Fortis Green Renewables Green Fund I

Responsible 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. In its absence, economic growth slows and health & education outcomes decline.

  • Reduced business productivity
  • Fewer study hours (ends at dark)
  • Higher school drop-out rates
  • Fewer health services available

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, Africa’s power need is enormous and getting bigger.

  • Fastest growing population
  • 43% under the age of 15 [1]
  • Fastest growing GDP (East Africa)
  • GDP/capita growing 5% per year [2]

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.

  • Placing equity & equity-like capital

  • Small-scale assets (0.5 to 25 MW)

  • Broad production scope, with initial focus on run-of-the-river hydropower

Fund Overview

Fortis Green Renewables Green Fund I (“Fund”) will provide capital for small-scale renewable energy assets in Sub Saharan Africa (”SSA”), with initial focus on East Africa. The SSA power sector is poised for rapid growth over the coming decades. As the region seeks to increase power production and access, many African countries – especially those in East Africa, and particularly Kenya, Uganda, and Rwanda – have committed to increase capacity via renewable and sustainable sources such as hydro, solar, wind, and biomass. [3] Access to stable and high-quality power is foundational to both economic and social development. The Fund has an initial focus on small-scale run-of-the-river hydropower assets, which have been a primary driver of rural African electrification and is attractive due to its return potential coupled with limited negative environmental and social impacts. The Fund will invest across the development cycle in assets under development and operational assets, both of which present unique and potentially competitive return profiles.

Key Offering Terms

  • Strategy: Small scale renewables-based power generation, including solar and wind, with a focus on run of the river hydropower.
  • 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 $20M
  • Investment Size: Approximately 5 assets 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]
  • Early Investor Terms: 10% Preferred Return / 15% Carried Interest on first $5M [7]
  • Legal Structure: Delaware LLC with 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

Fortis Green Renewables is a highly experienced team with a belief in the power of renewable energy to promote sustainable economic prosperity while alleviating climate change. Fortis Green is the right team for East Africa.

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

There are significant risks and investment costs associated with an investment in Fortis Green Renewables Green Fund I. This investment is considered speculative, illiquid, and not suitable for all investors. To view a summary of these risks and costs, see the Risk Factors in the Fact Card. This material must be read in conjunction with the prospectus to fully understand the implications and risks involved in this offering. Carefully read the prospectus before investing.

Footnotes

[1] World Bank Dataset.
[2] Africa Development Bank.
[3] USAID Power 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.
[7] Each investor included in the first $5 million of Commitments shall be entitled to these terms.

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