LPE, a QLD-based electricity retailer specializing in supplying strata communities, has announced a strategic financing partnership with global asset management behemoth, BlackRock. This partnership will see the customer-facing electricity retailer catapulted into a period of dramatic growth. Being the first investment of any BlackRock fund in Australia of this type in 7 years, this is a significant endorsement of LPE’s potential.
“The big winners in this alliance with BlackRock are our customers as this funding will enable LPE to remain at the forefront of product innovation delivering our goal to save the most amount of money for the most amount of people on their electricity costs.”
- Damien Glanville, CEO, LPE
Sunshine Coast Council Economic Development and Innovation Portfolio Councilor Stephen Robinson said the funding confirmation was great news for LPE and for the Sunshine Coast community.
“LPE’s success in securing this funding is another great example that demonstrates that the Sunshine Coast offers great opportunities to establish, grow and operate a global firm in Australia’s healthy, smart, creative region.”
LPE began as a start-up on the Sunshine Coast, Queensland in 2012 and was listed on the ASX just four short years later in 2016. LPE have rapidly gained market share by providing innovative solutions to the underserviced strata and high-density living sectors. LPE’s services include the implementation and supply of embedded networks, competitive direct market rates, a unique solar offering and various utility billing services. The company’s solutions, that can save communities up to 45% on their electricity bills, have now attracted over 20,000 customers in SE QLD.
In comparison to the majority of technology investments, LPE represent a relatively low-technology concept. The management team adhere to a commercial mindset; before resources are given to new technology it must represent a bottom line benefit to the consumer and to the Company. This mentality however, hasn’t stifled innovation with LPE currently bringing a solar electricity product to market that is poised to revolutionise solar into multi-tenancy properties.
“The increasing importance of private credit plays a critical role in minimizing financing gaps unaddressed by banks and supporting mid-market companies like LPE to grow their operations, while broadening the sources of investment return for our investors,”
– Justin Ferrier, Managing Director of BlackRock’s Private Credit Team
In an over-crowded marketplace that has lost the trust of consumers, LPE have continued to gain market share through their transparent electricity rates and innovative supply solutions. Unlike the current market incumbents, LPE have chosen to keep their staff and call-centre in Australia. This investment in local people is indicative of the Company’s commitment to support local communities.
Maroochydore Chamber of Commerce President, Kris McCue welcomed the announcement and the effect it will have on the region.
“To have global companies of this calibre investing in local businesses in Maroochydore and the Sunshine Coast is a significant achievement and the Maroochydore Chamber congratulates LPE and looks forward to the economic and job opportunities this will bring.”
-Kris McCue, Maroochydore Chamber of Commerce President
Along with the generation of Maroochydore’s new “Smart City Program” the addition of BlackRock as a capital funding partner for LPE will see the region establish itself as a destination for mature businesses and a viable option for locals currently commuting to Brisbane for work.