LLCP Backs Concentric to Expand Utility Advisory Services

By Daniel Okafor

LLCP, a global middle-market private equity firm managing approximately $15 billion, has backed Concentric Energy Advisors, the 11th platform investment for its Lower Middle Market Fund III.

LLCP said it completed the growth investment alongside Concentric’s management team. The firm said existing employees retain a substantial ownership stake. LLCP said the partnership adds capital and operational resources while preserving the established advisory model and client relationships.

LLCP said Concentric was founded in 2002 and is headquartered in Marlborough, Massachusetts. The firm described Concentric as a consultancy serving electric, natural gas and water utilities, plus infrastructure investors across North America.

What does Concentric advise?

LLCP said Concentric handles utility rate cases, regulatory proceedings, financial analysis and expert testimony. Its service menu also covers:

• Cost-of-capital evaluations, return-on-equity assessments, revenue requirements, cost-of-service analysis, rate design and depreciation studies.
• Regulatory strategies.
• Transaction and financing support for utilities and energy infrastructure businesses.

Concentric sits between utility capital plans and regulatory decisions over customer rates. LLCP said this capability matters more as utilities make major infrastructure investments and seek recovery of capital expenditures.

How will LLCP fund growth?

LLCP intends to support Concentric through:

• Additional senior-level recruitment.
• Expansion into complementary utility advisory services.
• Potential strategic acquisitions.

The firm also plans to provide resources for developing Concentric’s existing capabilities and customer relationships.

Matthew Rich, Partner at Levine Leichtman Capital Partners, said:

“We are excited to partner with Concentric, a highly respected firm with deep expertise, longstanding client relationships, and an exceptional team of industry experts and trusted advisors.

We see significant opportunities to build on the Company’s strong foundation by expanding into adjacent utility service areas, recruiting additional senior talent, and pursuing strategic acquisitions.

We look forward to partnering with Danielle, Dan, John, and the entire Concentric team as they execute on these growth initiatives.”

Why does LLCP expect a long runway?

LLCP’s case rests on grid modernization, energy infrastructure expansion and rising electricity demand. It believes Concentric can benefit from the associated long-term utility spending.

Ted Jeon, Managing Director at Levine Leichtman Capital Partners, said:

“Concentric aligns well with LLCP’s extensive experience investing in the infrastructure services sector and expert consulting businesses.

Utilities are investing at record levels to modernize and expand the electric grid to meet the rising demand for power, and they rely on trusted independent advisors to navigate complex regulatory processes.

We believe Concentric is well-positioned to benefit from these long-term trends, and we are excited to support the Company’s next chapter of strategic growth.”

LLCP said the partnership is intended to expand Concentric’s role with utilities and infrastructure investors as energy systems undergo significant capital investment and regulatory change.

Who will lead Concentric?

LLCP said Danielle Powers will remain CEO, Dan Dane will continue as President, and founder John J. Reed will retain his role as Chairman. Concentric will continue operating under the current leadership team.

Danielle Powers, CEO of Concentric Energy Advisors, said:

“Concentric has built a reputation on the quality of our people and the trust our clients place in us to provide independent, expert advice on their most important and complex business, regulatory, and strategic matters.

We are thrilled to partner with LLCP, which brings deep industry knowledge along with the capital and experience to help us scale our business and continue delivering the exceptional service our clients expect.”

John J. Reed, Founder and Chairman of Concentric Energy Advisors, said:

“As we considered Concentric’s next chapter, it was essential to choose a partner who understands the importance of our people, our culture, and the trust we have built with clients over more than two decades.

We believe LLCP is that partner.

Our clients will continue to work with the same teams and receive the same independent, high-quality advice they have come to expect from Concentric, and this partnership will provide greater resources to serve their evolving needs.”

How does the deal fit LLCP’s portfolio?

Concentric joins LLCP investments in infrastructure services and specialist consulting businesses: USA Water, Resolution Economics, All4, Encore Fire Protection and Trinity Consultants.

LLCP was founded more than four decades ago. Its structured private equity strategy can combine debt and equity investments to support portfolio companies.

Since inception, LLCP and its affiliates have managed approximately $20.6 billion in capital across nearly 20 investment funds. They have invested in approximately 120 portfolio companies.

Honigman advised LLCP, while Seyfarth Shaw served as legal adviser to Concentric.

What will test the partnership?

The coming expansion will test whether LLCP’s capital can turn Concentric’s regulatory depth into new service lines without changing the client teams that underpin its reputation. LLCP said the partnership is designed to do both, positioning Concentric for heavier utility spending and regulatory change.