Partners Group to sell Techem, an international provider of digitally enabled solutions for the building ecosystem

• The transaction values Techem at an enterprise value of around EUR 6.7 billion
  
• Techem has over 428,000 customers and services more than 13 million dwellings
• Partners Group's transformational value creation plan included digitizing processes, implementing a customer journey-led operating model, and growing internationally

Partners Group, one of the largest firms in the global private markets industry, acting on behalf of its clients, has agreed to sell its majority stake in Techem (or "the Company"), an international provider of digitally enabled solutions for the building ecosystem, to TPG and GIC. The transaction values Techem at an enterprise value of around EUR 6.7 billion. As part of the transaction, existing co-investors CDPQ and Ontario Teachers' Pension Plan will also exit their stakes in the Company.

Since acquiring Techem in 2018, Partners Group and co-investors CDPQ and Ontario Teachers' have overseen a period of strong growth at the Company, with revenues reaching over EUR 1 billion and EBITDA growing c. 50%. This growth is the result of Partners Group's transformational value creation plan with Techem, which has built the Company into a leading provider of a wide range of digital solutions designed to support energy efficiency in the building ecosystem. Specific actions included implementing digital transformation initiatives to improve the operating model and the customer experience, as well as the service and sales organization; expanding the Company's international footprint; and adding new services beyond its submetering core.

Founded in 1952 and headquartered in Eschborn, Germany, Techem provides energy services, including resource management, residential health, and building efficiency, as well as energy contracting services to property managers and owners of multi-tenant residential buildings. The Company has over 428,000 customers in 18 countries and services more than 13 million dwellings. Techem's core submetering service yields strong environmental and economic benefits through fair cost allocation, driving down energy consumption and emissions at the most competitive cost. Techem's state-of-the-art devices and services are critical to advancing the long-term decarbonization of the real estate sector, which still drives approximately 40% of global CO2 emissions. Over 62 million of Techem's devices are currently installed internationally. The Company is benefitting from a growing focus on energy efficiency globally, driven by new regulatory requirements, corporate decarbonization goals, and higher energy costs.

Kim Nguyen, Partner, Partners Group, says: "Together with CDPQ and Ontario Teachers', we have built Techem into a global energy management services provider, leveraging its strong foundations in Germany to expand into new markets and services. This sale is the culmination of over five years of intensive hands-on ownership and demonstrates that exit markets are open for the highest quality assets."

Matthias Hartmann, Chief Executive Officer, Techem, comments: "We see our task as creating smart solutions that save resources for the real estate industry, helping to make buildings more sustainable and healthier places to live. Partners Group and its co-investors CDPQ and Ontario Teachers' have played a transformational role in our growth over the last five years, and we now stand as a larger and more efficient enterprise. We look forward to working with the team at TPG and GIC on our next chapter."

Albrecht von Alvensleben, Managing Director and Head of Private Equity Europe, CDPQ, says: “We are proud of the significant strides Techem has made since our initial investment in 2018, alongside Partners Group and Ontario Teachers', as we helped the company consolidate its position in existing markets while expanding its presence in international markets. We are confident that Techem will continue to lead the way in creating energy-efficient solutions for a greener future and we wish them success with their new investment partners.”

Andreas Holzmüller, Managing Director, Partners Group, concludes: "Through helping owners make buildings more sustainable, Techem is making a meaningful contribution to the energy transition. The Company has an established track record of growth as well as recession resilience, with strong recurring revenues. Following the completion of the value creation plan, Techem is now in a stronger position to capitalize on future opportunities."

The transaction is expected to close in early 2025, subject to customary conditions and regulatory approvals.

About Partners Group
Partners Group is one of the largest firms in the global private markets industry, with around 1’800 professionals and approximately USD 150 billion in assets under management. The firm has investment programs and custom mandates spanning private equity, private credit, infrastructure, real estate, and royalties. With its heritage in Switzerland and its primary presence in the Americas in Colorado, Partners Group is built differently from the rest of the industry. The firm leverages its differentiated culture and its operationally oriented approach to identify attractive investment themes and to transform businesses and assets into market leaders. For more information, please visit www.partnersgroup.com or follow us on LinkedIn.

About CDPQ

At CDPQ, we invest constructively to generate sustainable returns over the long term. As a global investment group managing funds for public pension and insurance plans, we work alongside our partners to build enterprises that drive performance and progress. We are active in the major financial markets, private equity, infrastructure, real estate and private debt. As at June 30, 2024, CDPQ’s net assets totalled CAD 452 billion. For more information, visit cdpq.com, consult our LinkedIn or Instagram pages, or follow us on X.

CDPQ is a registered trademark owned by Caisse de dépôt et placement du Québec and licensed for use by its subsidiaries. 

About Ontario Teachers' Pension Plan

Ontario Teachers' Pension Plan Board (Ontario Teachers') is a global investor with net assets of $255.8 billion as at June 30, 2024. We invest in more than 50 countries in a broad array of assets including public and private equities, fixed income, credit, commodities, natural resources, infrastructure, real estate and venture growth to deliver retirement income for 340,000 working members and pensioners.

Our more than 450 investment professionals operate in key financial centres around the world and bring deep expertise in a broad range of sectors and industries. We are a fully funded defined benefit pension plan and have earned an annual total-fund net return of 9.3% since the plan's founding in 1990. At Ontario Teachers', we don't just invest to make a return, we invest to shape a better future for the teachers we serve, the businesses we back, and the world we live in. For more information, visit otpp.com and follow us on LinkedIn.

Partners Group media relations contact
Alec Zimmermann
Phone: +41 41 784 69 68
Email: alec.zimmermann@partnersgroup.com