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Dalmore Capital and GLIL Infrastructure to acquire 15 per cent interest in Anglian Water Group

Dalmore Capital (Dalmore) and GLIL Infrastructure LLP (GLIL) are to acquire, on a 50/50 basis, a 15 per cent interest in Anglian Water Group (AWG) from 3i.

AWG manages water and water recycling services in the East of England and Hartlepool, and is the largest water and sewerage company in England and Wales by geographic area. Measured by Regulated Capital Value (RCV) it is the fourth largest water company.
AWG supplies and services circa 2 million households and 124,000 business connections, delivering approximately 1.1 billion litres of water every day as the primary source. Its network includes thousands of kilometres of water mains and sewers, and over 1,000 water recycling centres and water treatment works.
Dalmore and GLIL believe that AWG is one of the best managed companies in the water sector and capable of delivering outcomes fully in line with the requirements of both investors and customers. 
This investment is part of Dalmore and GLIL’s strategy to invest in UK infrastructure assets, reflecting their shared investment philosophies, which are based upon long-term investment in low volatility growth assets in the UK. The firms are backed by pension funds, insurance companies and other long-term investors.
Michael Ryan, chief executive of Dalmore Capital, says: “AWG is an excellent fit within our core investment strategy, which targets UK infrastructure businesses that deliver long-term predictable inflation-linked cash flows, with robust cash yield. At a time when regulators are challenging investors on returns, we are delighted to be investing in one of the best performing and best run UK water companies.”
Kieran Quinn, Chairman of Greater Manchester Pension Fund (GMPF), says: “GLIL was formed to enable UK Local Government pension funds to seek strong opportunities to invest in essential UK infrastructure assets and we are delighted to be acquiring such an exceptionally well-run company, meeting our strict investment criteria.”
Sir Merrick Cockell, Chairman of the London Pension Fund Authority (LPFA), says: “Pension fund investment is key to UK infrastructure development. This investment in AWG demonstrates our commitment to sustainable infrastructure investing. It is a perfect example of how GLIL‘s collaborative and long-term investment approach can help to ensure stability for pension funds and the services provided to the public through our infrastructure”.

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