Siparex-backed TiLT in final leg of fundraise for energy transition vehicle

Min Ho
13 February 2023

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TiLT Capital Partners, part of French GP Siparex, has so far raised close to EUR 220m for its first green energy transition strategy and is “close” to reaching its EUR 250m target, Siparex Managing Partner Nicolas Eschermann told Unquote.

TiLT Capital Fund 1, which invests in companies involved in energy efficiency, zero-carbon heating and energy, power electronics and energy system flexibility, announced its first closing at EUR 145m last April with the backing of the European Investment Bank, the European Investment Fund and Bpifrance.

"We have the right visibility to reach EUR 250m, and thanks to the first transactions and the traction that we have with the energy transition team, we have the hope and the commercial goal to reach between EUR 250m and EUR 300m," Eschermann said.

The strategy can provide tickets of EUR 5m-EUR 35m to European SMEs, and in some cases to late-stage venture opportunities. Generally, targets have to be profitable on an operating ratio, although it can consider businesses where there is visibility to reach a level of profitability by the time of exit, he said.

"The idea is not to take a risk in terms of technology," he said. "Targets should have a proven technology, and where TiLT will have the possibility to accelerate the commercialisation of the technology, or maybe the international expansion of the technology."

The fund has closed three deals, with exclusivity signed for a fourth deal in recent weeks, he said.

Its investments include DualSun, a French manufacturer of solar panels that generates electricity and hot water simultaneously for homes and buildings. The Marseille-based company saw a near-doubling of growth last year and plans are now being penned to tap into the Italian and Spanish markets, he said.

In spite of Eschermann's confidence of its investments, he recognises the challenge of investing in the popular sector at this time, given that "prices generally remain very high". This is a particular challenge with late-stage companies that may not have the "right levels" of operating margins and where it has to pay attention to the price it pays, he added.

TiLT Capital is an initiative led by its three founders, Nathanaël Krivine, Nicolas Lepareur and Nicolas Piau, who joined Siparex in 2021 from the French utility group Engie, where they were responsible for their M&A department.