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Cube’s Fund II makes first stop with Danish bus investment

The €1.2bn fund’s predecessor made similar investments in Norway, Germany and Belgium.

Cube Infrastructure Fund II has made its debut investment by taking an 85 percent stake in Danish bus operator Umove.

The stake was bought from Danish asset manager Artha Kapitalforvaltning, which bought into Umove in November 2013. Cube declined to comment on the size of the acquisition.

The deal will provide Cube with access to Denmark’s largest private bus operator of 400 buses and an annual turnover of DKr550 million ($78.9 million; €73.9 million). Umove increased its bus fleet fourfold and its employee count by more than 600 people during Artha’s ownership.

However, Cube said it plans to expand Umove into the rail market, a move that would bring the company in line with the offering of Cube Infrastructure Fund I’s portfolio company Netinera, Germany’s largest regional transport operator working in both sectors. Cube’s first fund also invested in Norwegian bus and tram company Boreal and Belgian bus firm Hansea in 2011 and 2014 respectively.

“With Cube as our majority shareholder we get access to the necessary financial strength and the experience and support of colleges in our neighbouring countries,” said Jonny Hansen, founder and chief executive of Umove.

After completing its spin-off from Natixis last January, Cube sealed a €358.8 million first close on Fund II in September. The fund is targeting €1.2 billion and has backing from the European Investment Bank as well as LPs from France, Germany and North America.