The investment firm Actis announced it has raised $1.15 billion (£700m) for its third energy fund in emerging markets.

Called Actis Energy 3, it will invest in power generation and distribution businesses in Latin America, Africa and Asia.

The sum raised beats its $750 million (£456m) target.

It has already bought stakes in Brazilian renewable energy firm Atlantic Energias Renovaveis and Aela Energia – soon to Chile’s largest supplier of wind and solar power.

The fund has also agreed to buy Morocco’s utility services from Veolia and a majority stake in Cameroon’s national grid, subject to approval from regulators. So far the fund has committed to investments to the tune of $560 million (£341m).

Torbjorn Caesar, Co-Head of Energy at Actis said: “Electricity in the emerging markets faces high demand growth but remains a scarce commodity in Latin America, Asia and Africa. Such is the demand, especially in the renewables space, that the team has already put half of the new fund to work.”