KKR Enters Into Strategic Partnership With Energy Service Provider EGC
KKR has announced a strategic partnership with EGC, a German energy service provider based in Düsseldorf. EGC manages approximately 2 million square meters of real estate for over 100 clients and operates around 800 central heating units. The founding family will retain ownership stake and remain active in management, while Michael Lowak joins as Chairman.
The partnership aims to transform EGC into the leading decarbonization partner for the real estate industry in Germany. EGC provides comprehensive energy services, from planning and developing concepts for energy systems to financing and operating heating units and electricity networks.
KKR will implement its employee ownership model, previously successful across 60 portfolio companies. The investment firm brings significant infrastructure expertise, managing approximately USD 77 billion in infrastructure assets, including USD 21 billion in energy transition investments. The deal is funded through KKR's Global Climate Strategy, focusing on low-carbon economy solutions.
KKR ha annunciato una partnership strategica con EGC, un fornitore di servizi energetici tedesco con sede a Düsseldorf. EGC gestisce circa 2 milioni di metri quadrati di immobili per oltre 100 clienti e opera circa 800 impianti di riscaldamento centralizzato. La famiglia fondatrice manterrà una partecipazione azionaria e rimarrà attiva nella gestione, mentre Michael Lowak entra come Presidente.
La partnership mira a trasformare EGC nel partner leader per la decarbonizzazione dell'industria immobiliare in Germania. EGC offre servizi energetici completi, dalla pianificazione e sviluppo di concetti per sistemi energetici al finanziamento e gestione di impianti di riscaldamento e reti elettriche.
KKR implementerà il proprio modello di proprietà dei dipendenti, già di successo in 60 aziende del portafoglio. La società di investimento porta un'importante esperienza infrastrutturale, gestendo circa 77 miliardi di USD in attività infrastrutturali, inclusi 21 miliardi di USD in investimenti per la transizione energetica. L'accordo è finanziato attraverso la Strategia Globale sul Clima di KKR, focalizzata su soluzioni per un'economia a basse emissioni di carbonio.
KKR ha anunciado una asociación estratégica con EGC, un proveedor de servicios energéticos alemán con sede en Düsseldorf. EGC gestiona aproximadamente 2 millones de metros cuadrados de bienes raíces para más de 100 clientes y opera alrededor de 800 unidades de calefacción central. La familia fundadora mantendrá una participación accionaria y seguirá activa en la gestión, mientras que Michael Lowak se une como Presidente.
La asociación tiene como objetivo transformar a EGC en el socio líder en descarbonización para la industria inmobiliaria en Alemania. EGC ofrece servicios energéticos integrales, desde la planificación y desarrollo de conceptos para sistemas energéticos hasta la financiación y operación de unidades de calefacción y redes eléctricas.
KKR implementará su modelo de propiedad de empleados, previamente exitoso en 60 empresas de su cartera. La firma de inversión aporta una experiencia significativa en infraestructura, gestionando aproximadamente 77 mil millones de USD en activos de infraestructura, incluyendo 21 mil millones de USD en inversiones para la transición energética. El acuerdo se financia a través de la Estrategia Global sobre Clima de KKR, centrada en soluciones para una economía baja en carbono.
KKR는 뒤셀도르프에 본사를 둔 독일의 에너지 서비스 제공업체인 EGC와 전략적 파트너십을 발표했습니다. EGC는 100명 이상의 고객을 위해 약 200만 제곱미터의 부동산을 관리하고 있으며, 약 800개의 중앙 난방 장치를 운영하고 있습니다. 창립 가족은 소유 지분을 유지하고 경영에 계속 참여하며, Michael Lowak이 의장으로 합류합니다.
이번 파트너십의 목표는 EGC를 독일 부동산 산업의 주요 탈탄소화 파트너로 변모시키는 것입니다. EGC는 에너지 시스템에 대한 계획 및 개념 개발부터 난방 장치 및 전기 네트워크의 금융 및 운영까지 포괄적인 에너지 서비스를 제공합니다.
KKR은 60개의 포트폴리오 회사에서 성공적으로 시행된 직원 소유 모델을 도입할 것입니다. 이 투자 회사는 약 770억 달러의 인프라 자산을 관리하는 중요한 인프라 전문 지식을 보유하고 있으며, 그 중 210억 달러는 에너지 전환 투자에 해당합니다. 이번 거래는 KKR의 글로벌 기후 전략을 통해 자금을 조달하며, 저탄소 경제 솔루션에 중점을 두고 있습니다.
KKR a annoncé un partenariat stratégique avec EGC, un fournisseur de services énergétiques allemand basé à Düsseldorf. EGC gère environ 2 millions de mètres carrés de biens immobiliers pour plus de 100 clients et exploite environ 800 unités de chauffage central. La famille fondatrice conservera une participation et restera active dans la gestion, tandis que Michael Lowak rejoint en tant que Président.
Le partenariat vise à transformer EGC en partenaire de décarbonisation leader pour l'industrie immobilière en Allemagne. EGC propose des services énergétiques complets, allant de la planification et du développement de concepts pour les systèmes énergétiques à le financement et l'exploitation des unités de chauffage et des réseaux électriques.
KKR mettra en œuvre son modèle de propriété des employés, qui a déjà connu un succès dans 60 entreprises de son portefeuille. La société d'investissement apporte une expertise significative en infrastructure, gérant environ 77 milliards USD d'actifs d'infrastructure, dont 21 milliards USD d'investissements pour la transition énergétique. L'accord est financé par la Stratégie Globale sur le Climat de KKR, axée sur des solutions pour une économie à faibles émissions de carbone.
