The deal is part of the asset manager’s drive to ‘broaden its private assets capabilities’.

Royal London has agreed to buy infrastructure asset manager Dalmore Capital as part of its push into private assets.

Asset managers have been searching for ways to expand their exposure to private assets in recent years, with many major players opening their chequebooks to broaden their exposure to the sector.

Royal London said its acquisition of Dalmore Capital — which manages £6bn in assets — was part of its strategy to “broaden its private assets capabilities”.

Dalmore’s assets include an investment in the Thames Tideway Tunnel, the 16-mile so-called super-sewer that runs under the River Thames.

Royal London is paying approximately £130m to acquire Dalmore.

Royal London Asset Management’s chief executive Hans Georgeson said the deal was a “significant milestone in broadening our private assets capability”.

Royal London was advised by investment bank BNP Paribas, consultancy firm PwC, sustainability-focused finance firm Longspur and law firm Herbert Smith Freehills.

Meanwhile, Rothschild & Co and Slaughter and May served as financial and legal advisers respectively to Dalmore Capital.