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- Energy
- Our News
London, 13 February 2025 – Arcus Infrastructure Partners (“Arcus”) is delighted to announce the completion of the sale of its smart metering businesses, Horizon Energy Infrastructure (“Horizon”) and Smart Meter Assets (“SMA”) to global investment firm KKR.
Since acquisition, Arcus has worked closely with the respective management teams to transform Horizon and SMA, significantly improving the scale and quality of both businesses through the implementation of a wide range of value creation initiatives, including winning new contracts with UK energy suppliers, raising debt financing, M&A, funding UK water meters and German smart meters and expanding into adjacent green infrastructure, such as heat pumps, EV chargers and solar PV systems. Under AEIF2’s ownership, Horizon and SMA won c. 3m new contracted meters with Octopus, OVO, Utilita, SO Energy and EDF, raised £940m of debt financing under an innovative structure, put in place long-term interest rate hedges, increased contract coverage of the meter base to 95% and significantly improved the ESG credentials of both businesses. At exit, the combined portfolio stands at c. 3.5m installed energy meters, with a c. 1.9m contracted pipeline of energy meters.
Stefano Brugnolo, Partner and Head of Energy at Arcus, commented: “We’d like to extend our sincere gratitude to Tom Thorp, Jeff Studholme, Richard Rose, and the entire Horizon and SMA teams for their partnership and commitment over this journey. Together, we have significantly grown the meter asset base and contracted meter pipelines for Horizon and SMA, expanded into new business areas and established a highly efficient funding platform for green, distributed energy infrastructure. The combined business is now well positioned to deliver its next phase of growth and development.”
About Arcus
Arcus Infrastructure Partners is an independent fund manager focused solely on long-term investments in European infrastructure. Arcus invests on behalf of institutional investors through discretionary funds and specialist co-investment vehicles and, through its subsidiaries, currently manages investments with an aggregate enterprise value of c. €24bn (as at 30 September 2024). Arcus targets mid-market, value-add infrastructure investments, with a particular focus on businesses in the digital, transport, logistics & industrials, and energy sectors. Further information on Arcus Infrastructure Partners can be found on www.arcusip.com.
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- Energy
- Our News
London, 4 February 2025 – Arcus Infrastructure Partners (“Arcus”) is pleased to announce the acquisition of a majority interest in Powering S.r.l (“Powering” or the “Company”), a leading power leasing business in Italy. The acquisition of Powering represents the seventh investment by Arcus European Infrastructure Fund 3 SCSp (“AEIF3”)
Established in 2011, Powering provides power solutions to critical grid and industrial operations and owns an extensive fleet of c.1,500 generators, operating through a network of over 55 depots across Italy. The Company uses a fully integrated business model which includes outright ownership of its generators, specialist in-house dispatch and refuelling capabilities, and proprietary IT systems. Powering’s network across Italy, and its fully integrated model, mean the Company is the only business in this sector in Italy capable of contractually committing to a two-hour call-out time. This has allowed Powering to secure 90% of its revenues under multi-year framework agreements with blue-chip Italian utilities and network maintenance operators, for whom the Company provides power during emergencies and regular grid maintenance works.
The Company provides an essential service and significant societal benefit to communities and industry in Italy. As a result of the rapid deployment times of generators such as those offered by Powering, the average duration of long unplanned grid interruptions has been reduced from 110 minutes in 2015 to 65 minutes in 2022.
Powering also plays a vital role in Italy’s energy transition, specifically with the trend towards greater electrification. The availability of a substantial and wide-ranging generator fleet, such as Powering’s, enables network operators to reinforce and upgrade grid infrastructure to support electrification as well as accommodating more decentralised renewable energy generation on the grid. Generator leasing also enables industry to drive the electrification of industrial processes as backup and emergency solutions are available to reduce production downtime risk.
Under the ownership of AEIF3, there is a significant opportunity for Arcus to help improve the carbon emissions footprint of the Company. This includes the upgrade to more efficient generators, the offering of HVO fuel to customers, and the piloting of hybrid and hydrogen generators.
