GEF Capital Partners-backed Bluesource to combine with Element Markets to Form a Global Decarbonization Platform

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Feb 24, 2022, 07:00 ET

ARLINGTON, Va., Feb. 24, 2022 /PRNewswire/ -- GEF Capital Partners is pleased to announce that Bluesource, LLC, the most experienced and diversified corporate climate advisor in North America, has merged with Element Markets, LLC, a leading renewable natural gas marketing and environmental commodities company under new majority ownership by TPG Rise, a global impact investing platform managed by alternative asset firm TPG. Element Markets was acquired by TPG in January 2021, and the results of this subsequent transaction are expected to prove transformative in the global effort to combat climate change.

Bluesource has pioneered creative solutions to climate change for over 20 years, during which it has become the leading developer of carbon credits and other environmental offsets in North America. GEF Capital partnered with Bluesource in 2018 by making an investment into the company and becoming the company's largest shareholder. Proceeds from GEF Capital's investment have been used to support the growth of Bluesource's carbon and other offset development programs to mitigate the harmful effects from climate change due to the release of methane and carbon dioxide into the Earth's atmosphere.

Since GEF Capital's investment in 2018, Bluesource has experienced exponential growth while continuing to be an innovator in the industry. Its nature-based programs have protected over 3 million acres and led to the establishment of a $500 million joint venture to enable the direct purchase of forest lands for sustainable management. Its methane reduction initiatives have resulted in the adoption of newer and more environmentally friendly equipment for industrial customers, and its rapidly expanding regenerative agriculture program will prove instrumental in sequestering carbon across more than 320,000 acres of farmland this year alone.

Stuart Barkoff, a founder of GEF Capital who co-led the investment in Bluesource, noted that, "Bluesource is a perfect representation of the value that partnership, alignment and capital can bring to an investment. We have been fortunate to have worked with Bluesource's highly sophisticated and entrepreneurial management team during a period of explosive growth in the company and its markets. With many shared successes over this period, we remain excited for what the future will bring to the company and its incredibly valuable group of employees."

Daniel Prawda, also a founder of GEF Capital and co-leader of the investment, further stated that, "GEF Capital is excited to continue as an investor in the combined Element Markets and Bluesource businesses. We are strong believers in the future opportunities ahead for their united mission, as well as the extremely positive impact these businesses will have in addressing climate change. As Fortune 500 companies announce and pursue Net Zero targets, they will need an equally sophisticated global advisor to help attain these goals. We are excited to be partnering with TPG and Element Markets to create the undisputed industry leader in the North American carbon and renewable fuels market."

Bill Townsend, founder and Chairman of Bluesource noted: "We started Bluesource over twenty years ago to answer to the growing climate crisis before us. As the urgency has risen, so has the need for transparent results and accountable solutions. We are honored to have trusted partners in GEF Capital who, since 2018, have enabled the necessary expansion of our emission reduction programs and nature-based offset projects for those looking to make compensatory investments in conservation. As we embark upon our next chapter together with TPG Rise and Element Markets, we are ready to meet global demand and establish the accountability that the world needs to see from market-based solutions to propel climate change solutions forward."

GEF Capital will remain an investor in the business following the merger.

About Bluesource

Bluesource (www.bluesource.com) is the most experienced and most diversified corporate climate advisor providing innovative, trusted environmental services and products in North America. A full-service climate and energy action partner, Bluesource counsels leading organizations at every stage of the business cycle to simplify their next steps toward achieving their climate and environmental goals. With an understanding that no business, organization or government agency regardless of size can afford to be absent from the climate conversation, Bluesource has the breadth of services and depth of experience to help clients achieve their environmental and energy goals simply, efficiently and credibly.

About GEF Capital Partners

GEF Capital Partners is a global private equity firm that that was established in March 2018 following a collaborative spinout from Global Environment Fund, an early pioneer in global sustainability and environmental investing. With offices in the United States, India and Brazil, and investments spanning the clean energy, energy efficiency, waste, water and resource efficiency sectors, GEF Capital invests in companies that have developed solutions to mitigate the effects of climate change and pollution. By partnering with management teams that operate in high-growth markets, GEF Capital brings a value-added approach to its investments to grow leading companies and ensure a more sustainable future. More is available at www.gefcapital.com.

CONTACT:
Stuart Barkoff
202-236-4376

SOURCE GEF Capital Partners