Royal London is to acquire infrastructure specialist Dalmore Capital, the mutual insurance giant announced today (22 May).
Dalmore Capital runs approximately £6bn across five funds, and holds around 130 infrastructure assets including the Thames Tideway Tunnel and several wind and hydro power facilities.
The acquisition, which is subject to regulatory approvals, comes after Royal London signed up to the Mansion House Accord last week, pledging to allocate at least 10% of its defined contribution default fund assets to private markets by 2030.
The insurance company’s chief executive officer Barry O’Dwyer said the deal “demonstrates our commitment to invest in assets that support the UK’s drive for economic growth and an innovative, sustainable future”.
Royal London said it would invest up to £500m into future Dalmore funds as part of the deal. Following completion, Dalmore Capital will become part of Royal London Asset Management (RLAM) and operate as a stand-alone unit.
Hans Georgeson, RLAM’s chief executive officer, said: “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 at Dalmore Capital, added that the acquisition by Royal London was “a strong endorsement” of his team and the outlook for investing in UK infrastructure.
Dalmore was the first fund manager appointed by the Pensions Infrastructure Platform, an investment initiative launched in 2012 by what was then known as the National Association of Pension Funds (now the Pensions and Lifetime Savings Association).
The asset manager oversaw a portfolio of assets on behalf of several large pension funds, including the Pension Protection Fund, Railpen, and Strathclyde Pension Fund.
The Pensions Infrastructure Platform was acquired by Foresight in 2020.
