TPG Takes the Wheel in $4B Kinetic Electric Bus Expansion
Big moves are happening in the world of public transport, and Australia’s Kinetic is right at the center of it. Over the past 18 months, a high-stakes auction unfolded that ultimately saw private equity giant TPG Capital step in to take a majority stake in Kinetic through its Rise Climate Fund. This deal, valuing the company at more than $4 billion, wasn’t just a headline grabber—it’s a game-changer for the electrification of public transport across Australia and beyond.
Kinetic, the Melbourne-based operator behind SkyBus services to Tullamarine Airport, has grown from a modest fleet of 50 vehicles in 2015 to a global network of buses and trains. The company also runs London’s iconic red double-decker buses, covering nearly a third of the city’s routes, and operates in multiple UK cities through the Go Ahead Group. Through these operations, Kinetic has become a major player in electric and zero-emission transport solutions.
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The TPG deal marks a pivotal step in Kinetic’s electrification strategy. Through this partnership, the company aims to accelerate its rollout of electric buses, expand its network of electrified depots, and continue its international growth. In Australia and New Zealand alone, Kinetic operates 300 electric buses across 11 depots, with plans to add hundreds more in the near future. Melbourne, in particular, is set to see a significant boost in electric bus services, with 200 additional vehicles on order and a depot in Preston nearing completion.
This isn’t just about buses. Kinetic, which holds a majority stake in the Go Ahead Group, has also expanded into rail, taking over Stockholm’s metro network and managing services such as London’s Elizabeth line, Gatwick Express, and Thameslink. These moves reinforce Kinetic’s position as a multi-modal transport operator committed to sustainability and low-emission solutions.
The TPG Rise Climate Fund, known for investing in electrification and green mobility, now holds a 70 percent stake in Kinetic, while previous investors like OPTrust and Foresight Group have adjusted their holdings. This partnership brings not only capital but also strategic support to push Kinetic’s ambitious electrification agenda forward.
Kinetic’s CEO, Michael Sewards, has emphasized that long-term contracts, government partnerships, and a strong operational track record make the company well-positioned for continued growth. The plan is to fully electrify SkyBus services and invest $80 million into expanding green transport options, including new routes like the SkyBus Eastern Express to Melbourne Airport and services at Sydney Airport.
This $4 billion deal isn’t just a win for investors—it represents a concrete step toward cleaner, zero-emission public transport in Australia, New Zealand, and beyond. With TPG at the wheel, Kinetic is driving the future of sustainable mobility, proving that smart investments can also be green investments.
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