Private Equity Firm TPG Acquires Solar Energy Giant Altus Power: What Sustainable IT Partners Need to Know

Private equity firm TPG is acquiring solar energy giant Altus Power for $2.2 billion. The deal involves TPG's dedicated climate investing platform -- known as TPG Rise Climate. Among the potential opportunities ahead: Providing solar energy to power AI data centers, Sustainable Tech Partner believes.

Rumors about TPG potentially buying Altus Power surfaced in December 2024. The solar infrastructure company has been up for sale since about October 2024. Around that time, the Altus Power board launched a "formal review of strategic alternatives" -- financial jargon that signaled the company wanted acquisition offers and buyout proposals from potential bidders.

TPG, founded in 1992, is based in Fort Worth, Texas. The company has roughly $222 billion in assets under management. TPG launched a climate-focused fund in 2021.

Altus Power, founded in 2009, is based in Stamford, Connecticut. The national company owns and operates commercial-scale solar arrays that provide clean electric power to businesses, towns and homes. Recent milestones include solar projects in California, Illinois, Maine, Maryland, and New Jersey.

For Q3 of 2024, Altus Power in November 2024 reported:

• Revenue of $58.7 million, up 30% from Q3 of 2023.
• Net income of $8.6 million, up from $6.8 million in Q3 of 2023.
• Adjusted EBITDA of $37 million, up 27% from Q3 of 2023.

Backed by TPG, Altus Power believes "it will be able to scale its operations more rapidly to meet the surging demand for increased power generation," the companies said.

The Channel Partner Opportunity: Looking ahead, watch for potential Altus Power partnerships with data center companies and cloud service providers (CSPs), many of which need new or additional energy sources to power AI data centers.

Solar Energy Market Growth, Industry Challenges

At first glance, the solar energy market looks healthy. Worldwide solar capacity grew 29% in 2024 compared to 2023, Ember estimates. Roughly 75% of those new installs occurred in China, the United States, India, Germany and Brazil, the researcher said.

But take a closer look and multiple factors pressured numerous solar energy technology companies in 2024. Among the challenges: Heightened interest rates -- at least compared to the Zero Interest Rate Policy (ZIRP) years -- have forced some consumers and businesses to abandon or delay financing for potential solar projects. The situation is particularly challenging in California, which slashed solar power incentives in 2023.

Further complicating matters, U.S. President Donald Trump signed energy-centric Executive Orders in January 2025. The orders essentially abandoned the Biden Administration's renewable energy initiatives.

Moreover, Chris Wright was confirmed as U.S. Secretary of Energy in February 2025, putting the founder of an oil and gas fracking services company in charge of an agency that will play a key role in Trump's plans for a sweeping overhaul of U.S. energy policy, Bloomberg reported.

Still, Wright reassured Democrats that he also supports renewable energy sources -- such as solar, wind, geothermal and hydropower, the report noted. He's also a nuclear advocate who will strive to ease regulations and speed up nuclear energy rollouts.

TPG Acquires Altus Power: Executive Perspectives

Meanwhile, TPG and Altus Power executives see opportunities ahead.

In a prepared statement about the deal, Altus Power CEO Gregg Felton said: “This transaction represents a pivotal moment for Altus Power. We are incredibly excited to partner with TPG Rise Climate to continue to build our position as the leading commercial-scale provider of clean electric power to businesses and households from coast to coast. TPG Rise Climate’s deep expertise in the clean energy sector, investment-oriented mindset and value-driven approach to infrastructure development aligns perfectly with our vision. This partnership strengthens our ability to serve both our Community Solar and commercial clients with clean electric power at a time when demand for power is expected to grow substantially. As a private company, Altus Power will be better positioned for continued long-term growth, which we believe will allow us to scale our operations, drive innovation and enhance the value we deliver to our customers. Together with TPG Rise Climate, we believe we are poised to accelerate clean energy adoption and ensure more businesses and communities have access to the power they need for a sustainable future.”

Added Christine Detrick, board chair of Altus Power: “On behalf of the Altus Power Board of Directors, we’re pleased to have unanimously approved this transaction with TPG Rise Climate and believe this partnership is a natural fit, with strong synergies that will drive growth and innovation. This transaction will unlock significant value for our stockholders, customers and employees and we are confident it is in the best interest of the Company’s long-term success.”

Noted Scott Lebovitz, a managing partner and head of infrastructure for TPG Rise Climate: “We are excited to partner with Altus Power, which has established itself as a leader in commercial scale, clean power solutions with an exceptional track record of growth."

Concluded Steven Mandel, business unit partner in TPG Rise Climate: “The leadership team’s innovation, commitment to its customers and operational excellence aligns with our investment philosophy. We look forward to supporting Altus Power in its next chapter of growth, providing affordable and sustainable power to businesses and households."

TPG Acquires Altus Power: Next Moves

TPG expects to complete the acquisition in Q2 of 2025. At that point, Altus Power will become a privately held business.