EQT Group, a private equity firm, and GIC, the sovereign wealth fund of Singapore, have agreed to take a majority stake in UK-based energy transition-focused infrastructure company Calisen in a deal valued at over $5 billion (£4 billion). A consortium of investors, including Goldman Sachs Alternatives, Global Infrastructure Partners, a subsidiary of BlackRock, and Mubadala Investment Company, sold the stake.
Calisen, based in Manchester, formed in 2002 is about owning and installing plus maintaining energy infrastructure assets. Smart metering and solar battery and electric vehicle (EV) charge point are also amongst services offered in heat pumps through installations. The buy reflects Calisen’s position on becoming a fundamental component within Britain’s energy transition whilst demonstrating good opportunity for growth across smart meters coupled with adjacent sustainable technologies.
Kunal Koya, EQT Active Core Infrastructure partner described the investment as an opportunity that has strong downside protection with stable cash flows and still having good growth potential. Calisen has aligned well with EQT’s sustainable infrastructure investment, he said. The CEO of Calisen Sean Latus also welcomed the new partnership, saying that the EQT and GIC’s energy sector expertise will be important in expanding the operations of the company and its impact on UK decarbonization goals.
The deal is part of a broader trend of significant investments in the energy transition infrastructure sector, with other high-profile moves by firms like Macquarie, KKR, and Brookfield. Calisen’s installed base of approximately 16 million meters positions the company to benefit from favorable regulatory frameworks and increasing demand from energy suppliers and customers.
The company was earlier valued at £1.4 billion in 2020, so its rapid growth spells strategic significance in the energy transition landscape. It is planning on using its scale and customer relationships under its new ownership to expand its smart meter portfolio and opportunities in adjacent markets.