GE Energy Financial Services, a unit of GE, is deploying its capital in critical US infrastructure and expanding into petroleum product terminals by investing $85 million to become a majority owner of Lightfoot Capital Partners LP.
The GE unit purchased a 58% interest in New York-based Lightfoot Capital from an investment vehicle managed by an affiliate of Magnetar Capital. Lightfoot Capital, in turn, is the majority owner of Arc Terminals, which operates petroleum product terminals in eight states.
“Our investment in Lightfoot Capital reflects our strategy of pursuing growth platforms in critical US energy infrastructure, working with experienced management in areas we know well,” said Dan Castagnola, a managing director at GE Energy Financial Services in Houston TX. “We are deploying our capital, expertise, and potentially some additional assets to support Lightfoot Capital’s transition into a successful Master Limited Partnership.”
GE Energy Financial Services already holds an interest in a Master Limited Partnership, Regency Energy Partners LP, a midstream natural gas services provider. By investing in Lightfoot Capital, GE Energy Financial Services is expanding beyond midstream to petroleum product terminals, diversified across regions, sites, customers, and products.
In addition to GE, Lightfoot Capital’s investors are Atlas Energy LP, Magnetar Capital, Tortoise Capital Resources Corp, and Triangle Peak Partners Private Equity LP, as well as funds and accounts under management by BlackRock Investment Management LLC.
GE Energy Financial Services’ current midstream equity and debt portfolio totals about $2.4 billion. It has invested in gas storage assets, a LNG regasification terminal, and 40,000 miles of gas pipelines. The firm is also involved in oil and gas production, from partnerships that own reserves to production platforms.