We are pleased to announce that we have completed the sale of Correla Limited (Correla) to Esyasoft Technologies UK Limited (Esyasoft), a global energy transition technology group. The transaction marks the first realisation from NorthEdge Fund III, generating a 4.7x gross MOIC.
We invested in Correla, a leading UK-based energy technology and data services business, in 2021, backing the founding team led by CEO Sian Jones to execute on a vertically focused growth strategy across the broader UK energy sector to create a less complex and more sustainable energy market.
Throughout our investment, the business delivered strong growth through its relentless focus on customer service improvement, and through the creation of a new SaaS division. The strategy to diversify away from purely services into a leading energy SaaS and services company was executed with a combination of successive organic SaaS product launches, leaning into AI adoption early and a key acquisition of CloudKB in 2022. The strategy successfully transformed a blank slate into a high-growth, highly scalable SaaS business, establishing market traction and sustained recurring revenue within a five-year timeframe, alongside an already successful scaled service business, which increased its user satisfaction rating from good (as benchmarked by the Institute of Customer Service) to excellent, one of the highest ratings in the energy sector. NorthEdge’s investment in Correla’s People, Sales, Marketing and Customer Success was key to the team’s success and positively contributed to the regional economies across the Midlands and the North.
The exit was led by Jon Pickering, Chief Investment Officer at NorthEdge, and Sian Jones Founder and CEO of Correla; alongside Sarah Tromans, CFO of Correla and Serafina Di Felice, Investment Manager at NorthEdge. The deal represents NorthEdge’s tenth realisation in the technology sector and marks an important milestone as the first exit for Fund III.
Jon Pickering, Chief Investment Officer at NorthEdge, said: “Since meeting Sian in 2021, we have been hugely impressed by the vision and discipline she and her team have brought to building Correla from a standing start into one of the UK’s leading energy technology firms – a regional business creating a meaningful national impact on the UK’s decarbonisation journey.
“We have thoroughly enjoyed working with the Correla team and are grateful that they chose us as their first investment partner. Throughout our ownership the business has significantly grown its team, customer base and profitability, and we look forward to watching it continue to grow with the support of Esyasoft. We wish the team every success.”
Sian Jones, Founder and CEO of Correla, added: “When we were seeking private equity investment five years ago, I chose to work with NorthEdge for their values and reputation, their credentials in the energy and technology sectors, their local proximity, and their track record of building better businesses through their proactive and supportive approach to value creation. Through working with Jon and the wider team, our expectations of the partnership were exceeded.
“NorthEdge enabled us to build a high-quality team, invest significantly in our technology and commercial approach, and complete our first acquisition. The business is now well placed for the next phase of its journey, alongside its new global technology partner, Esyasoft.”
NorthEdge and Correla were advised by Houlihan Lokey (Corporate Finance – Adrian Reid) and DWF (Legal – Jonathan Robinson).
Esyasoft was advised by Clyde & Co (Legal) and Andersen (Tax and Financial Due Diligence).
Shawbrook (Tony Dean and Simon Dixon) supported the deal through a structured financing solution.