Commercial due diligence and strategic growth option assessment on a UK energy efficiency provider

InfraRed Capital Partners (IRCP), a specialist infrastructure investment manager, engaged LCP Delta to support on its £100 million investment in Wondrwall Group. This marked IRCP’s first move into the non-regulated retail energy space, with a focus on connected home technology that supports the transition to a low-carbon future.

Background

With a long track record of investing in infrastructure projects, IRCP was looking to diversify into the residential energy technology market. Wondrwall Group, a business offering smart home systems designed to optimise energy use, reduce homeowner costs and help support a low-carbon future, was identified as a strategic opportunity aligned with IRCP’s sustainability ambitions.

Client needs and key question(s)

IRCP’s primary question was: “Does this investment make sense?”

To answer this, the firm required:

• A clear understanding of the retail energy market including consumer billing, policy, and regulation, as well as the size of the opportunity.
• Insight into the competitive landscape and Wondrwall’s positioning.
• Assessment of the robustness of the business model and Wondrwall’s competitive advantage.
• Validation of energy and cost savings for homeowners.
• Review of capital and operational cost assumptions.

Given their limited exposure to this market, IRCP also needed accessible materials to brief their investment committee.

What we did

We led a structured commercial due diligence process, working closely with both IRCP and Wondrwall’s leadership team to assess the opportunity. Our work culminated in a detailed report outlining the key market drivers, commercial risks, and upside potential—providing IRCP’s investment committee with the insights needed to make an informed investment decision.

The results

LCP Delta’s insights gave IRCP the confidence to proceed with a £100 million investment in Wondrwall Group.