Ares agrees $2.9bn acquisition of Infinity's 50,000-railcar leasing business

US investment manager Ares has agreed to acquire Infinity Transportation from KKR at an enterprise value of approximately $2.9 billion. The acquisition will bring one of the larger US railcar leasing platforms under the ownership of Ares Infrastructure Equity and Ares Insurance Solutions funds. Infinity owns and manages approximately 50,000 railcars leased to more than 350 customers across the United States, Canada and Mexico. The Atlanta-based company operates across several freight markets. Its portfolio includes covered hoppers for agricultural products, chemicals and plastics, tank cars, gondolas, boxcars, autoracks and intermodal well cars. It offers both net and full-service leasing arrangements, alongside structured equipment financing. The business was established in 2004 and has received investment from Global Atlantic since 2016. Global Atlantic subsequently became part of KKR, and Infinity developed its standalone operating platform from 2021. During this period, Infinity expanded its fleet and increased its book value by approximately 150%. Ares plans to continue growing the leasing portfolio, including through further acquisitions. Another major railcar leasing transaction in 2026 The Infinity deal follows the $4.2 billion acquisition of Wells Fargo's rail operating lease portfolio by GATX and Brookfield Infrastructure, completed on 1 January 2026. That transaction involved approximately 101,000 railcars and substantially expanded GATX's North American fleet under a joint-venture structure. Together, the transactions represent approximately $7.1 billion in enterprise and asset acquisition values associated with two established railcar leasing portfolios. The investment activity comes against a backdrop of high utilisation rates among major North American lessors. GATX reported 98.4% utilisation of its North American fleet, excluding boxcars, at the end of September 2026. Trinity Industries reported 97.0% utilisation during the same period. Lease renewals have also continued at higher rates. GATX recorded a 12.4% increase in renewal lease rates in the third quarter of 2026, while Trinity reported renewal rates 4.1% above expiring contracts. Meanwhile, new freight wagon production remains relatively subdued. Trinity expects fewer than 25,000 railcars to be delivered across the North American industry in 2026, a level it considers the cyclical low point for deliveries. For Ares, Infinity provides an established leasing business with diversified industrial customers and a portfolio of long-life railway assets generating recurring rental income. The acquisition is subject to regulatory approvals and customary closing conditions, with completion expected during the first quarter of 2027.