Patria to invest in TMA, a leading UK provider of energy data and smart metering services

Patria’s Global Private Markets Solutions (“GPMS”) team has agreed to co-invest alongside funds advised by Magnesium Capital LLP (“Magnesium”) in TMA Group Holdings Limited (“TMA” or the “Company”), a leading provider of metering, energy data, smart infrastructure and energy services to the Great Britain energy market.

The investment forms part of Magnesium’s agreement to acquire a majority stake in TMA and will support continued investment in the Company’s people, technology and capabilities. TMA’s founder and management team will remain invested in the business, with founder Tim Meyer continuing to support the Company as a Non-Executive Director. Financial terms of the transaction have not been disclosed.

Founded in 1987, TMA provides end-to-end metering and energy data management services to energy suppliers, third-party intermediaries and corporate customers across Great Britain. Through its integrated NexFlow technology platform, the Company provides services across more than 8.5 million electricity meter points, helping customers improve billing accuracy, settlement performance and regulatory compliance.

TMA is well positioned to benefit from the ongoing transformation of the GB electricity market, including the transition to Market-wide Half-Hourly Settlement (“MHHS”), which will increase the importance of accurate and timely consumption data across the energy system. As energy markets become increasingly digitised and decentralised, high-quality data will also play an important role in enabling more flexible tariffs, electric vehicle charging and other low-carbon technologies.

For Patria, the investment reflects GPMS’ focus on partnering with experienced private equity sponsors to access high-quality lower and mid-market businesses with attractive structural growth characteristics. Patria’s GPMS platform provides institutional investors with access to global private equity through primary, secondary and direct co-investment strategies, drawing on long-standing relationships with private equity managers across Europe and North America.

Alistair Watson, Deputy Head of Patria Global Private Markets Solutions, said:

“TMA is a high-quality business with a strong position in a market undergoing significant change. Its mission-critical role in providing energy data services, combined with the structural tailwinds created by the transition to MHHS, make this a compelling investment opportunity.

“We have been impressed by Magnesium’s deep sector expertise and conviction in TMA, and are delighted to invest alongside them and support the management team as the business enters its next phase of growth.”

Karin Hyland, Partner and Deputy Head of Co-investments at Patria, said:

“Our co-investment approach combines access through long-standing GP relationships with disciplined selection of the opportunities we believe have the strongest underlying characteristics. TMA reflects that approach: a market-leading business providing mission-critical services, with clear structural growth drivers and significant barriers to entry.”

Daniel Wild, Partner at Magnesium Capital, said:

“We are delighted to partner with Patria on our investment into TMA. TMA is a company we have monitored for multiple years and built strong conviction in both the market tailwinds and TMA’s positioning as a technology leader within the market. We look forward to working with the TMA management team to continue to build on the impressive growth demonstrated by the Company to date.”