KKR has agreed to sell Infinity Transportation to Ares Management funds for an enterprise value of approximately $2.9 billion, transferring one of the largest railcar leasing platforms in the United States to Ares Infrastructure Equity and Ares Insurance Solutions.
Founded in 2004, Infinity owns and manages approximately 50,000 railcars leased to more than 350 customers across the United States, Canada, and Mexico. The company provides railcar and intermodal equipment leasing services to customers throughout North America’s transportation and logistics network.
KKR’s wholly owned subsidiary Global Atlantic has invested in Infinity since 2016. Since 2021, Infinity has established a standalone operating platform and significantly expanded its fleet with KKR’s backing.
Over that period, the company increased the book value of its fleet by 150%, helping scale Infinity into one of the largest railcar lessors in the United States. KKR has positioned the investment as an example of its asset-based finance strategy, in which long-duration capital is used to build specialized financing and leasing platforms.
Following completion of the transaction, Ares plans to support continued fleet growth, deepen Infinity’s customer relationships, and pursue additional acquisition opportunities. Ares also expects to draw on its infrastructure investing capabilities and insurance capital as it works with Infinity’s existing management team.
Ares sees long-term demand for rail and logistics equipment being supported by trends including reshoring of manufacturing, increased investment in domestic industrial capacity, and efforts by companies to build more resilient supply chains. Infinity’s portfolio of long-lived transportation assets gives Ares additional exposure to those trends.
The transaction remains subject to customary closing conditions and regulatory approvals and is expected to close in the first quarter of 2027.
Macquarie Capital is serving as financial advisor to KKR, while Simpson Thacher & Bartlett is providing legal counsel. Citi is serving as financial advisor to Ares, and Kirkland & Ellis is acting as legal counsel.
KEY QUOTES:
“Infinity is a great example of KKR’s ability to scale ABF platforms into industry leaders and accelerate their long-term growth. This transaction demonstrates the value that can be created when you combine long-term patient capital with strong partnership and deep expertise. We are proud of what we have built together over the past decade and are confident that Ares will be an exceptional partner to Infinity going forward.”
Daniel Pietrzak, Partner And Head Of ABF At KKR
“We appreciate KKR’s partnership and support, which enabled us to invest in the team, expand our fleet and build Infinity into the industry leader it is today. We’re proud of what we’ve achieved to date and are excited to begin a new chapter with Ares, whose scale and experience will support our continued growth.”
Jeff Edelman, President And CEO Of Infinity Transportation
“Infinity’s railcar portfolio is a critical component of the U.S. transportation and logistics supply chain, and we are pleased to build on our expanding activity in the sector through this transaction. Transportation and logistics assets continue benefiting from the reshoring of manufacturing, increased investment in domestic industrial capacity and growing need for more resilient supply chains. Alongside this strong underlying demand, Infinity’s high-quality, long-lived assets are well suited for long-term investment. We look forward to partnering with Jeff and his team to support continued fleet growth, deepen customer relationships and pursue new acquisition opportunities.”
Mike Roth, Partner In Ares Infrastructure Equity, And Anup Agarwal, Head And Chief Investment Officer Of Ares Insurance Solutions
