Macquarie Set To Take Over Fourth Partner Energy As Investors Exit

Macquarie Asset Management, the infrastructure investment arm of Australian financial services group Macquarie, is in advanced talks to acquire a controlling stake in Fourth Partner Energy, a renewable energy company that serves commercial and industrial clients, according to a report by the Economic Times.

The deal values Fourth Partner Energy at an enterprise value of about $2 billion, or ₹19,006 crore, the report said. The company's equity value is expected to be pegged at around $1 billion.

Macquarie To Buy Out Existing Investors

Macquarie is likely to acquire a 96% stake in Fourth Partner Energy by purchasing shares held by existing investors. These investors include Germany's development finance institution DEG, the International Finance Corporation, the Asian Development Bank, Norway's Norfund, US based TPG, and British International Investment, formerly known as CDC Group.

Founders Saif Dhorajiwala and Vivek Subramanian will retain their combined 4% stake and continue to run the company after the deal is completed, the report added. Indian Oil Corporation was among the other companies competing to acquire the stake.

Fourth Partner Energy develops, owns and finances renewable energy assets for commercial and industrial customers, helping businesses shift to clean power. The company has commissioned more than 3.6 gigawatts of renewable energy capacity in India and abroad. Another 800 megawatts of wind solar hybrid projects are currently under development.

The company has also completed battery energy storage projects with a combined capacity of over 50 megawatts. It aims to raise its total installed capacity to 9 gigawatts by 2031. Its clients include Meta, Walmart, Unilever, Hyundai, Tata Motors, ITC, Nestle, TCS, Wipro, UltraTech Cement, Skoda and D-Mart.

Norfund currently holds a 30% stake in Fourth Partner Energy, while TPG Rise Fund owns 10%. IFC, ADB and DEG together hold about 55%, with the founders holding the remaining 4%.

Norfund first invested $100 million in the company in 2021 to acquire a majority stake. The Rise Fund, TPG's impact investing platform, invested $25 million the same year, adding to its earlier investment of $70 million made in 2018. In 2024, a consortium of IFC, ADB and DEG invested $275 million in Fourth Partner Energy.

Fourth Partner Energy's consolidated revenue rose 37% to $101.7 million in FY25, from $75.6 million in FY24, according to data from Tracxn. Its EBITDA more than doubled to $56 million from $25.3 million during the same period. The company, however, reported a net loss of $32.5 million in FY25, narrower than the $41.9 million loss in FY24.

India's commercial and industrial renewable energy market includes companies such as Fourth Partner Energy, CleanMax, Gentari, Avaada Energy and Ampin Energy Transition. Renewable energy capacity in this segment is expected to rise to 57 gigawatts by fiscal 2028, up from an estimated 40 gigawatts by the end of fiscal 2026, according to a recent report by Crisil Ratings.