PHD Equity Partners

Partnering a wide spectrum of growth businesses

Portfolio – Energy Solutions Group

Recent Realised Investment

Energy Solutions Group

Type of Investment

Management Buy Out

Investment Amount

£0.375m

About the Company

ESG is one of the leading independent Building Energy Management Solutions (BEMS) providers in the UK market, being one of only two independent national businesses of scale. ESG’s core business is the installation, support and maintenance of BEMS. It has a national office infrastructure and delivers its established projects and support services from each location.

ESG’s core business is centred on its direct customer relationships and consequently its support order book, which generates substantial recurring annual support contract revenue and also feeds a material proportion of the project related work. Through the support offering and remote support centre, ESG are able to monitor, control, analyse and report on a customer’s energy profile and consumption, along with suggesting and implementing changes or improvements to optimise the operation and efficiency of HVAC plant, lighting and therefore total building energy usage.

Investment Rationale

ESG’s markets are in a growth phase driven by a series of factors including rising energy costs, increasing legislation and corporate social responsibility.

ESG has the expertise, trained staff, proprietary software products and remote support centre to differentiate from the majority of its competition, and is a key provider of the support services to the infrastructure that controls much of a buildings energy use, ESG is well placed to take advantage of both the expected growth in the businesses core BEMS market, and the emerging energy solutions market.

Realised Investment Date | July 2014

Bridgepoint Development Capital and PHD Equity Partners have completed the sale of The Energy Solutions Group, the leading provider of energy management solutions to SSE plc for an initial consideration of £66m. ESG works with both private and public sector customers to provide solutions that reduce energy consumption, minimise costs and create sustainable energy savings. ESG whose customers have property portfolios ranging from single buildings to very large complex estates will continue to be led by the existing management team and will join the SSE Enterprise division which is seeking to service the wider energy needs of industrial and commercial customers. At a time when managing energy costs and environmental impact are key priorities for businesses ESG can typically save customers in excess of 20% of their energy consumption reducing carbon footprint.

Andy Dodd from PHD Equity Partners commented “We invested in ESG in 2011 as we believed in the growth potential of the energy management market and the strong market position of ESG, the management team have developed a range of energy services capability that has delivered excellent growth and positions them to develop strongly under the ownership of SSE”.

PHD Equity Partner contact

Mark Watts
Tel: +44 (0)1928 378 100
Email: mark@phdequitypartners.com

Date of Investment

February 2011


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PHD Equity Partners LLP is authorised and regulated by the Financial Conduct Authority.

PHD Equity Partners LLP is a limited liability partnership incorporated in England and Wales (registered number OC 334491).
Registered Office is 7700 Daresbury Park, Daresbury, Warrington, WA4 4BS.

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