University Pension Plan Ontario (UPP) is investing in the UK’s largest rolling stock company and has also backed a core European fund managed by Arjun Infrastructure Partners.
The C$11bn (€7.5bn) Canadian universities and sector organisations pension fund said it has made an investment in Angel Trains and made a “meaningful commitment” to Arjun’s latest Infrastructure Alliance Europe fund as part of a newly created partnership to pursue further infrastructure investments in OECD countries.
Financial details were undisclosed.
In July last year, Arjun acquired a 10% interest in Angel Trains from the Public Sector Pension Investment Board. At the time, Arjun said the Canadian pension investor, which had held an interest in Angel Trains since 2008, would remain the majority shareholder with a stake of 64.25%.
Angel Trains is the largest rolling stock company in the UK, serving the passenger rail sector with a diversified fleet of around 4,400 vehicles, the majority of which are electric multiple units.
Surinder Toor, managing partner at Arjun Infrastructure Partners, said: “Arjun is delighted that UPP has chosen to make this significant commitment to its European infrastructure platform, underscoring their dedication to growth in the region. Angel Trains has excellent ESG credentials with sector-leading commitment to decarbonisation and innovation; its ‘cradle-to-grave’ asset stewardship approach ensures fleets deliver their full potential throughout their asset lives.
“We are delighted to continue supporting the company and its highly regarded management team in delivering its next phase of development.”
Peter Martin Larsen, senior managing director and head of private markets investments at UPP, said: “We are delighted to partner with Arjun to expand our infrastructure investment programme and complete UPP’s first co-investment. A key part of our investment strategy is partnering with market-leading, like-minded investors like Arjun on attractive co-investments and we are confident this investment can help UPP generate strong and stable long-term returns for our members.
”Given UPP’s desire to support the transition to a low-carbon economy and Angel Trains’ focus on decarbonising their fleet, along with the company’s strong management team, shareholder group and business, this is a very attractive opportunity for us.”
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