H.I.G. Capital Advances Sustainability Goals Through Circular Economy and Smart Mobility Investments

H.I.G. Capital Advances Sustainability Goals Through Circular Economy and Smart Mobility Investments

Environmental sustainability and infrastructure modernization have become central themes in H.I.G. Capital’s investment strategy, with the firm completing acquisitions targeting companies positioned to benefit from the transition to circular economy models and sustainable urban mobility. The approach reflects growing investor and regulatory focus on environmental, social, and governance considerations across infrastructure investments.

H.I.G. Infrastructure’s acquisition of Fluo Group positions the firm within Finland’s circular economy sector. The waste management and recycling platform operates integrated operations spanning waste collection, sorting, treatment, and downstream production of recycled materials including plastic granules, pipes, and recovered lubricants.

“The waste management industry across Finland and the broader Nordic region is undergoing transformation driven by circular economy trends,” said Andrew Liau, Head of Europe Infrastructure at H.I.G. “We see potential to grow the business in new waste streams and to consolidate the market both locally and internationally through add-on acquisitions.”

Petri Aaltonen, CEO of Fluo, emphasized the investment’s impact: “This investment marks a milestone in Fluo’s journey to develop circular economy solutions. We look forward to partnering with H.I.G. to deliver even greater value to municipalities, businesses, and the environment.”

Smart Mobility Platform Development

The sale of EYSA Group to Tikehau Investment Management demonstrates H.I.G.’s success in transforming traditional infrastructure operators into technology-enabled platforms. Headquartered in Madrid, EYSA provides smart and sustainable mobility solutions across Spain with growing international presence in over 30 countries.

“H.I.G. has been instrumental in positioning EYSA as a market leader, helping the Company expand into new, high-growth markets,” said Javier Delgado, CEO of EYSA. “H.I.G. has backed various investment opportunities and initiatives, reinforcing our ability to support cities in their transition to more automated, sustainable, and environmentally responsible solutions.”

During H.I.G.’s ownership, EYSA more than doubled its EBITDA while consolidating its position as an integrated provider of mobility solutions throughout Spain and abroad. The company’s services include on-street and off-street parking, tolling, traffic management, and low emission zones that help cities reduce congestion and pollution.

Andrew Liau noted the investment’s attractive returns: “The EYSA team has done an outstanding job transforming the Company from a single-market operator to a global platform and leader in the sustainable mobility solutions space, as demonstrated by the very attractive investment returns this exit has generated.”

Waste Management and Recycling Infrastructure

Fluo Group’s integrated platform addresses multiple points in the waste management value chain, from initial collection through final conversion into recycled products. The company serves over 3,000 businesses and 35,000 households through long-standing public-private partnerships across Ostrobothnia and Eastern Finland.

The circular economy model reduces environmental impact while creating economic value from recovered materials. Fluo’s operations produce high-quality recycled raw materials and finished products including plastic granules used in manufacturing, irrigation and infrastructure pipes, and recovered lubricants for industrial applications.

Finland’s regulatory environment supports circular economy investments through waste reduction targets, recycling mandates, and extended producer responsibility requirements. These policies create stable demand for waste management services while encouraging innovation in material recovery and recycling technologies.

H.I.G.’s infrastructure investment approach emphasizes companies providing essential services with long-term contracts and predictable cash flows. Waste management operations typically involve multi-year agreements with municipalities and commercial customers, providing revenue visibility and downside protection.

Urban Mobility and Transportation Solutions

EYSA’s evolution under H.I.G. ownership illustrates the firm’s operational approach to infrastructure investments. The company expanded beyond traditional parking operations to offer comprehensive smart mobility solutions that help cities manage traffic, reduce emissions, and generate revenue for public budgets.

Low emission zones represent growing opportunities as European cities implement restrictions on high-emission vehicles to improve air quality and reduce greenhouse gas emissions. EYSA’s technology enables enforcement, monitoring, and management of these zones while providing data insights for urban planning and policy development.

Traffic management systems optimize vehicle flow, reduce congestion, and improve safety through intelligent infrastructure and real-time monitoring. EYSA’s integrated offerings combine hardware, software, and services that deliver these capabilities to cities across multiple countries.

The company operates approximately 330,000 parking spaces across more than 270 contracts, providing scale advantages in technology deployment and operational efficiency. This footprint positions EYSA to benefit from continued urbanization and sustainability initiatives across European and international markets.

H.I.G. Capital’s Infrastructure Investment Strategy

The firm’s infrastructure platform focuses on essential services sectors including waste management, transportation, utilities, and telecommunications. H.I.G. Infrastructure makes value-add and core-plus investments in companies with stable cash flows, growth potential, and defensible market positions that support consistent returns.

Environmental infrastructure represents priority areas where H.I.G. sees attractive investment characteristics including regulatory support, secular growth trends, and limited competition. Waste management consolidation continues across developed markets as larger operators acquire regional players to achieve scale efficiencies.

Circular economy investments align with sustainability goals while generating financial returns through operational improvements and market development. Companies converting waste streams into valuable products benefit from both disposal fees and product sales, creating multiple revenue sources.

Smart city investments capitalize on urbanization trends and technology adoption by municipal governments seeking to improve services, reduce costs, and enhance sustainability. Infrastructure providers with proven technology solutions and operational expertise capture value from these initiatives.

Sustainability and ESG Considerations

H.I.G.’s infrastructure investments increasingly incorporate environmental and social considerations into investment decisions and portfolio company operations. The firm works with management teams to implement sustainability practices, measure environmental impacts, and report performance metrics.

Fluo Group’s operations directly support circular economy objectives by diverting waste from landfills and converting recovered materials into usable products. The company’s sustainability commitment extends to manufacturing processes and supply chain management that minimize environmental footprint.

EYSA’s smart mobility solutions help cities achieve emission reduction targets and air quality improvements through low emission zones, traffic optimization, and parking management that reduces vehicle miles traveled. These services generate both environmental and economic benefits for municipal clients.

Infrastructure investments face growing scrutiny regarding environmental impacts, community relationships, and governance practices. H.I.G.’s approach emphasizes partnership with companies demonstrating commitment to sustainability and stakeholder engagement while delivering essential services.

Market Trends and Investment Outlook

Infrastructure modernization continues attracting capital as aging assets require replacement and emerging technologies enable service improvements. H.I.G.’s investment strategy positions the firm to benefit from these trends while maintaining focus on companies with proven business models and experienced management teams.

Waste management consolidation offers opportunities for platform development through acquisitions of regional operators and service line expansion. Fluo Group’s presence across Finland provides a foundation for geographic expansion and new waste stream development that enhance scale and profitability.

Urban mobility services benefit from population growth in metropolitan areas and regulatory initiatives addressing congestion, emissions, and sustainability. Cities worldwide are implementing smart city programs that create demand for integrated technology solutions and infrastructure management services.

Renewable energy, electric vehicle charging infrastructure, and green building technologies represent emerging areas where H.I.G. sees potential investment opportunities. The firm’s infrastructure expertise and operational capabilities transfer across sectors sharing similar characteristics of essential services, long-term contracts, and stable cash flows.

Current infrastructure portfolio companies demonstrate H.I.G.’s ability to identify attractive opportunities, partner with strong management teams, and create value through operational improvements and growth initiatives that benefit from favorable industry trends and regulatory support for sustainability investments.