UK pension investment manager and administrator Railpen has acquired a 25 per cent stake in Nordic municipal waste collection operator, Verdis (formerly Urbaser Nordic).

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 per cent 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 investments are expected to help Railpen to fulfil its mission and deliver stable long-term returns for members.

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

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

The company has also established itself as a leader in sustainable operations, with approximately 50 per cent of its truck fleet being electric or biofuel-powered.

Commenting on the investment, Railpen investment manager, Tim Grimstone, said: "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."

Adding to this, Cube Infrastructure Managers chairman and CEO, Renaud de Matharel, 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."

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