Rennie advises Palisade Impact on acquisition of energy group

Investment firm Palisade Impact has acquired Energy Locals, with Rennie serving as lead M&A advisor on the electricity retailer’s buy-side.

Energy Locals provides homes and businesses across the eastern states with locally-generated carbon-free energy at lower rates based on a monthly membership model, rather than charging extra tariffs according to consumption.

Palisade Impact meanwhile – which has bought the business from Quinbrook Infrastructure Partners – invests in next-gen infrastructure and related assets delivering environmental and social solutions in line with the future economy.

“We’re excited about the opportunity provided by our investment,” said CEO Steve Gross, who served as global head of impact investing at Macquarie Group prior to establishing Palisade Impact with Jeremy Wernert in 2021. “Energy Locals has all the characteristics we look for in a business: environmental impact, a strong management team, and robust infrastructure.”

In its bid to pick up Energy Locals, which further included units Energy Trade and Strata Energy Services, Palisade tapped Rennie as its overall financial and deal adviser to provide commercial, operational, and regulatory due diligence and a full suite of financial modelling services. Teams from Ashurst, KPMG, Marsh, and Sky Capital were among those to have given further support.

“Congratulations to Palisade on the acquisition,” stated Rennie co-founder and partner, Simone Rennie. “Very proud to have led the due diligence team, supporting Palisade and various stakeholders to fully understand the asset and its value. Rennie has real depth in energy transition, decarbonisation and social sustainability, as well as a deals services team, so this is right in our wheelhouse.”

Quinbrook acquired Energy Locals in 2018 and has since helped build the business to a customer-base of more than a quarter of a million subscribers. The investment firm’s Australia managing director Brian Restall said Palisade was the “natural steward” to drive Energy Locals into its next phase following its latest sales milestone, which is expected to close by the end of the year.

“Energy Locals's focus on green networks has delivered real benefits to local communities and residents,” Restall stated. “As the company moves forward with Palisade Impact, we are confident in their ability to continue to invest in this exciting growth sector. Their alignment with our vision for affordable and sustainable energy access reassures us that the business is in excellent hands.”

Rennie itself was established in 2021 by partner team Matt and Nicole Rennie with a similar-minded focus on supporting companies, governments, and institutional investors on climate change and the net zero transition. The consultancy also received a capital boost last year from Pemba, and has since doubled its team in Melbourne, Brisbane and Perth while further expanding to Sydney.