Ares-EIF Group buys stake in Linden Cogen Holdings

Ares-EIF Group has acquired a 50 percent stake in Linden Cogen Holdings, a New Jersey-based owner of gas-fired turbines and steam turbines. No financial terms were disclosed.


September 22, 2015 08:00 AM Eastern Daylight Time

LOS ANGELES–(BUSINESS WIRE)–Ares Management, L.P. (NYSE:ARES) announced today 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 project, located in Linden, New Jersey, from a subsidiary of GE Energy Financial Services. Terms of the transaction were not disclosed.

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.

“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 and NYISO Zone J markets.

About Ares Management, L.P.
Ares Management, L.P. (NYSE:ARES) 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, 2015. Since its inception in 1997, Ares has adhered to a disciplined investment philosophy that focuses on delivering strong risk-adjusted investment returns throughout market cycles. Ares believes each of its four distinct but complementary investment groups in Tradable Credit, Direct Lending, Private Equity and Real Estate is a market leader based on assets under management and investment performance. Ares was built upon the fundamental principle that each group benefits from being part of the greater whole.

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. Ares-EIF’s investment strategy is to create geographically and technologically diversified portfolios of energy infrastructure investments via acquisitions as well as development and construction across the power generation, transmission and midstream sectors.