Palisade Impact, a core-plus infrastructure investor, has agreed to buy a green energy company, Energy Locals, from Quinbrook Infrastructure Partners for an undisclosed price.
Energy Locals, a Quinbrook portfolio company, supplies energy for more than 260,000 contracted or active retail and business customers in NSW, Victoria, Queensland, South Australia, Australian Capital Territory and Tasmania.
It is understood that Palisade Impact, backed by Palisade Investment Partners, will hold Energy Locals in its A$500m impact fund, launched in 2021, according to reports.
Steve Gross, co-founder and CEO of Palisade Impact, said: “We are excited about the opportunity provided by our investment in Energy Locals. It has all the characteristics we look for in a business – environmental impact, a strong management team and robust infrastructure characteristics.
“The quality of Energy Locals is testament to the capability and passion of the staff and Quinbrook’s vision and active management. We look forward to working with the Energy Locals’ team and clients in continuing to grow the business and ensuring more Australians can access more affordable green energy,” said Gross.
David Scaysbrook, co-founder and managing poartner of Quinbrook, said: “The consortium led by Palisade Impact are natural stewards to drive the company into its next phase and we wish them continued success.
“From concept to this pivotal agreement we have worked closely with the management team to develop a unique business model that is well positioned to continue to grow and deliver a cleaner energy future for its customers.” Quinbrook first invested in Energy Locals in 2018.
Scaysbrook said a core advantage of Energy Locals business model as a community energy network was its ability to unlock access to energy-efficient infrastructure and advanced technologies for occupants of multi-dwelling properties, making sustainable energy solutions more affordable for residents and businesses given that all customers pay a price for their electricity that is at or below the government-set default offer.
“As Energy Locals moves forward with Palisade Impact, we are confident in their ability to continue to invest in this exciting growth sector. Their alignment with our vision for sustainable energy access reassures us that the business is in excellent hands,” said Brian Restall, managing director and regional leader for Australia at Quinbrook.
The transaction is expected to reach financial close by the end of 2024.
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