Funds managed by Oaktree Capital Management LP, and other select institutional investors, has invested $250 million Priority Power Management LLC, an independent energy services provider offering smart energy services and transitions to carbon neutrality. 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.
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.