GCM Grosvenor is set to acquire a 49.9% equity interest in the Long Ridge Energy Terminal from New York-based Fortress Transportation and Infrastructure Investors 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," GCM Grosvenor Chairman and CEO Michael Sacks said in a statement. “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."
FTAI CEO Joe Adams added: "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."
Chicago-based GCM will acquire the stake through its Labor Impact 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 adviser on the transaction with Baker Botts LLP serving as legal adviser.