GCM Grosvenor Announces Agreement to Acquire 49.9% Equity Interest in Long Ridge Energy Terminal from Fortress Transportation and Infrastructure Investors
Investment in Appalachian Basin's leading multimodal terminal to be made from GCM's Labor Impact Fund, a union labor-backed investment fund focused on infrastructure assets
December 23, 2019
CHICAGO, Dec. 23, 2019 /PRNewswire/ -- GCM Grosvenor (GCM), a global alternative asset management firm, announced today that it has signed a definitive agreement to acquire a 49.9% equity interest in the Long Ridge Energy Terminal ("Long Ridge" or "the terminal") from Fortress Transportation and Infrastructure Investors (NYSE: FTAI) for $150 million in cash plus an earn-out.
Long Ridge, the Appalachian Basin's leading multimodal energy terminal, is located on 1,660 acres in Hannibal, Ohio and includes a 485 MW power plant currently under development, nearly 300 acres of available flat land, two barge docks on the Ohio River, a unit train capable loop track and direct truck access to Ohio Route 7.
"We are excited to invest in the Long Ridge Energy Terminal and have the opportunity to partner with FTAI on what will be one of the most highly efficient natural gas-powered plants in North America," said Michael Sacks, Chairman and CEO of GCM Grosvenor. "We believe Long Ridge will serve as a reliable low-cost energy provider to the region for many years to come and, equally important, as a hub for new jobs and economic development."
Commenting on the closing, FTAI CEO Joe Adams, said, "We are excited to enter into this strategic partnership with GCM who brings exciting complementary capabilities and relationships to our development of Long Ridge. We are pleased to be able to recycle capital from infrastructure assets under construction into new accretive investments while continuing to realize gains from our development activities."
GCM will acquire the stake through its Labor Impact Fund ("the Fund"), a vehicle focused on investing in infrastructure assets that rely on collaboration with labor to unlock opportunities and generate high-quality risk-adjusted returns. The Fund's investment guidelines abide by GCM's industry leading Responsible Contractor Policy, which underscores the firm's values and provides the foundation for its partnerships with organized labor and signatory contractors. Additionally, The Fund's investor base is made up principally of union-backed pension funds in the United States and Canada.
TD Securities acted as GCM Grosvenor's financial advisor on the transaction with Baker Botts LLP serving as legal advisor.
About GCM Grosvenor
GCM Grosvenor is a global alternative asset management firm with over $57 billion in assets under management in hedge fund strategies, private equity, infrastructure, real estate and multi-asset class solutions. GCM is one of the largest, most diversified independent alternative asset management firms worldwide, and has offered alternative investment solutions since 1971. The firm is headquartered in Chicago, with offices in New York, Los Angeles, London, Tokyo, Hong Kong and Seoul, serving a global client base of institutional and high net worth investors.
GCM Grosvenor's Labor Impact Fund ("LIF") is a closed-end private investment vehicle which seeks to originate and execute infrastructure projects that leverage the inclusion of union labor as a contributing factor to enabling attractive risk adjusted returns. It is the goal of the LIF to find attractive infrastructure investment opportunities that can be unlocked through close cooperation across labor, government and private capital.
About Long Ridge Energy Terminal
The Long Ridge Energy Terminal is the Appalachian Basin's leading multimodal energy terminal with a 485 MW power plant under development, nearly 300 acres of flat land, two barge docks on the Ohio River, a unit train capable loop track and direct access to Ohio Route 7. Long Ridge is a subsidiary of Fortress Transportation and Infrastructure Investors LLC, which trades on the New York Stock Exchange under the ticker FTAI. For more information on Long Ridge, please visit www.longridgeenergy.com.
About Fortress Transportation and Infrastructure Investors LLC
Fortress Transportation and Infrastructure Investors LLC owns and acquires high quality infrastructure and equipment that is essential for the transportation of goods and people globally. FTAI targets assets that, on a combined basis, generate strong and stable cash flows with the potential for earnings growth and asset appreciation. FTAI is externally managed by an affiliate of Fortress Investment Group LLC, a leading, diversified global investment firm.
SOURCE GCM Grosvenor
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