Infrastructure

Providing 90,000 new homes with electricity and gas

Macquarie was a supportive growth partner, investing substantial capital and expertise to enable Energetics to fulfil its potential of becoming a national competitor.

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Sector	Infrastructure
Sub-sector	Energy
Location	United Kingdom

Opportunity

Energetics generates recurring revenues by working with housebuilders and construction firms to design, build, own and operate ‘last mile’ gas and electricity connections to new residential and commercial developments. Under Macquarie’s ownership the business achieved an ambitious growth strategy to become one of the UK’s largest independent network owners.

Approach

In 2013 Macquarie provided debt and equity to recapitalise the business and finance the exit of legacy shareholders. We provided substantial follow-on investment to fund growth capital expenditure, becoming the controlling shareholder in 2015. As majority owner, Macquarie further strengthened management capabilities, building a solid platform for Energetics’ accelerated growth outside of its historical base in Scotland.

Outcome

In October 2018, Macquarie completed the divestment of its majority stake in Energetics. Over Macquarie’s holding period the business grew recurring EBITDA at a 30% CAGR and increased its workforce by 75 per cent as it expanded into the Midlands and in the South of the UK. Macquarie committed over £145 million of capital to Energetics which was used to build vital infrastructure which connects 90,000 new homes to upstream electricity and gas distribution networks.

"Having an investor with the financial backing and pedigree of Macquarie gave us instant credibility and allowed us to build our business into a scalable platform which has positioned us well for continued growth."

Mike Pearce, Chief Executive Officer of Energetics

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Macquarie Capital

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