Global private capital investment firm The Carlyle Group announced the acquisition of a majority stake in pure-play sustainability advisory and solutions firm Anthesis.

According to Carlyle, the move will help strengthen its ESG strategy and advance progress across its portfolio on the creation and execution of decarbonization initiatives.

Meg Starr, Global Head of Impact at Carlyle, said:

“We are excited to partner with Anthesis and look forward to working closely in the coming years to develop solutions around material ESG topics both within our portfolio and on a broader, global scale. We are particularly looking forward to collaborating with Anthesis given its convening power to drive convergence on critical ESG issues in private markets, such as their market-leading work on decarbonization and Net Zero guidance for private equity.”

Founded in 2013, London-based Anthesis works with companies, cities and other organizations to drive sustainability performance and develop financially-driven sustainability strategies. The firm’s integrated service areas include Strategy & Governance, Supply Chain & Operations, Sustainable Products & Services, Brand & Communications, Education & Culture, Cities & Environments, and Transactions & Finance.

Anthesis has experienced rapid growth over the past few years, and has completed 18 add-on acquisitions since inception, and currently consists of 1,250 specialists across 39 offices in 22 countries. The firm said that the investment by the Carlyle Europe Partners (CEP) platform will support initiatives including Anthesis’ international expansion, widening of its ESG and sustainability offering and future M&A.

Anthesis CEO and Co-Founder Stuart McLachlan said:

“We are excited to work closely with Carlyle to further strengthen their approach to ESG and sustainability, as they seek to lead by example in the global investment industry. We will continue to act as guides to our clients, realizing the value creation opportunity of sustainability in our rapidly changing world.”

Mark Dale, Managing Director on the Carlyle Europe Partners investment advisory team, added:

“As demand for sustainability solutions continues to accelerate, we believe Anthesis’ long-standing reputation for leading technical expertise and track record of high-quality delivery, makes the company exceptionally well positioned to further scale to meet this growing opportunity.”

Carlyle will be investing alongside Anthesis’ employee shareholders and existing shareholder Palatine reinvesting for a minority stake. Palatine made its initial investment in 2021.

Beth Houghton, Impact Managing Partner at Palatine, said:

“We have enjoyed a close and successful partnership with Stuart and the Anthesis team, achieving significant organic growth and five successful acquisitions, delivering strong impact and returns for Palatine. In re-investing, we will continue to deliver on our mission of generating Returns with Purpose. We’re excited to be part of the next stage of the Anthesis’ growth journey alongside Carlyle, as more organisations embrace the imperative to act with urgency to address the climate crisis.”