Royal London buys asset manager Dalmore Capital – Daily Business

Royal London is acquiring the infrastructure asset manager Dalmore Capital, whose five flagship funds manage approximately £6bn of assets.

Dalmore has offices in London and Edinburgh and the deal is thought to be in the region of £130 million.

It specialises in long-term core and core plus infrastructure investments and has around 130 infrastructure assets in its portfolio, broadly diversified across different sectors.

It owns 24 operational wind farms in the UK and a portfolio of run-of-the-river hydro generation projects in Scotland, acquired in January in a £44.1m acquisition of Triple Point Energy Transition Holdings.

It has stakes in Thames Tideway’s 25km super sewer; Porterbrook, the owner of rolling stock for Britain’s railways; and Cory, the waste-to-energy giant.

The transaction is in line with Royal London’s strategy of providing customers with access to a wider range of investment options. As part of the acquisition, Royal London will commit up to £500m to future Dalmore funds.

Barry O’Dwyer, group chief executive at Royal London, 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.”

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 standalone infrastructure capability within Royal London Asset Management.

Dalmore Capital chief executive, Michael Ryan, added: “This transaction is a strong endorsement of the team at Dalmore, our track record, and the prospects for investing in UK infrastructure.”