Asset AllocationMarch 27, 2024

Ontario Pension Launches Investment Venture With Arjun Infrastructure Partners

The University Pension Plan Ontario’s first investment under the partnership is an undisclosed stake in Great Britain’s largest rolling stock company.

Reported by Michael Katz

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.