Alternative investment manager Blackstone’s energy-focused private equity business, Blackstone Energy Transition Partners, announced the acquisition of environmental testing, monitoring and compliance services provider Alliance Technical Group (ATG) from Morgan Stanley Capital Partners.

Founded in 2000 and headquartered in Alabama, ATG provides environmental management and compliance solutions for companies and brands in North America. The company’s suite of solutions include source and laboratory testing, continuous emissions monitoring systems and leak detection and repair, focused on supporting companies in meeting regulatory and safety requirements, as well as their sustainability goals.

Darius Sepassi, Senior Managing Direct, and Mark Henle, Managing Director at Blackstone, said:

“ATG is a clear market leader in emissions testing and monitoring, providing mission-critical services that directly support customers’ compliance and operational performance. Together, we are excited to leverage Blackstone’s scale and resources to help support ATG’s continued growth.”

According to Blackstone, the acquisition aligns with its high-conviction investment themes of electricity demand growth and the ongoing energy transition, and follows a series of energy transition-focused deals, including Shermco, Enverus, Westwood, and Trystar, among others. Blackstone announced last year that it had raised $5.6 billion for its energy transition-focused private equity fund, Blackstone Energy Transition Partners IV, closing the fund at its hard cap.

David Foley, Global Head of Blackstone Energy Transition Partners, said:

“Our investment strategy focuses on identifying leading businesses that we believe are positioned to disproportionately benefit from the growing demand for electricity and the broader energy transition.”

Morgan Stanley Capital partners acquired its position in ATG in 2021, and the company has since scaled through organic growth, M&A, expansion into complementary adjacent service lines, investment in technology capabilities, and the buildout of an integrated national operating platform.

Chris LeMay, CEO of Alliance Technical Group, said:

“Our partnership with MSCP accelerated Alliance’s growth and enabled us to build a more diversified, integrated environmental services platform while staying true to our culture and client-first approach. I’m incredibly proud of our team’s dedication and execution over the past several years. As we look ahead, we’re excited to partner with Blackstone to continue investing in our people, strengthening our processes, and delivering industry-leading technology for our clients.”