In May 2025, Royal London, the UK’s largest mutual life and pensions company, announced the acquisition of Dalmore Capital, a leading independent infrastructure asset manager. This strategic move is aimed at enhancing Royal London’s presence in the infrastructure investment space, particularly in support of long-term, sustainable growth.
Strengthening the Investment Platform
Royal London has long sought to diversify its portfolio with stable, income-generating assets. Dalmore Capital, which manages over €9.9 billion in assets, specializes in infrastructure investments, including public-private partnerships (PPPs), renewable energy, transportation, and social infrastructure. Through the acquisition, Royal London gains immediate access to a mature portfolio of sustainable assets and deepens its investment expertise in the sector.
Infrastructure Market Overview
Infrastructure is increasingly viewed as a core asset class by institutional investors across the UK and Europe. With growing demand for modernization in transport, energy, and public services, private capital is playing a vital role in addressing funding gaps. Infrastructure assets typically offer low volatility and reliable cash flows, making them especially attractive to pension funds and insurance providers.
Projects backed by long-term government contracts—such as toll roads, hospitals, and utilities—are seen as particularly secure. Infrastructure investments also align strongly with ESG (Environmental, Social, and Governance) criteria, which are becoming a standard benchmark for responsible investing.
Strategic Synergy
This acquisition brings several strategic benefits to Royal London:
- A strengthened position in sustainable and resilient investments;
- Access to a high-performing infrastructure portfolio;
- An expanded range of investment solutions;
- Greater portfolio diversification and risk mitigation;
- Enhanced internal expertise in infrastructure investing.
Dalmore will continue to operate as an independent brand within Royal London’s structure, maintaining its leadership team and investment strategy. This will ensure continuity and preserve the confidence of existing investors.
Financial Terms of the Deal
While the purchase price was not officially disclosed, analysts estimate the transaction to be valued between €500 million and €700 million. Dalmore ranks among the top UK-based infrastructure managers, and its acquisition significantly bolsters Royal London’s competitive position in the sector.
The deal is subject to regulatory approval, which is expected in the third quarter of 2025. Upon completion, Royal London aims to increase the allocation of infrastructure within its overall investment portfolio.
Competitive Landscape
Infrastructure has become a strategic priority for many institutional players. Over the past two years, companies like Aviva, AXA, and Legal & General have expanded their infrastructure holdings. By acquiring Dalmore, Royal London leapfrogs into a leading position in the market.
Dalmore’s portfolio includes major UK projects such as the Thames Tideway Tunnel and assets within the NHS estate. These projects generate stable, long-term income and comply with strict sustainability requirements.
ESG and Sustainable Investing
Dalmore has a strong focus on sustainable assets, including renewable energy projects, low-emission transport, and social infrastructure such as schools and healthcare facilities. These investments align with Royal London’s net-zero strategy, which commits to achieving carbon neutrality in its investment portfolio by 2050.
This acquisition reinforces Royal London’s role as a responsible investor and enables the creation of new, ESG-aligned investment products for institutional and retail clients.
New Product Development and Market Reach
Royal London is expected to introduce a range of new investment products based on infrastructure assets. These may include specialist funds, green bonds, and income-oriented investment vehicles designed for both individual savers and institutional partners.
In the longer term, the company is considering expanding into EU markets through localized platforms and partnerships with regional infrastructure operators.
Long-Term Vision
Royal London has outlined several strategic goals following the acquisition:
- Increase the infrastructure allocation in its investment portfolio from 7% to 15% by 2030;
- Develop internal ESG analysis and reporting tools;
- Build in-house teams for sustainable infrastructure project management;
- Support large-scale financing initiatives tied to the green transition.
The acquisition of Dalmore provides the operational foundation and intellectual capital required to achieve these objectives.
Conclusion
The acquisition of Dalmore Capital is a significant strategic step for Royal London, positioning the firm at the forefront of sustainable infrastructure investment. The partnership brings together Dalmore’s infrastructure expertise and Royal London’s robust investment platform, creating powerful synergies.
At a time of heightened focus on ESG, climate resilience, and infrastructure modernization, this move supports Royal London’s long-term strategy and meets the evolving expectations of investors. It strengthens the company’s market standing and sets the stage for sustained growth and innovation in the years to come.
