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The Wire

Private equity deal news and insights from the New York newsroom

Jan 2, 2025

 

Forecast for renewable energy is mixed; OEP closes energy services deal

  • Good morning, Hubsters. Senior reporter Michael Schoeck here with the US edition of the Wire from the New York newsroom. Happy New Year to all our readers!

     

    Today we’ve got two original PE Hub stories for you.

     

    The first is a 2025 Look Ahead piece on private equity investment activity in the renewable energy industry under the incoming administration.

     

    In deal news, One Equity Partners is closing its late 2024 acquisition of EthosEnergy, an energy services provider.

     

    And in the second original piece we’ll share an excerpt from John R Fischer’s story on pharmaceutical industry deal trends. 

     

    Let’s first sample a 2025 outlook for the renewable energy market.

     

    Solar plus energy storage shine bright

    Large demand for distributed generation power such as solar plus storage from Fortune 500 customers is expected to keep the pace of renewable energy development and private equity and infrastructure investments steady under the incoming Trump administration, an investor and banker told PE Hub.

     

    Upgrade to the premium version of the Wire to read the outlook.

     

    Energy services

    Keeping with the energy market, we have a deal to highlight involving One Equity Partners closing its late 2024 acquisition of EthosEnergy.  The Houston-based target provides reciprocating turbine services to the power generation, energy, industrial, and aerospace and defense markets.

     

    Upgrade to the premium version of the Wire for more insight on the natural gas power and energy services market.

     

    Pharma PE trends

    Rising healthcare consumerization, self-care and cost-containment have opened new opportunities for private equity in pharma, along with large companies in the sector increasingly pursuing post-covid-19 M&A deals and an improved exit environment.

     

    PE Hub broke down three trends driving PE-backed deals in the sector.

     

    Upgrade to the premium version of the Wire to read up on the deal trends.

     

    That’s a wrap for me. Stay tuned for Irien Joseph bringing you the Europe edition of the Wire tomorrow and John R Fischer delivering the US edition.

     

    Cheers,

    Michael

 

Read the full Wire commentary on PE Hub ...

 

Today's must reads
> Demand for solar, storage and onshore wind expected to continue More...
> Pharma M&A boost from expanded drug and service access, plus outsourcing trends More...
> Hg's Alan Cline: Around 250 AI projects underway across portfolio More...
> Private equity buys into European services with a global outlook More...
> Private equity snaps up listed UK companies, but premiums in line with US More...

Also of note (may require subscriptions)

Hg has around 250 AI projects underway across its portfolio and is already seeing benefits in cost efficiencies and revenue acceleration, Alan Cline, head of North America, told PE Hub in the latest of its 2025 Outlook pieces.

 

Blaise Keane, executive vice-president in Heitman’s North American Portfolio Management Group, spoke with PERE about why he believes alternative property sectors will see more demand in 2025.

 

Mantra Investment Partners is raising its fourth secondaries fund, three years after closing its predecessor vehicle, Secondaries Investor has learned.

 

"Alibaba Group Holding Ltd. agreed to sell its shares in Sun Art Retail Group Ltd. to private equity firm DCP Capital [in a $1.6 billion deal], unloading another high-profile physical commerce asset at a discount to focus on its core online business." (Bloomberg)

Deals

NXT Capital: Middle-Market Direct Lending and Investor Solutions
> Turning Rock Partners exits Next Level Aviation More...
> Olympus Partners acquires data center manufacturer Accelevation More...
> Truelink Capital completes $535m carve-out buyout of event management firm GES More...
> OEP closes investment in energy equipment service provider EthosEnergy More...
> OEP completes acquisition of energy equipment service provider EthosEnergy More...
> OEP invests in energy equipment service provider EthosEnergy More...
People
> O2-backed Azureon taps Todd as chief integration and development officer and Ordonez as HR director More...
> Health Enterprise Partners promotes Rauber to VP More...
> David von Rosen builds firm’s presence from gambling to real estate More...
 

They said it

“I think this industry is going to be flat in the coming years. Hyperscalers like Microsoft are voracious users of renewable energy, and the huge demand for solar, storage and onshore wind is going to continue unabated for a few more years.”

— Ted Brandt, founder and CEO of Marathon Capital, on the expectation for unwavering PE investment activity and industry growth in the renewable energy market under the Trump Administration.

 

Today's letter was prepared by Michael Schoeck

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