The TPG investment fund and its environmental spinoff are banding together to acquire Austin, Texas-based energy efficiency firm CLEAResult for an undisclosed sum.
TPG Growth and The Rise Fund are buying CLEAResult from global equity firm General Atlantic. The deal is expected to close later in 2018, pending regulatory approvals and other conditions.
CLEAResult was a small firm started up in 2003 which now has hundreds of utility customers across the U.S. The firm focuses on energy efficiency programs that utilities offer to residential customers and commercial and industrial organizations.
CEO Aziz Virani said CLEAResult helped deliver more than 4,500 GWh and 54 million therms of energy savings last year. General Atlantic has owned the Texas firm since 2013.
“Over the past five years CLEAResult has meaningfully expanded their leadership position in the energy efficiency and demand-side management space,” said Peter Munzig, principal at General Atlantic. “It has been an honor to work with Aziz Virani, Terry Moore, Jonathan Seltzer, and the entire team at CLEAResult and we look forward to the company’s next phase of growth with TPG.”
In 2014, with General Atlantic’s backing, CLEAResult expanded its reach by acquiring Massachusetts-based Applied Proactive Technologies. Earlier this year, CLEAResult bought Engie Insight;s utility division.
A lighting efficiency partnership with Chicago-based utility ComEd hit a milestone last year with its 100 millionth lightbulb. CLEAResult partnered with Kansas City Power & Light and Nest on a residential and small business demand response program which was one of POWERGRID International and DistribuTECH 2018's projects of the year announced in January.
CLEAResult now has more than 2,500 employees based in over 70 cities across North America. TPG’s Growth division manages The Rise Fund, which is an alternative asset firm targeting investments that help achieve positive environmental outcomes, according to the release.
“Energy efficiency is one of the least expensive ways to meet energy demand, and CLEAResult enables this every day for residential and commercial customers by working in collaboration with utilities across North America. Not only do these programs help families and businesses to save money, but they result in significant reductions in carbon emissions - a key focus area for The Rise Fund,”said Rick Needham, Energy Sector Lead for The Rise Fund. “We are very excited to help CLEAResult grow their business and in the process further reduce emissions.”
Financing for the transaction is being provided by Goldman Sachs & Co. LLC, UBS Investment Bank, Credit Suisse and KeyBanc Capital Markets.
KeyBanc Capital Markets Inc. and Robert W. Baird & Co. served as financial advisors to TPG, and Vinson & Elkins served as legal advisor to TPG and The Rise Fund.
J.P. Morgan and Piper Jaffray served as financial advisors and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal advisor to General Atlantic.