Liechtenstein Royal Family Member Backs Octopus Energy in £7.2bn Deal
Lightrock, a London-based investment firm chaired by Prince Max Von Liechtenstein, is set to acquire an undisclosed stake in Octopus Energy, the UK’s second-largest domestic energy supplier. Lightrock, along with climate-focused investment firm Galvanize Climate Solutions, will be purchasing shares from existing investors, according to sources familiar with the matter.
The exact size of the investment remains unknown, but it is expected to be announced publicly on Wednesday. This development adds Lightrock and Galvanize Climate Solutions to the list of prominent multinational investors backing Octopus Energy, which has been gaining attention as one of Britain’s most valuable private companies.
In April, Octopus Energy inched closer to a ‘decacorn’ valuation (companies worth at least $10bn) after Generation Investment Management and the Canada Pension Plan Investment Board (CPPIB) invested approximately £300m in the company. This valuation was 15% higher than its previous fundraising in 2020.
The acquisition of Bulb Energy, which went into temporary government ownership in 2021, and the recent purchase of Shell’s household energy arm in the UK have contributed to Octopus Energy’s rapid growth since its establishment just nine years ago. Additionally, its technology outsourcing platform, Kraken, has seen significant growth and now services 54 million customer accounts globally, with a target of 100 million by 2027.
The secondary share sale is expected to result in significant gains for several selling shareholders. After the transaction, CPPIB will hold a 12% stake in Octopus Energy, while Generation Investment Management will hold 13%. Octopus Energy declined to comment on the development.