Ridgewood Private Equity Partners has made a $100m investment in the Neptune Regional Transmission System, a 65-mile submarine power transmission cable connecting New Jersey and Long Island.
The power generated by the 660 MW system is fully contracted with the Long Island Power Authority via a long-term agreement for Neptune’s operation.
Since the system went on stream in 2007 it has covered around 20 per cent of the average electricity demand of Long Island.
Ridgewood’s investment in Neptune was made on behalf of the State of Michigan Retirement Systems and a major family office, the firm said.
Loop Capital acted as financial advisor to Ridgewood on the transaction.
Explaining the benefits of such investment, Michael Albrecht, managing director at Ridgewood, said, “Neptune has several features that make it a particularly appealing investment.
“It is a critical piece of infrastructure with a proven record of operating performance that delivers cost effective and reliable power to a high-demand region.
“Neptune’s management team has done a wonderful job developing and operating this asset, and we are delighted to partner with them through this investment.”
Ross Posner, head of the Ridgewood investment team, added, “The Neptune transmission line is a terrific energy-focused infrastructure asset that offers both current yield and attractive capital appreciation potential.
“Our opportunity to execute this investment reflects our deep domain expertise, proprietary investment sourcing relationships, and rigorous due diligence processes, and we are delighted to deliver this investment opportunity to our investors.”
Ridgewood filed for a new $100m Energy Opportunities Fund in January 2015, just a year after raising $1.1bn for its Energy Oil & Gas Fund II.
The firm focuses on the exploration and production of oil fields in the deepwater US Gulf of Mexico. Its general focus is on “energy-centric” real asset strategies.
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