I Squared Capital has acquired US energy management services firm Priority Power Management, on behalf of its third global infrastructure fund.

I Squared’s Global Infrastructure Fund III is acquiring Priority Power from Ara Partners, Oaktree Capital Management and other shareholders.

Priority Power’s CEO Brandon Schwertner will remain an equity holder in the company following the completion of the transaction.

Priority Power, which was founded in 2001, provides energy management services to help customers reduce their energy costs, improve energy efficiency, achieve reduced emissions and access secure, reliable energy. The company manages energy for more than 8,500 clients in the US.

Ara Partners, through Ara Fund I, invested in Priority Power in 2019.

Troy Thacker, managing partner at Ara Partners, said: β€œAt Ara Partners, we look to bring technical, operational, and private equity investing expertise to maximise decarbonisation results while advancing the development of businesses with high-value, sustainable long-term models.

β€œPriority Power is one of the leading forces enabling commercial and industrial customers across North America to optimise their energy usage and decarbonise. Through Ara’s investment, and our close partnership with Priority Power’s exceptional team, we are proud of the economic and environmental gains we have been able to realise.”

Schwertner said: β€œWe have greatly valued Ara’s partnership and the team’s ability to support us in institutionalising our business, participating in the development of our M&A strategy, and supporting the measurement of our decarbonisation progress.

β€œI am confident that the strong foundation laid by Ara Partners will continue to drive our success as we embark on our next chapter with I Squared.” 

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John Bick, Priority Power’s executive chairman and senior adviser, said: β€œWe were excited about Ara’s investment, given the firm’s strategic perspective, strong commitment to decarbonisation and ability to foster a culture of innovation.

β€œThrough Ara’s partnership, we have been able to offer our customers additional solutions and expand into new markets. I am extremely proud of what the team has accomplished alongside Ara’s strategic support.” 

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