Europe's private equity waste deals send global transaction value to 5-year high

Private equity and venture capital investment in waste management hit a five-year high just about five months into 2026, as investors shifted focus toward materials recovery and recycling.

Transaction value in the sector reached $9.34 billion globally between Jan. 1 and May 17, exceeding the $2.4 billion recorded in all of 2025, according to S&P Global Market Intelligence data.

The year-to-date transaction value in 2026 has already surpassed the full-year totals for each year since 2021, when the value reached $10.78 billion.

The number of deals has reached 27 thus far, representing about 44% of the 61 deals recorded for full year 2025.

The analysis includes companies in sanitary services, sewage treatment systems and wastewater treatment. Sanitary services cover cesspool and septic tank cleaning, hazardous waste collection, treatment and disposal services, recycling facilities, refuse systems, remediation services, sewer cleaning and rodding as well as solid waste collection, treatment and disposal services.

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Private equity is investing more in waste management as investors move away from traditional waste collection and disposal and focus on transforming discarded materials, such as food waste, manure and municipal biosolids, into valuable resources such as fertilizer and energy, said Cory Steffek, private equity partner at Ara Partners Group LLC.

"That solves very real problems for communities and farmers who are under pressure on cost, regulation and emissions, while also creating durable assets with contracted revenue," Steffek said.

Regulation plays a key role in the growth of private equity activity in the sector, with tightening landfilling restrictions, rising recycling mandates and extended producer responsibility schemes pushing investment across the value chain, said Vytautas Plunksnis, head of private equity at Lithuania-based INVL Asset Management.

"Europe's waste management market is heavily regulation-driven. Implemented directives create an environment where evolution is incentivized," Plunksnis said.

Consolidation among waste management companies is expected to continue, and private equity firms can take advantage of regional buy-and-build opportunities. "The investor base is also broadening — the lines between private equity, infrastructure funds and strategic investors are already blurring, and that trend is likely to continue," Plunksnis said.

Largest deals

Europe, including the UK, secured the largest amount of private equity and venture capital investment between Jan. 1 and May 17, at $6.73 billion, according to Market Intelligence data.

The US and Canada followed with $2.52 billion.

Two multibillion-dollar transactions have been announced so far in 2026. In the largest transaction, EQT AB (publ)'s EQT Infrastructure VI fund and funds managed by Blackstone Inc.'s infrastructure unit agreed to acquire Spanish waste management and environmental services company Urbaser SA from Platinum Equity LLC for $6.64 billion.

EQT and Blackstone will each own 50% of Urbaser.

Morgan Stanley & Co. International PLC and BBVA were financial advisers to EQT, while JPMorgan and UBS Investment Bank were financial advisers to Blackstone. Simpson Thacher & Bartlett, Linklaters and Kirkland & Ellis were legal advisers to Blackstone and EQT.

The second-largest deal involved Energy Capital Partners LLC, which agreed to buy EnergySolutions Inc., a Salt Lake City-based nuclear fuel processing, recycling and disposal company, from TriArtisan Capital Advisors LLC for $2 billion.

Morgan Stanley and RBC Capital Markets LLC are financial advisers to EnergySolutions, while Ropes & Gray is legal counsel. Latham & Watkins LLP is legal counsel to Energy Capital.

The third-largest transaction was Ara Partners' investment of up to $500 million in Sedron Technologies LLC, which treats biosolids and liquid waste to produce reusable water and fertilizer.