Infrastructure Alliance Partners Announce First Acquisition, Cross-Sound Cable Company
WEST SACRAMENTO, Calif. – The Infrastructure Alliance Partnership among The California State Teachers’ Retirement System (CalSTRS), Dutch pension manager APG, and Argo Infrastructure Partners, today announced it has completed the acquisition of the Cross-Sound Cable, or CSC, transmission line after receiving all regulatory approvals.
CSC is a High Voltage Direct Current transmission system that provides a key supply and capacity interconnection between the New England and Long Island, New York power grids via a twin 24 mile submarine cable spanning Long Island Sound. The entire transmission capacity of the cable is contracted long term with Long Island Power Authority in New York.
The asset will be managed under Argo’s flagship infrastructure platform, AIA Energy North America LLC, which includes CalSTRS and APG – two of the largest pension investors in the world.
CalSTRS Chief Investment Officer, Christopher J. Ailman, said of the acquisiton: “Cross-Sound Cable is the type of quality asset we were looking to include in the portfolio for this unique alliance. Argo’s expertise was crucial to securing this asset that we are confident will provide the long-term, steady cashflow that pension fund investors – like CalSTRS – seek”
Argo’s Managing Partner, Jason Zibarras, said, “We are happy to have completed the acquisiton of this state-of-the-art transmission asset. It is a notable milestone for Argo, as an early demonstration of the effectiveness of Argo’s investment team coupled with our new investment platform approach, we look forward to adding assets and capabilities to the AIA investment platform.”
“We are pleased with the acquisition of Cross-Sound Cable as Argo’s inaugural transaction for the AIA investment platform,” said Steven Hason, Managing Director, Head of Americas Infrastructure at APG Asset Management. “The successful completion of this transaction is a testament to the advantage of this partnership structure with Argo and CalSTRS. With a dedicated pool of capital available from like-minded investors, AIA stands out in the current competitive landscape.”
Argo is supported by an investment from Crow Holdings, a Dallas-based investment firm. Jed Johnson, Senior Managing Director of Crow Holdings Capital added, “On behalf of our client, Crow Family Holdings, we are very pleased with our decision to partner with Argo and commend them on the acquisition of Cross-Sound Cable, which we expect will be the first of many successful investments.”
About the Infrastructure Alliance Partners
Argo Infrastructure Partners is an independent investment manager with a long-term approach to infrastructure investing. Argo seeks investments with quaility assets that provide essential services. The firm’s investment group includes a highly qualified and experienced team of industry specialists with over $38 billion of transaction and investment management experience.
APG Asset Management N.V. is a Dutch pension fund asset manager in the Netherlands. For its pension fund clients and their 4.5 million active and retired participants from the public and private sectors representing over 30 percent of all collective pension schemes in the Netherlands, APG Asset Management N.V. manages pension assets of more than €416 billion as of the end of June 2015. For further information: www.apg.nl/en.
About Crow Holdings
Crow Holdings is a Dallas-based global enterprise encompassing multiple operating businesses and signature properties. These operating businesses include Crow Holdings Capital – a registered investment advisor comprised of private equity real estate funds and a diversified investment advisory firm – as well as Trammel Crow Residential (TCR) and Crow Holdings Industrial. For more information, please visit www.CrowHoldings.com.
The California State Teachers’ Retirement System, with a portfolio valued at $191.3 billion as of July 31, 2015, is the largest educator-only pension fund in the world. CalSTRS administers a hybrid retirement system, consisting of traditional defined benefit, cash balance and voluntary defined contribution plans. CalSTRS also provides disability and survivor benefits. CalSTRS serves California’s 879,000 public school educators and their families from the state’s 1,700 school districts, county offices of education and community college districts.