Partners Group invests in Gateway Fleets, a provider of electrification solutions for logistics fleet operators in the US

September 30th, 2024

Source: Partners Group

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Partners Group, one of the largest firms in the global private markets industry, acting on behalf of its clients, has invested in Gateway Fleets ("Gateway" or "the Company"), a provider of electrification solutions for logistics fleet operators in the US. Partners Group is acquiring a controlling stake in Gateway and will provide significant capital to support its future growth. 

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Gateway's core value proposition for commercial fleet operators is resolving the capital and operational challenges of electric vehicle ("EV") fleet migration at no upfront cost, while driving margin improvements and lowering corporate carbon footprints. Headquartered in San Francisco, CA, the Company offers all the necessary equipment, including electric vehicles and charging services at its depots. Gateway develops charging depots by repurposing brownfield sites in strategic locations for logistics operators.

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The EV fleet migration market is benefiting from multiple thematic tailwinds driving transformational change, including technological advancement reducing EV costs, increased corporate emphasis on decarbonization goals, and strong e-commerce growth. The US market for services to support the charging of EV fleets is expected to be worth USD 15 billion by 2030.

In line with its entrepreneurial governance approach, Partners Group will appoint three operating directors to Gateway's board of directors, who will help drive a transformational value creation plan at the Company, alongside other board members, shareholders, and management. Key initiatives will include development of new depot sites, strategic hiring, and customer base expansion.

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Andre Burba, Managing Director, Infrastructure Americas, Partners Group, says: "We identified Gateway through our deep thematic research into New Mobility, which is a theme that looks at the infrastructure required to support changing consumer and societal trends. After reviewing a number of investment opportunities over the years, we developed a strong view of what a winning transformational business model should be in the EV fleet migration space. Gateway met those criteria due to its tangible contract pipeline with anchor customers and a repeatable development model with a visible opportunity to scale in the near term."

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Bruce Pflaum, Founder and Chief Executive Officer, Gateway Fleets, comments: "The EV migration market is at an inflection point in the US. Transportation is a key source of emissions for corporates and therefore forms part of many decarbonization plans, which is set to drive demand for EVs. Partners Group has extensive operational experience in building infrastructure businesses, and we welcome the firm as our lead shareholder."

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Javier Cuellar, Member of Management, Infrastructure Americas, Partners Group, adds: "Gateway provides a solution that addresses the key pain points in fleet electrification for logistics operators. These operators have a strong use case for EV migration due to relatively high daily mileages, return-to-base operations, and route predictability. We look forward to working with the Company's experienced management team and our operating directors to build a world-class electrification-as-a-service platform."

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The investment was made through Partners Group's Infrastructure business, which has USD 26 billion in assets under management globally.

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Partners Group was advised by Ropes & Gray LLP and Gateway Fleets by Sheppard Mullin.

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