Xpansiv completes the acquisition of Evolution Markets, closes capital raise

Evan Ard, Chief Executive Officer at Evolution Markets

Xpansiv, the premier infrastructure provider for environmental markets, announced the completion of its acquisition of Evolution Markets Inc., a global provider of transaction and advisory services in global carbon, renewable energy, and energy transition markets.

The deal will expand Xpansiv’s service offerings and product development capabilities to help empower the energy transition. This will also enhance Evolution Markets’ client services through its integration with Xpansiv’s tech infrastructure, market, and data platforms.

What does the capital raise mean for Xpansiv?

Xpansiv also announced the closing of a $125m capital raise designed to fuel continued growth in Xpansiv service offerings and the firm’s technology platforms. The raise was linked to the recent $400m capital raise led by Blackstone Energy Partners which closed in August 2022. New strategic investors Bank of America and Goldman Sachs participated in the raise.

Commenting on the funding, Patrick Street, Head of Goldman Sachs’ Global Markets Net Zero Solutions, said, “The development of a robust and transparent infrastructure for environmental markets plays a key part in driving energy transition and broader decarbonization. We support Xpansiv’s effort to develop market infrastructure and trade advisory services to deliver seamless environmental solutions to companies globally.”

“Sustainability is part of discussions in boardrooms and with investors. Robust tech, reliable data, and accessible spot markets are crucial to promote liquidity and scale growth in voluntary carbon trading and environmental commodities. Bank of America supports innovation in the markets,” said Jim DeMare, President of Global Markets at Bank of America.

What does acquisition mean for Xpansiv?

“Evolution Markets and Xpansiv are two market leaders who share a common vision of paving the way forward to a successful energy transition using global markets. As our clients manage risk in energy and environmental markets, we are eager to leverage the capabilities of both firms to improve overall client outcomes,” said Evan Ard, CEO, Evolution Markets.

Commenting on the acquisition, John Melby, CEO at Xpansiv, said, “Evolution Markets brings a world-class team of professionals with the same level of focus and dedication to enabling the energy transition and delivering client successes that we strive for every day. We are excited to work with them and our clients to build the future of environmental markets.”

“Our disciplined acquisition strategy is made possible through the backing of top investors, who share our belief in the environmental markets’ vital role addressing the climate crisis.”

Evolution Markets global customer base of more than 2,000 customers, including many of the world’s largest energy firms, companies, utilities, and financial institutions, will have access to integrated market services including market intermediary services, net zero advisory, structured and managed transactions, trading platform access, and portfolio management. Evolution Markets operates as a wholly owned subsidiary of Xpansiv.

All regulatory approvals were secured prior to the transaction close. In addition, the Evolution Markets acquisition deal follows the acquisition of APX, the leading provider of registry infrastructure in the environmental, energy, and power markets in August 2022.

Venable LLP acted as legal advisor to Xpansiv on the acquisition. Evolution Markets was advised in the transaction by JMP Securities, a Citizens Company, which acted as the sole financial advisor, and Stroock & Stroock & Lavan LLP which served as legal advisor.

Perella Weinberg Partners LP served as financial advisor, and Morrison & Foerster LLP and Clifford Chance LLP served as legal counsel to Xpansiv on the capital raise.