Royal London will acquire the UK-based infrastructure manager Dalmore Capital, which manages around £6bn of assets across five flagship funds.
As part of this deal Royal London has pledged to commit up to £500m to future Dalmore funds.
This announcement comes just a week after Royal London signed the Mansion House Accord, alongside 16 other DC workplace schemes, committing it to invest 10 per cent of its default funds in private markets, and half of this in UK assets.
Royal London says this transaction supports its strategy to broaden its private assets capabilities and provide customers with access to a wider range of investment options.
Dalmore specialises in long-term core and core plus infrastructure investments. It has around 130 infrastructure assets in its portfolio, diversified across different sectors. These are primarily in the UK but it also has holdings in Europe and Canada.
Dalmore’s portfolio also has strong environmental and ‘socially positive’ credentials. 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 ownership of Dalmore Capital and its asset servicing arm, Resolis, will transfer to Royal London Asset Management. Dalmore Capital will operate as a stand-alone infrastructure capability within RLAM.
Royal London Group CEO Barry O’Dwyer says: “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 chief executive officer Royal London Asset Management adds: “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 chief executive officer Michael Ryan says: “This transaction is a strong endorsement of the team at Dalmore, our track record, and the prospects for investing in UK infrastructure.”
