Private equity funds affiliated with global private investment giant Blackstone and software-focused private equity firm Vista Equity Partners (Vista), are to acquire Energy Exemplar, a provider of energy market simulation software, in a deal reportedly worth more than $1bn.
Under the terms of the deal, the two buyout firms will each acquire a 50% stake in Energy Exemplar from PE firm Riverside Company, which first invested in the business 2017. Under Riverside’s ownership, Energy Exemplar has grown at annual compound rate of 30% since 2018 and currently serves over 500 utilities and power companies and consultants in more than 79 countries.
According to a press statement, with the backing of Blackstone and Vista, Energy Exemplar will gain “new resources to help accelerate growth and drive platform innovation in support of grid reliability and the energy transition”.
Blackstone is making the investment from its energy transition arm which, according to SEC filings has so far raised $2.2bn for its latest $5.6bn target Blackstone Energy Transition Partners IV fund.
Vista meanwhile, is investing via its middle-market Foundation strategy having raised $4.5bn for its fourth Foundation fund in 2020, with a new fundraiser expected in the coming months.
Kirkland & Ellis LLP served as legal counsel, and William Blair served as financial advisor to Blackstone and Vista. Lazard acted as sole financial advisor, and Jones Day and Herbert Smith Freehills served as legal counsel to Energy Exemplar.
