Kinderhook Industries has completed a $1.0bn single-asset continuation vehicle transaction for Ecowaste Solutions, extending its ownership of a scaled waste services platform while providing liquidity to existing investors.

Ecowaste was formed through the combination of Live Oak Environmental and CARDS Recycling and represents Kinderhook’s ninth platform investment in the solid waste management sector. The continuation vehicle is anchored by Kinderhook Fund VIII, with additional capital from funds managed by Goldman Sachs Alternatives and Apollo S3.

The transaction delivers more than $400m of new equity capital to support organic growth and an active pipeline of add-on acquisitions across the Mid-South region of the US. Debt financing was provided by a lender group led by Ares Capital, with participation from MidCap Financial, Willow Tree, and the Stifel Lending Program.

“This is a very exciting transaction for Kinderhook and our investors and represents the largest environmental services investment in our firm’s history,” said Rob Michalik, managing director of Kinderhook. He added that the firm looked forward to supporting management through the next phase of growth.

Ecowaste is led by chief executive Dustin Reynolds and operates collection and post-collection assets across nine US states, serving more than 400,000 customers across residential, commercial, and industrial segments.

The deal highlights the continued use of continuation vehicles by private equity firms seeking to balance liquidity needs with conviction in long-term assets, particularly in defensive infrastructure-like sectors such as waste services.

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