I Squared Capital acquires Priority Power Management from Ara Partners and Oaktree Capital Management
Type: Acquisition · Technology: Other · Country: United States · Announced: 2024-07-30
I Squared Capital, via its Global Infrastructure Fund, acquired Priority Power Management from Ara Partners and Oaktree Capital Management for an undisclosed sum. Priority Power delivers comprehensive energy management and grid modernization solutions.
Analysis
I Squared Capital's acquisition of Priority Power Management positions the global infrastructure investor deeper into the US energy transition, securing a platform that manages over 6,600 MW of energy load for commercial and industrial clients. This move provides I Squared Capital with direct exposure to grid modernization and energy management services, a critical component for optimizing existing energy infrastructure assets within its portfolio. The deal allows I Squared Capital to capitalize on the increasing demand for sophisticated energy solutions, particularly as US industrial clients seek to reduce emissions and enhance grid reliability. By integrating Priority Power Management, I Squared Capital expands its operational capabilities beyond traditional asset ownership into service delivery, targeting a growing segment of the US energy market. For Ara Partners, this exit from Priority Power Management validates its strategy of investing in technologies that reduce waste and lower emissions, aligning with its industrial decarbonization mandate. Oaktree Capital Management, overseeing $189 billion in AUM, realizes value from its infrastructure holdings, demonstrating its ability to monetize investments within its real assets specialization. I Squared Capital, as an independent global infrastructure investor, integrates a US-based operational platform managing 6,600 MW of energy load, expanding its focus beyond traditional energy infrastructure assets into critical energy management and grid modernization services. This transaction allows I Squared Capital to diversify its exposure within the US energy sector, moving into service-oriented revenue streams and leveraging its expertise in energy infrastructure.
Key points
- I Squared Capital acquired US-based Priority Power Management.
- Priority Power manages over 6,600 MW of energy load for commercial and industrial clients.
- Sellers included Ara Partners, focused on industrial decarbonization investments.
- Oaktree Capital Management, overseeing $189 billion in AUM, exited the investment.
- The deal was announced on July 30, 2024.
Counterparties
- Ara Partners (Seller)
- I Squared Capital (Buyer)
- Priority Power Management, Inc. (Seller)
- Oaktree Capital Management, L.P. (Seller)