GCM Grosvenor to Buy Interest in Ohio Plant Under Development for $150M

HANNIBAL, OH—Chicago-based global alternative asset management firm GCM Grosvenor reports it plans to acquire a 49.9% interest in Long Ridge Energy Terminal here from Fortress Transportation and Infrastructure Investors of New York City for $150 million in cash plus an unspecified earn-out.

GCM will acquire the equity stake through its Labor Impact Fund, a closed-end private investment vehicle which seeks to originate and execute infrastructure projects that leverage the inclusion of union labor as a contributing factor to enabling attractive risk adjusted returns.

Long Ridge is located on 1,660 acres 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,” says Michael Sacks, chairman and CEO of GCM Grosvenor. “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, adds, “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.”

TD Securities acted as GCM Grosvenor’s financial advisor on the transaction with Baker Botts LLP serving as legal advisor.

Earlier this month, GCM Grosvenor completed the final close of its Multi-Asset Class Fund II with $983 million in committed capital.