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Cabot Square Capital concludes UK Energy Partners deal

London-headquartered UK Energy Partners and Net Zero Buildings have agreed an investment deal with Cabot Square Capital.

UK Energy Partners help businesses improve their energy performance through the construction, design and maintenance of green buildings. They are most well known for their zero carbon Schoolhaus construction designs offered to schools.

The investment firm, which currently manages around £750m of institutional funds, will help UK Energy Partners provide new fully-funded options for its Schoolhaus buildings and energy efficient lighting and heating.

CS Capital Partners V, a fund managed by Cabot, takes a significant equity stake in both companies.

Following the deal, Peter Johnston, Chief Executive Office at UK Energy Partners, said: “We are really excited about our partnership with Cabot Square Capital. It will enable us to push forward with our growth plans for both our award-winning Schoolhaus buildings and our energy efficiency solutions whilst retaining the culture of our business.

“We will take this opportunity to merge Net Zero Buildings and UK Energy Partners into one organisation which we believe will be beneficial for our customers, staff and suppliers.”

Keith Maddin, Partner of Cabot Square Capital, sees the deal as part of a wider push to invest in carbon reduction projects when he said: “It is now widely accepted that investment is required to reduce carbon emissions, and energy efficiency can play a significant role towards this.

“Existing schools are in need of investment due to ageing infrastructure and overcrowded classrooms with requests for capital funding each year substantially exceeding allocations. Funding pressures are also likely to increase further with the number of school aged children in the UK set to increase by 14% or 1 million over the next ten years.

UK Energy Partners’ current management team will continue with the day to day running of the business.