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

View this email online

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,

Read the full Wire commentary on PE Hub ...

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

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

Did someone forward you this email? Subscribe now to get full, unlimited access to all PE Hub content, including every PE Hub Wire article.

Please visit Buyouts for the latest insight into LP activity and Venture Capital Journal for comprehensive coverage and analysis of what’s happening in VC.

London | New York | Hong Kong | Tokyo | Sydney

PEI Group Ltd is registered in England no.6135779

Registered office: 5th Floor, 100 Wood Street, EC2V 7AN

To update your PE Hub email preferences, or to unsubscribe, click here.