I Squared Announces Acquisition of Texas-Based Energy Services Firm, Priority Power

July 30, 2024 at 09:00 AM EDT

Underscores I Squared’s commitment to advance sustainable energy solutions
Brandon Schwertner to remain as CEO of Priority Power

I Squared Capital (“I Squared”), a leading independent global infrastructure investment manager, today announced that it has entered into an agreement to acquire Priority Power Management, LLC. (“Priority Power” or “the Company”).

Based in The Woodlands, Texas, Priority Power is one of the largest independent providers of energy management services and infrastructure solutions for commercial and industrial customers across more than 40 U.S. states.

Gautam Bhandari, Chief Investment Officer and Managing Partner, I Squared Capital said: “Priority Power has proven itself to be a valued partner for customers seeking to reduce costs, manage volatility and progress sustainability goals as they navigate the increasingly complex power market. As access to grid interconnections has become increasingly challenging, Priority Power has been leading the movement to build private transmission and distribution assets to support continued growth for its customers.”

Mr. Bhandari continued: “Priority Power has a compelling range of service offerings that are unique in the industry. We believe that with I Squared’s partnership and guidance, the company will accelerate both its internal and external growth plans in the coming years and play an important role in supporting growth, resiliency and sustainability in the power sector. We are very excited about what we will be able to achieve working together with the Priority Power team in the coming years.”

Today, business in the U.S. faces a set of challenging dynamics on energy pricing and consumption – energy prices are more volatile and the grid is less reliable but the demand for power has risen significantly, driven by the growth in data centers and manufacturing. Priority Power is at the forefront of helping businesses and institutions to manage both their energy costs and accelerate their expansion plans by delivering innovative solutions that marry data, market expertise, infrastructure and sustainability to create comprehensive solutions that lower energy costs and reduce emissions.

I Squared’s investment will provide an opportunity for Priority Power to expand its reach across the U.S. as well as make additional investments in high-growth markets. The investment underscores I Squared's commitment to expanding its presence in the power sector by investing in innovative, comprehensive energy solutions. In doing so, I Squared is shoring up the nation’s power infrastructure, a cornerstone of economic growth for the United States.

Founded in 2001, Priority Power is recognized for its innovative and client-centric approach, offering a wide range of energy services, including energy procurement, risk management, interconnection services and renewable energy solutions. Through its Infrastructure Services group, Priority Power addresses power availability constraints by designing and constructing private transmission and distribution assets, enabling customers to reduce costs and accelerate their expansion plans. Priority Power serves a wide range of commercial, industrial, institutional and government customers. Since 2017, Priority Power’s sustainable infrastructure assets have enabled clients to avoid emitting 8.8 million metric tons of CO2e.

Brandon Schwertner, CEO of Priority Power added, “I Squared is one of the world’s most capable and respected infrastructure investors, partnering with them will position Priority Power to further accelerate our growth and deliver even greater value for our customers, shareholders and employees. We are grateful to our past investors for their commitment to our mission and their support in achieving this important milestone.”

I Squared has signed a definitive agreement to acquire the company through its ISQ Global Infrastructure Fund III. I Squared is acquiring Priority Power from Ara Partners Group, LLC, Oaktree Capital Management, L.P. and certain other shareholders.

Brandon Schwertner will continue as the Chief Executive Officer of the Company and remain an equity holder. Terms of the deal were not disclosed.

BofA Securities served as exclusive financial advisor to I Squared. Jefferies LLC served as lead financial advisor and BMO Capital Markets served as financial advisor to Priority Power in connection with the transaction. Latham & Watkins LLP served as legal counsel to Priority Power and White & Case LLP served as legal counsel to I Squared.

About I Squared

I Squared is a leading independent global infrastructure investor with over $40 billion in assets under management. We are known for the development of investment platforms in infrastructure projects where we start small and grow big. We use global insights and deep local intelligence to solve complex problems, foster smarter businesses, serve local communities, and invest in a more sustainable future to provide essential services to millions of people around the world. We are a team of over 280 people, headquartered in Miami with offices in Abu Dhabi, London, Munich, New Delhi, São Paulo, Singapore, Sydney and Taipei. We operate a diverse portfolio of 85 companies in 81 countries with over 66,000 employees in a variety of sectors including utilities, energy, digital infrastructure, transport, environmental infrastructure, and social infrastructure. You can find out more by visiting:www.isquaredcapital.com.

About Priority Power

Priority Power is one of the largest independent providers of turnkey energy management services for commercial and industrial customers in the U.S. The Company helps businesses procure energy that meets their cost and sustainability goals; monetize flexibility in their load to reduce their energy costs; and upgrade their facilities’ energy infrastructure to make their operations less costly, more resilient and more sustainable. Founded in 2001 and headquartered in The Woodlands, Texas, Priority Power manages energy for more than 8,500 clients across the U.S. and has developed over $900 million of private transmission and distribution infrastructure for its customers. For more information on Priority Power, please visit https://prioritypower.com/.

Disclaimers

This document does not constitute advice or a recommendation or offer to sell or a solicitation to deal in any security or financial product. It is provided for information purposes only. Investing involves risk, loss of principal is possible.

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