KKR to Sell Railcar Lessor Infinity Transportation to Ares for $2.9B

KKR has agreed to sell Infinity Transportation to funds managed by Ares Management at an enterprise value of approximately $2.9 billion, transferring a major North American railcar leasing platform to Ares’ infrastructure and insurance investment businesses. The buyers are Ares Infrastructure Equity and Ares Insurance Solutions funds.

Atlanta-based Infinity owns and manages approximately 50,000 railcars leased to more than 350 customers across the United States, Canada and Mexico. The company also leases intermodal equipment and purchases railcars in the secondary market.

Global Atlantic, KKR’s wholly owned insurance subsidiary, first invested in Infinity in 2016. KKR gained ownership exposure through its acquisition of a majority interest in Global Atlantic in 2021.

Since 2021, Infinity has established a standalone operating platform and expanded its fleet, increasing book value by 150%, according to KKR. That growth helped position the company among the largest U.S. railcar lessors.

“Infinity’s railcar portfolio is a critical component of the U.S. transportation and logistics supply chain,” Ares executives Mike Roth and Anup Agarwal said in a joint statement.

Ares plans to support further fleet expansion and deepen customer relationships. The firm cited manufacturing reshoring and demand for more resilient supply chains as factors supporting transportation and logistics investment.

Infinity’s customers include railroad operators, logistics companies, automakers and businesses transporting agricultural products, chemicals and other commodities.

The transaction is expected to close in the first quarter of 2027.

Macquarie Capital is serving as financial advisor and Simpson Thacher & Bartlett LLP is serving as legal counsel to KKR. Citi is serving as financial advisor and Kirkland & Ellis LLP is serving as legal counsel to Ares.