Partners Group acquires a majority stake in Budderfly, further accelerating the growth of the most comprehensive Energy-as-a-Service provider in North America
Denver, US; 11 July 2022
- Partners Group and Budderfly aim to transform the Company into a multi-billion-dollar next-generation infrastructure platform that leads the Energy-as-a-Service market
- Budderfly provides a holistic outsourced solution for energy management and infrastructure upgrades for underserved commercial and industrial businesses with repeatable footprints
- Partners Group's investment further positions Budderfly for continued growth amid increasing market demand for cost-effective decarbonization solutions
Partners Group, a leading global private markets firm, has on behalf of its clients acquired a majority equity stake in Budderfly (or "the Company"), the fastest growing Energy-as-a-Service ("EaaS") provider in the US, and committed further growth capital totaling more than USD 500 million. Partners Group aims to transform Budderfly into a multi-billion-dollar infrastructure platform by investing to expand its customer base and solutions offering. Budderfly's experienced management team has invested and partnered alongside Partners Group to capture this large market opportunity.
Founded by its Chief Executive Officer Al Subbloie, Budderfly offers EaaS solutions for the measurement, reduction, and management of energy demand and consumption. This involves designing, integrating, installing, and fully funding a comprehensive portfolio of energy efficiency technology upgrades for customers, as well as managing and monitoring their energy usage. Budderfly's solutions include automated controls, proprietary software, metering, and a patented utility billing interface and billing system that currently supports over 400 utility companies in North America. Budderfly enters into long-term contracts with customers and earns revenues through a share of the energy cost savings generated by efficiency upgrades and the management and monitoring of energy use and demand. With more than 2,750 customer sites across 49 states, Budderfly is a leading EaaS provider for customers operating multiple sites with repeatable footprints, such as restaurant chains, assisted living facilities, and retail franchises.
Budderfly has seen its revenues more than double each year for the last handful of years and Partners Group aims to accelerate the Company's future growth through a number of key transformational value creation initiatives, including expanding sales capacity and execution on new site installations, broadening customer offerings, investing in software, analytics and network technologies, and making strategic acquisitions that deliver additional synergies.
Todd Bright, Partner, Head Private Infrastructure Americas, Partners Group, says: "We have tracked the energy efficiency sector as part of our thematic focus on decarbonization and sustainability. Companies now face unprecedented scrutiny and pressure from investors, policymakers, and other stakeholders to take tangible action to deliver on climate goals, so the synergy between Budderfly's market-leading position and unique business model combined with Partners Group's focus on platform-building in thematic infrastructure comes at an opportune time. We look forward to working with Al and his team on scaling the business further."
Al Subbloie, Founder and Chief Executive Officer, Budderfly, comments: "At Budderfly, we are committed to helping customers meet their sustainability goals and reduce costs. EaaS is a simple solution, with the added benefits of utility bill savings and no capital outlay. On the back of continued strong growth, both in terms of new site installations and acquiring new customers, we are looking ahead to our exciting next chapter of expansion. We believe Partners Group's experience scaling infrastructure platforms, as well as its operational expertise and deep financial resources, make the firm an ideal partner as we expand our footprint."
Patrick Langan, Member of Management, Private Infrastructure Americas, Partners Group, adds: "Budderfly is disrupting the energy efficiency market by providing a holistic solution to underserved commercial and industrial customers, and offering additional services, such as component-level data monitoring, that are becoming increasingly important for sustainability reporting. Budderfly's business model has strong infrastructure characteristics, with a sizeable and growing customer base served under long-term contracts that provide recurring revenues. A key part of our value creation plan will be expanding these service offerings and broadening Budderfly's customer base."
Latham & Watkins, LLP served as counsel to Partners Group. Guggenheim Securities, LLC served as lead financial advisor, Shasta Partners LLC served as a financial advisor, and Dentons US, LLP served as counsel to Budderfly in connection with the transaction.