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Highlights

  • Red Oak is an 831-megawatt combined cycle facility located in Sayreville, New Jersey
  • The plant is part of PJM Interconnection, North America’s largest power market
  • Sale agreement finalized with Strategic Value Partners; expected close in Q4 2025

Morgan Stanley Investment Management, through its private infrastructure arm Morgan Stanley Infrastructure Partners (MSIP), has entered into an agreement to sell its ownership interest in TigerGenCo Red Oak Holdings, LLC. The asset, known as the Red Oak power facility, is a combined cycle plant with a capacity of 831 megawatts and is located in Sayreville, New Jersey. The buyer is a fund managed by Strategic Value Partners.

Acquired in 2017, the Red Oak plant has been operated by MSIP through its platform TigerGenCo. The facility is part of the PJM Interconnection, the largest organized power market in North America. Originally constructed in 2002 by AES Corporation, Red Oak utilizes Siemens 501F technology. The plant is designed for low heat rate performance and reliability.

According to Markus Hottenrott, Chief Investment Officer at MSIP, the facility serves a critical role in the Northeastern U.S. energy grid. He noted that Red Oak’s relevance has increased as the region experiences growing demand and challenges related to new supply additions.

MSIP’s portfolio management also includes Bayonne Energy Center, reflecting its broader power asset strategy. The firm manages approximately USD18 billion in assets across over 40 infrastructure investments globally, spanning transportation, digital infrastructure, energy transition, and utilities.

The transaction is targeted for completion in the fourth quarter of 2025, pending regulatory approvals and customary closing conditions. Jefferies LLC acted as lead financial advisor to MSIP, with Santander also supporting the process.

Morgan Stanley Investment Management, a division of Morgan Stanley (NYSE: MS), manages over USD1.6 trillion in assets as of March 31, 2025. It operates globally with more than 1,400 investment professionals, offering services to institutions, corporations, governments, and individual investors.