Aurora Energy Research owner CGE Partners is exploring a sale that could value the UK energy and research data company at around GBP 1bn, according to three sources familiar with the matter.

CGE is expected to solicit sellside advisory pitches later this year, all three sources said. The private equity firm is aiming to exit the business, which provides forecasts, reports, software solutions and consultancy services for the energy sector, they added.

Several investment banks are vying for a potential advisory mandate ahead of the formal pitch process, two of the sources said.

A formal sale process is expected to launch in early 2025, the sources said. No final decision has been made on the timing of the process, though, and the private equity sponsor could opt to hold on to the business for longer, they added.

CGE is expected to value Aurora Energy Research at around GBP 1bn in the event of a deal, according to the sources. The Oxford-headquartered company is projected to generate forward-looking revenues of GBP 100m, they said.

CGE Partners invested in Aurora Energy Research in October 2020, taking an undisclosed stake in a Houlihan Lokey-run process. US-based data and analytics fund 22C Capital and Aurora’s current chairman Steve Halliday also invested alongside CGE.

Founded in 2013 by University of Oxford professors and economists, the company offers analysis, market intelligence and strategic advice to energy sector stakeholders such as utilities, investors, policymakers and developers.

Aurora Energy Research’s latest publicly available financials (via parent company UK Emperor Topco) show that it generated GBP 34.2m of revenue in 2022 – up almost 90% from the GBP 18.1m it posted the previous year.

Deliberations over a potential sale of the business follows the sale of Australian energy market software maker Energy Exemplar to Blackstone [NYSE:BX] and Vista Equity Partners in October 2023. The sale, by The Riverside Company, was reported to value the Australian company at more than USD 1bn (GBP 762m). Lazard acted as sole advisor to Riverside for that transaction.

CGE Partners and Aurora Energy did not respond to requests for comment.