Global private equity firm TPG has announced it will acquire a 70 per cent stake in transport operator Kinetic, becoming its majority shareholder through the TPG Rise Climate fund. The transaction, which is subject to customary regulatory approvals, will see OPTrust exit its position in Kinetic, while Foresight Group will retain a 30 per cent holding in the company.
Kinetic is Australasia’s largest mass transit operator and the majority owner of the UK’s Go-Ahead Group. The company operates a fleet of more than 12,000 buses and 400 trains across seven countries. The investment from TPG is expected to support Kinetic’s continued expansion in zero-emission transport solutions, building on its current portfolio of approximately 300 electric buses and 11 electric depots located in both Australia and New Zealand.
TPG, through its TPG Rise Climate fund, focuses on investments that drive climate solutions. Scott Lebovitz, TPG Rise Climate’s head of infrastructure, stated that the deal acknowledges Kinetic’s existing leadership in transport electrification, further mentioning that municipalities are pursuing electrification to improve reliability and sustainability. Kinetic has established itself as the trusted partner of choice for cities around the world. Kinetic provides essential transportation services connecting communities while striving toward sustainability.
