TRANSPORT GROUP ISSUES WARNING OVER PRIVATE EQUITY THREAT TO ISLE OF WIGHT FERRY SERVICES
The Solent Transport Users Group (STUG) has strongly condemned the potential acquisition of Red Funnel by private equity firm Northleaf Capital, warning that further private ownership threatens the reliability and affordability of cross-Solent ferry travel.
STUG has raised concerns that private equity involvement has consistently prioritised profit over public service, leading to what it describes as a ‘marked and damaging decline’ in ferry service standards. The group has highlighted that high fares, frequent cancellations, and unreliable services have worsened under the current ownership structure of Red Funnel.
In a statement, the group said the reported interest of Northleaf Capital in purchasing the ferry operator was a ‘cynical and opportunistic move’ that could have lasting negative consequences for the Isle of Wight community.
STUG, which represents around 11,000 supporters including both Isle of Wight MPs, the Leader of the Isle of Wight Council, and members of the Cross-Solent Transport Group, has vowed to oppose the sale.
The group has urged residents, passengers, and supporters to voice their objections directly to the potential investors by contacting roderick.gadsby@northleafcapital.com.
A letter sent by STUG to Northleaf Capital sets out their concerns in strong terms. It warns that private equity ownership has already proven incompatible with essential public services and has had a ‘deeply negative effect’ on ferry links that are a vital economic and social lifeline for the Isle of Wight.
The committee wrote:
“We urge you in the strongest terms to reconsider. Private equity ownership has proven incompatible with the delivery of essential public services.
“For an island such as ours, where ferry services are a vital economic and social lifeline, the involvement of private equity has had a deeply negative effect. The consequences are not abstract – they are felt daily by residents, businesses, and visitors.
“Should Northleaf Capital proceed with this acquisition, you can expect continued and robust opposition from STUG. We will not cease in raising awareness of the consequences of such ownership, and, as has already been demonstrated, this has national political reach.
“Let us be clear: just like the current owners, you may stand to lose your entire investment.”
