Royal London has reached an agreement to acquire UK-based infrastructure asset manager, Dalmore Capital, subject to regulatory approval.

Dalmore manages approximately £6bn of assets across five flagship funds.

The ownership of Dalmore and its asset servicing arm, Resolis, will transfer to Royal London Asset Management, while Dalmore will operate as a standalone infrastructure capability within Royal London Asset Management.

Royal London said the deal would support its strategy to broaden its private assets capabilities and provide customers with access to more investment options that support their retirement ambitions. As part of the acquisition, Royal London will commit up to £500m to future Dalmore funds.

Group CEO at Royal London, Barry O’Dwyer, commented: “By acquiring Dalmore, 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.”

Dalmore specialises in long-term core and core plus infrastructure investments and has around 130 infrastructure assets in its portfolio, broadly diversified across different sectors. These assets are primarily in the UK, including the Thames Tideway Tunnel and 24 operational wind farms, but also cover Europe and Canada.

Royal London Asset Management CEO, Hans Georgeson, 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.”

Dalmore Capital CEO, Michael Ryan, added: “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.”

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