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Mercapital goes to waste

The Spanish private equity firm, which last week closed an E600m fund, has invested in Guascor, a Basque waste management and renewable energy company.

Madrid-based private equity firm Mercapital has made an E82m investment in Guascor, a Basque waste management and renewable energy company, the Financial Times reports.

The company manages industrial waste plants in Italy, Brazil, Argentina and India. It recently won an international competition to provide new combustion engines for a biogas power plant at the Fresh Kills rubbish dump in New York, the largest in the world.

Javier Loizaga, an executive partner at Mercapital, said: “We think the demand for environmental services and renewable energy will grow strongly, which is why we have chosen to invest in Guascor.”

Guascor has plans to invest Euros 1bn over the next five years to strengthen in-house research and development and expand abroad. Last week, Mercapital Servicios Financieros announced the final closing of its Mercapital Spanish Private Equity Fund II (SPEF II) at E600m. The group has made co-investment agreements with fund investors which it says will enable it to expand its investment capacity well above the E600m figure.