Stefano Brugnolo, Partner and Head of Energy at Arcus, commented: “After several years of researching the European energy leasing market, Powering stood out as a strong fit for AEIF3’s investment strategy thanks to its fully integrated business model and robust infrastructure characteristics.
The company’s role in delivering critical energy solutions to communities and industries resonates deeply with our commitment to investments that drive both economic growth and positive societal impact. We see clear opportunities to further enhance Powering’s business potential and sustainability credentials through targeted asset management initiatives, a core pillar of our investment strategy.
We look forward to partnering with the Giancano family and Powering’s management team as we work together to unlock the next phase of growth for this dynamic business.”
Piero Giancano, Founder and CEO of Powering, added: “Partnering with Arcus marks a key milestone in Powering’s journey. Building this business from the ground up has been an incredible experience, and I am excited to work alongside an experienced institutional partner who shares our vision for growth and has the infrastructure expertise to help us take the company to the next level.”
Arcus was advised by Gianni & Origoni (Legal), Bain (Commercial), Houlihan Lokey (Debt Advisory) PwC (Financial, Tax & Structuring), Afry (Technical), and Aon (Insurance).
About Arcus
Arcus Infrastructure Partners is an independent fund manager focused solely on long-term investments in European infrastructure. Arcus invests on behalf of institutional investors through discretionary funds and specialist co-investment vehicles and, through its subsidiaries, currently manages investments with an aggregate enterprise value of c. €24bn (as at 30 September 2024). Arcus targets mid-market, value-add infrastructure investments, with a particular focus on businesses in the digital, transport, logistics & industrials, and energy sectors. Further information on Arcus Infrastructure Partners can be found on www.arcusip.com.
About Powering
Powering S.r.l. was established in 2011 and is the number one power leasing business in Italy providing power solutions primarily in the form of grid support to utilities (which include DSOs and grid maintenance companies), as well as, to a lesser degree, commercial and industrial clients (“C&I”). Powering has experienced consistent strong growth since its inception in 2011, becoming the market leader in its core end-market. Further information on Powering can be found on https://www.poweringsrl.it/
- Logistics & Industrials
- Our News
London, 3 December 2024 – HB RTS, a logistics solutions provider and specialist in the rental and pooling of reusable load carriers, is pleased to announce the acquisition of TPS Rental Systems Ltd (“TPS”). This strategic acquisition strengthens HB RTS’s position as the European market leader in sustainable logistics solutions for a range of industries.
Expansion of the European Network and Offering
Backed by Arcus Infrastructure Partners, HB RTS has become an established player across Europe in the pooling, rental, transport, storage and cleaning of crates, pallets, boxes and rolling load carriers. The company offers comprehensive reverse logistics solutions for clients throughout Europe, with a pool of some six million load carriers rented and pooled for customers across the food and horticulture industries. HB RTS has built its leadership position through significant investments across its load carrier asset pool, longstanding and service-oriented relationships with its diversified customer base, tailored reverse logistics solutions, and an extensive network of washing locations with certain sites operating as return centers for major retailers.
TPS Rental Systems is a key player in the rental of intermediate bulk tanks, including both stainless steel and bag-in-box containers, and the sale of accompanying liner bags and customization accessories. This combination of bag-in-box containers and the production of liners gives TPS a unique and embedded role in the supply chain for its valued customers, which are primarily active in the production of food, cosmetics and pharmaceuticals in Europe. TPS has a strong presence in the UK, Ireland, Spain, Italy, France, Germany, Sweden, Norway, Denmark and Finland, complementing HB RTS’s established market positions in the Netherlands, Belgium, Germany, Austria, Switzerland, Poland, and the Czech Republic.
