Washington D.C. (November 6, 2020) – Ullico Inc. today announced the Ullico Infrastructure Fund's investment in AES Southland Energy, LLC ("Southland"), a 1.4 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. Ullico will acquire a 35% interest in Southland from The AES Corporation ("AES"), a Fortune 500 global power company headquartered in Arlington, Virginia.
"Southland is a unique portfolio with increasing criticality to the Southern California power market and electric grid, as the region transitions towards a renewable energy future," said Rohit Syal, head of acquisitions for Ullico's infrastructure business. "This is a core infrastructure asset that provides predictable availability-based cash flows and an opportunity to expand our partnership with AES, a world class power company."
"On behalf of the investors in the Ullico Infrastructure Fund, Ullico is proud to make its investment in Southern California in a portfolio that is essential for the community and that was constructed and will be maintained using union labor. We hope to build upon this investment and be a long-term community partner for delivering much-needed infrastructure solutions," said Edward M. Smith, President and CEO of Ullico Inc.
The Southland portfolio offers a unique opportunity to acquire a large-scale, fully contracted gas generation and battery storage portfolio with a long-term contracted revenue structure, critical importance in its energy market and high stable, predictable cash flow.
"Southland provides the Ullico Infrastructure Fund with a core, west coast anchor," said Jeff Murphy, portfolio manager for Ullico's infrastructure business. "The predictable, availability-based cash flow and essential nature of the asset to its region is similar to the Neptune Regional Transmission System, which anchors Ullico's infrastructure portfolio on the east coast."
Ullico Inc., through the Ullico Infrastructure Fund, currently has investments in the water, wastewater, telecommunications, electricity transmission, power generation, transportation and gas transmission sectors and is exploring opportunities in all core sectors.
Norton Rose Fulbright US LLP acted as legal advisor to Ullico. JP Morgan acted as financial advisor to AES.
For more than 90 years, Ullico has been a proud member of the labor movement, keeping union families safe and secure. In 2010, the Ullico Infrastructure Fund (UIF) was established to assist in the construction, maintenance and refurbishment of America's infrastructure. As of September 30, 2020, UIF had approximately $3 billion in commitments on behalf of 133 investors, with 17 portfolio investments comprising all major sectors.
From insurance products that protect union members, leaders and employers, to investments in building and infrastructure projects that have created thousands of union jobs, our customers continue to trust us with protecting their families, employees and investments. The Ullico Inc. Family of Companies includes: The Union Labor Life Insurance Company; Ullico Casualty Group, LLC.; Ullico Investment Company, LLC (Member FINRA/SIPC).; Ullico Investment Advisors, Inc.; and Ullico Benefit Solutions, LLC. For additional information, visit www.ullico.com.
Ullico Infrastructure Tax-Exempt Fund, LP:
The Ullico Infrastructure Tax-Exempt Fund, LP ("UIF") is a Delaware limited partnership designed to permit qualified tax-exempt purchasers to invest in core infrastructure investments located in the United States and Canada. The fund and the units issued will not be registered under the Securities Act of 1933, as amended, the Investment Company Act of 1940, as amended, or under state securities laws. UIF is being offered and sold in reliance on the exemption from the securities registration requirements of the Securities Act set forth in Regulation D (the "Rule"). UIF will only be sold to "accredited investors" as that term is defined under the Rule. The portfolio consists primarily of private equity and debt investments in infrastructure companies located in the United States and Canada. UIF does not have a meaningful comparison because there is no benchmark available for private infrastructure investments. The Ullico Infrastructure Tax-Exempt Fund, LP was incepted in November 2012.
Ullico Investment Advisors, Inc. ("UIA") is a registered investment adviser with the United States Securities and Exchange Commission ("SEC") in accordance with the Investment Advisers Act of 1940, as amended. Ullico Investment Advisors, Inc. has two majority owned subsidiaries: Ullico Infrastructure Management Company, LLC and UIA Investment Management, LLC. Both are Relying Advisers in reliance upon the SEC staff's no-action letter to the American Bar Association dated January 18, 2012. The firm's full list of composite and pooled fund descriptions is available upon request.