IEP West is a large-scale contract to design, manufacture, finance and maintain 57 new Intercity Express Trains operating on the Great Western Main Line (“GWML”).
- Transport
IEP West
- Dalmore Capital Fund 3
Case study overview
The contract also includes the upgrade of two existing depots in Acton, West London and Maliphant Sidings, Swansea as well as the construction of a new purpose built depot at Stoke Gifford, Bristol. IEP West benefits from an availability-based revenue stream, ensuring no exposure to volume or price risk for a period of 27.5 years expiring in 2044. During this period revenues are guaranteed by the Department for Transport, following which the trains remain in the ownership of the concession and will be available for lease on merchant terms.
Sector
TransportFund
Dalmore Capital Fund 3, Co-InvestmentsFirst Investment date
December 2018Shareholding
34.5%
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Investment strategy
How we invest
For the past 14 years Dalmore has focused on investing in infrastructure that provides services critical to the functioning of society.
Through disciplined selection Dalmore funds have invested in lower volatility assets without significant exposure to GDP, traffic, usage or market price risk. Geographically Dalmore’s focus remains the UK, although we also manage assets in Europe and North America.
Looking forward, the UK mid-market core and core-plus segment continues to be our main focus, which we believe offers opportunities where disciplined underwriting, a thorough analysis of market exposure and local market expertise may support attractive risk-adjusted returns.