Singapore sovereign wealth fund GIC, one of the world’s largest investors in private equity funds, has secured a further 27% stake in The Railpool Group (Railpool), one of Europe’s leading rail vehicle leasing companies for electric locomotives.

The fund acquired the stake from co-owner Palladio Partners, a German specialist in the field of global infrastructure investments, making GIC the majority shareholder in Railpool.

The rail vehicle leasing firm was established in 2008, with GIC first investing in 2016. Since then, the business has seen strong organic growth, entered new business areas like providing passenger wagons to FlixTrain, and completed a number of key acquisitions, including that of rolling stock firm LocoItalia and workshops. 

Railpool is one of the largest providers in Europe with more than 440 locomotives and 148 passenger vehicles. The company’s fleet of locomotives is 100% electric and operates a full-service leasing model in 18 European countries.

“Railpool has delivered strong business performance since our first investment in 2016,” says Ang Eng Seng, the fund’s CIO of infrastructure. “During this period, Railpool more than doubled its fleet. [As well,] we expect growth in rail locomotive leasing to continue, driven in particular by ongoing replacement of owned locomotives with leased ones, and the shift from road to rail.”