Infrastructure
| Sector | Infrastructure |
| Sub-sector | Utility networks |
| Location | United Kingdom |
Matrix Group was founded in 2006 with the vision of providing an independent solution for infrastructure installations and its capabilities span the last mile asset life from build to long-term ownership.
Subsidiary Matrix Networks Limited performs specialised design and construction of last-mile utility infrastructure across electricity, gas and water connections. The team can deliver the full spectrum of industrial and commercial projects, including highly specialised projects like grid-scale battery storage and data centres.
UK Power Distribution (UKPD), Matrix Group’s licensed independent distribution network operator, owns and manages electricity connections from the moment they are energised. It adopts residential, industrial and commercial connections, both those built by Matrix Networks Limited and by independent connection provider partners.
By 2020, Matrix Group had developed into a successful specialist connections provider in its industrial and commercial niche. To help reach the ambition of being a net-zero carbon business by 20301 and move into its next phase of growth, Matrix Group needed a partner that could provide additional, flexible capital and support the business strategically in the fast-evolving utility landscape.
Macquarie appointed a new Chief Financial Officer and championed various other initiatives aimed at strengthening internal capabilities and helping to drive further growth. From a strategic perspective, the business continued to focus on developing and expanding on its strengths and areas of expertise. UKPD has made a concerted push into domestic connections built by third parties to diversify the asset base. Matrix Networks Limited has actively expanded the business’ delivery capabilities and expertise in innovative, important areas like grid-scale battery storage, EV charging, data centres and direct-to-grid connections. Many of these solutions will be a critical part of the UK’s decarbonisation journey.2
Together with Macquarie, Matrix Group identified new water infrastructure as a key future growth opportunity, establishing Matrix Water in 2022. In October 2024, it received its first license allowing it to own and operate last-mile water assets alongside UKPD’s electricity assets.
As part of the initial investment, Macquarie provided a temporary line of debt funding alongside equity to support the scaling of UKPD’s asset base. In 2023, Macquarie Capital’s Infrastructure Debt Advisory team was appointed to assist in raising the first external infrastructure debt package for Matrix Group, refinancing the existing facilities to enable further acceleration of growth. This would provide UKPD with the capital required to achieve true scale as an independent utility and allow the business to achieve a much lower cost of capital via the infrastructure debt financing.
The Infrastructure team approached both bank and institutional lenders for the transaction, securing highly competitive terms from both creditor groups. Recognising the need for flexibility and efficiency, Macquarie Capital sought to design a financing solution that would enable Matrix Group to fund its order book and pipeline projects, while also accelerating growth plans.
Outcome
More broadly, Macquarie’s ownership has transformed the business. Since 2020, the asset base has grown substantially and it is fast becoming an infrastructure asset of scale. Further investment in people and processes have strengthened the company’s internal capabilities, including in critical areas like workplace health and safety and sales, well-positioning it for long-term success.
Matrix Group also continues to contribute to the energy transition as part of its growth strategy. The company has been actively contributing to the decarbonisation of the UK’s transport sector with 50 EV charging sites already owned across the country – building and adopting over half. Through the build-out of these charging sites, it is supporting the UK’s ambition to reach zero vehicle emissions by 2035.3
The success of the business demonstrates Macquarie Capital’s deep expertise and capabilities in navigating the utility infrastructure industry.
The investment in our business by Macquarie Capital Principal Finance is extremely good news for our customers and staff. It will enable us to accelerate our growth plans, expand our specialist asset adoption program and capture more of the opportunities we see opening up in the UK’s utility infrastructure industry.”
Rob Sparkes
Chief Executive Officer
Matrix Networks Group
1. Connecting our Sustainable Future’, Matrix Group, www.matrixgroup.co.uk/sustainability
2. Grid connections and storage issues must be addressed to decarbonise the economy’, UK Parliament, May 2024, https://committees.parliament.uk/committee/62/environmental-audit-committee/news/201721/grid-connections-and-storage-issues-must-be-addressed-to-decarbonise-the-economy-mps-find/
3. ‘Pathway for zero emission vehicle transition by 2035 becomes law’, HM Government, January 2024, https://www.gov.uk/government/news/pathway-for-zero-emission-vehicle-transition-by-2035-becomes-law
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