Erika H. James Director | Morgan Stanley
Morgan Stanley Investment Management, through its Morgan Stanley Infrastructure Partners (MSIP) platform, has announced an agreement to sell its stake in TigerGenCo Red Oak Holdings, LLC. The buyer is funds managed by Strategic Value Partners.
Red Oak is an 831-megawatt combined cycle power plant located in Sayreville, New Jersey. It operates within the PJM Interconnection, North America's largest power market. MSIP acquired the facility in 2017 and has been managing it through TigerGenCo, which also oversees MSIP's investment in Bayonne Energy Center.
"Red Oak demonstrates MSIP’s ability to create long-term value by bringing operational, commercial and financial expertise to our portfolio," said Markus Hottenrott, Chief Investment Officer for Morgan Stanley Infrastructure Partners. "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 expected to be finalized in the fourth quarter of 2025 after meeting customary closing conditions and obtaining 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 and utilizes Siemens 501F technology known for performance and reliability.
Morgan Stanley Infrastructure Partners manages approximately $18 billion in assets globally since its inception in 2006. It focuses on investments across transport, digital infrastructure, energy transition, and utilities.
Morgan Stanley Investment Management oversees more than $1.6 trillion in assets worldwide as of March 31, 2025.