A boutique investment firm, along with private investor Declan Sherman and several high net-worth family clients have backed sector-focused waste management company Pure, in response to a surge in demand for more customised hazardous waste remediation.
Alvia Asset Partners CIO Josh Derrington said Pure’s resolve to grow through strategic acquisition (recently acquiring WestRex Group), but remain agile enough to keep pace with new waste streams, sparked investor interest.
“Pure was an attractive investment proposition because it’s doing good by the customer and the planet, all while challenging a largely consolidated industry that’s been typically offering static solutions to evolving problems.
“That’s a real issue since the world is growing impatient with companies that are unwilling or unable to effectively manage their waste by-products and reduce their carbon footprint in the process.
“Pure is focused on finding innovative solutions to real waste problems driven by behavioural changes that have been forced upon the sector as China closed its export channel for our waste. As the saying goes, when change is forced upon us, it can force the cream to the top,” he said.
Derrington says the investment syndicate regards waste disposal as an essential service, and since new technology ‘births’ new waste streams, there is a continuous flow of demand for providers that are adequately equipped to respond.
“This in-demand, but highly regulated service poses challenges to new market entrants due to its significant barriers to entry and intellectual property and capability requirements.
“As such, there have been limited alternatives that are sizeable enough to compete, resulting in customers’ needs going unchecked.”
He said this posed a unique opportunity for Pure’s foundation company WestRex to attract new business by providing a customised solution to the waste management process.
“What makes managing hazardous waste problematic is that while companies may be allowed to collect and transport it, they may not be licensed to store or treat it, so they need to dispose of it as soon as possible.
“That’s why customers now seek out waste management providers to develop solutions to their particular waste management needs – a service that few in the industry are able to provide.
“Pure is an investment vehicle created solely to acquire unique niche waste businesses around Australia, with the intent being to build a truly independent national footprint to meet this escalating demand,” Derrington said.