H1 Holdings and Revego Fund Managers are exploring a merger that would create a renewable energy platform with an estimated asset base of R13.3 billion. The proposed combination aims to form one of South Africa’s largest dedicated equity investment platforms for renewable energy. The transaction would merge H1’s portfolio of operating renewable energy assets with RFM’s institutional investment platform, specifically the Investec-backed Revego Africa Energy Fund. H1 holds interests in 26 projects covering wind, solar, battery storage, and hydroelectric power. RFM manages these investments through a regulated fund structure.
The combined entity intends to focus on long-term ownership of infrastructure. This structure supports the continued development of the local market as institutional participation grows. Ziyaad Sarang, Chief Investment Officer at Revego Fund Managers, noted the sector is entering a new phase of maturity. He observed an increased demand for platforms capable of acquiring and managing mature assets as early investors begin to exit.
“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,” Sarang said. He added the merger helps institutionalise ownership of operating renewable energy assets, recycle capital into new projects, and expand domestic participation in the energy transition.
The merged platform would offer investors access to a diversified, open-ended investment vehicle with the capacity to raise additional capital. The goal is to provide pension funds and insurers greater access to long-duration infrastructure investments linked to renewable energy assets. The transaction is also expected to strengthen the depth and efficiency of the South African renewable energy market by creating a stronger long-term ownership platform.
Reyburn Hendricks, Chief Executive Officer of H1 Holdings, said the deal allows the company to continue originating, developing, acquiring, and optimising infrastructure assets. He stated the partnership helps build a larger institutional platform capable of owning and supporting those assets over the long term. The merged platform aims to help pension funds and insurers gain access to long-duration infrastructure investments.
Investec, which holds a stake in RFM and is an investor in the Revego Africa Energy Fund, supports the combination. Andre Wepener, Head of Structured Finance Solutions at Investec, described the merger as a compelling proposition for South African pension funds and institutional investors seeking credible exposure to operating renewable energy infrastructure. Both organisations will continue operating independently while the merger process is evaluated. The companies said the platform is positioned to participate in expected industry consolidation from 2028 onwards. The proposed transaction remains subject to regulatory, lender and stakeholder approvals.
