M&A: Morgan Stanley's Private Equity Arm Acquires Clean Energy Consultancy Resource Innovations

Morgan Stanley Capital Partners, the private equity arm of the financial services giant, has acquired Resource Innovations, a consultancy focused on energy efficiency, sustainability and grid resiliency. The seller was mid-market private equity firm BV Investment Partners. Financial terms of the deal were not disclosed.

This is M&A deal number 160 that Sustainable Tech Partner has covered so far in 2024. See all M&A deals involving sustainability, climate tech and green IT services listed here.

Resource Innovations, founded in 2016, is based in San Francisco. The company provides advisory services, program management services and software to utility, government and corporate clients. Key focus areas include assisting customers with energy efficiency, decarbonization, cutting greenhouse gas emissions and improving grid resiliency.

BV Investment Partners had owned a majority stake in Resource Innovations since 2021. Key moves from there included acquiring Nexant in 2021 and TechbiArt in 2022.

Morgan Stanley Capital Partners Acquires Resource Innovations: Executive Perspectives

Resource Innovations founder Lauren Casentini remains CEO of the company and also is a "significant equity holder" in the business. Her ownership percentage stake and the associated valuation were not disclosed.

In a prepared statement about the acquisition, Eric Kanter, managing director and head of industrial services at MSCP, said: “Resource Innovations’ tech-enabled services help turn energy policy goals into reality. The Company supports core energy efficiency needs while seeking to address the next phase of clean energy transition challenges being faced across the United States. We believe the Company’s record of consistent growth and ability to expand into these emerging areas with tremendous market potential have paved the way for continued opportunity. Under industry veteran Lauren Casentini’s leadership, we believe this purpose-built team is poised for the next step in helping communities on their energy transition journey. We look forward to working together as we seek to advance RI’s leadership position and continue expanding the company through organic growth and M&A.”

Added Resource Innovations CEO Lauren Casentini: “MSCP’s investment is a recognition of the tremendous growth we have experienced over the past several years and validates the hard work our team does to deliver innovative, differentiated solutions for our customers. I look forward to working together with Morgan Stanley Capital Partners to continue to grow our Company.”

Noted Justin Harrison, managing partner of BV Investment Partners: "Resource Innovations is a growing and dynamic company with tremendous long-term potential as clean and sustainable energy investments grow rapidly. We are pleased to have worked with Lauren and her team to accelerate opportunities that will help deliver value and unparalleled service offerings to their clients."

Concluded Eric Ahlgren, managing director of BV Investment Partners: "Resource Innovations was founded on the principle of helping utilities manage the clean energy transition and is today the trusted partner of choice in this rapidly evolving market.  It has been impressive to witness RI win business in not only its core energy efficiency offerings, but also launching and scaling solutions in the emerging areas of electrification, electric vehicles, and load flexibility."

Morgan Stanley: Private Equity and Sustainability Focus

Morgan Stanley Capital Partners (MSCP) has experience in the sustainability sector. In 2023, the private equity business acquired Apex Companies, a provider of end-to-end environmental consulting and engineering solutions. The seller was Sentinel Capital Partners. Sentinel will maintain a minority stake in Apex. Financial terms of that deal were not disclosed.