Key Takeaways
- • Partners Group's two US HVAC portfolio companies—DiversiTech and PremiStar, both acquired in 2021—are delivering significant revenue growth, with DiversiTech revenues up 60% and PremiStar revenues doubling since acquisition.
- • EBITDA growth has accelerated substantially: DiversiTech achieved 14% CAGR and PremiStar achieved 22% CAGR, demonstrating operational leverage across the portfolio.
- • Extreme weather patterns are driving primary demand tailwinds across the US HVAC market, increasing demand for both replacement parts and maintenance services.
- • Partners Group has implemented cross-portfolio best practices and transformation value creation plans across both companies, positioning them to capture sustained market opportunities.
- • The portfolio companies operate in complementary market segments—DiversiTech in parts and supplies manufacturing/distribution, and PremiStar in commercial HVAC services—allowing Partners Group to capture demand across the full value chain.
Summary
Partners Group, a major global private markets firm, is reporting strong financial performance across its US HVAC platform, which consists of two direct private equity portfolio companies: DiversiTech, a manufacturer and distributor of HVAC parts and supplies, and PremiStar, a leading commercial HVAC services provider. Both companies were acquired in 2021 through Partners Group's direct private equity program.
Since acquisition, the portfolio has demonstrated substantial revenue expansion. DiversiTech has grown revenues 60%, while PremiStar has achieved revenue doubling over the same five-year period. At the EBITDA level, the companies have delivered even more impressive growth trajectories: DiversiTech generated 14% CAGR and PremiStar achieved 22% CAGR, reflecting successful operational improvements and market share gains.
The strong financial performance is underpinned by favorable market dynamics in the US HVAC sector. Extreme weather patterns have become a primary demand driver, increasing both the replacement cycle for cooling systems and recurring maintenance service demand. According to Wolf Scheider, Head of Private Equity at Partners Group, "As heat waves become a defining challenge of how we live and work, demand for HVAC parts and maintenance is rising." This structural tailwind benefits both segments of Partners Group's portfolio—the parts distribution network and the commercial services business—creating a complementary platform with exposure across the value chain.
Partners Group has applied cross-portfolio best practices and implemented transformational value creation plans across both DiversiTech and PremiStar, suggesting active portfolio management focused on operational consolidation, cost synergies, and market expansion. The dual exposure to parts supply and commercial services allows the portfolio to capture multiple revenue streams from the same underlying demand driver: heightened cooling demand driven by climate patterns and aging HVAC infrastructure requiring replacement and ongoing maintenance.
Since acquisition, the portfolio has demonstrated substantial revenue expansion. DiversiTech has grown revenues 60%, while PremiStar has achieved revenue doubling over the same five-year period. At the EBITDA level, the companies have delivered even more impressive growth trajectories: DiversiTech generated 14% CAGR and PremiStar achieved 22% CAGR, reflecting successful operational improvements and market share gains.
The strong financial performance is underpinned by favorable market dynamics in the US HVAC sector. Extreme weather patterns have become a primary demand driver, increasing both the replacement cycle for cooling systems and recurring maintenance service demand. According to Wolf Scheider, Head of Private Equity at Partners Group, "As heat waves become a defining challenge of how we live and work, demand for HVAC parts and maintenance is rising." This structural tailwind benefits both segments of Partners Group's portfolio—the parts distribution network and the commercial services business—creating a complementary platform with exposure across the value chain.
Partners Group has applied cross-portfolio best practices and implemented transformational value creation plans across both DiversiTech and PremiStar, suggesting active portfolio management focused on operational consolidation, cost synergies, and market expansion. The dual exposure to parts supply and commercial services allows the portfolio to capture multiple revenue streams from the same underlying demand driver: heightened cooling demand driven by climate patterns and aging HVAC infrastructure requiring replacement and ongoing maintenance.
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