Investments

Royal London broadens private asset capabilities with latest acquisition


Royal London has entered into an agreement to acquire UK-based infrastructure asset manager Dalmore Capital.

The deal 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.

As part of the acquisition, Royal London will commit up to £500m to future Dalmore funds.

Dalmore, which manages approximately £6bn of assets across five flagship funds, specialises in long-term core and core plus infrastructure investments.

It has around 130 infrastructure assets in its portfolio, broadly diversified across different sectors, primarily in the UK but also in Europe and Canada.

Assets include the Thames Tideway Tunnel, as well as 24 operational wind farms in the UK with total capacity of 562MW and a portfolio of run-of-the-river hydro generation projects in Scotland.

Following completion of the deal, which is subject to regulatory approval, ownership of Dalmore Capital and its asset servicing arm, Resolis, will transfer to Royal London Asset Management.

Dalmore Capital will operate as a standalone infrastructure capability within Royal London Asset Management.

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Royal London group CEO Barry O’Dwyer said: “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.”

Hans Georgeson, CEO of Royal London Asset Management, added: “This acquisition is a significant milestone in broadening our private assets capability to meet the changing needs of our clients.

“There is a strong strategic fit between the two businesses and a focus on investing in assets with broader societal and economic benefits.”

Dalmore Capital CEO Michael Ryan 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.”

BNP Paribas, PwC, Longspur and Herbert Smith Freehills served as financial and legal advisers to Royal London/Royal London Asset Management.

Rothschild & Co and Slaughter & May served as financial and legal advisers respectively to Dalmore Capital.



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