Altus Power, a Stamford, Connecticut-based commercial-scale provider of clean electric power, announced on Thursday that it was acquired by TPG’s climate investing platform, TPG Rise Climate, in an all-cash transaction for $5 per share of its common stock, valuing the company at $2.2 billion, including Altus’s debt.
“This transaction represents a pivotal moment for Altus Power. We are incredibly excited to partner with TPG Rise Climate to continue to build our position as the leading commercial-scale provider of clean electric power to businesses and households from coast to coast,” Gregg Felton, CEO of Altus Power, said in a recent release.
TPG acquired the company through its TPG Rise Climate Transition Infrastructure strategy, and according to an October 2024 SEC filing, its TPG Rise Climate II fund received $4.965 billion in total capital commitments. The filing also shared that TPG had closed on $4.4 billion of those commitments.
In addition, following the close of the transaction, Altus Power’s stock will no longer trade or be listed on the NYSE, and the company will transition into a private one.
During the deal, Latham & Watkins served as Altus Power’s outside legal counsel and Moelis & Company as its financial advisor.
The Latham & Watkins team that worked on the deal was led by partner Ryan Maierson (Houston) and partner Rachel Ratcliffe Payne (Austin), with associates Denny Lee (Houston), Haley Sandoval (Houston), Catherine Sims(Houston), Armaan Bhimani (Houston) and Greg Bird (Houston).
Additional contributors to the deal included partner Keith Halverstam (New York), partner Jim Cole (Houston), associate Molly Elkins (Houston), partner Michelle Carpenter (Los Angeles/Orange Country), associate Joseph Benedetto (Los Angeles), partner Craig Kornreich (Houston/New York), associate Max Fin (Houston), partner Jeffrey Tochner (New York), associate Sebastian Moss (New York), partner Jason Cruise (Washington, D.C.), counsel Jamie Sadler (Washington, D.C.), associate Seamus Ronan, partner Joshua Marnitz (Los Angeles/Houston), partner Natasha Gianvecchio (Washington, D.C.), associate Richard Henry Griffin (Washington, D.C.), counsel Robert Brown (Houston/Austin), associate Zac Alpert (Century City) and partner Daniel Sinaiko (Century City).
Kirkland & Ellis served as TPG’s outside legal counsel, with PJT Partners as its financial advisor during the deal.
Partner Debbie Yee (Houston), partner Patrick Moneypenny (Houston), and partner Jessica Berkowitz (Dallas) were the Kirkland team’s lead lawyers on the deal.
However, the Kirkland team also included partners Rohit Chaudhry (Washington, D.C.), Marten Olsson (New York), Robert Eberhardt (New York), Jared Rusman (New York), Michael Masri (New York), Michael Rigdon (Houston), Atma Kabad (Houston), Robert Fowler (Houston), Sally Ye (Washington, D.C.) and Andrew Stuyvenberg (Washington, D.C.).
Through this new acquisition, Atlus expects the partnership to expand its ability to deliver commercial and community solar to its customers.
In addition, through TPG’s investment capabilities and its switch from a private to a public company, it expects to be able to scale its overall operations and ensure it can meet the demand for clean electric power.
“The leadership team’s innovation, commitment to its customers and operational excellence aligns with our investment philosophy. We look forward to supporting Altus Power in its next chapter of growth, providing affordable and sustainable power to businesses and households,” Steven Mandel, business unit partner at TPG Rise Climate, said in a recent release.