​Royal London expands into infrastructure with Dalmore acquisition

Royal London is acquiring £6bn (€7.1bn) UK-based infrastructure manager Dalmore Capital, a move that will expand its private assets capabilities into infrastructure.

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

Dalmore specialises in long-term core and core-plus infrastructure investments, with a portfolio of around 130 assets. Dalmore’s assets are broadly diversified across sectors, primarily within the UK, but also continental Europe and Canada.

Dalmore’s assets include the Thames Tideway Tunnel, 24 operational wind farms in the UK and a portfolio of run-of-the-river hydro generation projects in Scotland.

UK mutual life, pensions and investment company Royal London, manages £173bn in assets and already invests across major asset classes including UK and overseas equities, government and corporate bonds, real estate and cash through its asset management arm.

Royal London said the transaction supports its strategy to “broaden its private assets capabilities and provide customers with access to a wider range of investment options to support their retirement ambitions”.

Barry O’Dwyer, group CEO 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.”

Hans Georgeson, CEO at Royal London Asset Management, said: “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, CEO 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.”

Once the acquisition is complete, Royal London Asset Management will assume ownership of Dalmore and its asset servicing arm, Resolis. Dalmore is expected to function as an independent infrastructure capability within the larger Royal London Asset Management structure.

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