GIP Buys Stake in Terra-Gen Power from Arclight

Global Infrastructure Partners has acquired up to a 40% convertible preferred interest in Terra-Gen Power Holdings LLC, an owner and/or operator of over 800 megawatts of renewable power facilities in the U.S. The seller is Arclight Capital Partners, which will retain an interest in Terra-Gen. No financial terms were disclosed.


Global Infrastructure Partners (GIP), an independent $5.64 billion infrastructure investment fund, announced today that it has reached agreement to acquire up to a 40% convertible preferred interest in Terra-Gen Power Holdings, LLC (Terra-Gen) from ArcLight Capital Partners, LLC (ArcLight). Financial details of the investment were not disclosed.

Terra-Gen is a leading US renewable power generation company that owns or operates over 800 megawatts (MW) of renewable power facilities, including geothermal, wind and solar projects across a broad area of the United States. Terra-Gen also has over 5,000 MW of renewable energy projects under development. Following completion of this transaction, which is expected by year-end, ArcLight and GIP will be partners in driving the continuing growth of Terra-Gen.

Adebayo Ogunlesi, Chairman and Managing Partner of GIP, commented: “We are very pleased to be working with ArcLight and the outstanding Terra-Gen management team to help meet the growing demand for clean, renewable energy in the United States. Their capabilities are an ideal complement to GIP’s operational strengths and our expertise in the power sector.”

Jonathan Bram, the GIP Partner leading the transaction, added: “This investment represents an excellent opportunity for GIP. In Terra-Gen, we have a solid portfolio of operating renewable projects combined with a unique growth platform that includes each of the three most attractive clean energy technologies.”
Credit Suisse acted as financial advisor to GIP.

About Global Infrastructure Partners
Global Infrastructure Partners (GIP) is an independent fund that invests worldwide in infrastructure assets in both OECD and select emerging market countries. GIP targets investments in single assets, and portfolios of assets and companies, in power and utilities, natural resources infrastructure, air transport infrastructure, seaports, freight railroad, water distribution and treatment and waste management. GIP has offices in
New York, London, Hong Kong and Sydney and portfolio company operations headquarters in Stamford, Connecticut.