Marvin OnumonuRoyal London has agreed to buy Dalmore Capital, a UK-based infrastructure asset manager, subject to regulatory approval.
The deal is part of Royal London’s plan to grow its private assets business and give pension customers more investment choices.
As part of the acquisition, Royal London will put up to £500m into future Dalmore funds.
Once the deal is completed, Dalmore Capital and its asset servicing arm, Resolis, will move under Royal London Asset Management.
Dalmore Capital will run as a stand-alone infrastructure business within Royal London Asset Management.
Barry O’Dwyer, group CEO at Royal London, said: “Royal London is the personal pension provider most recommended by Independent Financial Advisers.
“By acquiring Dalmore Capital, 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.”
Hans Georgeson, CEO at Royal London Asset Management, 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.”
Michael Ryan, CEO at Dalmore Capital, said: “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.”
