Growth Capital invests in Plenitude; Partners Group supports Budderfly

Plenitude is planning to grow its presence in Asia and expand its client footprint in new sectors.

Good morning Eurohubsters, Craig McGlashan here with Friday’s Dealflow.

I’m working from home today and musing at how different the working world seems to before the pandemic. Unfortunately, the move to remote working and increased digitisation of business has been accompanied by a big rise in online fraud and financial crime. But that has thrown up opportunities for private equity investment.

Plenty of Plenitude. One firm that seems to have an eye on this trend is Growth Capital Partners, which yesterday announced a strategic investment in financial crime, risk and compliance specialists Plenitude.

London-based Plenitude is a member of the UK Financial Conduct Authority’s Skilled Person Panel for Financial Crime. It works with financial institutions, professional services companies and digital asset firms.

Plenitude supports engagements across the UK, EU, Nordics and Asia and is looking to establish a larger presence in Asia. It also wants to expand its client footprint into new sectors through advisory, transformation services and RegTech subscription products.

“Plenitude’s success over the last 10 years is fantastic, including the relentless focus on exceptional client delivery, trusted advice and innovation across an increasing range of consulting specialisms, international clients and RegTech subscription products,” said Richard Shaw, partner at GCP. “We are excited to now be able to provide this significant investment and strategic support to help to deliver the ambitious growth plans ahead.’’

Energy efficiency. We’ve been covering a lot of deals focused on the switch to a net zero economy over the last few weeks and for anyone keen to read more, I recommend heading over to our friends in the US at PE Hub to check out Obey Martin Manayiti’s latest piece on the sector.

He talked to Todd Bright, a partner and co-head of Partners Group’s private infrastructure Americas, about opportunities in the energy efficiency sector – a vital piece of the effort to combat climate change.

Partners on Monday committed $500 million in Budderfly, an Energy-as-a-Service (EaaS) company that helps businesses such as restaurant chains and assisted living facilities cut energy use through technologies that promote energy efficiency.

Among other services, Budderfly can collect hordes of energy records per day, audit them, conduct carbon reporting and manage energy loads in real time. “They are taking away this low-hanging fruit in terms of decarbonization,” Bright told Obey.

Friends indeed. As it’s Friday I’m keen to end on an upbeat note and luckily one of our readers shared some very sunny thoughts with me yesterday.

I’d written about an EY report that said globalisation was becoming more selective, with CEOs preferring to “friend-shore” their operations “and pursue transactions within friendly pockets rather than applying a truly global approach”, in the words of Andrea Guerzoni, EY global vice chair, strategy and transactions.

Given that policies such as Brexit and America First seemed to suggest that globalisation was on the way out, I was keen to hear what our readers thought about the future of cross-border dealmaking.

One provided me with an interesting – and optimistic! – take on the matter. The reader said that the problem with trying to rely solely on one’s own country for manufacturing is the labour deficit.

“The bright side is that that will prompt further automation and the efficiency that goes with that,” the reader added. “Already though you see the move away from just onshoring to friend shoring. That’s just opportunity calling. It will result in increased diversity, which will result in an even more efficient supply chain. That will wake nations up to the fact that we can only afford one thing in the long haul – to be friends.”

On that happy note, I hope you all have a great weekend with friends and family. Speak to you on Monday.

Cheers,

Craig