulative [4]
- Management Fee: 2% management fee on commitments [5]
- Carried Interest: 20% over Preferred Return, with no catch-up provision [6]
- Legal Structure: Delaware LLC with potential Mauritius SPV
- Currency: USD, with USD denominated Power Purchase Agreements (”PPA”)
- Suitability: Accredited Investors only
- Minimum Investment: $150,000, subject to Fund Manager approval
Key Offering Terms
- Strategy: Small scale renewables-based power generation, including solar, run-of-the-river hydropower, and wind.
- Geographic Focus: Sub Saharan Africa, with initial focus on East Africa
- Asset Class: Private equity and equity-like capital
- Fund Manager: Fortis Green Renewables
- Target Fund Size: $15M, with option to expand up to $25M
- Investment Size: Approximately 5 to 8 investments at $3M average ticket size
- Fund Term: 10 years total + 1 year extension (5 year investment period)
- Preferred Return: 8% annual return, cumulative [4]
- Management Fee: 2% management fee on commitments [5]
- Carried Interest: 20% over Preferred Return, with no catch-up provision [6]
- Legal Structure: Delaware LLC with potential Mauritius SPV
- Currency: USD, with USD denominated Power Purchase Agreements (”PPA”)
- Suitability: Accredited Investors only
- Minimum Investment: $150,000, subject to Fund Manager approval
Fortis Green: Experienced Team
30 Years
Relevant Combined Experience
20 Countries
Investment and Operational Experience
$14.8 Billion
Combined Investment Experience
$7.4 Billion
Combined Power-Sector Investment Experience
Footnotes
[1] International Renewable Energy Agency
[2] Impact calculated as annual project kWh divided by relevant national per capita demand.
[3] Spark Portfolio will be in Kenya, Uganda Nigeria, Tanzania, and South Africa.
[4] While the Preferred Return is a term of the offering, there is no guarantee that there will be sufficient funds to pay the Preferred Return.
[5] During the Investment Period, the management fee shall be 2% of the total commitments. Following the Investment Period, the management fee shall be 2% of the investment cost basis.
[6] The GP will be entitled to 20% of any distributions in excess of the Preferred Return, with no catch-up provision. Carried Interest on distributions from liquidity events may only be paid following the full return of invested capital to investors. Carried Interest paid to the GP is subject to a claw-back provision.
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