Hermes Infrastructure has sold its 25.6% managed interest in Energy Assets Group Limited (‘Energy Assets’) to a consortium comprising European institutional investors and an infrastructure fund.
The realisation was completed as part of a 100% sale, alongside funds managed by Alinda Capital Partners. Hermes Infrastructure and Alinda Capital Partners acquired Energy Assets by way of a public-to-private transaction in 2016 and have since invested further capital to support the sustainable growth of the business.
Headquartered in Livingston, Scotland, Energy Assets is the largest independent provider of industrial and commercial gas metering services in the United Kingdom by number of meters owned and managed, an owner of last-mile utility connections, and a provider of multi-utility network metering and data services.
Energy Assets by its nature contributes directly to a number of the UN Sustainable Development Goals; in particular the advanced meter roll out programme that is at the core of Energy Assets’ business helps to provide consumers, suppliers and energy system operators with detailed, real time information for energy usage, which drives efficiency gains across the energy sector. During its investment, Hermes Infrastructure supported management to develop and monitor a range of sustainability KPIs, reduce carbon intensity through improved utilisation of the technical field force and establish training and modern apprenticeship programmes to provide opportunities for young people within the community
Hamish de Run, Head of Hermes Infrastructure said, “Energy Assets has delivered upon our original investment thesis, had a positive impact on ESG factors including enhanced energy efficiency in the UK, and delivered above target returns to our investors. Our active ownership has delivered growth in value that has been crystallised upon our exit, in particular through the continued build-out of the metering asset base and EBITDA, launching a high-value last-mile business segment, the completion of accretive bolt-on acquisitions, rationalisation of the business for private ownership and optimisation of the capital structure. We are delighted to have achieved a successful realisation for our clients.”
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About Hermes Infrastructure
Hermes Infrastructure is a specialist investment manager providing institutional investors equity investment opportunities in infrastructure across the UK, Europe and other OECD jurisdictions. Established in 2011, we manage over £4 billion of committed and invested capital including £2.8 billion of existing investments. Hermes Infrastructure is part of Hermes GPE LLP, which is ultimately majority owned by Federated Hermes, Inc.
Federated Hermes is a leading global investment manager with $605.8 billion in assets under management as of Mar. 31, 2020. Guided by our conviction that responsible investing is the best way to create wealth over the long term, our investment solutions span 135 equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies and a range of separately managed account strategies. Providing world-class active investment management and engagement services to more than 11,000 institutions and intermediaries, our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes’ over 1,900 employees include those in London, New York, Boston and several other offices worldwide. For more information, visit FederatedHermes.com. This communication has been distributed by the international business of Federated Hermes.
About Energy Assets Group Limited