Investment Trends

In the past decade, private equity investors have expanded in the German energy infrastructure sectors. Major acquisitions include VSB by Partners Group, BayWa r.e. by Energy Infrastructure Partners, Open Grid Europe by Macquarie, and Steag by Asterion. Several private equity firms, including KKR, Allianz Capital Partners, and Ardian, have made investments in municipal energy suppliers. To support the green energy transition, more private capital is needed to modernise electricity and infrastructure networks, with PE investors playing a key role in funding new technologies.

Future Outlook

Market analysts anticipate a rise in transactions within the DACH region by 2025, particularly in the sectors of renewable energy, grid-connected storage, energy-efficient technologies, and the circular economy. Nonetheless, these optimistic forecasts are moderated by economic and political uncertainties arising from geopolitical conflicts, US protectionism, fluctuating governmental support for renewable energy, and overestimated price expectations from sellers. Additional challenges include grid bottlenecks, bureaucratic obstacles, and unpredictable project costs and revenues.

Investors’ requirements

Private capital investors prioritize stable revenue streams, profitability, and planning security throughout the investment period. Thus, companies seeking private capital should meet the following investment criteria: a compelling equity story, profitability and a solid financial base, process and digital efficiency, and transparent reporting, governance, and compliance structures.