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 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 H1 2025, subject to customary conditions and regulatory approvals.