IFM Investors, an Australian growth equity fund, has announced a significant growth capital investment in Tally Group, a leading provider of software solutions to the global energy retail sector.
This investment is part of Tally’s growth round, with IFM investing approximately $50m NZD alongside existing shareholders including management, SilverTree Equity, and Pioneer Capital.
The transaction is expected to complete in September 2023, subject to regulatory approval.
Tally currently serves over 70 energy retailers across Australia, New Zealand, Japan, the US, and the Middle East.
The company provides an integrated suite of innovative software solutions for energy billing, customer management, and compliance, catering to both residential and commercial and industrial segments.
Tally’s advanced, modern, cloud-native platform and digital customer engagement tools enable energy retailers to manage key functions across their business, including new digital capabilities and offerings to help their customers manage their energy usage.
IFM’s investment in Tally significantly bolsters Tally’s balance sheet as it looks to support further innovation for its customers and continue its global expansion. Tally’s software is well placed to play a major role in the global energy transformation.
Tally’s technology simplifies operations for energy retailers and supports its clients’ efforts to empower households and businesses to actively participate in the energy transition. This enables smoothing of energy use patterns, putting less pressure on the grid and setting the foundation for distributed energy resources.
IFM’s Executive Director, Private Equity Adrian Kerley, said that “energy retailers are seeking new technology solutions and real innovation to grow their business, reduce operational costs and deliver the energy transition underway globally.
We have been closely monitoring the unprecedented change in this space, and the legacy technology that has served energy retailers for so long will not be sufficient for the energy transition.”
He added that “this investment in Tally will help energy retailers drive meaningful change for their clients and accelerate the industry’s transition to more decentralised and innovative energy solutions and decarbonisation.”
IFM’s Executive Director, Private Equity David Odgers, said that “we believe this is an important strategic investment supported by a shared vision, and we’re looking forward to using our capital and expertise to help accelerate Tally’s positive impact in the Australian and global utilities markets.”
Tally Group CEO Andrew Duncan said that “we are very excited to join forces with IFM Investors. This investment is an endorsement of our strategy and a partnership that will support and accelerate our technology innovation, continue to enhance our client delivery performance and accelerate our growth.”
IFM Investors was established more than 25 years ago with the aim to invest, protect and grow the long-term retirement savings of working people.
The organisation has A$217 billion under management as at 31 March 2023. IFM manages investments across infrastructure, debt, listed equities and private equity assets. As a signatory to The United Nations-supported Principles for Responsible Investment, IFM actively engages on ESG issues with the companies in which it invests with the aim of enhancing their net performance while minimising investment risk.
