Exponent closes €750m H&MV Engineering continuation fund for at €1.4bn valuation

European private equity firm Exponent has raised €750m ($866m) through a continuation fund to extend its ownership of H&MV Engineering, as the electrical infrastructure specialist expands its presence in the US amid surging demand from data centres, AI and renewable energy.

The continuation vehicle was oversubscribed and values Ireland-headquartered H&MV at approximately €1.4bn. Apollo Global Management’s secondaries business, Pantheon and SQ Capital are among the investors backing the transaction.

The deal allows Exponent to retain exposure to H&MV while providing liquidity to existing investors, reflecting the growing use of continuation vehicles as private equity firms seek alternatives to conventional exits in a challenging M&A and IPO environment.

H&MV provides high-voltage engineering and infrastructure services to data centre operators, renewable energy developers and utilities. Its growth has accelerated as investment in AI infrastructure, battery storage and renewable power increases demand for grid and electrical capacity.

The company has set an ambition of reaching €3bn in annual revenue within five years and has an order book worth approximately €2bn.

Since Exponent invested in 2020, H&MV’s revenue has expanded from €61m to an expected €1bn this year, highlighting the scale of the company’s growth during the holding period.

The business is also stepping up its international expansion. H&MV plans to open a North American headquarters in Dallas, Texas later this year and currently has approximately 24GW of projects in design and construction.

The company operates through 20 offices across Europe, the US and Asia.

H&MV chief executive PJ Flanagan said the continuation fund provided the most suitable structure for supporting the company’s next phase of expansion, while leaving future exit options open depending on market conditions.

For Exponent, the transaction provides additional time to capture further growth in a business positioned at the intersection of several major infrastructure investment themes, while bringing in new institutional capital through the secondary market.