Dalmore Capital, whose portfolio includes the Thames Tideway Tunnel, has agreed to its acquisition by Royal London who has committed to provide £500 million of funds, in a bid to grow its investment in UK infrastructure.
Dalmore, an independent fund management company formed in 2009 by Michael Ryan, John McDonagh and Alistair Ray, acquires, manages and holds low volatility public infrastructure assets, such as schools, hospitals, and energy generation.
It has around 130 infrastructure assets across five flagship funds worth around £6 billion, including ‘super sewer’ Tideway, in its sector varied portfolio. This is primarily in the UK, but also in Europe and Canada.
Following completion of its acquisition, it has been agreed ownership of Dalmore Capital and its asset servicing arm, Resolis, will transfer to Royal London Asset Management (RLAM), operating as a stand-alone infrastructure capability.
Part of Royal London, the UK’s largest mutually owned pension and investment company, RLAM invests across a broad range of core assets, including equities, multi asset, and property.
As part of the acquisition, Royal London will, in addition, commit up to £500 million to future Dalmore funds.
The transaction supports Royal London’s strategy to broaden its private assets capabilities and provide customers with access to a wider range of investment options to support their retirement ambitions.
Michael Ryan, chief executive officer at Dalmore Capital, said: “We are delighted to be partnering with Royal London in the next stage of our growth. This transaction is a strong endorsement of the team at Dalmore, our track record, and the prospects for investing in UK infrastructure.”
Barry O’Dwyer, group chief executive officer at Royal London, added: “By acquiring Dalmore Capital, we can offer our individual and workplace pension savers access to the long-term, stable returns that infrastructure investments can potentially provide.
“Additionally, it demonstrates our commitment to invest in assets that support the UK’s drive for economic growth and an innovative, sustainable future.”
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