KKR hat eine strategische Partnerschaft mit EGC angekündigt, einem deutschen Energie-Dienstleister mit Sitz in Düsseldorf. EGC verwaltet etwa 2 Millionen Quadratmeter Immobilien für über 100 Kunden und betreibt rund 800 zentrale Heizungsanlagen. Die Gründungsfamilie wird einen Eigentumsanteil behalten und aktiv im Management bleiben, während Michael Lowak als Vorsitzender eintritt.
Die Partnerschaft zielt darauf ab, EGC zum führenden Dekarbonisierungspartner für die Immobilienbranche in Deutschland zu machen. EGC bietet umfassende Energiedienstleistungen an, von der Planung und Entwicklung von Konzepten für Energiesysteme bis hin zur Finanzierung und dem Betrieb von Heizungsanlagen und Stromnetzen.
KKR wird sein Mitarbeiterbesitzmodell umsetzen, das bereits in 60 Portfoliounternehmen erfolgreich war. Die Investmentgesellschaft bringt erhebliche Infrastrukturkompetenz mit, verwaltet etwa 77 Milliarden USD an Infrastrukturvermögen, darunter 21 Milliarden USD in Investitionen für den Energiewandel. Der Deal wird durch KKR's globale Klimastrategie finanziert, die sich auf Lösungen für eine kohlenstoffarme Wirtschaft konzentriert.
- Strategic expansion into growing decarbonization market
- Access to KKR's significant infrastructure expertise and capital (USD 77B AUM)
- Implementation of proven employee ownership model
- Retention of founding family expertise in management
- None.
Insights
This strategic partnership marks a calculated entry by KKR into Germany's building decarbonization market, leveraging its $21 billion energy transition portfolio and $77 billion infrastructure assets under management. The deal's significance extends beyond its immediate scope, positioning KKR to capitalize on the fragmented energy services market where building heating systems account for approximately 33% of global CO2 emissions.
The transaction structure reveals a sophisticated approach to value creation. By maintaining the founding family's involvement while introducing experienced leadership through Michael Lowak, KKR is balancing continuity with strategic enhancement. The implementation of KKR's employee ownership model, successfully deployed across 60 portfolio companies, suggests a focus on long-term value creation through aligned incentives.
EGC's existing infrastructure - managing 2 million square meters and 800 heating units - provides a scalable platform for consolidation in a highly fragmented market. The company's integrated service model, combining engineering expertise through ITG with operational capabilities, creates significant barriers to entry and positions EGC as an attractive platform for future acquisitions.
The timing aligns with accelerating EU decarbonization mandates and increasing pressure on real estate owners to reduce emissions. KKR's extensive experience with European infrastructure investments, exemplified by successful ventures like Encavis and Zenobe, provides a blueprint for scaling EGC's operations and potentially consolidating the German energy services market.
With KKR as a strategic partner, EGC aims to become the leading decarbonization partner for the real estate industry and to accelerate its growth. To this end, the company plans to invest more in both organic and inorganic growth.
EGC is a second-generation, family-owned and independent energy services provider in
Buildings account for around a third of global CO2 emissions, mainly through space and water heating. The decarbonization of heating systems in buildings is crucial to achieving the EU's climate targets. EGC supports landlords in developing solutions to meet their decarbonization goals.
Following the successful completion of the transaction, KKR will support the company in introducing a broad-based employee ownership and engagement model. The program will ensure that all employees are involved in shaping EGC’s future and can participate in the company's future success. KKR developed this model in 2011 and has since successfully implemented it globally in 60 portfolio companies with more than 150,000 non-management employees.
Corinna Pitz and Dirk Pitz, members of EGC's management, said: “The collaboration with KKR opens up completely new possibilities for us to further expand our strong market position and to develop our group of companies. In KKR, we have found a partner that shares both our strategic goals and our entrepreneurial approach. KKR is not only an established infrastructure investor, but also has a long history of working with family-run companies. We are very much looking forward to this next phase of growth with KKR, which will open up many new opportunities for our group and employees.”
Michael Lowak, future Chairman of EGC, said: “EGC enables landlords to efficiently plan, implement and finance the decarbonization of their properties. The company is thus making a significant contribution to both the real estate industry and the energy transition in
Ryan Miller, Managing Director in KKR’s European Infrastructure team, commented: “To advance the energy transition in
KKR has extensive expertise in global infrastructure investments, particularly in the energy sector, and is committed to continuing to investing in the future of renewable energy. With approximately
KKR is funding the investment as part of its Global Climate Strategy, through which KKR is investing at scale in solutions that support the transition to a low-carbon economy.
About KKR
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.
About EGC
EGC is a second-generation, family-owned and independent energy services provider in
Learn more about us: www.egc-fm.de
View source version on businesswire.com: https://www.businesswire.com/news/home/20250218216253/en/
KKR
Thea Homscheid
Mobile: +49 (0) 172 13 99 761
E-Mail: kkr_germany@fgsglobal.com
Emily Lagemann
Mobile: +49 (0) 160 99 27 13 35
E-Mail: kkr_germany@fgsglobal.com
Source: KKR
FAQ
What is the size of EGC's current operations that KKR is investing in?
How much infrastructure assets does KKR manage in relation to this EGC investment?
What is KKR's investment track record in Germany?
How will KKR's employee ownership model benefit EGC workers?
What is the strategic goal of KKR's partnership with EGC?
