Ara Partners Sells Priority Power to I Squared
Ara Partners, a private equity and infrastructure investment firm, announced the sale of Priority Power Management, Inc. to I Squared Capital. Under the terms of the transaction, I Squared’s Global Infrastructure Fund III will also purchase Priority Power from Oaktree Capital Management, L.P. and other stockholders.
Brandon Schwertner will continue as CFO and remain an equity holder in the company after the transaction is completed.
Founded in 2001 and based in The Woodlands, TX, Priority Power is one of the largest independent providers of energy management services and infrastructure solutions for commercial and industrial customers across more than 40 states.
Ara Partners invested in Priority Power in 2019 and has collaborated extensively with the company’s management team to launch and expand key business lines, fine-tune the M&A strategy, advise on critical hiring decisions, and enable the initial debt financing.
“Through Ara’s investment, and our close partnership with Priority Power’s exceptional team, we are proud of the economic and environmental gains we have been able to realize,” said Troy Thacker, managing partner at Ara Partners. “We are confident that Priority Power will continue contributing to a lower carbon economy.”
Ara’s investment in Priority Power was made through Ara Fund I. The platform has completed 28 investments in that period across the industrial decarbonization space. The team is currently deploying Ara Fund III, a $2.8 billion vehicle raised in 2023, and has been active in the U.S. and Europe in recent months. As of March 31, 2024, Ara Partners had approximately $6.2 billion of assets under management.
Jefferies LLC served as lead financial advisor and BMO Capital Markets served as a financial advisor to Priority Power in connection with the transaction. BofA Securities served as exclusive financial advisor to I Squared. Latham & Watkins LLP served as legal counsel to Priority Power and White & Case LLP served as legal counsel to I Squared.