Partners Group, a major player in the global private markets industry, has announced its acquisition of Eteck, a leading provider of sustainable decentralized heating and cooling solutions in the Netherlands. The acquisition is made on behalf of Partners Group's clients and involves purchasing Eteck from Infracapital, the infrastructure equity investment arm of M&G Plc, along with other minority shareholders.

Eteck specializes in providing low-carbon energy infrastructure for residential and commercial real estate sectors. The company offers comprehensive heating and cooling solutions, including design, financing, installation, maintenance, and supply. Eteck's market share is significant, with over 100,000 connections across the Netherlands. The company benefits from long-term contracts, high barriers to entry, and a supportive regulatory framework, making its infrastructure resilient and predictable.

The decentralized heating and cooling market in the Netherlands is poised for substantial growth, driven by the phasing out of gas boilers and the increasing costs of installing heat pumps for landlords. This market is expected to require around EUR 10 billion in investment over the next decade. Eteck is well-positioned to contribute to the decarbonization goals in the Netherlands and across Europe.

Partners Group aims to transform Eteck into a decentralized energy solutions platform. The firm plans to work closely with Eteck's management team on various value creation initiatives, including accelerating organic growth, diversifying customer solutions, implementing digitization initiatives, and expanding internationally.

David Daum, Partner and Head of Infrastructure Europe at Partners Group, highlighted Eteck's strong competitive position and growth prospects, driven by ambitious decarbonization targets across Europe. Michiel van den Berg, CEO of Eteck, emphasized the complexity of delivering decentralized heating and cooling solutions and the opportunity to strengthen their market-leading position through the partnership with Partners Group.

Kevin Gilhawley, Member of Management, Infrastructure Europe at Partners Group, noted that heating and cooling account for a significant proportion of CO2 emissions in Europe, with around 90% of the installed base in the Netherlands using gas boilers. The sector has become a priority for decarbonization initiatives, and Partners Group plans to leverage its experience in building district heating platforms to help Eteck capitalize on the demand for sustainable solutions.

Partners Group's Infrastructure business manages USD 26 billion in assets. The firm, with around 1,800 professionals and approximately USD 150 billion in assets under management, spans private equity, private credit, infrastructure, real estate, and royalties. Partners Group is known for its operationally oriented approach and aims to build businesses and assets into market leaders.