H1 Holdings (H1) and Revego Fund Managers (RFM) today announced their intent to explore a strategic merger to 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 brings together H1 Holdings’ interest in a large, diversified portfolio of predominantly operating renewable energy assets with RFM’s established institutional investment platform, the Investec-backed Revego Africa Energy Fund. Together, the combined platform is expected to play a significant role in the next phase of South Africa’s energy transition, supporting increased market liquidity, capital recycling and long-term infrastructure investment.
“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,” says Ziyaad Sarang, Chief Investment Officer at RFM. “As early investors begin to exit mature portfolios, demand is rising for scaled, well-governed platforms capable of acquiring and managing these assets over the long term. 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.”
The portfolio managed by H1 Holdings, spans 26 projects across wind, solar, battery storage and hydro with a strong track record of capital mobilisation and recycling. RFM brings an institutional, regulated fund platform with a proven ability to raise and deploy long-term infrastructure capital, supported by strong investor relationships, robust cash distributions and a strong governance framework. The merged platform will offer investors access to a diversified, open-ended renewable energy investment vehicle with a strong foundation for continued capital raising and growth.
“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,” adds Reyburn Hendricks, CEO at 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.”
"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," says Andre Wepener, Head: Structured Finance Solutions at Investec Corporate and Investment Banking. "We are fully supportive of this proposed transaction. 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. This is an important step towards building the kind of scaled, well-governed domestic platform that the sector needs as it enters its next phase of growth."
The merged platform is positioned to play an active role in the anticipated wave of industry consolidation from 2028 onwards, with a long-term vision to build the platform as a credible choice for South African pension funds, insurers and multi-managers seeking long-duration, inflation-linked investment returns from operating renewable energy infrastructure - a category that remains materially underserved by domestic vehicles at institutional scale. Importantly, the transaction will support broader economic participation in energy transition.
The transaction is subject to regulatory, lender and stakeholder approvals. In the interim, both organisations will continue to operate independently. If successfully completed, the merger is expected to establish a larger, institutional-scale renewable energy platform, positioned to channel both domestic and international capital into South Africa’s energy transition at a critical point in the sector’s evolution, while creating a more accessible pathway for South African pension funds and other institutional investors to participate in the long-term ownership of renewable energy infrastructure.
