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PAUL Tech makes history

HANNOVER Finanz acquires stake in PAUL Tech AG

HANNOVER Finanz (HF), equity capital partner to German SMEs, is investing a total of EUR 40 million in PAUL Tech AG (PAUL), based in Mannheim, as part of a growth financing program.
  • PAUL Tech AG receives 40 million euros as part of growth financing
  • Mannheim-based company invests in further growth in the field of energy-saving technologies & solutions for large residential buildings

This is HF’s second investment in the fast-growing market for innovative solutions and technologies to mitigate climate change, following its investment in First Climate. PAUL will use the newly provided funds in particular for investments and further growth.

With its core product PAUL Performance, the company has developed a system that can reduce energy consumption and thus energy costs and CO2 taxes in buildings by up to 40 percent through permanent adaptive hydraulic balancing in real time. This also makes it possible to install heat pumps. The system, which is controlled by intelligent software using AI, enables owners of buildings of all asset classes to improve their energy efficiency class and thus the value of their property and obtain better financing conditions. The hardware is installed directly in the building’s central heating system as part of an “Equipment as a Service” (EaaS) model and is provided for a fee. PAUL’s customers include homeowners’ associations, housing associations, real estate investors and commercial enterprises.

“The heating transition in Germany is one of the key challenges to achieving the climate targets and the need for investment in retrofitting existing buildings is huge. With its high-tech solutions, PAUL solves numerous challenges in the housing industry without additional costs for tenants and landlords. PAUL Performance shows that CO2 neutrality can be achieved through technology and not just by doing without. We are therefore very pleased to be able to support the company in its future plans and, due to the high demand, expect the business to grow strongly in the coming years,” says Goetz Hertz-Eichenrode, CEO of HANNOVER Finanz. “With this second investment in the Climate Tech segment, we are also driving forward the further development of our portfolio.”

“As an energy platform, we develop innovative solutions and technologies to drive the energy transformation of the real estate market. PAUL’s goal is to achieve CO2 neutrality for all existing buildings, especially those 10 years and older, in a cost-efficient manner before 2045. In order to successfully pursue our growth course even faster, we need sufficient growth capital. However, the financing we have now received not only provides us with capital, but also with a strong partner in HANNOVER Finanz, whose network and expertise will help us move forward,” says Sascha Müller, founder and CEO of PAUL.

The Hannover Finanz deal team included: Goetz Hertz-Eichenrode, Mirco Thelen, Dr. Christina Silberberger, Wolfgang Bartels

The team worked together with the following advisors during the implementation: Commercial DD: Roland Berger, Technical DD: Invensity, Legal-Financial-Tax DD: Deloitte Hannover

Press contact
Katrin Slopianka
Corporate Communications
0511 / 28 007-25

About the HANNOVER Finanz Group
Founded in 1979, HANNOVER Finanz has more than 40 years of experience as an equity capital partner for SMEs. The private equity house with headquarters in Hanover and an office in Vienna is one of the first venture capital providers for the DACH region and is an owner-managed investment company in its second generation. Well-known companies such as Fielmann, Rossmann and AIXTRON have realized their growth with equity capital from HANNOVER Finanz and taken advantage of its entrepreneurial support. Since its foundation, the equity capital partner for SMEs has completed over 250 projects and invested more than two billion euros. The main reasons for investments are growth financing and succession planning for solid medium-sized companies with annual sales of 20 million euros or more. In addition to majority shareholdings, the HANNOVER Finanz Group is one of the few investment companies in Germany that also acquires minority shareholdings. The portfolio currently includes 34 companies.

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