Global private markets investor Partners Group announced a commitment of $500 million for the acquisition of a majority stake and provision of growth capital in energy efficiency technology provider Budderfly, aimed at scaling the company into a multi-billion-dollar infrastructure platform.
Budderfly offers solutions enabling businesses and other organizations with solutions for the measurement, reduction, and management of energy demand and consumption. The company’s Energy-as-a-Service (EaaS) platform provides customers with immediate, guaranteed energy efficiency improvements and usage reductions at no project risk or out of pocket costs. The company enters into long-term contracts with customers, earning revenues through a share of energy cost savings, with Budderfly designing, integrating, installing, and fully funding a comprehensive portfolio of energy efficiency technology upgrades, and managing and monitoring their energy usage.
Budderfly Founder and CEO Al Subbloie said:
“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.”
The investment comes as market demand for cost-effective decarbonization solutions continues to increase. Budderfly has undergone rapid growth, with revenues more than doubling annually for the past few years.
Aiming to support the company’s continued growth, Partners Group outlined a series of key initiatives it will pursue with its new investment, 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, said:
“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.”
Patrick Langan, Member of Management, Private Infrastructure Americas, Partners Group, added:
“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.”