Carlyle and Palatine to Reinvest in Sustainability Firm’s Secondary Buyout

Private equity firm Palatine is reinvesting in a global pure-play sustainability advisory and services provider after the company agreed a secondary buyout with Carlyle.

Anthesis works with cities, companies and other organisations to drive sustainable performance. It develops strategies underpinned by technical expertise and implemented across the world.

Clients include Reckitt, Cisco, Tesco, The North Face and Target, with the company bringing together more than 1,250 experts operating in 45 countries around the world.

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It has UK offices in Bristol, Edinburgh, Harrogate, London, Manchester and Oxford.

Palatine’s Buyout and Impact funds invested in early 2021 and, in a close partnership with the Anthesis leadership team, enjoyed strong and sustainable growth.

Revenues were up “significantly”, while its team more than doubled.

The transaction – which has seen Carlyle take a majority stake – has generated a 6x return on Palatine’s initial investment, with the firm now reinvesting in a minority shareholding alongside Anthesis’ management team.

Gary Tipper, managing partner at Palatine, said: “As an investor committed to delivering sustainable returns, Anthesis’ commitment to drive change and performance across its global client base aligns perfectly with our purpose of delivering positive equity.

“We’re very pleased to be reinvesting as it enters a new chapter in its growth story.”

He added: “Anthesis is an exceptional business with a great opportunity to build on the excellent progress it’s made since partnering with us two-and-a-half years ago.”

Beth Houghton, impact managing partner at Palatine, said: “We have enjoyed a close and successful partnership with Stuart McLachlan and the Anthesis team achieving significant organic growth and five successful acquisitions, this has delivered strong impact and returns for Palatine.

“By re-investing, the Impact fund will continue to deliver on our mission of generating returns with purpose. We’re excited to be part of the next stage of the journey alongside Carlyle, as more organisations embrace the imperative to act with urgency to address the climate crisis.”

Stuart McLachlan, chief executive of Anthesis, added: “Anthesis is uniquely positioned to provide the holistic solutions the market demands, harnessing its advisory, digital, carbon, and communication skills in response to regulatory and stakeholder pressures.

“We are excited to work closely with Carlyle to further strengthen their approach to ESG and sustainability, as they seek to lead by example in the global investment industry.”

Palatine was advised by Lazard (corporate finance), Eversheds Sutherland (legal), Deloitte (financial), Boston Consulting Group (commercial), Swan Partners (financial consulting) and RSM (tax).

Source: Insider

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