HSBC backs utility monitoring company

The UK investment comes five years after the global bank span out its UK division, now Montagu Private Equity, marking a return for HSBC to its home territory.

HSBC Private Equity, the captive arm of the global bank, has bought a minority stake in Transmission and Distribution Group (TDG) from Singapore investment firm Prime Energy Partners for an undisclosed sum, according to a statement.

The company is the parent of Diagnostic Monitoring Systems, supplying products which detect fault and breakdowns in electrical transmission and networks.

The company has offices in the UK, Sweden, the UAE, Australia and China, with 70 percent of its client base in emerging markets in Asia and the Middle East.

Law firm DLA advised HSBC and TDG, UK law firm Shepherd & Wedderburn advised HSBC and management while US law firm Latham & Watkins Financial advised Prime Energy Partners.

Commercial due diligence was provided by UK accountant Grant Thornton and European consultancy AMR respectively.

HSBC’s former UK private equity arm span out from the bank in 2003 becoming Montagu Private Equity. The present private equity division describes itself as a UK mid-market firm investing with an equity requirement of £5 million (€6.7 million; $9.8 million) to £50 million.

HSBC Private Equity is more active in the Middle East and Asia. It recently raised $500 million ($342 million) for investment across the Middle East, according to news agency Reuters.