Adding another expansion capital investment to its NZ$38b (US$27b) portfolio, the NZ Super Fund has dished out US$65 million to a cloud-based waste and recycling technology company headquartered in Atlanta, Georgia.
Rubicon Global provides a technology platform for waste and recycling, and connects customers to a network of independent waste haulers. The company’s goal is to help businesses, governments and organisations execute their sustainability goals through their waste management operations.
Mark Fennell, the NZ Super Fund’s acting chief investment officer, says Rubicon provides an attractive opportunity for the Fund to increase its exposure to expansion capital.
Following the Rubicon investment, around 2% of the NZ Super Fund is invested in expansion capital investments.
The Fund has direct investments in fuel cell manufacturer Bloom Energy, dynamic glass manufacturer View, and waste-to-energy company LanzaTech.
Fennell adds, “It’s pleasing to be able to leverage our timeframe, scale and diversification to support growth companies such as Rubicon that, while established from a technology point of view, are pre-IPO.”
“As a long-term investor, the NZ Super Fund is able to invest in high growth companies with a view to realising long-term potential.”
“These expansion capital investments are an important part of our investment mix because they can help drive long-run returns.”
“This particular investment also aligns with the Fund’s strategy to identify investments that have the potential to benefit from the global transition to a low-carbon economy. Rubicon, which aims to divert waste from landfills and reduce greenhouse gas emissions, has strong sustainability credentials and complements our climate change investment risk strategy.”
Rubicon’s SVP Strategic Initiatives, Michael Allegretti adds, “As a company with a deep commitment to sustainability, Rubicon is proud to be backed by the NZ Super Fund, one of the world’s best performing sovereign wealth funds and a global leader in responsible investment."
"We share their belief that environmental, social and governance factors are material to long-term financial returns and look forward to adding value to the Fund.”