Macquarie in advanced talks to buy Fourth Partner Energy

Mumbai: Infrastructure investor Macquarie Asset Management is in advanced negotiations to acquire a significant controlling stake in renewable energy platform Fourth Partner Energy for an enterprise value of about $2 billion (₹19,006 crore), said people familiar with the matter.

The deal is expected to peg the company's equity value at around $1 billion, the people said.

Macquarie is likely to acquire 96% stake in Fourth Partner Energy by buying out existing investors-DEG (Germany's development finance arm), the World Bank's IFC, the Asian Development Bank, Norfund, TPG, and British International Investment (formerly CDC Group), the people said.


Founders Saif Dhorajiwala and Vivek Subramanian will continue to hold their combined 4% stake in the company and remain involved in running the business after the deal, the people said.

Indian Oil Corporation Ltd was the other key contender in the race, the people said.

Fourth Partner Energy develops, owns and finances renewable energy assets for commercial and industrial (C&I) customers, enabling businesses to transition to clean power through long-term energy solutions.

The company has commissioned more than 3.6 GW renewable energy capacity across India and overseas, while more than 800 MW of wind-solar hybrid projects are under development. The company has also executed battery energy storage system (BESS) projects totalling more than 50 MW capacity and aims to expand its installed base to 9 GW by 2031.

Some of its biggest 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 own about 55%, with the founders retaining the remaining 4%, according to sources.

Spokespeople at Fourth Partner, Norfund, DEG and BII declined to comment. TPG, IFC and ADB didn't respond to email queries.

In 2021, Norway-owned PE fund Norfund invested $100 million in Fourth Partner Energy to acquire a majority stake, while existing shareholder, The Rise Fund, TPG's global impact investing platform, infused $25 million, adding to its $70 million investment in 2018.

In 2024, a consortium comprising IFC, ADB and DEG invested $275 million in Fourth Partner Energy.

Fourth Partner Energy reported 37% rise in consolidated revenue at $101.7 million in FY25, compared to $75.6 million in FY24, per the latest available data from Tracxn. EBITDA more than doubled to $56 million from $25.3 million. Despite the improved operating performance, the company posted a net loss of $32.5 million in FY25, though narrower than $41.9 million loss in FY24.

India's C&I renewable energy market is dominated by a handful of specialised developers, including Fourth Partner Energy, CleanMax, Gentari, Avaada Energy and Ampin Energy Transition. This segment is expected to see renewable energy (RE) capacity rise to 57 GW by fiscal 2028 from 40 GW expected by the end of fiscal 2026, Crisil Ratings said in a recent report.