TPG weighs majority stake in India’s fourth-largest energy partner, sources say

(Bloomberg) – TPG Inc. is considering selling a 52% stake in Indian renewable energy company Fourth Partner Energy, according to people familiar with the development.

The private equity firm is working with an adviser on the deal, said the people, who asked not to be identified because the information is private. A stake sale could value Fourth Partner at around $600 million, the people said.

Deliberations are ongoing and TPG may decide to retain its stake for longer, the sources said. Representatives for Fourth Partner and TPG declined to comment.

The Texas-based investor invested $70 million in Fourth Partner in 2018 through The Rise Fund, its social impact vehicle, and poured another $25 million into the Hyderabad-based company in June 2021, according to a statement. Norfund, the Norwegian investment fund for developing countries, also contributed $100 million.

Fourth Partner Energy, founded by former private equity fund managers Saif Dhorajiwala and Vivek Subramanian, works with businesses, governments and institutions to meet their renewable energy needs through solar and wind power, according to its website.

The company manages a portfolio of more than 950 megawatts of power at plants in India, Vietnam, Indonesia, Bangladesh and Sri Lanka, the website says. Fourth Partner customers include Honeywell International Inc., Bridgestone Corp. and Hindustan Unilever Ltd.

Founded in 1992, TPG has $127 billion in assets under management as of June 30, according to a press release. The company, which has 12 offices around the world, raised $1 billion in an initial public offering on the Nasdaq in January.

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