University Pension Plan Ontario teams up with Arjun Infrastructure Partners

University Pension Plan Ontario, Toronto, has made an investment in the Infrastructure Alliance Europe fund of Arjun Infrastructure Partners and has also acquired an interest in Angel Trains, a British rolling stock company which owns and leases trains to passenger rail and freight companies.

UPP and Arjun have also formed a partnership to “pursue further infrastructure investments” in member countries of the Organization for Economic Cooperation and Development, said a March 26 release.

A spokesperson for Arjun said the stake in Angel Train was acquired from Public Sector Pension Investment Board, Montreal. The financial consideration for this transaction, nor the stake in Angel that was acquired, were not disclosed, the spokesperson added.

UPP's investment in Infrastructure Alliance Europe Fund was also not disclosed, the spokesperson noted.

UPP’s investment in the Infrastructure Alliance Europe fund represented a “meaningful commitment,” the release noted, and lays the groundwork for future co-investments. Terms of this transaction were also not disclosed, the spokesperson noted.

Angel Trains serves the passenger rail sector in the U.K. with a fleet of 4,400 vehicles, the majority of which are electric multiple units.

On June 28, 2023, Arjun acquired a 10% stake in Angel from PSP. PSP retained a majority stake in Angel with a 64.25% interest.

Neither UPP nor PSP could be reached for further details.

“Angel Trains has excellent ESG credentials with a sector-leading commitment to decarbonization and innovation; its ‘cradle-to-grave’ asset stewardship approach ensures fleets deliver their full potential throughout their asset lives,” said Surinder Toor, managing partner at Arjun Infrastructure Partners, in the release.

Peter Martin Larsen, senior managing director and head of private markets investments at UPP, indicated in the release that the investment in Angel Trains marked the pension plan’s first co-investment.

London-based Arjun is an independent European infrastructure fund manager with $6.2 billion in assets under management. Arjun provides direct access to European mid-market core/core plus infrastructure through funds as well as separate managed accounts.

UPP manages about C$11 billion ($8.1 billion) in pension assets. As of Dec. 31, 2022, infrastructure accounted for 2.5% of UPP’s asset mix, the Arjun spokesperson added.

PSP had C$243.7 billion of net assets as of March 31.