A Strong European Platform with Unique Solutions
The merger of HB RTS and TPS creates a robust European platform with an extensive range of load carriers and services. With this acquisition, HB RTS can offer a one-stop-shop solution for load carriers, providing essential supply chain infrastructure to European food producers, wholesalers, retailers and other key end markets. Throughout the value chain, clients can rely on sustainable and tailored rental and pooling solutions from HB RTS.
This strategic step highlights HB RTS’s continued commitment to developing efficient and cost-effective solutions for its diverse customer base. The complementary market positions of both companies will allow HB RTS to better support its clients in addressing their logistics challenges throughout Europe.
Eric Schrover, CEO HB RTS: “We are thrilled about the acquisition of TPS. With its unique position in the European supply chain, TPS is a perfect match for us. Together, we are creating a comprehensive platform for pooling and rental of load carriers for companies across Europe. With this platform, we enable our customers to make their supply chains even more sustainable and efficient, supporting our commitment to driving the transition from single-use to reusable transport packaging. We have been impressed throughout the acquisition process with the quality of the TPS team and the exceptional position the company has created with its longstanding customer base. We are looking forward to working with the TPS team to unlock the benefits of our complementary offerings and networks in the market.”
Ian Camwell, CEO TPS Rental Systems: “I am delighted to be part of this merger with HB-RTS and at the same time, excited about the opportunities it will bring to both businesses. The synergy between the two businesses will not only bring benefits to those within the organisation, but also our customers will benefit enormously from the increased product offering, and substantial new investments, we are now able to provide.”
Commenting on the acquisition, Jordan Cott, Partner at Arcus Infrastructure Partners said: “TPS is a strategically important acquisition for HB RTS and it is highly complementary to our existing business, significantly enhancing platform value by accelerating expansion into the pre-production side of the food value chain and immediately bringing HB RTS into several new countries in Europe. It also adds meaningful exposure to the attractive segment of IBC rental solutions, which we see as providing further long-term growth opportunities for the group. This is another excellent example of how Arcus works closely with its management teams to drive strategic M&A as a lever to create long-term value in its portfolio companies.”
Through this acquisition, HB RTS and TPS strengthen their shared mission: to provide innovative, sustainable, and customer-focused solutions within the logistics sector.
Note to Editors
About Arcus Infrastructure Partners
Arcus Infrastructure Partners is an independent fund manager focused solely on long-term investments in European infrastructure. Arcus invests on behalf of institutional investors through discretionary funds and specialist co-investment vehicles and, through its subsidiaries, currently manages investments with an aggregate c. €24bn (as of 30 June 2024). Arcus targets mid-market, value-add infrastructure investments, with a particular focus on businesses in the digital, transport, logistics & industrials, and energy sectors.
- Energy
- Our News
London, 28 November – Horizon Energy Infrastructure (“HEI”) and Smart Meter Assets (“SMA”), a leading energy infrastructure company, today announced that they will join forces with SMS to create one of the leading providers of UK smart metering infrastructure (“the Group”). HEI and SMA’s portfolio represent a total of 3.5 million installed energy meters, and together the Group will manage over 6 million meters. HEI and SMA are currently owned by Arcus Infrastructure Partners, who will transfer ownership to KKR, who acquired SMS in April 2024.
Smart meters are a key enabler of the UK’s net zero 2050 ambitions, providing critical infrastructure to support the transition to a decarbonised and digitised energy system. The combination represents an important step in the Group’s growth, expanding the existing meter asset base and pipeline with complementary assets. Further, the combination supports the Group’s mission to create a more sustainable energy future by adding opportunities in adjacent markets such as solar, energy storage, heat pumps, and EV charging infrastructure. It also enables the Group to broaden its presence in the UK and expand its innovative solutions into new sectors, such as Germany and the UK water sector.
Tom Thorp, CEO of HEI/SMA, said: “We are delighted to be joining forces with KKR and SMS as we progress at speed with our expansion within the UK from both an energy metering and adjacent solutions perspective while also targeting the exciting new areas of smart water metering and smart energy metering in Germany. The strength and breadth of knowledge and experience that we have across our teams will be invaluable in providing optimised solutions for all our customers, both now and into the future.”
