Investment firm TPG has bought a 70% stake in Australasia’s largest mass transit operator, Kinetic, from OPTrust in a deal valuing the business at over A$4bn (€2.3bn).
Foresight Group, which has been an investor in Kinetic since 2020, retains its existing 30% stake in the company.
Kinetic runs buses, trains and transit systems across Australia, New Zealand, Singapore and Europe, and is a 51% owner of UK bus operator Go-Ahead.
NASDAQ-listed TPG is investing in Kinetic through its TPG Rise Climate platform, under the TPG Rise Climate transition infrastructure strategy.
Scott Lebovitz, a managing partner and head of infrastructure for TPG Rise Climate, said: “Kinetic and its customers benefit from the company’s innovation and early mover advantage in the electrification of public transport.
“Municipalities are continuing to pursue electrification to improve reliability and sustainability of their public transit systems, improve urban air quality, and reduce noise and congestion – Kinetic has established itself as the trusted partner of choice for a longstanding presence in Melbourne and Sydney.“
Michael Sewards, Kinetic Group CEO, said: “This new partnership with TPG supports our long-term vision and will help us deliver Kinetic to even more communities, and strengthen our commitment to building a net zero transport platform, both here in Australia and New Zealand and globally.”
Stan Kolenc, senior managing director at Canadian pension fund OPTrust and Kinetic chairman, said: “We are proud to have founded Kinetic and supported its transformation from a single Melbourne concession with 40 buses in 2014 to a global leader in mass transit.
“Today, Kinetic operates across seven countries with a fleet of more than 12,000 buses and 400 trains, and over 36,000 employees globally - the scale of the platform demonstrating the strength of our partnership and the capability of the management team to deliver sustained growth and innovation.”
Edward Lloyd, Foresight’s head of Australia, said: “Kinetic has demonstrated leadership in delivering sustainable transport solutions globally that align closely with Foresight’s commitment to responsible investment and decarbonisation.”
To read the latest IPE Real Assets magazine click here.
