Kinderhook Launches Ecowaste Platform With Goldman Sachs and Apollo

Kinderhook Industries has completed a roughly $1 billion transaction to combine Live Oak Environmental and CARDS Recycling into a new solid waste services company, Ecowaste Solutions, securing fresh capital to accelerate consolidation in a fragmented U.S. waste market, the firm said in a statement and industry reporting.

The deal is structured as a single-asset continuation vehicle, a growing private equity tool that allows existing investors to take liquidity while extending ownership of assets viewed as having further growth potential. Analysts say such vehicles have become more common in environmental services as demand for waste collection, recycling, and disposal remains resilient despite broader economic uncertainty.

Ecowaste combines collection, recycling, and post-collection operations across the Mid-South, a region that has seen above-average population growth and expanding industrial and logistics activity. Observers note that the region’s rising construction volumes and tightening environmental standards have supported steady increases in waste volumes, making it a focal point for platform-building strategies.

The transaction provides more than $400 million in new equity to fund organic expansion and additional acquisitions, while offering optional liquidity to Kinderhook’s limited partners. The continuation vehicle is anchored by Kinderhook Fund VIII, alongside funds managed by Goldman Sachs Alternatives and Apollo’s Strategic Origination and Structured Capital unit, known as S3. Kinderhook said the Ecowaste investment marks its 159th acquisition in environmental and industrial services and its ninth platform in the solid waste segment.

Live Oak Environmental and CARDS Recycling previously completed more than 35 add-on deals under Kinderhook’s ownership, building scale and integration capabilities that executives say position the combined company for further consolidation. Industry groups argue that vertically integrated operators are better placed to absorb rising labor, fuel, and compliance costs while maintaining service levels.

Kinderhook executives described the transaction as the firm’s largest environmental services investment to date, while Ecowaste’s management said the new capital would be directed toward expanding routes, upgrading assets, and pursuing selective acquisitions in core markets. Analysts say competition for quality waste assets remains intense, with private equity firms seeking platforms that can deliver predictable cash flows and pricing power.

Jefferies advised on the continuation vehicle, while Stifel acted as financial adviser and sole placement agent for the debt financing. Legal counsel was provided by Kirkland & Ellis. The debt package was led by Ares Capital, with participation from MidCap Financial, Willow Tree, and the Stifel Lending Program.

Market watchers expect further consolidation in regional solid waste services as private operators target scale and efficiency gains, particularly in high-growth U.S. corridors where municipal capacity is limited.

Source: PR Newswire

SUNSHINE Spotlight: The Ecowaste deal underscores private equity’s continued push to build scaled, vertically integrated waste platforms in fast-growing regional markets.