“The combination represents a meaningful step forward for SMS,” said Tim Mortlock, CEO of SMS. “It significantly expands our business and enhances our ability to deliver cutting-edge energy solutions to our customers. We are excited to welcome the teams from HEI and SMA, and look forward to working together to deliver on our shared pipeline and growth ambitions.”
Stefano Brugnolo, Partner and Head of Energy at Arcus, commented: “When we began investigating the smart metering market in 2016, we saw significant opportunity, driven by its vital role in the energy transition and strong market fundamentals. The HEI and SMA businesses stood out within this market, and we are incredibly proud of what’s been achieved alongside management during Arcus’ ownership. We are deeply grateful to Tom, Jeff and the rest of the HEI and SMA teams and are confident that alongside SMS and under the ownership of KKR, they will continue on their exceptional growth trajectories.”
Andrew Furze, Managing Director at KKR, said: “This integration highlights the long-term perspective offered by private capital, enabling the Group to build on its core strengths in smart metering and explore opportunities in adjacent markets. We are excited to support SMS, HEI and SMA in their mission to address the growing need for decarbonization and digitization of the energy system in the UK and Europe.”
The transaction, which is subject to regulatory approvals, is expected to close in early 2025.
About Arcus Infrastructure Partners
Arcus Infrastructure Partners is an independent fund manager focused solely on long-term investments in European infrastructure. Arcus invests on behalf of institutional investors through discretionary funds and specialist co-investment vehicles and, through its subsidiaries, currently manages investments with an aggregate c. €24bn (as of 30 June 2024). Arcus targets mid-market, value-add infrastructure investments, with a particular focus on businesses in the digital, transport, logistics & industrials, and energy sectors.
About KKR
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.
- Arcus
- Our News
London, 01 November – Arcus Infrastructure Partners (“Arcus”) is proud to celebrate another year of strong results in the 2024 GRESB assessment and benchmarking initiative, with excellent scores achieved at both a fund and asset level. The scoring is a demonstration of Arcus’ deep commitment to ESG, achieved through a disciplined and systematic implementation of targeted ESG initiatives in our portfolio assets, underpinned by our asset management framework.
AEIF2 and Portfolio Assets
Constellation, which was sold by the fund in October 2024, scored 99 out of 100 points, an increase of six-points compared to 2023, and received a 5* rating, up from a 4* rating received in 2023. This compares to a score of 67 out of 100 received in the first year of the company’s participation in GRESB. This result reflects Arcus’ dedication to continuously improving Constellation’s ESG approach over the fund’s ownership and represents the significant change that can be generated by the point of exit.
Peacock ranked first out of 695 assets for the Performance module, with 60 out of 60 points. The asset scored 93 out of 100 points overall.
Other AEIF2 assets performed very well, with Horizon, SMA and Swiss4net all receiving 93 out of 100 points. Momentum received a score of 95 out of 100 points, and the HB and Opus scores increased to 77 and 86 points respectively (both out of 100 points).
AEIF3 and Portfolio Assets
AEIF3’s GRESB score increased by 18 points, from 67 to 85 out of 100 points in 2024, the second year of participation. Workdry’s score improved by 35 points, reflecting many of the initiatives Arcus has implemented with the management team during the last year, scoring 89 out of 100 points. The asset improved from a 1* rating in 2023, to a 3* rating in 2024. Officium and Portus participated for the first time in 2024, scoring solid first year results of 67 and 75 points (out of 100) respectively.
Sector Leader
Once again, Arcus European Trains (the Alpha Trains holding partnership) was named Sector Leader in the Infrastructure Fund category, and ranked first in the Transport Sector, scoring 98 out of 100 points. Alpha Trains also received a Sector Leader Award, scoring 100 out of 100 points, ranking first in the Rail Companies category for the third year in a row.
