Oaktree Capital Management has invested $250 million in Priority Power, an energy services provider. Ara Partners will continue to hold an ownership stake in Priority Power.
ARLINGTON, Texas–(BUSINESS WIRE)–Priority Power Management, LLC (“Priority Power”), an independent energy services provider offering smart energy solutions and streamlined transitions to carbon neutrality, announced today a $250 million investment from funds managed by Oaktree Capital Management, L.P. (“Oaktree”) and other select institutional investors. Ara Partners, a Houston-based private equity firm specializing in industrial decarbonization investments that acquired Priority Power in 2019, will continue to hold an ownership stake.
Priority Power was founded in 2001 and serves over 7,000 commercial and industrial customers in North America totaling over $2.7 billion of energy procurement under management. Priority Power has a unique approach delivering comprehensive energy solutions that are designed to address customer specific goals while considering the economic and sustainability benefits of electricity delivered to and behind the meter, all with the enhanced benefit of optimizing commodity procurement and usage through its 24/7 market intelligence operations center. In addition, Priority Power designs, constructs, owns and operates private networks of medium and high voltage transmission lines, substations, and renewable generation and battery storage assets.
Brandon Schwertner, CEO of Priority Power, said, “The energy transition is underway and will take decades to unfold. The market for energy solutions is complicated and fragmented. We help our customers by delivering integrated, smart solutions that unlock value across the entire energy value chain, arriving at the most economic, reliable, and sustainable energy solution. Oaktree has played a significant role in the electricity markets for the past two decades. As a result of this investment, we will be able to stay ahead of the ramping demand for decarbonization, and as a result our clients will benefit. We are honored to add Oaktree as a partner, alongside our existing financial sponsor, Ara Partners.”
John Bick, co-founder and Chief Commercial Officer of Priority Power, said, “I am humbled by our continued growth and constant innovation in an ever-changing market, largely driven by our dedicated employees and the trust and confidence that our customers have continued to place in us. Ara, and now Oaktree, share our vision and passion for delivering bespoke, customer-focused solutions. I look forward to leveraging Oaktree’s broad market experience for the benefit of our customers.”
David Nicoll, Senior Vice President at Oaktree, said, “Oaktree is excited to partner with Priority Power and Ara Partners to accelerate Priority Power’s deployment of innovative energy solutions that enable customers to secure energy resources reliably and economically while contributing to grid stability, advancing their adoption of renewable energy, and achieving their sustainability goals.”
Troy Thacker, a Managing Partner at Ara Partners, said, “We are thrilled by what Priority Power has accomplished under our ownership. During this period, we have partnered with the management team to execute a range of attractive growth opportunities, including two strategic acquisitions, that have further positioned Priority Power to be a leader in the ongoing energy transition. We are excited to welcome Oaktree as our new partner in Priority Power’s very compelling future.”
Stifel served as sole placement agent to Priority Power in connection with the transaction.
About Priority Power
Priority Power provides comprehensive energy solutions to deliver reliable, economic, and sustainable energy solutions to commercial and industrial customers in North America. To date, Priority has reduced over 7mm metric tons Green House Gas emissions. For more information on Priority Power, please visit www.prioritypower.com.
Oaktree Capital Management
Oaktree is a leader among global investment managers specializing in alternative investments, with $156 billion in assets under management as of June 30, 2021. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in credit, private equity, real assets and listed equities. The firm has over 1,000 employees and offices in 19 cities worldwide. For additional information, please visit Oaktree’s website at http://www.oaktreecapital.com/.
Ara Partners is a private equity firm specializing in industrial decarbonization investments. Ara Partners invests in the industrial & manufacturing, chemicals & materials, energy efficiency & green fuels and food & agriculture sectors, seeking to build businesses that are focused on sustainability and ESG principles. For more information on Ara Partners, please visit www.arapartners.com.