Monsal, a Mansfield, UK-based advanced digestion technology business that turns waste into renewable energy, has secured £14m of expansion capital from Waste Resources Fund L.P., a vehicle managed by FourWinds Capital Management, an investment management firm that specialises in natural resources and commodities.
Initially the fund will be investing £4m in the company, taking an equity stake alongside Monsal’s management team and private equity investor, Matrix Private Equity Partners, who backed the original buy-out of the business in 2007. WRF has also committed a further £10m for projects to be developed by Monsal and WRF.
The funding will be used to support further expansion of Monsal’s core anaerobic digestion solutions business in the UK wastewater industry and provide infrastructure funding for biogas energy from waste projects. Monsal will be recruiting and expanding its sales, technical and engineering teams over the next 12 months.
The additional £10m of funding will be used to establish and finance a new business, subject to certain conditions being met.
Monsal Energy’s dedicated team will focus on identifying and developing partnerships and funding infrastructure projects in the bio-energy and biogas sector, using anaerobic digestion.
Monsal Energy’s infrastructure projects will principally be built as part of joint ventures with key strategic partners in the industry, although the company will also continue to deliver design and build projects to third parties on a contract basis.
Matrix will retain its significant minority equity holding in the company.