Railpen acquires 25% stake in nordic waste collection business, Verdis

The investment in Verdis marks Railpen’s first direct infrastructure investment in the Nordics and the municipal waste collection sector. It further demonstrates Railpen’s commitment to investing in essential infrastructure within established and growing sectors, both in the UK and other developed markets.

Acquired by Cube Infrastructure Managers (“Cube”) in November 2023, Verdis is an essential infrastructure service provider delivering municipal waste collection services to more than 6 million inhabitants in approximately 100 municipalities across Denmark, Norway, Sweden and Finland. Since the acquisition, Verdis has been 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 approximately 50% of its truck fleet being electric or biofuel-powered.

Railpen will be represented on Verdis’ board by Lewis Vanstone, Investment Director in the Real Assets Team,   and Tim Grimstone, Investment Manager, who will remain directly and actively involved in the business’ continued governance.

Railpen’s investment in Verdis follows the acquisition this year 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. Together, these assets will help Railpen to fulfil its mission and deliver stable long-term returns for members.

Verdis marked Cube Infrastructure Fund III's 12^th 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.

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."

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."