Connected homes commercial and market due diligence

Cairngorm Capital, a private investment firm with a focus on sustainable growth, partnered with LCP Delta to develop a transformative strategy for one of their portfolio companies, a regional energy efficiency provider. The aim: to evolve the business into a national leader in turnkey energy solutions for both residential and non-domestic markets.

Background

As a green investor with a strong commitment to sustainability, Cairngorm Capital was seeking opportunities to make a meaningful impact on the UK’s low carbon energy landscape. Their focus was on investing in and scaling a regional energy efficiency provider with the ambition to become a national energy manager offering integrated, future-ready services across customer segments.

The key question(s)

The core challenge was to identify how the company could retain and build upon its existing strengths while evolving into a comprehensive energy manager. Key questions included:

• How can the company expand its offer to serve all market segments, including the domestic and non-domestic building segments?
• What capabilities and infrastructure are needed to enable this transformation?
• How can digital platforms and green finance be leveraged to support growth?
• What are the short-, medium-, and long-term steps to achieving national scale?

What we did

LCP Delta created a strategic growth plan to support the clients desire to invest into the energy efficiency provider and guide the company’s growth journey. This involved:

• UK energy efficiency market trends and future demand drivers.
• Defining clear strategic goals and milestones.
• Assessing current capabilities and identifying gaps.
• Evaluating innovative business models in the energy efficiency space.
• Factoring in the role of digitalisation and green finance as key enablers.
• Mapping out detailed growth pathways across a 15-year horizon to meet strategic goals.

The approach ensured that capabilities, assets, and customer relationships were developed progressively, building a solid foundation for sustainable expansion.

The results

With LCP Delta’s strategic input, investment was made into the company which is on track to:

• Expand its offering to all key customer segments.
• Develop recurring revenue streams.
• Build a long-term portfolio of cash-generating assets.
• Strengthen its presence as a consumer-focused national energy manager.

The strategy sets the business on a path to achieving a tenfold increase in revenue over the next 15 years, a clear example of how thoughtful investment and expert guidance can accelerate the energy transition.