Energy Transition, Power & Infrastructure: A Multi-Decade Investment Opportunity
| The Energy Transition, Power & Infrastructure (EP&I) sector is experiencing significant growth, driven by the critical need to modernize an aging grid, surging electricity demand and the accelerating transition to renewable energy sources. These tailwinds underpin sustained, regulatory-driven growth that will last for decades.
Mergers and acquisitions (M&A) and valuations in the EP&I sector remain robust. Across the electric infrastructure value chain, services, products and technology businesses benefit from non-discretionary demand and secular growth and have proven to be largely tariff- and recession-resistant. This combination of defensive characteristics and sustained demand has been a catalyst for increased investor interest in the sector. Scarcity value has strengthened in recent months as the pipeline of actionable deals in other, more cyclical sectors has thinned. Lincoln International’s team of dedicated EP&I bankers have an established track record of providing best-in-class outcomes for clients across energy and power subsectors. Our senior EP&I professionals are attuned to the market forces driving investor interest, which they highlight below alongside recent Lincoln transactions that illustrate the sector’s attractiveness. |
Summary
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Lincoln International’s Energy Transition, Power & Infrastructure (EP&I) Group outlines the trends and themes fueling investor interest in the sector
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Fundamental Growth Drivers
The electric grid is in a sustained, multi-decade cycle of investment, driven by the convergence of several powerful tailwinds. The fundamental re-architecting of critical infrastructure creates a compelling opportunity for investors seeking long-term, non-discretionary growth. Key industry tailwinds include:
| Electrification and Load Growth: A structural shift in energy consumption, driven by data centers, AI and the electrification-of-everything, is causing a surge in electricity demand. This requires a substantial investment to maintain, repair and upgrade infrastructure to expand grid capacity and handle higher loads. |
| Aging Infrastructure: For many countries, including the U.S. and across Europe, a significant portion of transmission and distribution infrastructure is approaching or has exceeded its 50-year useful life, creating a predictable, non-discretionary replacement cycle. The consequences of this aging asset base are increasingly visible in the form of more frequent and severe power outages, which cost the U.S. economy as much as $150 billion annually.i Also evidenced is the transformer failure resulting in a substation fire that shutdown Heathrow in March of this year, cancelling more than 1,300 flights at Europe’s busiest airport. |
| Grid Hardening & Modernization: Utilities are investing heavily in grid hardening and “smart grid” technologies. These are crucial for enhancing resiliency and navigating the complexity of a modern, distributed grid with substantial integration of renewable energy. |
Richards Manufacturing, PowerGrid Services and BRUSH Group: The Marquee Power Deals of 2025
The EP&I sector presents a unique combination of defensive characteristics and clear growth drivers. Recent Lincoln transactions, including the acquisition of Richards Manufacturing by TE Connectivity, PowerGrid Services by Apollo Hybrid Funds and BRUSH Group by Greenbelt Capital Partners highlight the opportunities within this sector.
A powerful combination of non-discretionary demand and a favorable investment environment support the EP&I sector. The pent-up demand and multi-decade need for grid maintenance, upgrades and expansion fuel long-term secular growth. This unique combination of stability and growth has made the sector a focal point for investors seeking resilient, high-quality assets with predictable, recurring revenue streams. Consequently, we expect competition for these assets among both strategic and financial buyers to continue, driving strong M&A activity for the foreseeable future.
| We invite you to review the Richards, PowerGrid, BRUSH Group and other recent Lincoln-led transactions below and connect with our EP&I team to discuss further. |
Contributors
I am a rigorous advocate for my clients with a hands-on, communicative approach, focused on delivering intense advocacy and outlier results.
Sean Bennis
Managing Director & Global Head of Industrials
Chicago
As a trusted advisor, my role is to listen, create options and pursue the path that best achieves a client’s total objectives.
Saurin Mehta
Managing Director & Global Head of Business Services
Chicago
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