InfraRed Capital Partners acquires Hector Rail Group

InfraRed Capital Partners (“InfraRed”), a leading international infrastructure asset manager, today announced that InfraRed-managed funds have agreed to acquire 100% of Hector Rail AB, the largest private rail freight operator in Scandinavia, from Ancala.

The investment will help Hector Rail continue to enhance its critical freight transportation services and further invest in its fleet, strengthening its offering in sustainable rail freight transport.

Hector Rail was founded in 2004 and is today Scandinavia’s largest privately owned rail operator. Together with its German operations, the company has just over 300 locomotive drivers and a fleet of more than 100 locomotives. Hector Rail is one of the few rail operators with the resources and capacity to conduct cross-border freight traffic between Scandinavia and Germany.

The company’s primary business is sustainable and efficient rail freight transport. Hector Rail transports among other things, lumber, steel, energy products and wood chips as well as consumer and industrial goods in containers.

Ancala’s exit follows a successful six year partnership with Hector Rail. Since Ancala invested in 2020, Hector Rail has invested in its electric fleet, strengthened its management team and supported the integration of its Scandinavian and German operations to create a more efficient organisation that better delivers for its customers. With Ancala’s support, the business has also optimised locomotive utilisation, maintenance planning and procurement to respond more efficiently to customer needs and to enhance services in partnership with its customers.

InfraRed believes its extensive experience in the rail sector, together with Hector Rail’s established management team, can help accelerate the next phase of the business’s development. To meet rising customer demand, planned investment includes additional locomotives and a programme of heavy maintenance and upgrades.

Carsten Hinne, Group CEO at Hector Rail AB said:

“This transaction is a major milestone for Hector Rail. It reflects the collective effort across the business to strengthen how we serve our customers and grow our position as Scandinavia’s leading private rail freight operator.

“Hector Rail’s growth would not have been achievable without the close collaboration, expertise and trust of the Ancala team. In addition, the board’s experience and strategic guidance have been invaluable in helping us capitalise on opportunities and address challenges. It’s a partnership that I have valued greatly and one that has actively supported us to deliver industry-leading and customer-centric transport solutions. With our new owner, we look forward to continuing to deliver our critical services for customers and further develop Hector Rail and our position in the EU.”

Ankur Ajmera, Partner, Ancala, commented:

“We invested in Hector Rail during a period of exceptional uncertainty for the transport sector on the basis of our analysis of Hector Rail’s infrastructure fundamentals. This supported our confidence in the resilience and long-term importance of Hector Rail’s business.

“Since then, we have worked proactively with management to create a more flexible and efficient organisation that is trusted to deliver critical freight services to its growing base of long-term customers. Carsten and the Hector Rail team are perfectly positioned to build on this success and continue to provide innovative, reliable and efficient transport services.”

Sean Watson, Partner at InfraRed, said:

“Hector Rail has the attributes that we look for: a well-established, robust business with solid infrastructure credentials. Importantly, there are also extensive opportunities for growth, building on its strong position in Scandinavia and its critical role in customers’ supply chains. We are excited to be working with its exceptional management team and, having built and grown multiple infrastructure assets and businesses in the rail sector, we will draw on that experience to help Hector Rail achieve its potential.”

The transaction is subject to customary regulatory conditions and is expected to be completed in late 2026.

About Hector Rail

Hector Rail is Scandinavia’s largest privately owned rail freight operator, providing sustainable, safe and efficient transport solutions to industrial and logistics customers across Scandinavia and Europe. Founded in 2004, the company has established a strong international presence in rail logistics and freight transportation.

For more information, please visit: www.hectorrail.com

Follow Hector Rail on LinkedIn

About Ancala

Ancala is a leading independent infrastructure manager that delivers infrastructure investment differently. The firm has c.€5bn assets under management, diversified across critical infrastructure businesses operating in Europe and North America. Ancala takes a unique entrepreneurial and collaborative approach to consistently deliver results for its investors, the companies it invests in and other stakeholders.

For more information, please visit www.ancala.com

Follow Ancala on LinkedIn

About InfraRed Capital Partners (“InfraRed”)

InfraRed is a leading international mid-market infrastructure asset manager. Over the past 25 years, InfraRed has established itself as a highly successful developer and an active steward of essential infrastructure.

InfraRed manages US$13bn of equity capital[1] for investors around the globe in listed and private funds, spanning core to value-add strategies.

InfraRed combines a global reach, operating worldwide from offices in London, New York, Miami, Frankfurt, Madrid, Sydney and Seoul, with deep sector expertise from a team of more than 160 people.

InfraRed is part of SLC Management, the institutional alternatives and traditional asset management business of Sun Life, and benefits from its scale and global platform.

For more information, please visit www.ircp.com.

For more information, contact:

Carsten Hinne, tel. +46 76 547 68 02
CEO
Hector Rail AB
tel. +46 76 547 68 02
carsten.hinne@hectorrail.com