Ridgewood Infrastructure LLC has sold its stake in the Neptune Regional Transmission System, a operator of a 65-mile submarine power transmission line connecting New Jersey and Long Island. The buyer was not identified. No financial terms were disclosed. RBC Capital Markets LLC provided financial advice to Ridgewood Infrastructure while Stroock & Stroock & Lavan LLP acted as legal counsel.
NEW YORK and MONTVALE, N.J., March 14, 2018 – Ridgewood Infrastructure, LLC (“Ridgewood”), a value-adding investor focused on water and other essential infrastructure in the U.S. lower middle market, today announced the sale of its managed interests in the Neptune Regional Transmission System (“Neptune”). Neptune, an operating 65-mile submarine power transmission line connecting New Jersey and Long Island, has capacity of 660-Megawatts of high-voltage direct-current that is fully contracted with the Long Island Power Authority (“LIPA”) under a long-term agreement.
“The Neptune investment exemplifies Ridgewood’s value-add strategy, which targets opportunities to invest in essential infrastructure in the U.S. lower middle market,” said Ross Posner, Managing Partner of Ridgewood Infrastructure. “Based on our knowledge of the asset and longstanding relationship with the successful PowerBridge management team, we created a bilateral opportunity to solidify a scale-level equity position in an integral component of the New York area’s power infrastructure by consolidating the interests of nine different original owners.”
“Neptune, which provides approximately 20% of Long Island’s electricity, performed exceptionally well during our period of ownership,” said Michael Albrecht, Partner at Ridgewood Infrastructure. “Through our value-add approach, we were able to create a scale-level ownership position in an essential infrastructure asset that was very attractive to industry participants seeking non-correlated, stable, long-term contracted cash flows.”
Ridgewood Infrastructure is part of the affiliated Ridgewood Companies, which currently manage capital and commitments of more than $5 billion focused primarily on infrastructure and energy. “Bringing our investment in Neptune full-cycle further illustrates Ridgewood’s capabilities as a focused, value-adding real asset manager.” said Matthew Swanson of Ridgewood.
RBC Capital Markets, LLC acted as financial advisor and Stroock & Stroock & Lavan LLP acted as legal counsel to Ridgewood Infrastructure.
About Ridgewood Infrastructure
Ridgewood Infrastructure is a value‐adding investor focused on water and other essential infrastructure in the U.S. lower middle market. Ridgewood Infrastructure also manages interests in (i) the Vista Ridge Regional Water Supply Project (“Vista Ridge”)—an essential, long‐term contracted 142‐mile water pipeline, which is expected to supply the city of San Antonio, Texas with approximately 20% of its fresh water; and (ii) Undine, LLC, which is building a mid-sized regulated water utility through the strategic consolidation of smaller scale regulated utilities in partnership with a proven management team.
The firm is part of the affiliated Ridgewood Companies, a leading real asset investment manager currently managing more than $5 billion in total capital and commitments focused on investments in infrastructure and energy.