Freshfields advises Octopus Energy on spin out and first standalone investment round into technology platform Kraken at a valuation of $8.65bn

Freshfields is advising longstanding client and the UK’s largest household energy supplier Octopus Energy on the first standalone investment round into its world-leading AI-powered operating platform, Kraken. The funding round values Kraken at $8.65bn, and is led by D1 Capital Partners and includes other new investors Fidelity International, Durable Capital Partners and Ontario Teachers’ Pension Plan Board. The new investors, together with existing Octopus Energy investors, will acquire c. $1bn of Kraken equity to fund both Octopus and Kraken, while investors led by Octopus Capital are injecting a further $320m into Octopus Energy.

The investment round paves the way for Kraken’s demerger from Octopus Energy, enabling Kraken to operate as a fully independent technology platform for utilities worldwide, accelerating global adoption and deepening partnerships, while allowing Octopus Energy to focus on scaling its consumer, generation, and clean technology businesses.

A cross-border, cross practice Freshfields team is led by partners Ed Cole and Tom Godwin, supported by associates Yoel Gordon and Tom Hirao-Sandford.

Partner Matt Goulding, counsel Michal Netanyahu, and associate Andrew Rondeau advised from a US private capital perspective. Partner David Haworth, counsel Rose Swaffield, senior associate Benjamin Crompton and associate Tom Gardner provided tax advice; partner Giles Pratt, counsel Tom Dye and associate Vanessa Jiang advised on IP and separation aspects; partner Andrew Heathcote and associate Magdalen Olonilua advised in relation to Octopus Energy’s banking facilities; partner Michele Davis, senior associates Harriet Drury and Kaidy Long, and associate Anna Smith supported on antitrust/regulatory matters; and partner David Mendel, counsel Regina Erie and associate Sarah Richardson advised on employment and incentive arrangements.