Railpen has acquired a 25% stake in Nordic municipal waste collection operator, Verdis.

The investment is Railpen’s first direct infrastructure investment in the Nordics and the municipal waste collection sector, and was highlighted as further demonstration of Railpen’s commitment to investing in essential infrastructure within established and growing sectors, both in the UK and other developed markets.

Railpen will be represented on Verdis’ board by real assets team investment director, Lewis Vanstone, and investment manager, Tim Grimstone, who will remain directly and actively involved in the business’ continued governance.

Railpen’s investment in Verdis also follows the acquisition of a 50% shareholding in renewable energy business AGR Power and its recently announced joint venture with GreenPower to develop the Barachander onshore wind project in North Argyll.

Acquired by Cube Infrastructure Managers in November 2023, Verdis is an infrastructure service provider delivering municipal waste collection services in approximately 100 municipalities across Denmark, Norway, Sweden and Finland.

Since this acquisition, Verdis has expanded its core municipal waste collection activity, with revenues underpinned by a diversified portfolio of medium to long-term contracts with local authorities.

Railpen investment manager, Tim Grimstone, commented: “We are delighted to establish this partnership with Cube, marking a significant milestone for our infrastructure investment platform on behalf of the railways pensions schemes.

“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.”

Cube Infrastructure Managers chairman and CEO, Renaud de Matharel, added: “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.”

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