Railpen acquires 25% stake in Nordic waste collection operator Verdis

Railpen, one of the UK’s largest pension managers, has acquired a 25% stake in Nordic municipal waste collection operator Verdis. 

The £35bn (€41.6bn) pension manager has invested directly in Verdis, while two limited partners (LPs) – a US public pension fund and a Japanese institution – invested via Cube Infrastructure Managers-managed co-investment vehicles.

This transaction concludes Cube Infrastructure’s largest co-investment programme to date, following earlier co-investments into the Verdis platform by two of Cube’s existing investors.

The co-investment programme provides Cube’s investors and capital partners the opportunity to invest in a high-quality platform “benefitng from positive secular trends and supportive regulation” driving growth in the Nordic waste sector, the infrastructure manager said.

Acquired by Cube in November 2023, Verdis, formerly known as Urbaser Nordic, is an essential infrastructure service provider delivering municipal waste collection services to more than six million inhabitants in around 100 municipalities across Denmark, Norway, Sweden and Finland.

This latest investment in Verdis marks Cube Infrastructure Fund III’s 12th investment and its second in the municipal waste collection sector. The fund has total commitments of €1.35bn and additional co-investment commitments of over €250m.

For Railpen, the investment in Verdis is the fund manager’s first direct infrastructure investment in the Nordics and the municipal waste collection sector.

The investment reflects Railpen‘s continued commitment to investing in essential infrastructure within established and growing sectors, both in the UK and other developed markets, the company said.

Renaud de Matharel, chairman and CEO of Cube Infrastructure Managers, said: “We are pleased to welcome Railpen as a co-shareholder in Verdis, joining Cube Infrastructure Fund III and our existing LPs.

“This co-investment will provide further growth capital to the platform, support its ongoing expansion and strengthen its position as a significant player in Europe’s waste management sector.”

Tim Grimstone, investment manager at Railpen, said: “Verdis represents an important addition to our growth infrastructure portfolio, with it being the first in the Nordics and the environmental services sector.

“We have strong conviction on the future growth of Verdis given its critical role in the waste sector – an essential service and building block of the circular economy – and its leadership in vehicle fleet electrification. We look forward to the progress our partnership will make.”

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