Partners Group to acquire Eteck, a market-leading provider of sustainable decentralized heating and cooling solutions in the Netherlands

• Eteck provides low-carbon energy infrastructure for the residential and commercial real estate sectors
• The Company supplies over 100,000 connections across the country 
• Eteck benefits from resilient infrastructure characteristics and strong thematic tailwinds around decarbonization

Partners Group, one of the largest firms in the global private markets industry, has agreed, on behalf of its clients, to acquire Eteck (or "the Company"), a market-leading provider of sustainable decentralized heating and cooling solutions in the Netherlands, from Infracapital, the infrastructure equity investment arm of M&G Plc, and other minority shareholders.

Eteck offers full-service heating and cooling contracting solutions, including design, financing, installation, maintenance, and supply, for multi-dwelling residential buildings and commercial properties in the Netherlands. Eteck, which specializes in sustainable, low-temperature heat pumps, holds a significant market share and supplies over 100,000[1] connections across the country. The Company benefits from resilient and predictable infrastructure characteristics, including long-term contracts of up to 30 years, high barriers to entry, and a supportive regulatory framework.

The decentralized heating and cooling solutions market in the Netherlands is expected to see significant growth in the next few years, driven by the phasing out of gas boilers and the costs of installing heat pumps for landlords. As a result, the market could require around EUR 10 billion in investment over the next decade. Eteck is well positioned to contribute to the sector's decarbonization goals, both in the Netherlands and in Europe more widely.

Partners Group plans to transform Eteck into a decentralized energy solutions platform and will work closely with the Company's management team on value creation initiatives. These include accelerating organic growth, diversifying the portfolio of customer solutions, implementing digitization initiatives, and expanding its footprint internationally.

David Daum, Partner, Head of Infrastructure Europe, Partners Group, says: "We identified Eteck through our thematic investing approach and were attracted by the Company's strong competitive position, as well as its growth prospects. The sustainable heating and cooling solutions market is at an inflection point, with demand driven by ambitious decarbonization targets across Europe. We look forward to working with Eteck's experienced management team on unlocking the Company's full potential."

Michiel van den Berg, Chief Executive Officer, Eteck, comments: "In addition to broad decarbonization goals, the complexity of delivering decentralized heating and cooling solutions to multi-dwelling buildings and commercial properties acts as a further tailwind for our offering. At Eteck, we continue to reinforce the course set in recent years of investing into the quality of our offering, with our customer being the top priority. The market is highly fragmented and through our new partnership with Partners Group, which has significant experience in scaling infrastructure platforms, we see an opportunity to strengthen our market-leading position."

Kevin Gilhawley, Member of Management, Infrastructure Europe, Partners Group, adds: "Heating and cooling represents a significant proportion of CO2 emissions in Europe, with around 90% of the total installed base in the Netherlands currently using gas boilers. The sector has therefore become a priority for decarbonization initiatives. We will leverage our deep experience in building district heating platforms and energy-as-a-service providers to help Eteck capitalize on demand for sustainable heating and cooling solutions."

Partners Group's Infrastructure business has USD 26 billion in assets under management.

[1] Includes orderbook and pipeline.