LOS ANGELES—September 9, 2015—Ares Management, L.P. (NYSE:ARES) announced today that a fund managed by the Ares-EIF Group and Northbrook Energy, LLC have recently sold two run-of-the-river hydroelectric power facilities on the Allegheny River in Pennsylvania to the Public Sector Pension Investment Board (PSP Investments). Terms of the transaction were not announced.
The two projects, Allegheny Lock & Dam 8 and Allegheny Lock & Dam 9, comprise 31.5 MW of nameplate baseload, renewable capacity located on the Allegheny River in Armstrong and Indiana Counties, PA. The facilities are within the PJM Interconnection power market footprint and are interconnected with the New York Independent System Operator power market.
The capacity and energy generated by the projects have been sold to New York State Electric & Gas Corporation under long-term power purchase agreements that extend through 2030. In addition, the projects sell Renewable Energy Credits in Maryland.
“In light of the strong demand in the marketplace for newer-vintage, utility-scale, run-of-the-river hydroelectric facilities, our decision to partner with Northbrook to acquire and improve the Allegheny hydro projects has resulted in a very successful investment for our investors,” said Mark Segel, a Partner in the Ares-EIF Group.
Goldman Sachs & Co. served as financial advisor to the Ares-EIF Group and Northbrook Energy, and conducted a two-stage, formal auction process to sell the equity interest in the projects.
Foley Lardner served as transaction counsel to Ares-EIF Group and Northbrook.
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.
About Northbrook Energy, LLC
Northbrook Energy, LLC is a privately held independent power producer and provider of plant services with expertise across all aspects of hydroelectric generation operations and asset management. Northbrook Energy, through its affiliate, Northbrook Power Management, operates 60 hydroelectric units at 26 projects across 12 states for private equity sponsors, utilities, municipalities, bond insurers and international infrastructure companies.