- First investment by Macquarie Asset Management for its new strategy focused on making buyout investments into high quality, stable businesses that provide services, products and technologies to infrastructure end markets
- Significant growth opportunity given structural tailwinds benefitting the infrastructure sector and substantial investment required in the decades ahead
- Transaction draws upon Macquarie Asset Management’s expertise in infrastructure to identify opportunities in related sectors
NEW YORK–(BUSINESS WIRE)–Macquarie Asset Management has acquired a majority stake in DynaGrid Holdings, LLC (“DynaGrid”), one of the largest US utility services providers focused on maintaining, upgrading, and building transmission and substation infrastructure. DynaGrid is headquartered in Dallas and primarily operates across the Sunbelt and the Midwest.
The transaction is the first for Macquarie Asset Management’s new strategy investing in high quality, stable businesses that provide services, products and technologies to infrastructure end markets across North America and Western Europe. The strategy will be led by Andrew Olinick who has joined Macquarie as a Senior Managing Director and has more than 20 years’ experience in investing in private businesses across the US and Europe.
Andrew Olinick said, “This investment is an exciting first step in growing our specialized strategy. Given positive structural tailwinds in the infrastructure sector, we believe DynaGrid is poised for significant growth and can benefit from our specialized expertise.”
This investment capitalizes on Macquarie Asset Management’s knowledge, networks, and experience as a leading infrastructure investor. The dedicated team for this strategy expects to benefit in investment sourcing, diligence and value creation by leveraging Macquarie Asset Management’s three decades of infrastructure expertise and the deep networks of the firm, its employees, and portfolio companies. The new initiative builds upon the success of a similar strategy in the Asia Pacific region that was established in 2006 and is led by Eric Kim.
Charlie Ferrara, CEO of DynaGrid, said, “For over a decade, DynaGrid has provided safe high quality technical services that thrive in demanding environments. We welcome Macquarie Asset Management’s experience and footprint as we continue to scale our business and serve as a vital partner for electrical utilities and EPC companies.”
“Macquarie Asset Management’s investment in DynaGrid is an exciting partnership for us as we continue to provide exceptional service for our customers maintaining and building critical electrical infrastructure,” said Kendrew Witt, President of DynaGrid.
Between 2024 and 2033, the ASCE estimates a need for $US7.4 trillion of infrastructure investment in the US alone, comprised of both maintenance and upgrades, a reflection of the structural tailwinds of the energy transition, digitalization and grid hardening. 1 Given the scale, complexity and essential nature of this need, Macquarie Asset Management believes there will be a sizeable corresponding need for specialized providers operating in the infrastructure ecosystem to facilitate this delivery.
“We have a relentless commitment to providing our clients with diversified solutions that address their long-term capital needs,” said Leigh Harrison, Global Head of Real Assets for Macquarie Asset Management, emphasizing the strategic importance of this approach. “Andrew and his team will be able to capitalise on the strength of our infrastructure experience, by identifying opportunities that are both well-suited for our clients’ portfolios and aligned to our investment capabilities. It’s why we are excited by this new growth opportunity for our business.”
Harris Williams acted as financial advisor to Macquarie Asset Management in this transaction.
Guggenheim Securities, LLC acted as financial advisor to DynaGrid in this transaction.
About Macquarie Asset Management
Macquarie Asset Management is a global asset manager, integrated across public and private markets. Trusted by institutions, governments, foundations and individuals to manage approximately $US633.7 billion in assets, we provide a diverse range of investment solutions including real assets, real estate, credit and equities & multi-asset.
Macquarie Asset Management is part of Macquarie Group, a diversified financial group providing clients with asset management, finance, banking, advisory, and risk and capital solutions across debt, equity and commodities. Founded in 1969, Macquarie Group employs over 20,600 people in 34 markets and is listed on the Australian Securities Exchange.
All figures as at 30 September 2024.
About DynaGrid Holdings, LLC
DynaGrid Holdings, LLC (DynaGrid) was founded in 2012 and provides substation and transmission services to the US electric utilities market. DynaGrid is a trusted partner to both electric utilities and engineering, procurement and construction firms.
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