Partners Group to invest in Gestcompost, the largest organic waste manager in Spain, through a continuation fund

• Partners Group will invest over EUR 120 million in the Gestcompost continuation fund via its infrastructure secondaries business
• Partners Group will take two seats on Gestcompost’s board
• Gestcompost is set to benefit from thematic tailwinds, including the growing role of biomethane in the energy transition

Partners Group, one of the largest firms in the global private markets industry, acting on behalf of its clients, has agreed to acquire a significant minority stake in Gestcompost (or “the Company”), the largest organic waste treatment manager in Spain. Partners Group will invest over EUR 120 million through its infrastructure secondaries business, acting as a cornerstone investor in a continuation fund for Gestcompost that was successfully established and will be managed by current owner Suma Capital. As part of the transaction, Partners Group will take two seats on the Company’s board.

Founded in 2003, Gestcompost is a market leader in the treatment of organic waste, including industrial, animal by-product, agri-food, urban, and agricultural waste. The Company currently has three operational organic waste management sites that can process 1.2 million tons of waste each year. Gestcompost treats waste through either composting it or by applying an anaerobic digestion process to create biogas. In addition, Gestcompost has expanded across the waste management value chain by building capabilities in the production of biogas and biomethane through upgrading its existing sites and acquiring specialist plants. Biomethane can act as an alternative to Natural Gas and is therefore playing an important role in the energy transition. The Company has strong infrastructure characteristics such as high barriers to entry due to the significant capex required to operate waste management sites and long-term off-take contracts for the biomethane it produces. Since Suma Capital's investment in 2020, Gestcompost has experienced strong growth, tripling its EBITDA, expanding its workforce, and increasing its treatment capacity through new facilities.

Gestcompost is set to benefit from several thematic tailwinds including higher landfill costs, new regulations around how waste is disposed of in Spain, and broad energy transition targets that emphasise the use of biomethane as an alternative fuel. Leveraging its entrepreneurial governance approach to asset transformation, Partners Group will support management and Suma Capital on implementing value creation initiatives. These initiatives include increasing waste volumes, acquiring new biomethane plants, and introducing operational efficiencies. Alejandro Lafarga, the current Chief Executive Officer of Madrilena Red de Gas, will join the Company’s board as Vice Chairman on behalf of Partners Group’s clients. The impact investor Blue Earth Capital is also investing in the Gestcompost continuation fund.

A continuation fund involves a GP moving a portfolio company into a new vehicle, which enables a manager to extend its ownership of a high-quality asset whilst providing an opportunity for third party investors to gain exposure.

Dr. Dmitriy Antropov, Head of Infrastructure Partnership Investments, Partners Group, says: “We have been tracking Gestcompost through our thematic research in the European circular economy space. The Company has a competitive advantage due to its long-standing experience in the waste treatment sector and access to high-quality feedstock. There is a significant growth opportunity for the Company to leverage its market-leading position and large asset base to expand into biomethane production. We look forward to partnering with Suma Capital and management on Gestcompost’s next chapter.”

Marc Meier, Managing Director, Infrastructure Partnership Investments, Partners Group, adds: “Our sourcing for infrastructure secondaries focuses on the mid-market, which is a significantly larger segment than the large-cap space. As a result, there are more GP-led opportunities to choose from, many of which involve highly specialised managers that are extending ownership of top-performing assets. We have now completed ten continuation vehicle investments in the last three years, anchoring 70% of them. We are pleased to complete this new continuation vehicle investment in Gestcompost, which is our second in Spain since 2023.”

Antoni Macià, Partner, Suma Capital, states: “We are proud to launch this new investment vehicle to support Gestcompost’s growth while strengthening our commitment to decarbonizing the Spanish economy. Gestcompost is having a meaningful impact in promoting circularity and contributing to European emissions reduction goals.”

Partners Group invested in Gestcompost through its Infrastructure Partnership Investments business, which covers GP-led secondary transactions, LP-led portfolio secondaries, and co-investment opportunities. The firm’s Infrastructure Partnership Investments business has closed 58 secondaries investments globally since 2006. Partners Group’s Infrastructure business has USD 27 billion in overall assets under management.