Just weeks after speculation first arose about its acquisition, Kinetic has confirmed a global firm will become a majority shareholder in the business.
Leading global alternative asset management firm TPG has agreed to acquire a 70 per cent equity interest in the business, marking an important step in Kinetic’s journey and leadership in decarbonising transport and supporting zero-emissions transport infrastructure.
As a major mass transit operator in Australasia and a 51 per cent owner of UK-based operation Go-Ahead Group, TPG is now able to expand upon its 20-year track record of investing in leading businesses in Australia and New Zealand.
TPG is making the investment in Kinetic through its TPG Rise Climate platform, led by its TPG Rise Climate Transition Infrastructure Strategy.
Rise Climate is one of the world’s largest private markets climate investing platforms and brings to Kinetic deep expertise in electrification and green mobility.
As part of the agreement, OPTrust will exit its shareholding, while Foresight Group will retain a 30 per cent stake. The agreement is subject to regulatory approvals and is expected to be finalised in the coming months.
Kinetic Group CEO Michael Sewards says the investment reflects the strength of the business, underpinned by long term contracts and a clear demonstrable growth trajectory.
“Kinetic has always been focused on delivering safe, reliable and sustainable transport for the communities we serve. This new partnership with TPG supports our long-term vision and will help us deliver Kinetic to even more communities, and strengthen our commitment to building a net zero transport platform, both here in Australia and New Zealand and globally,” he says.
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“I want to acknowledge and thank OPTrust for their incredible support over the past 11 years. Their initial belief in the vision Adam Begg and I outlined in 2014, and their subsequent long-term commitment has been instrumental in shaping Kinetic’s leadership position and demonstrating that our mass transit platform is an attractive and scalable investment. This next step in our journey is an important affirmation of our strategy and will enable us to accelerate our zero-emission ambitions.
“More than ever, our contracting partners are seeking a transport provider with the global expertise, strength, resources and vision to achieve transformation in their transport network and decarbonisation aspirations.
“At Kinetic, together with TPG and Foresight, we are proud to be that partner – driving innovation and delivering sustainable transport at scale.”
In Australasia, Kinetic directly operates more than 300 electric buses and 11 electric depots, including flagship facilities in Melbourne and Auckland. Through its majority-owned subsidiary Go-Ahead, the company also runs one of the UK’s largest zero-emission bus fleets, with 1,500 electric buses in service and growing.
TPG’s investment in Kinetic is underpinned by the company’s long-term contracts, strong operational performance and ambitious electrification agenda.
“Kinetic and its customers benefit from the company’s innovation and early mover advantage in the electrification of public transport. Municipalities are continuing to pursue electrification to improve reliability and sustainability of their public transit systems, improve urban air quality, and reduce noise and congestion – Kinetic has established itself as the trusted partner of choice for cities around the world,” TPG Rise Climate managing partner and head of infrastructure Scott Lebovitz says.
“From Michael and the management team through to the drivers, workshop staff, and depot managers, Kinetic’s people are what set the company apart, and we are excited to partner with them to further scale the business.”
Kinetic also continues to deliver reliable services across more than 300 contracts globally, including recent network expansions announced and delivered in Melbourne, London, Singapore, Ireland and New Zealand.
Locally, earlier this year, Kinetic expanded its partnership with the Victorian government with a new 10-year public transport contract, launched a new Eastern Express service in Melbourne via its SkyBus brand and committed to an $80m investment in a fully electric SkyBus fleet through to 2034. SkyBus also secured contracts with Sydney Airport and Perth Airport to provide ground transportation services, with a focus on electrification.
Through Go-Ahead, Kinetic continues to expand internationally. The company announced it would almost double its bus and ZEB operations in Singapore from 2026 under a newly awarded $600m contract.
Go-Ahead also took over the operation of the iconic Elizabeth line in London in May, one of the UK’s fastest growing railways, and has this week begun operating Stockholm’s Metro network, one of the largest public transport contracts in continental Europe.
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