Royal London in Talks to Buy Dalmore Capital

By Evans Momodu
3 minute read


Royal London, one of the UK’s largest mutual financial services groups, is reportedly in discussions to acquire Dalmore Capital, an infrastructure investment firm known for its stake in the Thames Tideway "super-sewer."

The move reflects Royal London’s interest in expanding its portfolio into infrastructure, aligning with a broader trend among asset managers to diversify into alternative investments.

Key Details:

• Dalmore Capital's Assets: The firm manages approximately £6 billion in assets, including stakes in high-profile infrastructure projects:

  • Thames Tideway: A 25km "super-sewer" under London, set to be fully operational in 2025.
  • Porterbrook: A major owner of railway rolling stock in the UK.
  • Cory: A waste-to-energy company.
  • IEP West: A contract involving Hitachi Intercity Express trains and maintenance depots on the Great Western Main Line.

• Royal London's Asset Management: Through its RLAM division, the mutual manages over £170 billion in client assets and sees infrastructure as a strategic growth area.

• Broader Industry Context: The potential deal reflects a trend in the financial sector, where firms like BlackRock are acquiring infrastructure-focused investment companies to meet growing demand for alternative asset classes. BlackRock's recent purchase of Global Infrastructure Partners (GIP) is an example.

If successful, this acquisition would enhance Royal London’s exposure to long-term, stable investment opportunities in critical infrastructure, aligning with its goals to offer diversified investment options.

Dalmore’s well-regarded portfolio and expertise could also strengthen Royal London's position in this competitive sector.

The transaction remains speculative, with other parties reportedly expressing interest in Dalmore.
However, industry sources suggest the UK government's increased focus on infrastructure investment could create favourable conditions for such deals.
Source: Sky news