GIP and ADIA to buy majority stake in VTG

VTG Aktiengesellschaft is an international wagon hire and rail logistics company with the largest privately owned fleet of railcars in Europe.

  • Morgan Stanley Infrastructure Partners has been invested in VTG since 2016
  • Joachim Herz Stiftung is one of the largest private foundations in Germany
  • GIP and ADIA aim to take advantage of a ‘modal shift to rail’ as companies look to rail to boost decarbonisation of supply chains

Global Infrastructure Partners (GIP) in partnership with Abu Dhabi Investment Authority (ADIA) has reached an agreement to buy a 72.55% equity interest in from Morgan Stanley Infrastructure Partners and Joachim Herz Stiftung, a German foundation.

VTG, headquartered in Hamburg, is an international wagon hire and rail logistics company. It owns a fleet of more than 88,500 railcars, which is the largest privately owned fleet in Europe. VTG has a diversified fleet and pan-European operations and offers services across the industrial, logistics, and railway undertaking sectors.

GIP is an independent infrastructure fund manager headquartered in New York with offices around the globe. It has assets under management of $84 billion dollars.

“We are excited by this investment and the opportunity to leverage GIP’s deep industry expertise in the rail sector to build on a market-leading European transport infrastructure platform,” said Adebayo Ogunlesi, chairman and CEO of GIP. “This acquisition is aligned with GIP’s energy transition and decarbonisation strategy given significant government support for the European rail sector as one of the most cost-effective tools for delivering on net zero emissions targets.”

ADIA was founded in 1976 and is a global investment institution that invests on behalf of the government of Abu Dhabi with a focus on long-term value creation.

“The growth of Europe’s rail freight market is backed by a modal shift to rail as a key enabler of the decarbonisation of supply chains,” said Khadem Al Remeithi, executive director of the infrastructure department at ADIA. “This investment in VTG aligns with our continued focus on pursuing infrastructure opportunities backed by strong energy transition-related tailwinds. For this transaction we have worked together with GIP, a long-standing partner, to invest in a market leading business with an established track record.”