TPG and GIC to lead €6.7bn acquisition of Techem with backing from Canadian pension funds

Techem Group, a platform for decarbonising and digitising the building sector, is set to be acquired by TPG Rise Climate and GIC for approximately €6.7bn. 

The transaction, expected to close in the first half of 2025, will see TPG Rise Climate, the dedicated climate investing strategy of TPG, act as the lead investor, while GIC takes a significant minority stake. The transaction also highlights the growing interest of pension funds in sustainable investments with CDPQ and Ontario Teachers' Pension Plan, having acted as co-investors.

German firm Techem, which is headquartered in Eschborn near Frankfurt, provides energy efficiency services to more than 13 million dwellings across 18 countries provides digital energy services aimed at reducing energy consumption and and CO2 emissions in the real estate sector.

This acquisition will enable Techem to expand its efforts in digitising and decarbonising the building sector with the support of TPG and GIC. The acquisition marks the largest transaction to date for TPG Rise Climate, a private equity fund focused on climate solutions.

GIC, Singapore’s sovereign wealth fund, also sees significant growth potential in Techem. Ang Eng Seng, CIO for Infrastructure at GIC, commented, “Techem is a well-established energy service provider with a proven track record. Sub-metering is becoming increasingly prevalent in Europe, and we look forward to supporting the company’s continued growth alongside TPG.”

The deal is subject to regulatory approval and customary closing conditions, with final completion expected in early 2025.