Cube concludes largest co-investment program to date with Railpen’s entry into Verdis
Luxembourg, September 3, 2024 – Cube Infrastructure Managers (“Cube”) is pleased to announce that Railpen, one of the UK’s largest pension managers, has acquired a 25% stake in Verdis (formerly Urbaser Nordic), the leading Nordic municipal waste collection operator.
This transaction concludes Cube’s largest co-investment program to date, following earlier co-investments into the Verdis platform by two of Cube’s existing investors.
Railpen, responsible for managing £35 billion of assets on behalf of over 350,000 members, has invested directly in Verdis, while two LPs – a US public pension fund and a Japanese institution – invested via Cube-managed co-investment vehicles.
The co-investment program provides Cube’s investors and capital partners the opportunity to invest in a high-quality platform benefitting from positive secular trends and supportive regulation driving growth in the Nordic waste sector.
Acquired by Cube in November 2023, Verdis is an essential infrastructure service provider delivering municipal waste collection services to more than 6 million inhabitants in c.100 municipalities across Denmark, Norway, Sweden and Finland. Since the acquisition, Cube has supported Verdis in expanding its core municipal waste collection activity. Verdis’ revenues are underpinned by a diversified portfolio of medium to long-term contracts with local authorities, which are largely availability-based and inflation-indexed, providing strong resilience through economic cycles. The company has established itself as a leader in sustainable operations, with c.50% of its truck fleet being electric or biofuel-powered.
Verdis marked Cube Infrastructure Fund III’s 12th investment and its second in the municipal waste collection sector. The Fund has total commitments of €1.35 billion and additional co-investment commitments of over €250 million.
For Railpen, the investment in Verdis marks Railpen’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.
Renaud de Matharel, Chairman & CEO of Cube Infrastructure Managers, commented: “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, added: “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.”
About Cube Infrastructure Managers
Cube Infrastructure Managers is an independent mid-market infrastructure investor. Founded in 2007, Cube joins deep sector knowledge with operational and financial expertise to pioneer and transform essential infrastructure assets serving local communities across Europe. We create value by empowering management teams and growing infrastructure platforms in sectors underpinned by long-term environmental, social and technological megatrends, such as energy transition, telecoms, transport and environment.
Cube has raised and managed over €4.3 billion of institutional capital across four funds as well as co-investment vehicles. The firm has successfully made more than 45 investments across Europe and will continue to invest in profitable and responsible investment opportunities with strong growth potential.
www.cubeinfrastructure.com
About Railpen
- Railpen, founded in 1965, is one of the largest and longest-established pension investment managers and administrators in the UK.
- It oversees £35 billion in assets for over 350,000 members of the UK railways pension schemes.
- Railpen (formerly known as RPMI and RPMI Railpen) is authorised and regulated by the Financial Conduct Authority (FCA).
- Railpen runs the railways pensions schemes on behalf of its parent, the Railways Pension Trustee Company Limited (RPTCL).
Follow Railpen on LinkedIn and Twitter
Visit the Railpen website
About Verdis
Verdis, formerly known as Urbaser Nordic, is a leader in municipal waste collection and sustainable waste management in the Nordic region. Its mission is to lead the way to a sustainable future through innovative and environmentally friendly solutions. Across the Nordic countries, Verdis serves c.100 municipalities and more than 6 million inhabitants.
www.verdis.dk
www.verdis.se
www.verdis.fi
