Morgan Stanley Investment Management has announced that it will sell its stake in TigerGenCo Red Oak Holdings, LLC to funds managed by Strategic Value Partners. The facility, located in Sayreville, New Jersey, is an 831-megawatt combined cycle power plant and part of the PJM Interconnection, North America's largest power market.
Markus Hottenrott, Chief Investment Officer for Morgan Stanley Infrastructure Partners (MSIP), stated: "Red Oak demonstrates MSIP’s ability to create long-term value by bringing operational, commercial and financial expertise to our portfolio." He added that "Red Oak is a critical resource to the Northeast region and its role has become increasingly vital as the U.S. power market grapples with load growth and challenges adding new supply."
The transaction is anticipated to close in the fourth quarter of 2025, pending customary closing conditions and regulatory approvals. Jefferies LLC acted as lead financial advisor to MSIP with Santander also serving as a financial advisor.
The Red Oak facility was constructed in 2002 by AES Corporation using Siemens 501F technology known for its performance and reliability. MSIP acquired the plant in 2017 and managed it through TigerGenCo.
Morgan Stanley Infrastructure Partners manages approximately $18 billion in assets across various sectors including transport, digital infrastructure, energy transition, and utilities since its founding in 2006. Meanwhile, Morgan Stanley Investment Management oversees more than $1.6 trillion in assets globally.