Building Europe's Leading Heat-Transition Operating Platform

Contract-Based Market Access to Germany's Decarbonisation Opportunity

Investment Highlights

A uniquely positioned platform capturing regulated demand through proprietary customer access in Europe's largest heating market.

Regulation-Mandated Demand

European and German law requires the replacement of 15+ million fossil heating systems, creating unprecedented structural demand in the continent's largest residential heating market.

Contract-Based Access

Direct access to qualified customers through acquired maintenance contract portfolios, eliminating traditional customer acquisition costs and sales cycles.

Platform Consolidation Play

Highly fragmented market of thousands of undercapitalized installers creates a compelling roll-up opportunity with significant operational leverage.

Embedded Growth Engine

Organic conversion rates of 8–15% annually from existing contract base deliver predictable revenue without incremental marketing spend.

Institutional Exit Path

Clear multiple expansion trajectory as platform scales, with strong appeal to infrastructure funds and strategic acquirers targeting energy transition assets.

Structural Market Inefficiency

Germany's residential heating sector presents a rare combination of regulatory mandate, massive installed base, and execution vacuum.

15M+

Fossil Systems

Heating units requiring replacement in Germany alone under current regulation

48,000s

Fragmented Installers

Small-scale SHK companies lacking capital, technology, and subsidy expertise

The Execution Gap

EU and national climate directives mandate accelerated heat pump adoption, yet no scalable platform exists to execute this transition efficiently. Most installers operate below 50 conversions annually.

Our Platform Solution

Acquire Contracts, Not Installers

We purchase long-term maintenance agreements with fossil-heating customers, securing privileged conversion access without legacy operational complexity.

Centralized Expertise

Engineering standards, procurement scale, and subsidy navigation are centralized, driving margin expansion and execution consistency across all regions.

Asset-Light Execution

Local installation units remain replaceable and operationally flexible, ensuring capital efficiency and scalability without geographic risk concentration.

Data-Driven Conversion

Proprietary algorithms identify optimal conversion timing, customer fit, and subsidy eligibility, maximizing yield from the contract base.

What We Acquire

Our acquisition strategy prioritizes durable customer relationships over physical assets or personnel, ensuring defensibility and scalability.

Primary Asset: Maintenance Contracts

Long-term service agreements with fossil-heating customers represent the core value. These contracts provide:

  • Recurring annual revenue with high retention rates
  • Exclusive first-call rights for system replacements
  • Detailed technical and behavioral customer data
  • Multi-year predictable conversion pipeline

Secondary Assets: Trust & Execution Capacity

Complementary elements that enable immediate operational continuity:

  • Trained technician workforce familiar with the customer base
  • Regional brand recognition and trust in local markets
  • Established vendor relationships and regulatory compliance

Strategic Philosophy: Contracts Are Defensible

Execution capacity is commoditized and replaceable. Customer access through binding contracts and proprietary data is not. This distinction defines our moat.

Embedded Unit Economics

Attractive gross margins combined with high annual conversion rates from the contract base create a compelling cash-generative model with downside protection.

Conversion Ticket Size

€28,000 – €32,000 per heat pump installation, including equipment, labor, and ancillary services

Gross Profit per Unit

€4,500 – €6,000 after direct costs, driven by centralized procurement and engineering efficiency

Annual Conversion Rate

8% – 15% of maintenance contract base converts annually, driven by regulation, aging systems, and subsidy timing

Downside Protection Through Recurring Revenue

Base maintenance contracts generate predictable annual fees with minimal churn, providing cash flow stability independent of conversion velocity.




Competitive Moat

Regulatory Complexity Barrier

Navigating EU and German subsidy programs, building codes, and environmental compliance requires specialized expertise. Our centralized platform maintains continuously updated regulatory playbooks, creating a steep learning curve for new entrants.

Embedded Customer Trust

Multi-year maintenance relationships with homeowners create switching costs and behavioral inertia. Customers default to their existing service provider when replacement becomes necessary, particularly for high-value capital decisions.

