Porterbrook

Passenger rail transportation is an essential service in the United Kingdom. With a fleet of 5,870 vehicles, Derby-based Porterbrook is the second largest owner and lessor of trains in the UK. Porterbrook leases trains to effectively all UK-based operators and manages maintenance on some of the fleet as a value added service.

Expertise

In October 2014, AIMCo’s new London office played an important role in developing a strong consortium of institutional investment partners and forming relationships with experienced and long-term infrastructure investors that enabled the Porterbrook deal. These new relationships, coupled with the stable political and regulatory environment of the UK and ongoing growth in passenger rail volume, could mean future opportunities for AIMCo client investment.

Investment Characteristics

• Long life, high quality infrastructure assets with stable cash flow
• Traffic risk borne by train operators, not Porterbrook
• Long-term growth in passenger rail volume supported by population growth, road congestion, and urbanization
• First direct rail investment in the infrastructure portfolio, providing further diversification