Canadian fund management giant Sun Life Financial on Wednesday swooped to buy UK road-and-hospitals owner InfraRed for £300 million just days after the Tory election result killed off City fears about Labour’s nationalisation plans.
Sun Life’s alternative asset management arm SLC Management will buy 80% of Infrared with an option to purchase the other 20% in five years.
InfraRed, based in London, employs 175 partners and staff. It owns a string of health and schools PFI contracts — via two large listed funds — which were left in limbo ahead of the election.
Labour, led by Jeremy Corbyn, previously said it could renationalise PFI contracts managed by the likes of InfraRed if the party won power. The decisive election result is likely to have killed off the threat for Infrared, clearing the way for Sun Life to swoop.
Many of InfraRed’s partners will be in line for a big windfall after selling their stakes. The payments will be made over a number of years to stop partners from leaving.
Fenchurch Advisory acts for Sun Life and Ardea Partners advised InfraRed.
