Canada’s C$10.8 billion ($8 billion) University Pension Plan Ontario has launched a partnership with London-based Arjun Infrastructure Partners to seek infrastructure investments within the 38 countries that make up the Organization for Economic Co-operation and Development.
Under the new partnership, the first investment the pension fund and the $6.2 billion infrastructure fund manager made was an undisclosed stake in U.K.-based rolling stock company Angel Trains. According to the UPP, it also made a “meaningful commitment” to Arjun’s Infrastructure Alliance Europe fund, adding that the initial investment is “laying the groundwork” for future co-investments.
“A key part of our investment strategy is partnering with market-leading, like-minded investors like Arjun on attractive co-investments and we are confident this investment can help UPP generate strong and stable long-term returns for our members,” said Peter Martin Larsen, UPP’s senior managing director and head of private markets investments, in a statement. “Given UPP’s desire to support the transition to a low-carbon economy and Angel Trains’ focus on decarbonizing their fleet, along with the company’s strong management team, shareholder group and business, this is a very attractive opportunity for us.”
Angel Trains, the U.K.’s largest rolling stock company, serves the passenger rail sector and owns a fleet of approximately 4,400 vehicles, most of which are electric-powered multiple-unit trains.
“Angel Trains has excellent ESG credentials with sector-leading commitment to decarbonization and innovation,” said Surinder Toor, Arjun Infrastructure Partners’ managing partner, in a statement. “Its ‘cradle-to-grave’ asset stewardship approach ensures fleets deliver their full potential throughout their asset lives.”
UPP serves more than 39,000 working and retired members at four Ontario universities and 12 sector organizations.
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Tags: Angel Trains, Arjun Infrastructure Partners, Infrastructure, OECD, Organization for Economic Co-operation and Development, Pension Fund, Peter Martin Larsen, Surinder Toor, University Pension Plan Ontario