TPG to take 70% stake in Kinetic, backing zero-emissions strategy across Australasia

Global asset management firm TPG will become the majority shareholder in multinational bus company Kinetic after agreeing to acquire a 70% equity interest, in a deal the parties say will accelerate zero-emission transport across Australia, New Zealand and overseas.

The transaction, made through the Nasdaq-listed firm’s climate-focused fund, TPG Rise Climate, will see OPTrust exit its holding, while Foresight Group retains 30%. The agreement is subject to regulatory approvals and is expected to complete in the coming months.

Kinetic — Australasia’s largest mass-transit operator and 51% owner of the UK-based Go-Ahead Group — says the investment is underpinned by long-term contracts, operational performance and an ambitious electrification programme. In Australasia, Kinetic directly operates more than 300 electric buses and 11 electric depots, including flagship sites in Melbourne and Auckland. Through Go-Ahead, it runs one of the UK’s largest zero-emission bus fleets, with 1500 electric buses in service.

“Kinetic has always been focused on delivering safe, reliable and sustainable transport for the communities we serve,” Kinetic group chief executive Michael Sewards says.

“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.

“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,” Sewards says.

Scott Lebovitz, managing partner and head of infrastructure for TPG Rise Climate, says 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.”

Today, Kinetic operates across seven countries with a fleet of more than 12,000 buses and 400 trains, and over 36,000 employees globally.

OPTrust senior managing director and Kinetic chairman Stan Kolenc says the company 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.”

Today, Kinetic operates across seven countries with a fleet of more than 12,000 buses and 400 trains, and over 36,000 employees globally. It delivers services across more than 300 contracts globally.

Recent developments include a new 10-year public-transport contract with the Victorian Government, an $80m commitment to a fully electric SkyBus fleet through to 2034, and airport transport contracts in Sydney and Perth. Internationally, Go-Ahead will almost double its bus and zero-emission operations in Singapore from 2026 under a newly awarded $600m contract, has taken over London’s Elizabeth line operations, and recently began running Stockholm’s Metro network.