Key Takeaways
- • Exponent closed a €750m ($866m) continuation fund for H&MV Engineering at a €1.4bn valuation, with the vehicle oversubscribed and backed by Apollo Global Management's secondaries business, Pantheon, and SQ Capital.
- • H&MV has demonstrated exceptional growth since Exponent's 2020 investment, expanding revenue from €61m to an expected €1bn in 2026, with an order book valued at approximately €2bn and ambitions to reach €3bn annually within five years.
- • The continuation structure allows Exponent to maintain exposure to the electrical infrastructure specialist while providing liquidity to existing investors, representing a strategic alternative to traditional M&A and IPO exits in the current market environment.
- • H&MV is accelerating US expansion with a planned Dallas headquarters opening later in 2026, capitalizing on surging demand from data center operators, AI infrastructure development, renewable energy projects, and battery storage initiatives requiring increased grid and electrical capacity.
- • The company currently operates 20 offices across Europe, the US, and Asia with approximately 24GW of projects in design and construction, positioning it as a critical infrastructure beneficiary amid rising investment in AI and clean energy infrastructure.
Summary
Exponent, a European private equity firm, has successfully closed a €750m continuation fund dedicated to extending its ownership stake in H&MV Engineering, an Ireland-headquartered electrical infrastructure specialist. The fund valued H&MV at approximately €1.4bn and was oversubscribed, reflecting robust institutional demand. Lead investors in the continuation vehicle include Apollo Global Management's secondaries business, Pantheon, and SQ Capital, signaling confidence from tier-one alternative asset managers in H&MV's growth trajectory and market positioning.
The continuation fund structure represents an increasingly common private equity strategy as traditional exit pathways remain constrained. Rather than pursuing a full exit through M&A or IPO, the continuation vehicle allows Exponent to retain exposure to H&MV's ongoing value creation while simultaneously providing liquidity to existing limited partners—a pragmatic solution in an environment where conventional M&A and IPO activity has remained subdued.
H&MV's operational performance has been exceptional since Exponent's initial investment in 2020. Revenue has expanded dramatically from €61m to an expected €1bn in 2026, representing approximately 16x growth over the holding period. The company maintains an order book valued at €2bn and has set an ambitious target to reach €3bn in annual revenue within five years. This growth has been driven by secular tailwinds across multiple end-markets: data center operators scaling AI infrastructure, renewable energy developers expanding generation capacity, utilities upgrading grid infrastructure, and battery storage projects requiring enhanced electrical capacity.
Geographically, H&MV is executing an aggressive North American expansion strategy, with plans to establish a regional headquarters in Dallas, Texas later in 2026. The company currently operates through 20 offices spanning Europe, the US, and Asia, with approximately 24GW of projects currently in design and construction phases. This infrastructure pipeline positions H&MV to benefit from sustained investment in both AI-related data center buildouts and the global energy transition. H&MV Chief Executive PJ Flanagan characterized the continuation fund as the optimal structure to support the company's next phase of expansion while preserving flexibility for future exit options based on evolving market conditions.
The continuation fund structure represents an increasingly common private equity strategy as traditional exit pathways remain constrained. Rather than pursuing a full exit through M&A or IPO, the continuation vehicle allows Exponent to retain exposure to H&MV's ongoing value creation while simultaneously providing liquidity to existing limited partners—a pragmatic solution in an environment where conventional M&A and IPO activity has remained subdued.
H&MV's operational performance has been exceptional since Exponent's initial investment in 2020. Revenue has expanded dramatically from €61m to an expected €1bn in 2026, representing approximately 16x growth over the holding period. The company maintains an order book valued at €2bn and has set an ambitious target to reach €3bn in annual revenue within five years. This growth has been driven by secular tailwinds across multiple end-markets: data center operators scaling AI infrastructure, renewable energy developers expanding generation capacity, utilities upgrading grid infrastructure, and battery storage projects requiring enhanced electrical capacity.
Geographically, H&MV is executing an aggressive North American expansion strategy, with plans to establish a regional headquarters in Dallas, Texas later in 2026. The company currently operates through 20 offices spanning Europe, the US, and Asia, with approximately 24GW of projects currently in design and construction phases. This infrastructure pipeline positions H&MV to benefit from sustained investment in both AI-related data center buildouts and the global energy transition. H&MV Chief Executive PJ Flanagan characterized the continuation fund as the optimal structure to support the company's next phase of expansion while preserving flexibility for future exit options based on evolving market conditions.
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