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NEW YORK - Morgan Stanley Investment Management (MSIM), part of the $229 billion market cap financial giant Morgan Stanley, announced Tuesday it has agreed to sell its ownership stake in TigerGenCo Red Oak Holdings, LLC to funds managed by Strategic Value Partners. The company’s stock has shown remarkable strength, delivering a 47% return over the past year and currently trading near its 52-week high of $145.16.
The 831-megawatt combined cycle power plant, located in Sayreville, New Jersey, is part of the PJM Interconnection, North America’s largest power market. Morgan Stanley Infrastructure Partners (MSIP) acquired the facility in 2017 and has managed it through its power asset management platform TigerGenCo.
"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. According to InvestingPro data, Morgan Stanley maintains strong financial health with a "GOOD" overall rating and robust liquidity metrics, including a current ratio of 2.07.
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, with Santander also serving as a financial advisor.
Red Oak was originally constructed in 2002 by the AES Corporation and utilizes Siemens 501F technology. The facility continues to serve as a power resource for the Northeast region.
MSIP is a global private infrastructure investment platform with approximately $18 billion in assets under management since its founding in 2006. The firm has invested in over 40 projects across transport, digital infrastructure, energy transition and utilities sectors.
The announcement was made in a press release statement from Morgan Stanley Infrastructure Partners.
In other recent news, Elon Musk’s artificial intelligence company xAI Corp. has made significant adjustments to its $5 billion debt offering, now offering a 12.5% yield on $3 billion in bonds, up from the previously offered 12%. The company also increased the yield on a $1 billion fixed-rate term loan to 12.5% and priced a $1 billion term loan B at 725 basis points over the Secured Overnight Financing Rate (SOFR). This move comes as xAI adds Barclays, Mitsubishi UFJ Financial Group, and UBS Group to the financing arrangement, alongside Morgan Stanley, to strengthen future funding relationships. Meanwhile, Morgan Stanley has announced an 8.1% increase in its quarterly dividend to $1.00 per share, effective from the third quarter of 2025, and a $20 billion share buyback program. In staffing news, Octagon Credit Investors is set to hire Sean Sullivan from Morgan Stanley to expand its direct lending business. These developments highlight ongoing strategic financial maneuvers and staffing changes in the financial and technology sectors.
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