TPG backs Kinetic’s zero emissions strategy with majority investment

AUSTRALIA - Melbourne - Kinetic has today announced that TPG (NASDAQ: TPG), a leading global alternative asset management firm, will become a majority shareholder in the business, following an agreement to acquire a 70 per cent equity interest. This marks an important step in Kinetic’s journey and leadership in decarbonised transportation and supporting zero-emission transport infrastructure across Australia, New Zealand, and internationally.

Kinetic is Australasia’s largest mass transit operator and the 51% owner of UK-based Go-Ahead Group, giving it a strong platform to deliver safe, reliable and sustainable transport across multiple continents.

With a longstanding presence in Melbourne and Sydney, TPG has a twenty-year track record of investing in leading businesses across 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. TPG 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 Chief Executive Officer 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.

“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. A leading operator of zero-emission transport and infrastructure in its major markets, Kinetic has a strong pipeline of electric buses on order, backed by trusted partnerships with governments across multiple jurisdictions. TPG’s investment in Kinetic is underpinned by the company’s long-term contracts, strong operational performance, and ambitious electrification agenda.

Scott Lebovitz, a Managing Partner and Head of Infrastructure for TPG Rise Climate, said: “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. 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.”

“Expansion within existing markets and into new international markets represents a strong growth opportunity for Kinetic, which has proven its ability to deliver market-leading quality as they’ve forged successful partnerships in geographies beyond ANZ, including Asia, the UK, and continental Europe,” added Jamie Gilbert, a London-based Business Unit Partner for TPG Rise Climate.

Senior Managing Director at OPTrust and Kinetic Chairman, Stan Kolenc, said: “We are proud to have founded Kinetic and supported its transformation from a single Melbourne concession with 40 buses in 2014 to a global leader in mass transit. Today, Kinetic operates across seven countries with a fleet of more than 12,000 buses and 400 trains, and over 36,000 employees globally - the scale of the platform demonstrating the strength of our partnership and the capability of the management team to deliver sustained growth and innovation, while providing reliable, sustainable transport solutions for the communities it serves.

“Kinetic is at the forefront of the decarbonisation of the transport sector and is well placed to continue driving the transition to zero-emission public transport globally. We wish Michael and the Kinetic team, TPG and Foresight well as stewards of the business moving forward.”

Foresight’s Head of Australia, Edward Lloyd, said, “Kinetic has demonstrated leadership in delivering sustainable transport solutions globally that align closely with Foresight’s commitment to responsible investment and decarbonisation. Since our initial investment in 2020, we have been proud to support Kinetic’s continued growth and contribution to the transition towards a low-carbon transport economy. We are pleased to welcome TPG Rise Climate as a like-minded partner as we continue to back Kinetic’s mission to create cleaner, more resilient transport networks.”

Kinetic 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.

About Kinetic

Kinetic is the largest bus operator in Australasia and a leading multi-modal mass transit operator globally through its subsidiary Go-Ahead. Kinetic’s network includes over 12,000 buses, 400 trains, 36,000 people and 200 depots. Kinetic proudly operates over 1,500 zero-emission buses (ZEB) across 33 ZEB depots worldwide, and is the leading ZEB operator in Australasia and the UK. Kinetic’s mission is to enhance the communities in which it operates, and this is achieved through delivering on its sustainability priorities.

For more information, visit www.wearekinetic.com.

About TPG Rise Climate

TPG Rise Climate is the dedicated climate investing platform of TPG, a leading global alternative asset management firm. With dedicated pools of capital across private equity, transition infrastructure, and the Global South, TPG Rise Climate pursues climate-related investments that benefit from the diverse skills of TPG’s investing professionals around the world, the strategic relationships and insights developed across TPG’s broad portfolio of climate companies, and a global network of executives, advisors, and corporate partners. As part of TPG’s $29 billion global impact investing platform, TPG Rise Climate invests broadly across the climate sector, with a focus on building and scaling leading climate solutions across the following thematic areas: clean electrons, clean molecules and materials, and adaptive solutions.

For more information, visit https://www.tpg.com/platforms/impact/rise-climate

About Foresight

Foresight is a leading investment manager in real assets, focused on building cleaner energy systems and supporting the decarbonisation of industry. The company is listed on the London Stock Exchange (LSE: FSG) and operates across ten countries in Europe and Australia, managing over A$23 billion in assets under management as at 31 March 2025.With decades of experience, Foresight’s strategies offer investors access to compelling opportunities at the forefront of change including supporting the energy transition, decarbonising industry, enhancing nature recovery and growing thriving economies. Operating internationally, the Foresight team combine financial and operational skillsets across a portfolio of over 450 assets throughout Europe and Australia.  This hands-on approach helps maximise overall value and provide attractive returns to a diverse institutional investor base across a broad range of fund strategies and investment structures.

For more information, visit https://www.foresight.group/

Media Contact

Kinetic
Ben Wilson
bwilson@omc.com
+61 407 966 083

Sarah Coghlan
scoghlan@omc.com
+61 407 162 530

TPG
Clive Mathieson
clive@catoandclive.com
+61 411 888 425

Sue Cato
cato@catoandclive.com
+61 419 282 319