Asset ManagerFrancesco Nale
Status Realised (2015)
- Sector transport
- Vehicle AEIF1
- Investment Year 2008
- Country UK
- Ownership 43.4%
- Employees c.120
- Market Share 34%
- Passenger Vehicles c.4,300
During Arcus’ ownership, Angel continually invested in new generation trains aimed at alleviating already overloaded commuter routes and rail congestion in London and in the rest of the UK.
Angel is unique in leasing to all 21 franchised and open access train operators in the UK.
Angel owns Alstom Pendolino electric high-speed trains equipped with tilting mechanism and designed to run at 140 miles per hour, currently operating up and down the UK on the West Coast Main Line.
- Rail is a popular transport choice in the UK and new trains are required to be built to meet rising passenger demand and for future electrification.
- Rolling stock owners provide a key infrastructure asset to rail service operators under medium to long-term contracts insulated from passenger demand risk.
- Rolling stock assets present a 30 years expected asset life and we identified significant opportunities for extensions and upgrades, which bring economic benefit to the owner.
- Growing passenger demand and high visibility of future tendering processes result in very high utilisation rates for existing assets and accretive new build opportunities.
- Rolling stock companies enjoy very robust cashflows and dividend yields, with upside arising from asset improvement and new build opportunities.
- In August 2015, the fund completed the sale of its entire stake in Angel to existing shareholders, at a return well above the entry investment case.
- During the Arcus ownership period, Angel expanded its rolling stock portfolio and invested £690 million in new build opportunities, procuring 336 additional vehicles.
- Angel achieved 12% EBITDA growth during the period Arcus held the investment.