Proving the Business Case for the Internet of Things

KKR buys Calvin Capital to enter smart meter market

Steve Rogerson
December 8, 2016
American private equity firm KKR is entering the smart metering market with the purchase of UK firm Calvin Capital from Infracapital, the infrastructure equity investment arm of M&G Investments.
Financial terms were not disclosed and the transaction is expected to complete at the end of January 2017.
Calvin has grown significantly since Infracapital's original investment in 2007 and has to date financed the procurement and installation of over six million meters, including around two million smart meters, which allow consumers to manage their energy use and energy companies to manage their customer relationships.
"This is another substantial milestone for Calvin, reflecting our success in building a leading UK provider of smart meters with significant further growth potential,” said Jim Macdonald, CEO of Calvin Capital. “Smart meters play a crucial role in energy efficiency and improving affordability for customers and the support of a leading global investor such as KKR will allow us to further strengthen our platform and enhance our offering. We are very grateful for the support provided by Infracapital, our customers and lenders over the last ten years and are excited to be working with KKR through the next phase of our growth."
With the support of KKR as its new shareholder, Calvin will continue to play a key role in the UK government's plans to install a smart meter in every home and business by 2020. The company has already secured contracts for more than eight million smart meters.
"Since Infracapital created the Calvin Capital business it has experienced incredible growth to become a leading meter asset provider with significant smart meter contracts secured,” said Infracapital’s Martin Lennon. “This transaction is testament to entrepreneurial spirit and hard work of both the Infracapital and Calvin teams. We are confident that Calvin will continue to flourish under its new ownership and we wish the business and all its employees every success in the future."
KKR is a global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds.
"We are delighted to be partnering with an exceptional business such as Calvin, which benefits from strong market positioning thanks to its exceptional management team, effective asset management and tried, tested and scalable IT systems,” said Jesus Olmos, global co-head of infrastructure for KKR. “Calvin is perfectly positioned to support the UK government's plan to further roll out smart meters thanks to its strong track record of delivery and strong relationships with the UK's leading energy suppliers."
As one of the largest independent meter asset providers in the UK, Calvin finances the provision and installation of electricity and gas metering meters on behalf of energy suppliers as well as managing the meter portfolio. Since its inception in 2002, the company has financed the procurement and installation of six million domestic meters, investing nearly £600m.