A Structured Approach to Africa's Green Transition
AGTPF invests patient, blended capital in Africa's green energy infrastructure: solar PV, wind, hydro, battery storage and transmission. We invest in phases, a model designed to deliver downside-protected returns while speeding up the continent's just energy transition.
AGTPF is neither a European fund for Africa nor an African fund with European participation. We designed it as a partnership of equals. It combines African market and institutional expertise with European asset management, structuring and financing capabilities. That combination creates the foundation for sustainable infrastructure investments with long-term impact.
Capital Deployment Model
We deploy capital in structured phases, designed to balance risk, return and sustainability over the fund's 12-year term.
Flexible Build-Up Phase
In the first three (3) years, the Fund keeps the flexibility to invest in priority infrastructure projects without strict diversification limits. This lets us move efficiently on large-scale energy investments with strong sustainability characteristics.
Value Creation & Scaling Phase
- Portfolio expansion and optimisation across platforms
- Refinancing and capital structuring to enhance returns
- Integration of operational efficiencies and asset performance improvements
Harvest Period
During this phase, the portfolio transitions into stable, income-generating assets:
- 70 to 90% of the portfolio expected to be fully operational
- Generation of predictable, contracted cash flows (e.g., PPAs, offtake agreements)
- Focus on yield distribution and value realisation
- Selective exits, refinancing, or long-term hold strategies
Target Returns
The Fund targets a gross IRR of 12 to 17%, depending on:
- Technology (solar, hydro, transmission, storage)
- Project stage (greenfield vs. operational)
- Country and regulatory environment
Deployment Strategy
- 70 to 85% of capital deployed
- Across 10 to 15 platform investments
- Typical investment size: EUR 40m to 150m+ per platform
Geographic Allocation
- Maximum 60% exposure per country
Sector Balance
- Hydropower capped at 40%
Risk & Capital Management
- Currency and interest rate risks may be hedged
- Liquidity maintained through short-term instruments
- Project and fund-level borrowing used to improve returns
Regulatory Alignment
The Fund operates in accordance with Luxembourg RAIF standards, ensuring:
- Governance to Luxembourg RAIF standards
- Institutional-grade risk spreading
- Strong investor protection
Investment Filters Framework
Before any project in the AGTPF pipeline enters our active investment process, we assess it against a rigorous set of filters, shown below.
Country & Regulatory Risk
We look at political stability, how mature the regulatory framework is, rule of law and sovereign creditworthiness. Countries with established IPP frameworks and DFI presence get priority.
Technology Readiness
Projects must use proven, bankable technologies with established supply chains. Across solar PV, wind, hydro, BESS and transmission infrastructure, we are technology-agnostic.
Offtake & Revenue Visibility
We prefer projects with long-term PPAs, sovereign-backed offtake agreements or established grid connection frameworks that give revenue certainty over the fund's investment horizon.
Sustainability & Alignment
All investments must comply with the IFC Performance Standards and show measurable climate and development results, including CO₂ avoidance, energy access, and job creation metrics.
Return Profile
We target a gross IRR of 12 to 17%, depending on technology and risk profile. Projects must show a credible path to financial close and a bankable financial model with appropriate risk-adjusted returns.
Local Partnership
We strongly prefer projects with established local sponsors, community engagement frameworks and local content commitments. AGTPF also supports local capacity building.
Discuss the Strategy With Our Team
We are happy to walk through the deployment model, the return targets, and the filters we apply before a project enters the pipeline. Before you do, read our own account of what could go wrong.