Fresh from proposing to develop & fund Auckland’s light rail line from downtown to the airport, the NZ Super Fund has added another expansion capital investment to its $38 billion portfolio, investing $US65 million in cloud-based US waste & recycling technology company Rubicon Global Holdings LLC.
The Super Fund’s acting chief investment officer, Mark Fennell, said today Rubicon, based in Atlanta, Georgia, provided an innovative technology platform for waste & recycling: “It connects customers to a network of independent waste haulers and is leading the development of smart city products in the waste & recycling space. The company’s goal is to help businesses, governments & organisations confidently execute on their sustainability goals through their waste management operations.”
Mr Fennell said Rubicon provided an attractive opportunity for the fund to increase its exposure to expansion capital, now about 2% of its portfolio. It also has a 2% global allocation to infrastructure.
The fund has direct investments in fuel cell manufacturer Bloom Energy, dynamic glass manufacturer View Inc and waste-to-energy company LanzaTech (founded in New Zealand, now based in Chicago). In New Zealand, the fund has supported a large number of small & medium-sized high growth companies via external managers Direct Capital Ltd, Pioneer Capital Partners Ltd, Pencarrow Ltd, Waterman Capital Ltd & Movac Ltd.
Mr Fennell said: “It’s pleasing to be able to leverage our timeframe, scale & 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.”
11 May 2018: Government starts on light rail procurement, Super Fund talks assessing viability & investment, mayor talks intensification
5 July 2017: Super fund explains tilting strategy
15 February 2017: Steamrolling & funding
18 December 2015: Super Fund, Ngai Tahu & private financier join in Hobsonville Pt project
30 September 2014: Super guardians pose some investment thoughts
Attribution: Fund release.