TPG and Singapore’s sovereign wealth fund GIC are set to take over as majority stakeholders in energy metering company Techem in what is Europe’s largest private equity energy deal this year.
The transaction provides an exit for Partners Group, CDPQ, and Ontario Teachers’ Pension Plan and values the German company at approximately €6.7 billion (around $7.4 billion).
According to PitchBook data, PE energy deals are on the rise in Europe with 2024 having already surpassed last year’s total deal value.
So far this year, PE firms have invested €37.2 billion in the energy sector with one quarter still left to go. At the current pace, 2024’s deal value for the whole year would be the second-highest annual total this decade.
However, PE exits are still falling in the sector.
In 2022, the energy sector accounted for almost 10% of exits in Europe, but in the last two years, this figure has halved to represent less than 5%.
With only 39 PE-backed energy exits closed this year, 2024 is on track for its lowest count in five years. Exit value in the sector has fared better with €13.6 billion this year but is still significantly below 2022’s peak of €23.7 billion.
Since acquiring Techem in 2018, Partners Group and co-investors CDPQ and Ontario Teachers’ Pension Plan have overseen a period of “strong growth” at the company, with revenues exceeding €1 billion and EBITDA growing by approximately 50%.
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