Circularity Capital invests in Green Home Group
Glasgow, 9th March 2020: Circularity Capital LLP, the specialist private equity firm supporting growth stage European SMEs in the circular economy, continues to build its portfolio, with its investment in Green Home Group, a market leader in the installation of energy efficiency measures to domestic properties in ‘fuel poverty’.
3.2m households across the UK are currently living in fuel poverty - defined as when a household is pushed below the poverty line by high heating and fuel costs. Furthermore, 70% of all UK homes (19 million) are below the target EPC C standard required to reduce carbon emissions, with 18% of all UK carbon emissions derived from residential properties.
GHG operates in the regulatory backed Energy Company Obligation (ECO) market that underpins the UK’s long-term commitments to both reducing the carbon emissions from domestic properties and tackling fuel poverty. ECO obligates the UK energy companies to deliver lifetime savings targets (LTS) across fuel poor households by funding the installation of appropriate measures such as insulation, upgraded central heating systems and smart meters / controls.
GHG provides lead generation, installation and compliance capabilities to enable energy companies to deliver their ECO obligations and in doing so improve the standard of living for UK households living in fuel poverty. The company also has a specific focus on the use of recycled materials in the insulation measures it installs.
Circularity Capital’s investment in GHG is consistent with its hands-on approach to backing businesses capturing new sources of value through resource productivity and the circular economy. Circularity Capital’s investment will see it play a key role in supporting GHG’s management team continue its UK expansion plans. David Mowat, partner at Circularity Capital, has joined the GHG Board.
David Mowat, Partner at Circularity Capital, said:
“GHG is playing an important role in the delivery of long-term UK targets around both carbon emission reduction and tackling fuel poverty, in an expanding market that represents a high growth opportunity for a business that has proven to be innovative, agile and dynamic. The business is well-established and profitable and is a great fit with Circularity Capital’s focus on European growth-stage SMEs enabling resource productivity”.
Steven Easton, CEO of GHG, commented:
“Circularity Capital’s investment will play a key role in supporting our future growth. We are looking forward to working with Circularity Capital as a well aligned and supportive partner in delivering energy efficiency solutions to an even larger number of households in fuel poverty”.