New Zealand Super Fund invests in Rubicon Global

The New Zealand Super Fund (NZ Super Fund), a $27 billion global investment fund established in Auckland, New Zealand, by the New Zealand government, has added another expansion capital investment to its portfolio, investing $65 million in cloud-based waste and recycling technology company Rubicon Global.

Headquartered in Atlanta, Rubicon connects customers to a network of independent waste haulers. The company’s goal is to help businesses, governments and organizations execute on their sustainability goals through their waste management operations.

Mark Fennell, NZ Super Fund acting chief investment officer, says Rubicon provided an attractive opportunity for the fund to increase its exposure to expansion capital.

Following the Rubicon investment, around 2 percent of the NZ Super Fund is invested in expansion capital investments. The fund has direct investments in fuel cell manufacturer Bloom Energy, Sunnyvale, California; glass manufacturer View Inc., Milpitas, California; and waste-to-energy company LanzaTech, Skokie, Illinois. In New Zealand, the NZ Super Fund has supported several small and medium-sized high growth companies via external managers Direct Capital, Portsmouth, New Hampshire; Pioneer Capital, New York City; Pencarrow, Wellington, New Zealand; Waterman Capital, Auckland; and Movac, Wellington.

“It’s pleasing to be able to leverage our time frame, scale and diversification to support growth companies such as Rubicon that, while established from a technology point of view, are preIPO (initial public offering),” Fennell says. “As a long-term investor, the NZ Super Fund is able to invest in high growth companies with a view to realizing 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.”

“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,” Michael Allegretti, Rubicon senior vice president of strategic initiatives, says. “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.”