SPRING has been managing private equity investments in energy utilities and infrastructure across the former Soviet Union region since 2004. Our investments include district heating, water supply, waste water systems, municipal electricity networks, stand alone power plants and independent supply companies.

Currently SPRING is launching a new PE fund to profit from energy efficiency and renewable energy – SPRING PARTNERS II L.P. 

Energy and communal sectors of the ex-Soviet countries saw substantial underfinancing in the 90’s and consequent deterioration and losses. The general shortcoming of the industry is inefficiency and old assets. However in the recent years, local governments have been making efforts to modernize the sector and attract private money. Currently this market offers a number of opportunities for knowledgeable investors:

  • Old assets: power and communal services experiencing massive inefficiency due to Soviet legacy and transition period under-investment;
  • Revenue growth: growth in electricity prices have made energy efficiency projects economically viable;
  • Regulatory environment: regulatory changes and laws on energy efficiency and renewables allow high returns for such initiatives in district heating and electricity’
  • Capital shortage: private operators are looking for equity capital to replenish worn-out assets;
  • Technology and business model innovation: numerous advancements from Western Europe not yet implemented in post-Soviet countries;
  • Low competition: SPRING is the only independent, experienced private equity investor in the energy efficiency market with a strong reputation.
Key elements of investments: 
  • Investee companies have a substantial part of operations in the former Soviet Union and CEE;
  • Small and mid-cap private companies;
  • Profitable or at least break-even business;
  • Strong management team and solid business-plan;
  • Clear exit strategy.