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Market Chatter: Revego Fund Managers Mull Merger With H1 Holdings for South Africa Renewables Focus

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Revego Fund Managers are looking into a potential merger with H1 Holdings, a tie-up that would create one of the largest funds focused on renewable energy in South Africa, Bloomberg reported on Tuesday.

The transaction would bring together the assets of Revego's Africa Energy Fund, backed by Investec and those of H1, for a total worth of 13.3 billion South African rand ($807 million), with 36 projects across solar, wind, hydroelectric and battery storage around the south of Africa, the article said.

Revego started in 2021 and has a portfolio worth 2.4 billion rand, having the backing of UK development-finance institution British International Investment and South African pension administrator Alexander Forbes Group.

It has made 10 investments in South Africa, which has the biggest renewable-energy industry in the sub-Saharan part of Africa. Revego would take on H1's 26 projects, Bloomberg said.

The new vehicle will aim to generate returns of 5% to 7% over and above inflation, Revego's Chief Investment Officer Ziyaad Sarang said.

H1 will be the majority shareholder with a 51% stake up from its current 36%, the article said.

has reached out to Revego and H1 for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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