Sustainable Development Capital LLP acquires private equity firm Volery Capital to create a ‘one stop shop’ for sustainable investment capital
• Sustainable Development Capital LLP (“SDCL”) acquires US-based private equity firm Volery Capital (“Volery”), expanding its investment offering and its North American footprint
• Acquisition strengthens SDCL’s position as the world’s leading energy efficiency investment platform serving commercial and industrial customers
• Move bolsters SDCL’s ability to provide capital to growth stage technology, software and services companies that are poised to scale rapidly
• The combined firm manages more than US$2 billion of assets across over 50 investments worldwide
SDCL, a world leader in funding and operating energy efficiency and decentralized energy generation projects, has acquired Volery, a US-based private equity firm focused on the energy transition. The transaction brings together SDCL’s extensive real assets expertise with Volery’s institutional private equity investment capabilities, enabling SDCL to participate in a broader range of energy transition opportunities focused on energy efficiency.
The combined platform will support SDCL customers that want to benefit from cleaner, cheaper and more resilient energy solutions by funding their energy efficiency and decentralized generation projects, as well as the underlying technologies, software and services that are propelling these energy solutions.
The Volery team, led by Managing Partner Emanuel Citron, and Partners Michael Pertnoy and Cort Ahl, will oversee SDCL’s private equity business going forward. They will work closely with SDCL’s real asset investment teams to invest in energy transition “picks and shovels” companies with proven business models that are ready to scale. As an owner and operator of more than US$2 billion of energy assets, SDCL is well positioned to help identify high quality opportunities and to be a strategic partner to its portfolio companies as they scale.
Volery has been a shareholder, board member and strategic partner of SDCL for several years. The two firms have collaborated on a variety of strategic growth initiatives and the acquisition capitalises on the strong synergies between the organisations. Ares Management and Folsom Point Funding, which had previously made minority investments in Volery, will continue as minority investors in the combined company. Volery will also continue to manage its existing private equity vehicles, including Volery Capital Partners Fund I and an energy transition mandate managed on behalf of ZOMA Capital.
SDCL and Volery are joining forces based on the shared belief that achieving decarbonization depends on rapidly scaling energy efficiency solutions. Energy efficiency solutions are largely overlooked by capital markets despite being the most near-term and most cost-effective source of emissions reductions available today. According to the International Energy Agency, 80% of CO2 emissions savings by 2030 are expected to come from proven technologies that are readily available, widely tested, and successful. SDCL’s private equity business will focus on high-ROI, proven technology, software and services solutions that enhance the performance of existing real energy assets, reduce energy demand and grow the opportunity for “behind the meter” solutions.
Volery was represented by Scott Naidech and Nicholas Usher along with support from the global tax, transactional and fund teams from Winston & Strawn.
Jonathan Maxwell, Founder and CEO of SDCL, said:
”We are in uniquely exciting times for the energy transition, and the financial sector has a vital part to play in delivering net zero. Sustainable Development Capital was founded with a view to help unlock capital to deliver decarbonisation at scale. We’ve been lucky to benefit from Volery’s support for many years and I am excited to bring them formally into the SDCL group to help us broaden the type of financing options we are able to provide. I look forward to seeing what can be achieved in private equity over the next decade as the world moves from making climate pledges to delivering on them at pace and scale.”
Manny Citron, Managing Partner of Volery, said:
”We have worked closely with Jonathan, who is a pioneer in the energy transition, and the rest of the talented team at SDCL for many years. Their in-house expertise, experience, relationships and processes position the firm to continue to scale distributed energy and energy efficiency solutions for years to come. For the energy transition to succeed, we will need to make private equity available to the growth stage companies building products and services that will, alongside important real asset initiatives, enable decarbonization. We are excited to continue to pursue this opportunity as part of SDCL, where together we can create a one-stop-shop financing platform focused entirely on the energy transition.”
Sustainable Development Capital LLP
Established in 2007, Sustainable Development Capital LLP is a specialist investment firm with a proven track record of financing and developing clean energy, energy efficiency and decentralized energy projects in the UK, Continental Europe, North America, and Asia. SDCL was founded to facilitate investment into environmental infrastructure markets and has since launched several funds pioneering energy efficiency solutions. SDCL has raised several innovative energy efficiency investment vehicles, including the first such vehicle listed on the London Stock Exchange. SDCL has also completed more than 50 green energy solution investments since 2007 and has over $2 billion of AUM. For more information, visit www.sdclgroup.com
Volery Capital is a growth-stage private equity firm that invests in rapidly growing companies that power the energy transition. Volery’s portfolio includes technology, software, and services companies that are thematically focused on the energy transition and resource efficiency. Volery manages several private equity vehicles with an explicit focus on companies that address climate change and/or promote inclusive economic growth, as well as a particular mandate dedicated to investments that support grid modernization. For more information, visit www.volerycapital.com.