£3.98bn merger creates UK’s largest infrastructure investment firm

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Announced on Monday, the deal will bring together HICL’s portfolio of more than 100 core infrastructure assets across social infrastructure, utilities and transport, with TRIG’s 2.3 GW renewables platform, which includes solar, onshore and offshore wind, and battery storage projects across the UK and Europe.

The enlarged company will have combined net assets of more than £5.3 billion.

Under the terms of the deal, TRIG will be voluntarily wound up, with its assets transferred to HICL in exchange for new HICL shares and a £350 million liquidity package.

That includes a partial cash option for TRIG shareholders and a commitment from Sun Life, the parent company of HICL’s investment manager, to purchase shares after completion.

Ownership of the combined group will be split roughly 56% to existing HICL shareholders and 44% to TRIG investors.

Both companies said the merger comes against a backdrop of weak valuations in the UK infrastructure investment sector, where alternative asset funds have faced shifting investor preferences and regulatory pressures.

“In recent years, listed investment companies in the alternatives sector have seen evolving investor preferences and regulatory developments influencing sentiment across the sector resulting in a more challenging market backdrop,” the companies said in a statement.

Both companies have taken steps to boost performance but have yet to see their shares close the valuation gap, they said.

The merger is expected to close in the first quarter of 2026, subject to shareholder and regulatory approvals.

Goldman Sachs International and Investec advised HICL, while TRIG was advised by BNP Paribas.