Partners Group, a global private markets firm, announced strong financial performance at its US HVAC portfolio companies, DiversiTech and PremiStar, as extreme weather conditions increase demand for cooling solutions. Since acquiring both companies in 2021, DiversiTech has seen revenues rise 60%, while PremiStar’s revenues have doubled, according to a press release from the firm.
The companies have delivered EBITDA growth of 14% and 22% compound annual growth rates (CAGR), respectively. This growth reflects broader tailwinds in the US HVAC market, including the increasing frequency of heat waves, which underscores the importance of HVAC system maintenance for optimal performance and efficiency. Additionally, the rapidly aging installed base of HVAC units, the need for energy-efficient upgrades, and the rise of building automation solutions are contributing to sustained demand.
Partners Group has leveraged its investment platform to identify and implement best practices across both companies, focusing on transformational value creation plans. These initiatives include investments in operations, supply chains, and technology, as well as selective add-on acquisitions to support future growth.
Wolf Scheider, Head of Private Equity at Partners Group, commented, “Across our HVAC portfolio, we are seeing organic, disciplined growth. As heat waves become a defining challenge of how we live and work, demand for HVAC parts and maintenance is rising. Our portfolio companies are essential to helping communities and enterprises adapt to these conditions, with meaningful growth runway ahead as value creation initiatives mature.”
DiversiTech is a manufacturer and distributor of parts and supplies for HVAC units, while PremiStar is one of the largest commercial HVAC services providers in the US. Their performance aligns with Partners Group’s strategy of investing in essential infrastructure and services that benefit from long-term secular trends.
The announcement comes as parts of the US experience record-breaking temperatures, highlighting the critical role of reliable cooling systems. The HVAC industry is poised for continued growth, driven by both climate change and regulatory pushes for energy efficiency. Partners Group’s portfolio companies are well-positioned to capitalize on these trends, providing essential services to residential and commercial customers.
Partners Group, with approximately 2,000 professionals and over $186 billion in assets under management, operates across private equity, private credit, infrastructure, real estate, royalties, and special opportunities. The firm’s operational approach and focus on transformational value creation have been key to driving performance at its portfolio companies.
The strong results at DiversiTech and PremiStar demonstrate the resilience and growth potential of the HVAC sector, particularly as climate change intensifies. With ongoing investments in technology and operations, these companies are expected to continue their upward trajectory, supporting both Partners Group’s returns and the broader adaptation of communities to a warmer world.
