Align Capital Partners Closes Continuation Vehicle for E Source

CLEVELAND and DALLAS, December 20, 2022 | Align Capital Partners (“ACP”) announced today the successful closing of a single asset continuation fund (“ES EV Fund I, LP”) to support the next phase of growth for E Source (“E Source” or the “Company”), a market leader in helping electric, gas and water utilities solve their most important problems using data and technology.

ACP acquired E Source in June of 2019 and has been an active partner with management in helping to transform the Company’s breadth of services and capabilities. Growth has been fueled by the completion of nine strategic acquisitions and substantial investment in E Source’s people, processes and technology. During this time, E Source’s employee headcount more than doubled and revenues grew by more than 300%. Today, E Source provides predictive data-science software, subscription-based market intelligence and technology services to more than 500 utilities and municipalities across North America.

“We chose to partner with ACP three years ago because they truly valued our Company’s culture and deep-rooted client partnerships,” said retired CEO and current Board Member Wayne Greenberg. “ACP has been an exceptional strategic partner and it’s wonderful that this transaction allows for that continued collaboration.”

With additional capital support, E Source will look for acquisitions to further broaden its tech-enabled solutions to help utilities on their journey to become a Sustainable Utility. “Utilities matter and we are proud to be their partner in making better decisions through practical innovation in our common quest to create a sustainable future,” said E Source CEO Ted Schultz.

The continued partnership with ACP will accelerate E Source’s ability to make an impact. The Company will target strategic add-ons to broaden E Source’s offering of tech-enabled solutions designed to help utilities effectively manage the customer and grid infrastructure sides of their businesses.

“The past few years have been such an exciting time for both E Source and ACP. We’re thrilled to have raised our first continuation vehicle in support of a business designed to solve dynamic challenges for some of the largest utilities,” said ACP Managing Partner Rob Langley. “Over the next few years, we will be looking to aggressively expand E Source’s market penetration and impact, and M&A will continue to be a big part of that strategy.”

ACP partnered with Apogem Capital (“Apogem”) as the lead investor. “As a participant in each of ACP’s funds to date, we’ve seen firsthand the strength of their growth-focused partnership model. We’re excited to provide additional capital for a business and industry with so much opportunity ahead,” said Michael Zeleniuch, Managing Director at Apogem.

Capstone Partners served as the placement agent for ES EV Fund I, LP. Kirkland & Ellis and McGuireWoods LLP acted as legal advisors to ACP. Debt financing for the transaction was provided by Deerpath Capital Management and Principal Asset Management. Managing Partner Rob Langley, Operating Partner Dave Perotti, Principal Matt Iodice and Senior Associate Scott Robbins represented ACP on the transaction.