Germany faces a crisis of confidence in December 2024. A divided government, outdated infrastructure, a weak economic outlook, and an automotive industry – one of its key pillars – caught between self-doubt and relocation fears. What will form the foundation for the country and its industrial backbone to remain just as relevant in the decades ahead as it has been in the past? The Viessmann Group has its answer: „We create living spaces for generations to come“, a purpose embraced and recited like a mantra by its employees.

But what does this look like in financial terms? The true impact will likely only become apparent in the coming years, as the company’s investment strategy – following the transfer of its Climate Solutions division to Carrier Global, in which Viessmann holds a 7% stake – is designed with a long-term focus.

The industrial giant is involved in a wide range of initiatives, from seed investments like its venture capital activities with start-up accelerator Wattx or investor Vito One, to the „Berliner Maschinenraum,“ a platform for family-owned businesses to exchange ideas, and significant acquisitions such as the recent Encavis takeover, completed in partnership with KKR. This is in addition to its ongoing philanthropic endeavours, which remain an integral part of its strategy.

In any case, Viessmann is already showing today where the company, which has committed itself to a sustainable future, believes the future of the domestic operations lie – so long as this vision aligns with the company’s core purpose. A recent, yet undisclosed, investment by Viessmann highlights this strategy. In partnership with the financial investor EQT, Viessmann is acquiring a majority stake in the sustainability software company AMCS, as first reported by Börsen-Zeitung. The company’s founders, management, and investors—including the former majority shareholder Insight Partners, as well as Clearlake Capital, Highland Europe, and the Ireland Strategic Investment Fund – will retain minority stakes. AMCS, which was founded in Ireland nearly 20 years ago, has developed an extensive operating system for resource-intensive industries, designed to help businesses optimise their daily operations, manage materials more efficiently, meet evolving regulatory requirements, and reach critical sustainability goals. „Smart software solutions have significant potential to optimise resource use and dramatically reduce CO2 emissions“, explains CEO Max Viessmann, justifying the company's commitment to the software house.

That Viessmann is not only focused on Germany, even though the majority of investments are made here, is evident from the goal of shaping living spaces for future generations, which is a global ambition. While the total amount invested by Viessmann is not publicly known, informed sources suggest that it is approximately a low to mid-single-digit billion amount. Individual investments can vary in size but are typically in the three-digit million range.

Chief Operating Officer Boris Scukanec Hopinski recently refrained from giving an exact figure on how many companies approach Viessmann, or are presented to the company for investment opportunities, in the Börsen-Zeitung podcast „Sustainable Investing“. However, he mentioned that it is a high three-digit number. When it comes to an investment, Viessmann places importance on holding at least a 25% stake. „Even if we take a minority position, we’re talking about a so-called qualified minority. Typically, this is 25% or more because we also want to bring our entrepreneurial character and ambition into the partnership“, notes the COO. This also requires being cautious about the number of investments made.

At Encavis, whose acquisition by KKR and Viessmann was completed at the end of November, Viessmann holds 25.1%, which is at the lower end of the participation size defined by Scukanec Hopinski. KKR holds 62%, and the Hamburg-based Büll entrepreneurial family holds just under 13%. The only larger investment where the principle of the minimum stake does not apply is the share in Carrier Global. Here too, however, Viessmann is talking about a long-term partnership.

Partnership is, in fact, a key element of the investment strategy of the family-owned company, alongside its sustainable focus. Viessmann prefers to invest together with partners, ensuring that their long-term orientation is aligned. „Take the example of Encavis, where we partnered with KKR's infrastructure fund, which is very long-term oriented“, explains Scukanec Hopinski. In the most recent case, AMCS, Viessmann also has long-term investment partners on board.

Overall, Viessmann identifies five investment areas that can positively impact the living spaces of future generations: CO2 reduction, clean air, food, water, health, and education. The majority of investments are directed towards Germany, with additional investments in Europe, while the broader goal is a global reach. To do justice to this, one thing is needed above all - confidence instead of German fear.