Dealflow | January 8, 2024

Bridges Fund Management sells stake in UK energy retrofitter AgilityEco

Roodgally Senatus
ImpactAlpha Editor

Roodgally Senatus

ImpactAlpha, January 8 — Bridges Fund Management acquired a “significant minority stake” in AgilityEco in 2019 to accelerate residential adoption of heat pumps and smart-home energy meters and reduce energy costs for low-income households in the UK.

AgilityEco says it delivered such services to nearly 37,000 households between April 2022 and March 2023, saving each household £2,625 in lifetime energy costs.

Bridges is selling its stake in the company to the infrastructure services firm M Group Services. The London-based impact investor said its investment will generate a 3.4x return and 40% internal rate of return.

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Bridges’ investment in AgilityEco was made through its Bridges Evergreen fund, backed by Big Society Capital. Bridges says it helped AgilityEco reach B Corp status and implement an Employee Benefit Trust through which roughly two-thirds of AgilityEco’s employees own shares in the company.

“AgilityEco has been a blueprint for Evergreen’s strategy of providing patient capital to support growing, highly impactful businesses to scale their outcomes and deliver attractive commercial returns,” said Bridges’ Tom Biddle.