LOS ANGELES & GREENWICH, Conn.--(BUSINESS WIRE)--
Ares EIF, the power and infrastructure strategy at Ares Management, L.P.
(NYSE: ARES), and Starwood Energy Group Global, LLC, a leading private
investment firm focused on energy infrastructure, announced today that
they have signed an agreement to sell their respective interests in
Hudson Transmission Partners, LLC (“HTP”) to an investment vehicle
managed by Argo Infrastructure Partners, LLC. Financial details were not
disclosed. A subsidiary of PowerBridge, LLC of Fairfield, CT, the
developer of the project, will continue to operate and maintain the
asset on behalf of Argo Infrastructure and other stakeholders. The
transaction is subject to customary regulatory approvals and is expected
to close later in 2018 or in early 2019.
HTP is a joint venture formed solely to develop, construct, operate and
maintain the Hudson Transmission Project, a 660 MW High Voltage Direct
Current electric transmission system connecting the PSEG-North zone of
the PJM Interconnection to the New York Independent System Operator Zone
J power market via a subsea cable beneath the Hudson River.
The line runs approximately 7.1 miles from a converter station in
Ridgefield, NJ to a substation located at W. 49th Street in New York
City. Approximately 87%, or 575 MW, of the project’s capacity is
contracted with the New York Power Authority through a long-term
capacity purchase agreement through June 2033. Construction of the
project began in May 2011, with a commercial operations date achieved in
June 2013.
“HTP is a prime illustration of Ares’ investment strategy to develop a
core energy infrastructure asset in a premium location with significant
barriers to entry, and create value for our limited partners,” said
Andrew Schroeder, Partner with Ares EIF. “The constrained NYC-PJM market
dynamics coupled with high quality, long-term contracted cash flows led
to a robust and efficient sales process.”
“Starwood is proud to have been involved in taking this project from the
concept stage to being one of the marquee transmission assets in the
U.S.,” said Himanshu Saxena, CEO of Starwood Energy. “We are pleased to
be transitioning ownership to Argo, given their unique experience and
capabilities in this sub-sector.”
Norton Rose Fulbright US LLP served as legal counsel to Ares EIF and
Starwood; Bracewell LLP acted as Argo’s legal counsel.
Goldman Sachs & Co. LLC and PJ Solomon served as financial advisors to
Ares EIF and Starwood.
About Ares Management, L.P.
Ares Management, L.P. is a publicly traded, leading global alternative
asset manager with approximately $121.4 billion of assets under
management as of June 30, 2018 and 18 offices in the United States,
Europe, Asia and Australia. Since its inception in 1997, Ares has
adhered to a disciplined investment philosophy that focuses on
delivering strong risk-adjusted investment returns throughout market
cycles. Ares believes each of its three distinct but complementary
investment groups in Credit, Private Equity and Real Estate is a market
leader based on assets under management and investment performance. Ares
was built upon the fundamental principle that each group benefits from
being part of the greater whole. For more information, visit www.aresmgmt.com.
Ares EIF is the power and infrastructure strategy within Ares’ Private
Equity Group, with a 31-year track record of investing in assets and
companies in the power generation, transmission and midstream sectors.
Since inception, Ares EIF-managed funds have made approximately 70
equity investments in nearly 130 different power and energy
infrastructure assets with a combined underlying enterprise value
exceeding $20 billion. During the last 15 years, Ares EIF has invested
in nearly 9,000 MW of greenfield generation and transmission projects,
as well as 200 miles of greenfield pipeline projects, representing over
$11 billion of capital costs.
About Starwood Energy Group Global, LLC
Starwood Energy Group is a private investment firm based in Greenwich,
CT that specializes in energy infrastructure investments. Through its
general opportunity funds and other affiliated investment vehicles,
Starwood Energy Group has raised equity commitments of approximately $3
billion and has executed transactions totaling more than $6 billion in
enterprise value. The Starwood Energy Group team brings extensive
development, construction, operations, acquisition and financing
expertise to its investments, with a focus on the natural gas and
renewable power generation, and transmission sectors. Starwood Energy
Group is an affiliate of Starwood Capital Group Global, L.P. Additional
information about Starwood Energy Group as well as Starwood Capital
Group can be found at www.starwoodenergygroup.com.
About Argo Infrastructure Partners
Argo Infrastructure Partners is an independent investment manager with a
long-term approach to infrastructure investing. Argo seeks investments
in high-quality physical assets providing essential services. The firm’s
investment group includes a highly-qualified and experienced team of
industry specialists with over $38 billion of transaction and investment
management experience. Argo provides its investor partners with access
to high-quality infrastructure investment opportunities with effective
alignment of interest and unique transparency. For more information,
please visit www.ArgoIP.com
or email [email protected].
About PowerBridge, LLC
PowerBridge, LLC is a developer, operator, and manager of major
infrastructure facilities, including the Hudson Transmission Project and
the Neptune Regional Transmission System, which provide a combined total
of 1,320 MW of transmission capacity to New York via undersea and
underground cables and associated voltage conversion equipment. Both of
these complex projects were completed within budget and ahead of
schedule under PowerBridge’s direction. Please visit www.powerbridge.us
for more information.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180918006107/en/
For Ares Management:
Media:
Mendel Communications
Bill
Mendel, 212-397-1030
[email protected]
or
Investors:
Ares
Management, L.P.
Carl Drake, 800-340-6597
[email protected]
or
Priscila
Roney, 212-808-1185
[email protected]
or
For
Starwood Energy:
Media:
Abernathy McGregor
Tom Johnson,
212-371-5999
[email protected]
or
Investors:
Starwood
Energy Group Global, LLC
Olga Bruce, 203-422-7727
[email protected]
or
For
Argo Infrastructure Partners:
Media or Investors:
[email protected]
or
For
PowerBridge, LLC:
Chris Hocker, 203-416-5590
[email protected]
Source: Ares Management, L.P. and Starwood Energy Group Global, LLC
