Actis Plans $2 Billion Investment Surge in India’s Infrastructure

Actis, a London-based investment firm, has announced plans to invest more than $2 billion in India’s infrastructure sector over the next three to four years. In an interview held in Mumbai, chairman Torbjorn Caesar emphasized that India is one of the best locations globally for capital deployment. Actis, previously known as CDC, was acquired by General Atlantic in October 2024, positioning it as one of the largest sustainable infrastructure investors in the market.

The firm’s commitment to India comes despite the perception among public market investors that Indian assets are relatively expensive compared to other emerging markets. Caesar explained that the firm’s strategy centers on the exit strategy, focusing on future valuations and potential buyers. “We allocate a significant amount of capital to India because the opportunities here are among the best globally,” he stated.

Investment Amid Geopolitical Shifts

Rising tensions between the United States and China, alongside increasing trade barriers, have raised questions about how geopolitical factors influence investment flows. Caesar noted that Actis selectively chooses deals across global markets, asserting that the firm does not allocate capital based on geopolitics. “We assess every opportunity for political, regulatory, and transparency risks, but we don’t reallocate capital reactively,” he added.

He highlighted that while high tariffs may alter industry dynamics in some sectors, the overall impact on India has been minimal. “India remains one of the more stable and transparent markets, especially in infrastructure,” he said. The demand for essential services such as power and transportation continues to drive investment interest, making India an appealing option for investors seeking stability amid global uncertainties.

Future Investment Plans and Competitive Landscape

Actis has already invested over $2 billion in various infrastructure projects in India, primarily focusing on energy, renewables, roads, and transportation. Looking ahead, the firm plans to explore new areas, including digital infrastructure. Caesar stated, “The amount we deploy in India will certainly exceed what we’ve invested in the past,” highlighting the firm’s deep local experience and strong team presence.

As competition intensifies within the Indian market, Caesar expressed confidence in Actis’s unique operational insights. He noted that the firm’s ability to operate effectively in non-US and non-European markets, such as India, Romania, Japan, and Mexico, gives them a competitive edge. “We build, operate, and deliver infrastructure ourselves,” he explained, emphasizing the importance of being true operators rather than mere investors.

The firm has successfully launched and exited multiple renewable energy platforms in India, including Sprng Energy and Ostro. With plans to divest its stake in BluPine, Caesar indicated that Actis would continue to pursue both capital gains and yield strategies to enrich its portfolio.

As Actis transitions towards an energy and infrastructure-focused investor, the company is keen on maintaining its operational excellence while navigating the evolving market landscape. Caesar reflected on the firm’s transformation over the past two decades, stating that the focus has shifted to areas where Actis can leverage its strengths and established track record.

The growing significance of artificial intelligence (AI) in the energy sector is another aspect that Caesar addressed. He noted that electricity consumption is already outpacing GDP growth, and with advances in technology, the demand for energy will only increase. “The investment opportunity in clean, reliable power is vast,” he concluded, highlighting the potential for renewable energy to play a central role in meeting future energy demands.

Actis’s integration with General Atlantic is expected to enhance its operational capabilities. Caesar mentioned that the acquisition creates opportunities for synergies, such as linking renewable energy solutions with data centers. This alignment enables Actis to better anticipate future trends while focusing on infrastructure that is both scalable and sustainable.

In summary, Actis is poised to significantly ramp up its investments in India’s infrastructure sector, leveraging its unique operational strengths and local expertise while navigating a complex and competitive landscape. With a strong commitment to sustainable practices, the firm continues to see India as a prime destination for capital deployment.