Morgan Stanley Sells Stake in Red Oak Power Facility
Deal News | Jul 08, 2025 | Morgan Stanley (MSCP)
Morgan Stanley Investment Management, through its private infrastructure investment platform Morgan Stanley Infrastructure Partners (MSIP), has entered an agreement to sell its ownership stake in TigerGenCo Red Oak Holdings, LLC to funds managed by Strategic Value Partners. Red Oak, an 831-megawatt combined cycle power plant located in Sayreville, New Jersey, is part of PJM Interconnection, North America's largest power market. MSIP acquired Red Oak in 2017 and has managed it through TigerGenCo, enhancing its operational, commercial, and financial value. This sale demonstrates MSIP's expertise in creating long-term value for its portfolio. Jefferies LLC and Santander acted as financial advisors for MSIP during the transaction, expected to close in Q4 2025 pending regulatory approval. Red Oak will continue its critical role in the Northeast's power infrastructure under new ownership.
Sectors
- Infrastructure Investment
- Energy
Geography
- United States – The transaction involves an energy facility located in Sayreville, New Jersey, within the U.S. power grid.
Industry
- Infrastructure Investment – The article involves Morgan Stanley Infrastructure Partners, highlighting activities related to infrastructure investment in power generation facilities.
- Energy – Red Oak is an energy facility providing significant power capacity within the PJM Interconnection power market.
Financials
- Approximately $17 billion – Assets under management by Morgan Stanley Infrastructure Partners.
- 831 megawatts – Capacity of the Red Oak combined cycle power plant.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Morgan Stanley Infrastructure Partners | Seller | Company | A global private infrastructure investment platform managing the Red Oak Facility. |
| Strategic Value Partners | Buyer | Company | The acquiring entity managing funds for the purchase of the Red Oak Facility. |
| Jefferies LLC | Lead Financial Advisor | Company | Provided financial advisory service to MSIP during the transaction. |
| Santander | Financial Advisor | Company | Additionally served as financial advisor to MSIP in the transaction. |