H.I.G. Capital has taken a controlling stake in Fluo Group, a Finnish waste management and recycling platform, in a move that underscores the private equity firm’s focus on sustainability-driven infrastructure. The deal gives H.I.G. a foothold in a sector undergoing rapid transformation as the Nordic region accelerates its transition toward circular economy models.

A Fully Integrated Model

Headquartered in Finland, Fluo operates an integrated platform that spans the entire waste-to-product cycle: collection, sorting, treatment, and downstream recycling. Through long-term public-private partnerships, it serves more than 3,000 businesses and 35,000 households across Ostrobothnia and Eastern Finland.

What sets Fluo apart is its ability to convert recovered materials into finished products, including recycled plastic granules, infrastructure pipes, and recovered lubricants. The model not only reduces landfill use but also creates multiple revenue streams, positioning the company at the intersection of waste management and advanced manufacturing.

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

The company’s municipal contracts provide stable, defensive revenues, while its manufacturing arm offers upside potential as demand for recycled materials grows in construction, industrial, and consumer supply chains.

Growth Through Expansion and Consolidation

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

The Nordic waste management sector remains highly fragmented, offering consolidation opportunities that Fluo could pursue with H.I.G.’s backing. At the same time, EU waste directives and national mandates are pushing for higher recycling rates and stricter limits on landfill use, creating both regulatory demand for Fluo’s services and barriers to entry for competitors.

Fluo’s geographic base in Finland provides strategic advantages: access to abundant forest industry by-products and proximity to other Nordic markets operating under similar sustainability frameworks. Its expertise in turning organic and plastic waste into usable products addresses both environmental imperatives and industrial supply needs.

Anchored in a Sustainability Thesis

The Fluo investment fits squarely within H.I.G.’s infrastructure strategy, which emphasizes assets that combine resilient cash flows with growth potential linked to secular trends such as urbanization, technology adoption, and environmental compliance.

Earlier this year, the firm crystallized gains with the sale of Spanish mobility operator EYSA Group to Tikehau Investment Management after doubling its EBITDA and expanding it into a global smart mobility platform. H.I.G. also recently announced an agreement to acquire a majority stake in Spain’s Avanta Salud Integral, a leading occupational health services provider. Together, the moves illustrate the firm’s ability to balance profitable exits with new platform investments across Europe.

Platform Building Beyond Infrastructure

The Fluo transaction came amid a wider slate of firm-level initiatives. In August, H.I.G. closed the $5.9 billion H.I.G. WhiteHorse Middle Market Lending Fund IV—its largest direct lending fund to date—and established a GP Solutions Platform targeting continuation vehicles and GP-led transactions. The new unit, staffed by veterans from Morgan Stanley’s secondaries team, is led by Managing Director Dan Wieder, alongside Yash Gupta, Austin Gerber, and Joe Holleran (source).

The firm also strengthened its Small-Cap & Growth division with the addition of Harrison B. Davis as Managing Director, complementing a 40-person team focused on scaling lower middle market companies.

Long-Term Value Creation

For H.I.G., Fluo represents more than a single acquisition; it is an entry point into a regional market where regulation and demand are tightly aligned with its investment thesis. The company’s dual revenue streams—stable municipal contracts and rising sales of recycled materials—create multiple levers for value creation.

Founded in 1993 by Sami Mnaymneh and Tony Tamer, H.I.G. Capital today manages $70 billion across private equity, growth equity, real estate, direct lending, infrastructure, and healthcare. Operating from 19 offices worldwide, it has invested in more than 400 companies, with current portfolio holdings generating over $53 billion in combined revenue.

The Fluo deal demonstrates how H.I.G. is positioning itself to capture value in Europe’s sustainability-driven transformation. With regulatory mandates, industrial demand, and environmental priorities converging, the firm’s bet on circular economy infrastructure looks designed for long-term growth.

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