Railpen has expanded its infrastructure portfolio with the acquisition of a UK-based operator and developer of crematoria from Maven Capital Partners.

The investment manager of the UK’s £34bn (€39.4bn) rail transport pension schemes said it has acquired Horizon Ceremonies, an operator of three crematoria near Glasgow and Birmingham as well as a pipeline of greenfield development sites in underserved areas.

Maven said the transaction delivered a strong return, with initial proceeds providing up to a 2.5x return on cost. The sale also includes future target-based payments.

Maven’s initial investment in Horizon was £2.5m in 2017 to support the development of modern, community-centric crematoria. Over the investment period, Maven said it provided a total of £7.7m across multiple funding rounds to help scale operations and open new sites.

Following the acquisition, Horizon will continue to be led by its founders, Jeremy Hamilton and Stephen Byfield, working in partnership with Railpen to expand its footprint in the UK crematoria market. 

”This will include the development of new, crematoria, addressing the shortage of crematoria capacity in many parts of the UK where existing public facilities are aged and overstretched,” Railpen said.

Tim Grimstone, investment manager at Railpen, said: “Our investment in Horizon is directly aligned with Railpen’s purpose of securing the future for our members by delivering strong, diversified investment returns while having a positive impact on the communities in which we invest.

“The UK is facing a clear demographic need for new, high-quality crematoria, and Horizon’s award-winning track record and commitment to sensitive, well-designed facilities positions them to meet that demand. By backing Horizon’s growth, we are investing in critical social infrastructure that will provide sustainable income streams to support our members’ pensions.”

Colin Anderson, partner at Maven, said: “Horizon Ceremonies has built a high quality and trusted business in a market underpinned by resilient demand and long term structural drivers.

“From our initial investment through to follow-on funding rounds, we’ve supported the business in scaling its operations, navigating planning challenges, and embedding ESG at its core. We are proud to have backed the team from its early origins and are delighted to deliver this excellent return for our investors.”

Horizon founders said: “Horizon has continued to expand our footprint, deliver best-in-class facilities and enhance ESG credentials –with over 10,000 trees planted and generated nearly 8,000 kWh of renewable electricity. We remain committed to quality and sustainability as we look to expand Horizon in partnership with Railpen.”

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