Ares Management LP (NYSE: ARES) announced Sept. 22 that funds managed by the Ares-EIF Group have closed on the acquisition of a 50% stake in Linden Cogen Holdings LLC, the owner of a 943-MW natural gas-fired combined-cycle cogeneration plant located in Linden, New Jersey, from a subsidiary of GE Energy Financial Services.
Terms of the transaction, which was approved on Sept. 21 by the Federal Energy Regulatory Commission, were not disclosed. GE Financial Services is part of General Electric (NYSE: GE).
In addition to being connected to the PJM power market, Linden Cogen is a critical supplier of power to New York City and is also a long-term steam and electricity supplier to New Jersey’s Bayway Refinery, the largest oil refinery on the East Coast, Ares noted.
“This acquisition marks the addition of a flagship asset to the Ares EIF portfolio and represents an opportunity to gain further exposure to one of the most attractive power markets in the U.S.,” said Mark Voccola, a Partner of the Ares-EIF Group. “In addition to significant locational advantages, Linden Cogen has a strong steam host, and an excellent operating track record.”
In operation since 1992, Linden Cogen features a total of six gas-fired turbines and three steam turbines. Located approximately 20 miles from New York City, the project currently sells most of its electrical and steam output under long-term contracts, with the balance sold to the PJM Interconnection and the New York ISO Zone J markets.
The remaining 50% interest in Linden Cogen Holdings continues to be held by Oaktree Capital Group LLC.
Ares Management is a leading global alternative asset manager with approximately $88 billion of assets under management and more than 15 offices in the United States, Europe and Asia as of June 30.
The Ares-EIF Group, formerly known as Energy Investors Funds (EIF), was acquired by Ares in January 2015. Founded in 1987, Ares-EIF has a 28-year track record and is one of the first managers focused on the independent power and electric utility industry.