Centralized Procurement Power

Volume purchasing agreements with equipment manufacturers and standardized technical specifications drive margin advantages unattainable by fragmented local competitors operating below scale.

First Scalable Platform

We are building the only institutionally backed, data-driven operating platform in Germany's regulated heat-transition market. First-mover advantage in platform infrastructure is defensible and compounds over time.

Acquisition Strategy

We deploy disciplined acquisition criteria designed to maximize contract quality, operational fit, and conversion upside while minimizing integration risk.

01

Minimum Contract Scale

Target companies must maintain at least 400 active maintenance contracts, ensuring sufficient conversion pipeline and operational density to justify platform integration.

02

Low Customer Churn

Annual contract attrition must be below 4%, indicating high service quality and strong customer relationships that will persist post-acquisition.

03

High Fossil Concentration

Minimum 70% fossil-fuel heating systems in the contract base, maximizing the addressable conversion opportunity under regulatory mandates.

04

Operational Independence

Business must function independently of the owner, with documented processes and non-founder-dependent customer relationships to ensure seamless transition.

05

Valuation Methodology

Pricing based on blended EBITDA multiple for maintenance revenue, plus explicit valuation of conversion pipeline using discounted cash flow on projected heat pump installations.

Platform Structure

A specialized entity architecture optimizes intellectual property protection, capital efficiency, and operational flexibility while enabling institutional exit optionality.

1

IP & Data Company

Centralizes all proprietary technology, conversion algorithms, regulatory playbooks, and customer data. Houses core platform intelligence and subsidy expertise. Licenses IP to operating entities.

2

Contract Asset Company

Holds all customer maintenance agreements and associated data. Structured for long-term value capture and institutional ownership. Provides privileged conversion access to execution layer.

3

Procurement & Engineering Company

Manages vendor relationships, equipment purchasing, technical standards, and quality control. Drives margin expansion through scale and operational excellence across all installations.

4

Local Operating Companies

Regional execution units focused solely on installation and service delivery. Remain asset-light, replaceable, and geographically distributed. Minimize capital intensity and operational risk concentration.

Integrated System Architecture & Synergies

Modular architecture creates defensible competitive advantages through centralized intelligence and distributed execution

The diagram illustrates how the four core platform components are intricately linked, creating a robust system that maximizes value and operational efficiency:

  • Data Flow: Information from customer contracts held by the Contract Asset Company feeds directly into the IP & Data Company's algorithms, refining conversion strategies and regulatory playbooks.
  • Procurement Leverage: The Procurement & Engineering Company utilizes its scale to secure favorable terms, directly benefiting the Local Operating Companies with competitive equipment and technical standards.
  • Conversion Pipeline: The Contract Asset Company provides a predictable pipeline of conversion opportunities to the Local Operating Companies, ensuring a steady stream of heat pump installations.
  • Regulatory Expertise: The IP & Data Company continuously updates and disseminates critical regulatory expertise and subsidy knowledge to all units, ensuring compliance and maximizing customer incentives.

This integrated architecture fosters network effects where each component strengthens the others, leading to significant operational leverage and a defensible competitive advantage.

ESG & Impact

The platform delivers quantifiable environmental impact fully aligned with EU climate priorities and institutional ESG mandates, while creating positive social outcomes.

Measurable Carbon Reduction

Each heat pump conversion eliminates 3–5 tons of CO₂ annually, with transparent reporting and verification enabling impact-linked financing structures.

Energy Independence

Accelerates Europe's transition away from fossil fuel imports, directly contributing to strategic energy security objectives and reducing geopolitical vulnerability.

Labor Market Stabilization

Professionalizes fragmented skilled trades through training, technology, and stable employment, addressing critical workforce shortages in the energy transition.

Regulatory Alignment

Fully compliant with EU Taxonomy, Green Deal objectives, and national climate frameworks, ensuring eligibility for green financing and institutional capital.