GE Energy Financial Services, a unit of NYSE-listed GE, is putting its money into US infrastructure and expanding into petroleum product terminals with an $85 million investment in Lightfoot Capital Partners.

GE Energy Financial will become a majority owner as it picks up a 58% stake in the New York-bashed vehicle which is managed by an affiliate of Magenetar Capital. Lightfoot Capital is the majority-owner of Arc Terminals, which operates petroleum product terminals within eight states.

Vince Cubbage, the CEO of Lightfoot Capital stated in the press release that its new majority owner will give the platform the ability to expand its efforts to source and complete acquisitions as well as to speed up its growth strategy.  

Lightfoot Capital’s has additional investors including NYSE-listed Atlas Energy, LP, NYSE-listed Tortoise Capital Resources Corp. and Triangle Peak Partners Private Equity, LP, as well as funds and accounts under management by BlackRock Investment Management, LLC.

Dan Castagnola, a managing director at GE Energy Financial Services in Houston said in the press release: “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.”

GE Energy Financial Services currently holds an interest in, NASDAQ-listed 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.

GE Energy Financial Services’ current midstream equity and debt portfolio totals approximately $2.4 billion. It has invested in gas storage assets, a LNG regasification terminal and 40,000 miles of gas pipelines. GE Energy Financial Services is also involved in oil and gas production, from partnerships that own reserves to production platforms.

Infrastructure (M&A)