Key Takeaways
- • KKR agreed to sell Infinity Transportation to Ares Infrastructure Equity and Ares Insurance Solutions funds managed by Ares Management at an enterprise value of approximately $2.9 billion.
- • The transaction is subject to customary closing conditions and regulatory approvals and is expected to close in the first quarter of 2027.
- • Infinity leases railcars and intermodal equipment to more than 350 lessees across the U.S., Canada and Mexico, and owns and manages about 50,000 railcars.
- • KKR's subsidiary Global Atlantic has invested in Infinity since 2016; since 2021 the company has built a standalone operating platform, expanded its fleet and increased its book value by 150%.
- • Ares executives Mike Roth and Anup Agarwal cited reshoring and domestic industrial investment as drivers of demand for transportation and logistics assets.
Summary
KKR has agreed to sell Infinity Transportation, the Atlanta-based railcar and intermodal equipment lessor, to funds managed by Ares Management, according to the company's announcement. The deal values Infinity at an enterprise value of approximately $2.9 billion. Buyers are the Ares Infrastructure Equity and Ares Insurance Solutions funds. The transaction remains subject to customary closing conditions and regulatory approvals and is expected to close in the first quarter of 2027. Wall Street Journal, Reuters and KSL.com also reported the $2.9 billion figure in their coverage of the sale.
Infinity, founded in 2004, leases railcars and intermodal equipment to more than 350 lessees in the United States, Canada and Mexico. The company owns and manages approximately 50,000 railcars. KKR's wholly owned subsidiary, Global Atlantic, has been an investor in Infinity since 2016. According to the company's description, since 2021 Infinity has built a standalone operating platform, expanded its fleet and increased its book value by 150%.
Jeff Edelman, president and CEO of Infinity, thanked KKR for its support during the investment period. Ares executives Mike Roth of Ares Infrastructure Equity and Anup Agarwal of Ares Insurance Solutions framed the acquisition around reshoring and domestic industrial investment, which they said are driving demand for transportation and logistics assets.
The transaction illustrates continued institutional appetite for infrastructure-like transportation assets with long-term lease contracts, with the buyer pairing infrastructure equity and insurance-capital vehicles. Further details on financing and purchase structure were not disclosed in the primary announcement.
Infinity, founded in 2004, leases railcars and intermodal equipment to more than 350 lessees in the United States, Canada and Mexico. The company owns and manages approximately 50,000 railcars. KKR's wholly owned subsidiary, Global Atlantic, has been an investor in Infinity since 2016. According to the company's description, since 2021 Infinity has built a standalone operating platform, expanded its fleet and increased its book value by 150%.
Jeff Edelman, president and CEO of Infinity, thanked KKR for its support during the investment period. Ares executives Mike Roth of Ares Infrastructure Equity and Anup Agarwal of Ares Insurance Solutions framed the acquisition around reshoring and domestic industrial investment, which they said are driving demand for transportation and logistics assets.
The transaction illustrates continued institutional appetite for infrastructure-like transportation assets with long-term lease contracts, with the buyer pairing infrastructure equity and insurance-capital vehicles. Further details on financing and purchase structure were not disclosed in the primary announcement.
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