LONDON: Royal London today announced it has entered into an agreement to acquire Dalmore Capital (Dalmore), a UK-based infrastructure asset manager which manages approximately £6 billion of assets across five flagship funds, subject to regulatory approvals.
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. As part of the acquisition, Royal London will commit up to £500 million to future Dalmore funds.
Dalmore 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.
The portfolio 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 Royal London Asset Management.
Barry O’Dwyer, Group Chief Executive Officer, Royal London, commented: “Royal London is the personal pension provider most recommended by Independent Financial Advisers. 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, commented: “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.”
Michael Ryan, Chief Executive Officer, Dalmore Capital, commented: “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.”