An AMP Capital-managed group of investors has agreed to acquire a significant additional stake in Angel Trains, the UK’s largest rolling stock company, from Arcus European Infrastructure Fund 1.
London-headquartered Angel Trains was established in 1994 and leases its rolling stock to all 19 of the UK’s franchised train operating companies and two open access operators. It has a modern, diverse fleet of approximately 4,500 vehicles.
Going forward, AMP Capital, on behalf of its managed funds and clients (which include a wholly-owned subsidiary of the Abu Dhabi Investment Authority, an Asian institutional investor, PensionDanmark and Swiss Life Asset Managers) will own a majority stake in Angel Trains.
AMP Capital Global Head of Infrastructure Equity Boe Pahari said: “I am delighted to have secured a majority stake in Angel Trains, one of the UK’s leading train leasing specialists, on behalf of our clients. We have come to know the asset very well during our seven years of ownership and we and our investors like its long-term contracted revenue, stable cash flows and strong growth opportunities.
“This is a key transaction for AMP Capital’s Infrastructure Equity team. Angel Trains is the largest asset held by AMP Capital’s Global Infrastructure Fund, which was launched in October 2014. The fund achieved its first close earlier in the year and fundraising has contributed to AMP Capital’s global infrastructure platform already reaching half its target size of US$2 billion.”
AMP Capital's managed funds have been invested in Angel Trains since 2008 and prior to the transaction AMP Capital held 25 per cent of the company while PSP Investments held approximately 16 per cent. As part of the sale by Arcus European Infrastructure Fund 1, PSP Investments has separately acquired an additional stake and is increasing its ownership to 30 per cent.
AMP Capital was advised by CMS Cameron McKenna (legal), PriceWaterhouseCoopers (financial and tax), SDG (commercial and technical) and Macquarie Capital (M&A).
The seller was advised by Freshfields Bruckhaus Deringer (legal), Citigroup (M&A), Ernst & Young (financial and tax), Interfleet (technical) and Quasar Associates (commercial).