Connecticut company will be ‘hiring hundreds’ in coming years after $500 million investment

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Budderfly CEO Al Subbloie at the company's Shelton, Conn. headquarters in September 2019. The company secured $55 million from backers in the second quarter, among the largest private venture fundings by a Connecticut technology company during the current economic expansion.

Budderfly CEO Al Subbloie at the company's Shelton, Conn. headquarters in September 2019. The company secured $55 million from backers in the second quarter, among the largest private venture fundings by a Connecticut technology company during the current economic expansion.

Alexander Soule

A private equity firm has acquired a majority stake in a Shelton-based energy management outsourcing company in return for a $500 million investment.

Officials with the Swiss private equity company Partners Group announced on Monday that it had acquired the ownership stake in Budderfly. Al Subbloie, Budderfly’s founder and chief executive officer, declined to say how big a stake Partners Group bought with its investment, but said he remains the company’s second largest shareholder.

Subbloie said even though the company’s new majority shareholder is based in Europe, Budderfly’s headquarters will remain in Connecticut.

“There’s no chance whatsoever of us leaving Connecticut,” he said

He said Partner Group has the financial resources to allow Budderfly to hire a lot more people as the business grows, with many of those new workers being hired in Connecticut.

“Over the next year, I’d say we will be hiring dozens,” Subbloie said. “Over the next three or four years, we’ll be hiring hundreds.”

The announcement of the deal comes less than two weeks after Budderfly secured a $5 million loan from the Connecticut Green Bank, a quasi-public agency that works to attract private investment in energy efficiency and renewable power projects.

Patrick Langan, a member of the management team for Partners Group’s Private Infrastructure Americas division said “Budderfly is disrupting the energy efficiency market by providing a holistic solution to underserved commercial and industrial customers, and offering additional services, such as component-level data monitoring, that are becoming increasingly important for sustainability reporting.”

“Budderfly’s business model has strong infrastructure characteristics, with a sizeable and growing customer base served under long-term contracts that provide recurring revenues,” Langan said. “A key part of our value creation plan will be expanding these service offerings and broadening Budderfly’s customer base.”

One sector that Budderfly is likely to target is office buildings owned by real estate investment trusts or REITs, Subbloie said.

Budderfly currently oversees energy usage at more than 2,750 customer sites across 49 states. Its customers include convenience and fast food business, which Subbloie said use far more energy per square foot than larger companies.

Budderfly makes its money by using technology to achieve energy savings for its clients. The company then receives a percentage of the savings as payment.

Budderfly’s energy efficiency tools include automated controls, proprietary software and metering.

Subbloie said officials at Budderfly are “looking ahead to our exciting next chapter of expansion” as a result of the arrangement with Partners Group.

Bert Hunter, chief investment officer for the Green Bank, called the pairing between the Partners Group and Budderfly “a perfect fit.”

Hunter said loan with the Green Bank has language that requires Budderfly to hit certain employment targets.

“We gave no reason to believe they won’t achieve those numbers,” he said.