Information on the Target

Barghest Building Performance (bbp) is a premier provider of Energy-Savings-as-a-Service (ESaaS) for heating, ventilation, and air conditioning (HVAC) systems throughout Asia. bbp is distinguished by its innovative energy efficiency solutions, which are designed to unlock energy savings of up to 40%. It achieves this through a strategic integration of patented software, proprietary expertise, sensors, and controllers. The company leverages an advanced platform that incorporates machine learning and artificial intelligence, utilizing real-world data from over 400,000 Refrigeration Tons (RT) of cooling systems it has optimized across nine Asian markets.

In addition to enhancing existing cooling systems, bbp selectively upgrades customers' HVAC equipment using its unique knowledge, enabling greater energy savings at reduced capital expenses. The company typically finances the implementation of its optimization solutions and the upgrade of clients’ equipment, allowing asset owners to concentrate on their core operations while benefiting from cost savings and reduced carbon emissions. Actis’s investment is set to empower bbp to pursue larger-scale projects and further amplify its growth trajectory.

Industry Overview in Asia

The energy efficiency sector in Southeast Asia is witnessing significant momentum as companies increasingly prioritize enhanced energy performance to drive down operational costs, lower carbon emissions, and comply with evolving regulatory standards. In Singapore, for instance, the National Environment Agency has established Minimum Energy Efficiency Standards (MEES) for chilled water systems in industrial facilities. Sectors that heavily consume energy, such as semiconductor manufacturing, will be required to adhere to these standards by December 2025, and other sectors, like pharmaceuticals, have until December 2029 to comply. This regulatory backdrop presents both a challenge and an opportunity for energy efficiency providers.

Furthermore, as the demand for sustainable practices amplifies, organizations are not just facing pressure from regulations but also from consumers and investors who increasingly value environmentally responsible practices. This shift is pushing businesses across various industries to reconsider their energy consumption strategies. The urgency for sustainable solutions is particularly pronounced in energy-intensive sectors where operational efficiencies can lead to substantial financial savings and environmental benefits.

Amidst these developments, the energy efficiency industry in Asia is evolving rapidly, characterized by technological advancements and innovative service models. The proliferation of smart sensors and data intelligence is unlocking new opportunities for localization and customization in energy management. Providers like bbp, which blend advanced technology with a deep understanding of the market’s needs, are strategically positioned to thrive in this dynamic environment.

The Rationale Behind the Deal

Actis’s acquisition of bbp is predominantly driven by the actionable insights derived from the growing emphasis on energy efficiency within Southeast Asia. With regulation mandating higher efficiency standards, there is an accelerating demand for solutions like those offered by bbp, which help clients not only comply but thrive in a more sustainable operational environment. By investing in bbp, Actis aims to leverage this growing market potential and scale the company’s capabilities to serve a broader array of clients across vital industries.

This strategic deal reflects Actis’s commitment to sustainable infrastructure investments, particularly in markets where energy efficiency is becoming a key factor in business operations. Actis recognizes that by empowering bbp, it can play a role in fostering a greener economy while simultaneously driving profitable growth.

Information About the Investor

Actis is a preeminent growth markets investor focused on sustainable infrastructure, with an extensive portfolio that spans several sectors including energy, real estate, and transportation. The firm has a strong track record of investing in businesses that support the transition towards a low-carbon economy, deploying capital toward projects that have a positive environmental impact while yielding attractive returns. Actis’s expertise in emerging markets uniquely positions it to identify and capitalize on growth opportunities, particularly in sectors aligned with global sustainability goals.

The firm’s investment strategy is anchored in rigorous data-driven analysis and a commitment to operational excellence. Actis’s team comprises seasoned professionals who navigate complex market dynamics to uncover value-creation opportunities. The firm is well-equipped to support bbp in its expansion endeavors, utilizing its vast network and industry knowledge to drive performance improvements and enhance market positioning.

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In my opinion, Actis’s investment in Barghest Building Performance represents a strategic and timely move within the rapidly evolving energy efficiency sector in Asia. Given the regulatory pressures and the increasing awareness surrounding sustainability, companies are more inclined than ever to seek solutions that not only comply with standards but also deliver measurable cost savings. bbp’s proven track record of enabling significant energy savings positions it favorably in the market.

The emphasis on compliance with Minimum Energy Efficiency Standards further underscores the viability of bbp's offerings, as regulatory requirements act as a catalyst for demand. With the company’s robust technology and operational model, it stands to attract a diverse range of clientele eager to augment their energy efficiency and reduce their carbon footprint.

Moreover, Actis's experience in growth markets enhances the potential for bbp’s successful scaling. The combination of technical prowess and financial backing suggests that bbp is likely to thrive in the competitive landscape, delivering sustainable solutions while contributing positively to environmental objectives. Overall, I believe this deal is a strong investment opportunity for Actis, with promising prospects for growth and value creation.

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