Morgan Stanley Investment Management (MSIM), through investment funds managed by Morgan Stanley Infrastructure Partners (MSIP), its private infrastructure investment platform, today announced it has entered into an agreement to sell its ownership stake in TigerGenCo Red Oak Holdings, LLC (“Red Oak” or the “Facility”) to funds managed by Strategic Value Partners.
Located in Sayreville, New Jersey, Red Oak, is part of the PJM Interconnection, which is North America’s largest power market. MSIP acquired the 831-megawatt combined cycle power plant in 2017 and has managed the Facility through its power asset management platform TigerGenCo, which also manages 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 close in the fourth quarter of 2025, subject to customary closing conditions and regulatory approvals. Jefferies LLC served as lead financial advisor to MSIP, and Santander also served as a financial advisor to MSIP.
About Red Oak
Red Oak is an 831-megawatt combined cycle power plant located in Sayreville, New Jersey, and is part of the PJM Interconnection, North America’s largest power market. The Facility was constructed in 2002 by the AES Corporation and uses proven low heat rate Siemens 501F technology which has a long track-record of delivering exceptional performance and reliability.
About Morgan Stanley Infrastructure Partners
Morgan Stanley Infrastructure Partners (“MSIP”) is a leading global private infrastructure investment platform with approximately $17 billion in assets under management since inception. Founded in 2006, MSIP has invested in a diverse portfolio of over 40 investments across transport, digital infrastructure, energy transition and utilities. MSIP targets assets that provide essential public goods and services with the potential for value creation through active asset management. For further information about Morgan Stanley Infrastructure Partners, please visit www.morganstanley.com/im/infrastructurepartners.
About Morgan Stanley Investment Management
Morgan Stanley Investment Management, together with its investment advisory affiliates, has more than 1,400 investment professionals around the world and $1.6 trillion in assets under management or supervision as of March 31, 2025. Morgan Stanley Investment Management strives to provide outstanding long-term investment performance, service, and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide. For further information about Morgan Stanley Investment Management, please visit www.morganstanley.com/im.
About Morgan Stanley
Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in 42 countries, the Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals. For further information about Morgan Stanley, please visit www.morganstanley.com.