IES receives investment from the Apax Global Impact Fund

27th February 2024

Integrated Environmental Solutions (IES) has announced today that it is set to receive strategic investment from the Apax Global Impact Fund, advised by Apax Partners LLP (“Apax”), in a move that is set to accelerate the company’s growth and more rapidly achieve its mission to decarbonise the world’s buildings.

The deal, which will see the Apax Global Impact Fund acquire a controlling stake, subject to customary antitrust approvals, marks the first climate-focused investment by the fund, with IES’s focus on decarbonisation aligning closely with Apax Global Impact's thematic focus on reducing environmental harm and resource use.

IES delivers innovative technology solutions and consultancy services to help decarbonise buildings, communities, and cities. Supporting resource-efficient and cost-effective built-environments, IES simulates and analyses data to give those involved in the design, retrofit and operation of buildings the information needed to make smarter, more sustainable decisions.

Over the past 30 years, the company has made a significant global impact, helping to improve the energy and carbon performance of an estimated 1.5 million buildings worldwide.

This investment will enable IES to scale to meet the ever-increasing demand for sustainability-focused tech solutions from building designers, owners, and tenants. The built environment is a significant contributor to global greenhouse gas emissions. IES, which is home to the largest building physics analytics team in the world, is able to leverage its software and consultancy capabilities to tackle the built environment’s climate footprint, supporting clients to improve the energy efficiency and decarbonisation of complex buildings, adhere to regulatory and voluntary compliance, and ultimately reduce lifetime building energy costs and carbon emissions.

Don McLean, Founder and CEO, IES, commented: "I’m incredibly proud of the IES team for the success we have achieved over the last thirty years, and in Apax we have found a likeminded partner who is ideally placed to help us in the next stage of our growth journey. Buildings and cities have the potential to make the biggest impact in reducing carbon emissions globally. This investment, and the support of the Apax Impact team, will empower us to support ever more clients around the world in creating a built environment that is resource and energy efficient.”

Edward Donkor, Partner, Apax Global Impact team, said: “We couldn’t be happier to be partnering with Don and the entire IES team in their mission to decarbonise the built environment. This partnership marks the first climate-focused investment for the Apax Global Impact Fund, and we see huge potential for IES’s pioneering software.”

Chris Robinson, Principal, Apax Global Impact team, added: “As we collectively progress towards Net Zero goals, innovative technology such as that offered by IES will prove critical in the transition to a more sustainable future. We look forward to working closely with the IES team on our joint vision for the company, harnessing IES’s market-leading software to solve some of society’s biggest climate challenges.”

Apax was advised by Travers Smith (lead counsel), Alantra (M&A advisor), CIL (commercial advisor) and EY (financial and tax advisors). IES was advised by KPMG (financial, tax and legal advisor).

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About Integrated Environmental Solutions

IES is a global climate tech company delivering innovative technology solutions and consultancy services to decarbonise the built environment. Over the last 30 years, they have built a solid reputation as the leading global innovator in integrated performance-based building analysis and are now home to the largest building physics analytics team in the world.

Supporting energy-efficient, healthy and cost-effective built-environments, IES' digital twin technology provides those involved in the design, retrofit and operation of buildings the information needed to make smarter, more sustainable decisions with confidence.

For more information see: www.iesve.com

About Apax & Apax Global Impact

Apax Partners LLP ("Apax") is a leading global private equity advisory firm. For 50 years, Apax has worked to inspire growth and ideas that transform businesses. The firm has raised and advised funds with aggregate commitments of more than $65 billion. The Apax Funds invest in companies across four global sectors of Internet/Consumer, Tech, Services, and Healthcare. These funds provide long-term equity financing to build and strengthen world-class companies.

Apax Global Impact seeks out opportunities to support companies which deliver tangible societal and/or environmental impact. The strategy revolves around themes including Health & Wellness, Environment & Resources, Social & Economic Mobility, and Digital Impact Enablers. Apax Global Impact leverages the deep expertise of the Apax sector teams, the strength and global scale of the Apax platform globally, and the value creation potential of Apax’s Operational Excellence Practice.

For more information see: www.apax.com.