KKR invests in energy service provider EGC

Frank­furt a. M. — KKR, a leading global inves­tor, announ­ced that KKR has ente­red into stra­te­gic part­ner­ship agree­ments with EGC, an energy services provi­der based in Düssel­dorf. The engi­nee­ring services provi­der ITG is also part of the group. The foun­ding and owner family will retain a stake in the company and conti­nue to serve as members of the manage­ment board. 

The former CEO of the GETEC Group in Germany, Michael Lowak, joins the group as Chair­man of the Advi­sory Board and will support the manage­ment in the stra­te­gic part­ner­ship with his exten­sive indus­try exper­tise. With KKR as a stra­te­gic part­ner, EGC aims to become the leading decar­bo­niza­tion part­ner with and for the real estate indus­try in Germany and acce­le­rate its growth. To this end, the company will incre­asingly invest in orga­nic and inor­ga­nic growth. 

EGC is a second-gene­ra­­tion, family-run and inde­pen­dent provi­der of energy services in Germany. The company covers the entire value chain: From the plan­ning and crea­tion of concepts for energy and buil­ding tech­no­logy systems to the finan­cing, main­ten­ance and opera­tion of heating centers and power supply networks to the supply of energy. The company mana­ges a real estate port­fo­lio of over 2 million m² for more than 100 custo­mers and around 800 instal­led heating centers. ITG also includes a team of expe­ri­en­ced engi­nee­ring employees for the plan­ning of energy and buil­ding tech­no­logy systems and installations. 

The combi­na­tion of engi­nee­ring exper­tise with a broad port­fo­lio of energy services in parti­cu­lar crea­tes good condi­ti­ons for the Group. Buil­dings are respon­si­ble for around a third of global CO2 emis­si­ons, mainly due to space heating and water heating. The decar­bo­niza­tion of heating systems in buil­dings plays a decisive role in achie­ving the EU’s climate targets. EGC supports land­lords in deve­lo­ping solu­ti­ons to achieve their decar­bo­niza­tion targets. Follo­wing the successful comple­tion of the tran­sac­tion, KKR will support the company in rolling out a broad-based employee owner­ship and enga­ge­ment model. The program will ensure that all employees can help shape EGC’s future and parti­ci­pate in the company’s future success. 

Corinna Pitz and Dirk Pitz, members of EGC’s manage­ment board, said: “The coope­ra­tion with KKR opens up comple­tely new oppor­tu­ni­ties for us to further expand our strong market posi­tion and deve­lop our group of compa­nies. In KKR, we have found a part­ner who shares both our stra­te­gic goals and our entre­pre­neu­rial approach. KKR is not only an estab­lished infra­struc­ture inves­tor, but also has many years of expe­ri­ence in working with family-run compa­nies. All the more reason for us to look forward to the next growth phase with KKR, which offers many new oppor­tu­ni­ties for our group of compa­nies and our employees.” 

Michael Lowak, future Chair­man of EGC’s Advi­sory Board, says: “EGC enables land­lords to effi­ci­ently imple­ment and finance the decar­bo­niza­tion of their proper­ties. The company is thus making a decisive contri­bu­tion to both the real estate sector and the energy tran­si­tion in Germany. I look forward to contri­bu­ting my expe­ri­ence and indus­try know­ledge and working with KKR to further drive EGC’s growth.”

Ryan Miller, Mana­ging Direc­tor in KKR’s Infra­struc­ture team in Europe, comm­ents: “To drive the energy tran­si­tion in Germany at the neces­sary speed, we need crea­tive solu­ti­ons and long-term capi­tal. We see a growing inte­rest in contrac­ting solu­ti­ons and great poten­tial in this still very frag­men­ted market.” 

KKR has exten­sive exper­tise in global infra­struc­ture invest­ments, parti­cu­larly in the energy sector, and is commit­ted to inves­t­ing further in the future of rene­wa­ble energy. With appro­xi­m­ately USD 77 billion of infra­struc­ture assets under manage­ment, of which over USD 21 billion has been inves­ted in the energy tran­si­tion, KKR brings a global invest­ment perspec­tive, exten­sive expe­ri­ence in large-scale infra­struc­ture projects and a proven track record in high-profile tran­sac­tions in Europe such as Enca­vis, Vantage Towers, Zenobe or Greenvolt. 

In Germany, KKR has inves­ted more than EUR 18 billion in long-term equity across various alter­na­tive asset clas­ses in more than 35 compa­nies since the late 1990s, prima­rily in part­ner­ship with foun­ders, family busi­nesses and corpo­ra­ti­ons. The stra­te­gic part­ner­ship with EGC builds on KKR’s long track record of working with family busi­nesses in Germany. KKR is making the invest­ment through its Global Climate Stra­tegy, through which KKR invests at scale in solu­ti­ons that support the tran­si­tion to a low-carbon economy. 

About KKR

KKR is a leading global inves­tor provi­ding alter­na­tive asset manage­ment, capi­tal markets and insu­rance solu­ti­ons. It focu­ses on gene­ra­ting attrac­tive invest­ment returns through a long-term and disci­pli­ned invest­ment approach, employ­ing highly skil­led profes­sio­nals and support­ing growth in the assets where KKR has a presence. KKR finan­ces funds that invest in private equity, credit products, real assets, and — through stra­te­gic part­ners — hedge funds. KKR’s insu­rance subsi­dia­ries offer pension, life and reinsu­rance products under the manage­ment of Global Atlan­tic Finan­cial Group. Refe­ren­ces to KKR’s invest­ments may also refer to the acti­vi­ties of funds mana­ged by KKR and its insu­rance subsi­dia­ries. Further infor­ma­tion: www.kkr.com.

Infor­ma­tion about the Global Atlan­tic Finan­cial Group can be found at www.globalatlantic.com.

About EGC

EGC is a second-gene­ra­­tion, family-run and inde­pen­dent provi­der of energy services in Germany. The company covers the entire value chain: From the plan­ning and crea­tion of concepts for energy and buil­ding tech­no­logy systems to the finan­cing, main­ten­ance and opera­tion of heating centers and power supply networks to the supply of energy. The company mana­ges a real estate port­fo­lio of over 2 million m² for more than 100 custo­mers and around 800 instal­led heating centers. EGC’s custo­mers include private and public housing asso­cia­ti­ons, insti­tu­tio­nal real estate inves­tors such as insu­rance compa­nies, banks and invest­ment compa­nies. The group of compa­nies provi­des services for new and exis­ting buil­dings, both for indi­vi­dual proper­ties and for entire real estate port­fo­lios. With ITG, the group also includes a team of expe­ri­en­ced engi­nee­ring employees for the plan­ning of energy and buil­ding tech­no­logy systems and faci­li­ties. www.egc-fm.de