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.