K
KR, a leading alternative asset and private equity investor, has formed a strategic partnership with EGC, a German energy service provider, to accelerate decarbonization in the real estate sector. Buildings are a significant source of greenhouse gas emissions, accounting for 40% of EU energy consumption and 36% of related emissions.

    The European Commission aims to make all new buildings zero-emission by 2030 and phase out fossil fuels in building heating systems by 2040. EGC, founded in 2021, specializes in decarbonizing heating systems in buildings through planning, development, financing, and operation of energy and building technology systems.

    Under the partnership, KKR will fund the investment as part of its Global Climate Strategy, which focuses on driving decarbonization and large-scale "brown-to-green" transitions in asset-heavy sectors. EGC's founding family and current shareholders will retain a stake in the company and remain active members of the management team.

    Michael Lowak, former CEO of GETEC Group, will join EGC as Chairman, bringing his experience to drive growth. The partnership aims to develop EGC into the leading decarbonization partner for the real estate industry and accelerate the energy transition in Germany. KKR will also introduce an employee ownership and engagement model to involve all employees in shaping EGC's future.

    Ryan Miller, Managing Director at KKR, stated that creative solutions and long-term capital are needed to advance the energy transition in Germany. The partnership aims to capitalize on growing interest in contracting solutions and a fragmented market, driving forward the energy transition in Germany.