Alinda Capital Partners holds first exit for its Infrastructure Fund III

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Alinda Capital Partners, which is focused on mid-market infrastructure investments, has made the first exit for its Infrastructure Fund III, through the sale of Energy Assets.

The firm has led the sale, which is valued at £612m. Alinda led the acquisition of Energy Assets back in 2016 in a deal worth £286m.

As part of the deal, an Alinda-managed co-investment vehicle also exited the company, as well as a minority shareholder which was a vehicle of Hermes Infrastructure. This enabled the buyers to acquire 100% of Energy Assets.

Scotland-headquartered Energy Assets is an independent provider of industrial and commercial gas metering services across the UK.

Alinda managing partner Jim Metcalfe said, “We were attracted to Energy Assets’s strong team and its contracted cash flows that provide a floor on the downside.

“We made a good sector call. We were a relatively early entrant into the metering sector and, after we made the investment, transaction multiples increased in the sector. New entrants have been willing to pay a premium for platforms with contracted cash flows and demonstrated growth.”

Evercore and Linklaters advised Alinda on the deal.

Alinda managing partner Andrew Bishop said “Our investment thesis was borne out. The Energy Asset’s team acquired additional portfolios of contracted meters, boosting EBITDA substantially.

“The increase in EBITDA combined with the increase in transaction multiples enabled us to deliver superior returns for our investors. It is a testament to Energy Assets and its team that the company has proven to be very resilient in these uncertain times.”

According to Altmar Capital Partners, Alinda closed its Infrastructure Fund III on $1bn in 2018. The fund close substantially below its initial target which was pegged at $5bn.

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