Inspired Evolution has announced the successful exit of its Evolution II Fund’s controlling stake in Commercial Energy SA (CESA), a South African clean energy platform specialising in the ownership and operation of commercial and industrial (C&I) solar photovoltaic (PV) and battery energy storage systems (BESS) assets.

CESA was jointly owned by the Evolution II Fund and SolarAfrica Energy.

This transaction marks another successful exit for the Evolution II Fund, a 2017 vintage, 10 year closed-ended fund with $216 million in capital commitments, currently in advanced disposal stage of its remaining portfolio investments.

The fund pursues two principal investment strategies: development and project finance for clean and sustainable energy infrastructure, and growth equity investments in energy and resource efficiency businesses, and their supporting value chains.

The fund made nine portfolio investments across Sub-Saharan Africa and has achieved four exits to date, bringing the total number of disposals by Inspired Evolution across its Evolution funds to twenty.

CESA was established to acquire and operate distributed renewable energy systems in South Africa, developed and managed by SolarAfrica Energy, and serving C&I customers under long-term contractual arrangements. Its portfolio comprises grid-tied rooftop and ground-mounted solar PV installations, as well as BESS, contracted through long-term power purchase and lease agreements with commercial and industrial clients.

CESA has successfully built a portfolio comprising approximately 90 MW of PV and BESS capacity. Installations range from smaller 250–500 kWp rooftop systems to larger, more complex multi-megawatt projects. The platform maintains a diversified base of C&I customers, including prominent retailers, shopping centre portfolios, and major industrial enterprises, such as CTM, Ford, Nestlé, and Tiger Brands.

SolarAfrica Energy has acquired Evolution II Fund’s shareholding in CESA. The fund’s initial investment was made in January 2019 with several subsequent funding tranches deployed to support the company’s expansion over the seven-year investment period.

Steven Faure, Partner, Inspired Evolution, said: "Our investment in CESA has delivered a lasting legacy of clean, reliable and affordable energy solutions for commercial and industrial customers across South Africa, demonstrating the transformative role that distributed renewable energy can play in strengthening energy security and sustainability. We are proud of what has been achieved through this partnership, and we extend our sincere thanks to SolarAfrica for their collaboration, as well as RMB Corporate Finance and Cliffe Dekker Hofmeyr for their valuable advisory support throughout the transaction."

Charl Alheit, Chief Investment Officer at SolarAfrica, added: “Our mission is to bring cheaper, greener power to more C&I businesses across South Africa. CESA is tangible proof not only of the demand for clean energy solutions in key market sectors but also of the positive view investors have of the future of renewable energy. Thanks to the incredible support of Inspired Evolution, our CESA portfolio now serves as a springboard for further innovation to bring solutions like electricity wheeling to customers.”