H1 Holdings, Revego Plan Major Clean Energy Merger in South Africa

H1 Holdings and Revego Fund Managers (RFM) are exploring a strategic merger that could 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 would bring together H1 Holdings’ portfolio of predominantly operational renewable energy assets and RFM’s institutional investment platform, including the Investec-backed Revego Africa Energy Fund, to establish a larger vehicle focused on long-term infrastructure ownership.

The combined platform is expected to support the continued growth of South Africa’s renewable energy market by providing institutional investors with expanded access to mature renewable energy assets while facilitating the recycling of capital into new projects.

According to Ziyaad Sarang, Chief Investment Officer at Revego Fund Managers, South Africa’s renewable energy sector is entering a new stage of development characterised by an increasing number of operational projects and stronger participation from institutional investors.

He noted that growing demand exists for investment platforms capable of acquiring and managing mature renewable energy assets as early-stage developers and investors seek opportunities to exit their holdings.

The proposed merger aims to address this market need by creating a platform with greater scale, enhanced capital access and the capacity to support secondary market transactions while institutionalising long-term ownership of renewable energy infrastructure.

H1 Holdings currently has interests in 26 projects spanning wind, solar, battery energy storage and hydroelectric power, with a business model centred on developing, acquiring and optimising infrastructure assets. RFM, meanwhile, manages renewable energy investments through a regulated institutional fund structure.

The merged entity would provide investors with access to a diversified, open-ended renewable energy investment vehicle capable of raising additional capital and expanding its portfolio over time.

H1 Holdings Chief Executive Officer Reyburn Hendricks said the transaction would strengthen the depth and efficiency of South Africa’s renewable energy market by creating a more robust long-term ownership platform while allowing H1 to continue focusing on project development and asset optimisation.

Investec, which holds a stake in Revego Fund Managers and invests in the Revego Africa Energy Fund, has expressed support for the proposed combination, describing it as an attractive proposition for pension funds and institutional investors seeking stable, long-duration exposure to renewable energy infrastructure.

If completed, the merged platform is expected to be well positioned to participate in anticipated industry consolidation from 2028 onwards while broadening domestic institutional participation in South Africa’s energy transition.

The proposed merger remains subject to regulatory approvals, lender consent and stakeholder agreement, with both organisations continuing to operate independently while the transaction is evaluated.