TPG Rise Climate, the climate investing strategy of TPG’s global impact investing platform, TPG Rise, and Singapore’s sovereign wealth fund, GIC announced an agreement to acquire Germany-based smart and sustainable buildings-focused service provider Techem Group for

approximately €6.7 billion (USD$7.4 billion). The transaction is expected to close in the first half of 2025, with TPG Climate Rise as lead investor, and GIC as minority investor.

Techem said that it will continue to expand its position as a platform for decarbonizing and digitizing the building sector with its new investors.

Founded in 1952, Techem works in the real estate sector, especially serving private landlords, providing a range of services from optimizing building services such as water and heating, as well as billing, and monitoring energy and water usage. Techem is active in 18 countries and services more than 13 million dwellings, with over 62 million digital measuring devices on its platform. Techem’s annual revenue is over €1 billion, it said.

The company also provides systems to help measure and reduce the carbon footprint of buildings. Data shows that some 40% of global Co2 emissions come from the real estate sector, with about 70% produced by building operations. Techem said that it plans to continue expanding its global digital footprint, expanding existing services to new markets and developing new ones, especially those focused on decarbonization, the company said.

Matthias Hartmann, CEO of Techem, said:

“With TPG and GIC, we are gaining strong new partners with the digitization and platform expertise needed to help us make significant progress in implementing our corporate strategy. Together, we want to further expand and advance our position as a leading platform for digitizing and decarbonizing the building sector across Europe and beyond.”

Launched by TPG in 2021, TPG Rise Climate targets climate-related investments spanning investment types from growth equity to value-added infrastructure, and focused on climate solutions in thematic areas including clean electrons, clean molecules and materials, and negative emissions. The Techem deal represents the largest transaction for TPG Rise Climate to-date.

Ed Beckley, a London-based Managing Partner of TPG Rise Climate

“Techem’s technology, transparent consumption statistics, and streamlined solutions for tenants, managers, and asset owners alike are essential solutions for lowering costs and improving the environmental impact of real estate assets across Europe. There is a tremendous opportunity to reduce energy consumption in built environments by enhancing efficiency and better-managing overall demand. We’re looking forward to supporting the Techem team in leading and accelerating real estate emissions reductions at scale.”

The business will be acquired from its previous majority owner, Partners Group, acting on behalf of its clients and co-investors CDPQ and Ontario Teachers’ Pension Plan.