Investment firm General Atlantic has acquired a 24.9% interest in Sustainable Development Capital (SDCL), a global energy efficiency and decarbonisation solutions investor.
IPE Real Assets understands that General Atlantic, through its climate growth fund BeyondNetZero, is investing around $50m (€46.6m) to acquire the minority interest in SDCL. The exact amount General Atlantic will be based on SDCL achieving certain targets.
SDCL, established in 2007 is known for financing and developing clean energy, energy efficiency, and decentralised energy infrastructure projects in the UK, Continental Europe, North America and Asia. The company has $2.5bn in assets under management.
Following this new investment, General Atlantic said it will partner with SDCL to support the buildout of the company’s operating capabilities to help drive its next phase of expansion.
General Atlantic joins Emigrant Partners, a New York based strategic capital provider that invested into SDCL in 2022, as an investor in the company.
As part of the transaction, General Atlantic managing director Michael Bevan will join SDCL’s board of directors.
In addition to the investment from General Atlantic’s BeyondNetZero fund, Tony Davis, CEO and CIO of Inherent Group and a co-founder of Anchorage Capital Group, will also become a shareholder of the company and act as an advisor to the firm.
Jonathan Maxwell, CEO of SDCL, said: “Supported by General Atlantic’s vision, track record and expertise in technology and investment, BeyondNetZero is a complementary partner to help SDCL deliver on its ambitions to develop and invest in the most efficient and decentralised energy solutions for our clients, and to continue to deliver strong and sustainable returns for our investors in doing so.”
General Atlantic’s BeyondNetZero fund identifies and supports growth companies delivering innovative climate solutions that have the potential to meet and exceed net-zero emissions targets, with a focus on decarbonisation, energy efficiency, resource conservation and emissions management.
Earlier this year, General Atlantic created an infrastructure division with the acquisition of Actis, a $12.5bn global sustainable infrastructure manager.
Bevan said: “Energy efficiency is a critical, but too often overlooked, component of the solution set that will enable the global energy economy to transition to net zero, and we believe this market needs both real asset capital and growth equity to power transformational change.”
Emanuel Citron, managing partner of SDCL’s private equity arm, said: “Energy efficiency is as important to the energy transition as adding clean new supply. SDCL is expert in developing and managing sustainable energy projects for critical uses, and as asset owners, we know which technologies, services and software are critical to their efficient operation.”
Jenny Souza, CEO and president of Emigrant Partners, said, “We have been tremendous believers in the SDCL leadership team and their long-term vision since we first provided strategic capital to SDCL in 2022; we are excited to continue our partnership with the SDCL team alongside General Atlantic.”
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