Partners Group is investing €120m to acquire a stake in Gestcompost, Spain’s leading organic waste treatment company.
Partners Group, through its infrastructure secondaries unit, is acquiring the “significant minority stake” in Gestcompost by becoming a cornerstone investor in a continuation fund created and managed by Suma Capital, Gestcompost’s current owner.
Blue Earth Capital is also participating in the Gestcompost continuation fund, which allows Suma Capital to move Gestcompost into a newly formed investment vehicle, extending its ownership and creating an opportunity for third-party investment.
Gestcompost, established in 2003, operates as an organic waste treatment manager, processing industrial, animal by-product, agri-food, urban and agricultural waste. The company has also expanded its operations to include biogas and biomethane production. Suma Capital’s initial investment in Gestcompost was in 2020.
As part of the deal, Partners Group said it will hold two board seats at Gestcompost and will support management and Suma Capital in driving value creation through increased waste volumes, biomethane plant acquisitions and operational improvements.
Alejandro Lafarga, the CEO of Madrilena Red de Gas, will join the Gestcompost’s board as vice-chair on behalf of Partners Group’s clients.
Dmitriy Antropov, head of infrastructure partnership investments at Partners Group, said: “We have been tracking Gestcompost through our thematic research in the European circular economy space. The company has a competitive advantage due to its long-standing experience in the waste-treatment sector and access to high-quality feedstock.
“There is a significant growth opportunity for the company to leverage its market-leading position and large asset base to expand into biomethane production. We look forward to partnering with Suma Capital and management on Gestcompost’s next chapter.”
Marc Meier, managing director, infrastructure partnership investments, Partners Group, said: “Our sourcing for infrastructure secondaries focuses on the mid-market, which is a significantly larger segment than the large-cap space. As a result, there are more GP-led opportunities to choose from, many of which involve highly specialised managers that are extending ownership of top-performing assets.
“We have now completed 10 continuation vehicle investments in the last three years, anchoring 70% of them. We are pleased to complete this new continuation vehicle investment in Gestcompost, which is our second in Spain since 2023.”
Antoni Macià, partner, Suma Capital, said: “We are proud to launch this new investment vehicle to support Gestcompost’s growth while strengthening our commitment to decarbonising the Spanish economy. Gestcompost is having a meaningful impact in promoting circularity and contributing to European emissions reduction goals.”
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