CSC is a High Voltage Direct Current transmission system that provides a key supply and capacity interconnection between the New England and Long Island power grids via a twin 39 km submarine cable spanning Long Island Sound. The entire transmission capacity of the cable is contracted long term with Long Island Power Authority in New York.
Argo's Managing Partner, Jason Zibarras, commented:
"We are happy to have completed the acquisiton of this state-of-the-art transmission asset. It is a notable milestone for Argo, as an early demonstration of the effectiveness of Argo's investment team coupled with our new investment platform approach, we look forward to adding assets and capabilities to the AIA investment platform."
Argo's AIA platform investors currently include APG Asset Management and California State Teachers' Retirement System (CalSTRS), two of the largest pension investors in the world.
Steven Hason, Managing Director, Head of Americas Infrastructure at APG Asset Management, stated:
"We are pleased with the acquisition of Cross-Sound Cable as Argo's inaugural transaction for the AIA investment platform. The successful completion of this transaction is a testament to the advantage of this partnership structure with Argo and CalSTRS. With a dedicated pool of capital available from likeminded investors, AIA stands out in the current competitive landscape."
CalSTRS Chief Investment Officer, Christopher J. Ailman, commented:
"Cross-Sound Cable is the type of quality asset we were looking to include in the portfolio for this unique alliance. Argo's expertise was crucial to securing this asset that we are confident will provide the long-term, steady cashflow that pension fund investors-like CalSTRS-seek."
Argo is supported by an investment from Crow Holdings, a Dallas-based investment firm. Jed Johnson, Senior Managing Director of Crow Holdings Capital added:
"On behalf of our client, Crow Family Holdings, we are very pleased with our decision to partner with Argo and commend them on the acquisition of Cross-Sound Cable, which we expect will be the first of many successful investments."