Ullico Increases Investment in Contracted Power Generation and Storage Portfolio
https://www.ullico.com/investment-in-contracted-power-generation-and-storage-portfolio/
Washington, D.C. (November 4, 2022) – Ullico Infrastructure Fund (“UIF”), an infrastructure investment fund managed by Ullico Investment Advisors, Inc., today announced a follow-on investment in AES Southland Energy, LLC (“Southland”), a 1.5 GW portfolio of two combined-cycle gas generation assets and two battery energy storage assets located in Southern California and Arizona contracted under long term power purchase agreements with investment grade utilities.
UIF’s investment will increase its combined interest in Southland to 49.9%. UIF acquired an initial 35.0% interest in Southland in November 2020. The AES Corporation (“AES”), a Fortune 500 global power company headquartered in Arlington, Virginia, will retain a 50.1% interest in Southland.
“The Southland portfolio is critical to Southern California’s transition to a renewable energy future, and the assets’ reliable operations have resulted in predictable cash flows for UIF,” said Rohit Syal, head of acquisitions for UIF. “UIF values its partnership with AES and is excited to expand the relationship through this transaction.”
Edward M. Smith, President and CEO of Ullico, said, “Ullico’s investment in Southland demonstrates our commitment to Southern California and to projects that support family-sustaining careers, local economic development, and a resilient electric grid.”
The Southland assets represent a unique portfolio of large-scale, fully contracted gas generation and battery storage assets of critical importance to the reliable operation of the regional electric grid. The assets’ long-term contracted revenues provide UIF with highly stable, predictable cash flows.
UIF currently has investments in the water, wastewater, telecommunications, electricity transmission, power generation, district energy, transportation, gas transmission and gas distribution sectors, and is exploring opportunities in all core sectors.
Norton Rose Fulbright US LLP acted as legal advisor to UIF for the transaction.
About Ullico
The Ullico Inc. family of companies provides insurance and investment solutions for labor organizations, union employers, institutional investors, and union members. Founded over 95 years ago, the company takes a proactive approach to anticipating labor’s needs, developing innovative financial and risk solutions, and delivering value to our clients. Our products are tailored to promote financial security and stability for American workers.
Ullico Infrastructure Fund (UIF), founded in 2010, was established to assist in the construction, maintenance, and refurbishment of America’s infrastructure. UIF provides institutional investors with access to core and
core+ infrastructure investments that deliver long-dated, low-volatility, and inflation-linked cash flows. As an open-ended fund with no terminal date, UIF makes long-term investments in U.S. and Canada-based infrastructure businesses that provide essential services to communities, governments, and corporations. UIF currently has approximately $5 billion in investor commitments on behalf of over 200 investors, with 23 portfolio investments across power, utilities, energy, transportation and digital infrastructure sub-sectors.
The Ullico Inc. family of companies includes The Union Labor Life Insurance Company; Ullico Casualty Group, LLC.; Ullico Investment Company, LLC.; and Ullico Investment Advisors, Inc. For additional information, visit www.ullico.com.
UIF (or the “Fund”) is managed by Ullico Investment Advisors, Inc. (“UIA”) and is sold through Ullico Investment Company, LLC (Member FINRA/SIPC), both subsidiaries of Ullico Inc. UIA is a registered investment adviser with the SEC under the Investment Advisers Act of 1940, as amended. UIF will only be sold to “accredited investors” as that term is defined in Regulation D of the Securities Act of 1933. Investment in infrastructure is speculative, not suitable for all investors, and should be undertaken only by experienced and sophisticated investors who are willing to bear the high risks of such an investment, which include, but are not limited to, lack of liquidity, restrictions on transferring ownership to the Fund, absence of information regarding valuation and pricing, and high fees and expenses. Potential investors in the Fund should carefully read the Confidential Private Placement Memorandum for a description of the potential risks associated with investment in the Fund.