Partners Group, a global private markets firm, announced strong growth at its two US HVAC portfolio companies, DiversiTech and PremiStar, as extreme weather conditions increase demand for cooling solutions. Since their acquisition in 2021, DiversiTech's revenues have risen by 60%, while PremiStar's revenues have doubled. Both companies have delivered impressive EBITDA growth, with DiversiTech achieving a 14% CAGR and PremiStar a 22% CAGR.
The financial performance underscores the tailwinds in the US HVAC market, including the increasing frequency of extreme weather events that highlight the need for effective HVAC maintenance to maximize unit performance and efficiency. Other factors include the aging installed base of HVAC units, the push for energy-efficient upgrades, and the growth of building automation solutions. These trends are driving demand for both HVAC parts and maintenance services, positioning Partners Group's portfolio companies to benefit from sustained market growth.
Partners Group has leveraged its investment platform to identify and implement best practices across DiversiTech and PremiStar, executing transformational value creation plans to support future growth. These initiatives involve investments in operations, supply chains, and technology, as well as strategic add-on acquisitions. Wolf Scheider, Head of Private Equity at Partners Group, commented, "Across our HVAC portfolio, we are seeing organic, disciplined growth. As heat waves become a defining challenge of how we live and work, demand for HVAC parts and maintenance is rising. Our portfolio companies are essential to helping communities and enterprises adapt to these conditions, with meaningful growth runway ahead as value creation initiatives mature."
The importance of this growth extends beyond the companies themselves. It reflects a broader societal need for reliable cooling infrastructure in the face of climate change. The increasing frequency and intensity of heat waves have made HVAC systems critical for health, productivity, and comfort. This has led to a surge in demand for replacement parts, maintenance services, and energy-efficient upgrades, which directly benefits companies like DiversiTech and PremiStar. Their growth also signals a robust market for investors, as the HVAC sector becomes a key area for private equity investment.
Partners Group's success with these portfolio companies demonstrates the firm's ability to identify attractive investment themes and drive operational improvements. With over USD 186 billion in assets under management, Partners Group continues to focus on transforming businesses into market leaders. The growth at DiversiTech and PremiStar is a testament to the firm's operationally oriented approach and its commitment to creating value in the private markets.
The implications of this announcement are significant for the HVAC industry and the broader economy. As extreme weather becomes more common, the demand for cooling will likely continue to rise, creating opportunities for companies that provide essential parts and services. Partners Group's investment in this sector not only generates financial returns but also supports the adaptation of communities and enterprises to changing climate conditions. The continued growth of these portfolio companies underscores the importance of strategic investment in infrastructure that addresses critical societal needs.
