The New Zealand Super Fund has invested US$65 million ($93m) in Rubicon Global, an Atlanta-based waste and recycling technology company, to increase its exposure to small, fast-growing private companies.
Acting chief investment officer Mark Fennell said Rubicon was "an attractive opportunity for the fund to increase its exposure to expansion capital", with the firm yet to run an initial public offering.
Around 2 per cent of the Super Fund is in expansion capital, including fuel cell manufacturer Bloom Energy, dynamic glass manufacturer View Inc, and waste-to-energy company LanzaTech.
"As a long-term investor, the NZ Super Fund is able to invest in high growth companies with a view to realising long-term potential," Fennell said.
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"These expansion capital investments are an important part of our investment mix because they can help drive long-run returns."
Fennell said the investment aligns with the fund's strategy to invest in companies which can benefit from the global transition to a low-carbon economy, and Rubicon complements its climate change investment risk strategy.
Earlier this year, former chief executive Adrian Orr told parliament's finance and expenditure select committee that the fund had divested close to $1 billion of assets from carbon to non-carbon companies, as it believes the emission is currently underpriced and represents a risk for the future.
Rubicon's technology platform helps companies cut spending and increase recycling, supporting an increased appetite for sustainability.
In a separate statement today, Rubicon said it had partnered with Atlanta university Georgia Tech to develop an exoskeleton aimed at improving health of rubbish collectors.