Arcus’ ESG and external benchmark approach
Given Arcus’ singular focus on investments in infrastructure assets, which are often public or community-facing, sustainability is a key area of focus and an important component of the firm’s investment strategy for all managed funds. We believe that our role as a controlling shareholder is deeply custodial in nature and that a thoughtful and active approach to ESG can have significant societal benefits. Importantly, external benchmarking initiatives, such as GRESB, allow Arcus to track performance year-on-year and hold both our team, and portfolio company management, accountable for the delivery of pre-agreed and budgeted ESG plans.
This year represents the eighth year of Arcus’ commitment to the GRESB assessment for both the firm’s funds and underlying assets, having joined GRESB in 2017. All investee companies have been assessed over this period. Arcus is also a member of the GRESB Infrastructure Standards Committee, having joined in October 2018. As best practice in ESG management continues to rapidly evolve, Arcus works hard to uphold the high standards already set and is continuously assessing where further improvements can be made.
For any queries, or if Limited Partners would like to receive a summary of the GRESB benchmark report, please contact the Arcus IR team at investor.relations@arcusip.com.
About GRESB
GRESB is a mission-driven and industry-led organization providing standardized and validated Environmental, Social, and Governance (ESG) data to financial markets. Established in 2009, GRESB has become the leading ESG benchmark for real estate and infrastructure investments across the world, used by 150 institutional and financial investors to inform decision-making. For more information, visit GRESB.com.
- Arcus
- Our News
London, 18 October 2024
This summer, we hosted our second social mobility targeted internship for four university students who are alumni members of The Sutton Trust. One of our interns, Murray, tells us about his experience.
Why did an internship at Arcus appeal to you?
I was initially drawn to the summer internship at Arcus due to their focus on investment in renewable energy and infrastructure. With my background in renewable energy and a keen interest in the tangible impacts of infrastructure, this internship seemed like an ideal opportunity for professional development. The chance to learn about diligent financial analysis and explore significant investment opportunities was something I couldn’t miss out on!
How have you found your experience at Arcus?
My time at Arcus has been thoroughly rewarding. Immersing myself in the private equity industry and the energy infrastructure sector has significantly improved both my technical and soft skills. This growth has been fuelled by the continual support and extensive knowledge shared by all the professionals at Arcus, for which I am extremely grateful.
What responsibilities did you have during your internship?
During my six-week internship, I gained valuable exposure to Arcus’ investment process. I engaged in the origination processes, critically analysed prospective investments, and considered market conditions and Arcus’ investment criteria. I honed my technical skills by analysing financial statements, formatting PowerPoints, and Excel documents, and creating databases to assess the suitability of our debt advisors and lenders for future investments.
What was the most significant thing you learned/experience you had during your internship?
The most significant thing I learned at Arcus was how to conduct accurate valuations and perform financial forecasts. This exercise, while quantitative, required a strong understanding of market conditions, company performance, and the macro-economy. Developing analytical thinking in this aspect will greatly benefit me in the future, and I am grateful for the excellent guidance and support I received.
What did you find interesting about the Arcus sector team that you were involved with?
Within the energy team, I looked at an asset called a ‘Synchronous Condenser’ and found it particularly interesting. This asset stabilises the frequency along the national grid, requiring a unique investment perspective influenced by regulation and global affairs. Learning about the technology behind these investments piqued my intellectual curiosity, making the internship a valuable educational experience in both finance and technology.
Are there any other growth areas you’re interested in?
I am particularly interested in the growing industry of smart meters. Arcus’ investments in smart meters, aimed at tackling climate change through improved energy efficiency, fascinate me. I am eager to see how this industry evolves with increasing urbanisation and AI innovations, which will make smart meters more intelligent and efficient.
What are you looking to do next?
After this internship, I am confident in my desire to pursue a career in the financial industry, especially within private equity. Analysing companies from an asset management perspective and actively adding value was one of the most enjoyable parts of the internship. The experience at Arcus has been extremely beneficial for my personal and professional development, and I am profoundly thankful for the continual support and guidance from everyone at Arcus.
