FIC, a prominent investment firm, has successfully closed a GP-led secondary transaction for its stake in the Matterhorn Express Pipeline, solidifying its continued partnership with WhiteWater Midstream.
FIC, a leading investment firm specializing in critical infrastructure assets across the energy and power value chains, today announced the successful closure of a significant GP-led secondary transaction. This transaction pertains to a portion of FIC's existing equity interest in the Matterhorn Express Pipeline (Matterhorn), a pivotal natural gas conduit. The move underscores FIC's unwavering commitment to the project and its strategic vision for the future of energy infrastructure.
The Matterhorn Express Pipeline, a newly operational asset since November 2024, boasts an impressive capacity of 2.5 billion cubic feet per day (Bcf/d). Its strategic positioning is paramount, as it efficiently links the prolific Permian Basin to vital demand centers spanning Texas and the expansive Gulf Coast. This includes critical sectors such as power generation, diverse industrial markets, and the burgeoning Liquefied Natural Gas (LNG) export terminals, highlighting its indispensable role in the regional energy landscape. Notably, the pipeline is already fully contracted, a testament to its market demand and strategic importance.
The continuation vehicle was bolstered by new capital injected by a diverse syndicate of high-quality institutional investors. This broad-based support from a robust investor group not only validates the Matterhorn project's appeal but also provides the necessary financial impetus for its envisioned future growth. For FIC, this transaction is a dual-benefit strategy: it enables the firm to maintain its support for the platform's expansion initiatives, while simultaneously offering its pre-existing limited partners a timely and advantageous opportunity to monetize the strong performance of their investment in Matterhorn.
Following the completion of this intricate transaction, funds managed by FIC will continue to hold a significant stake in WhiteWater Matterhorn InvestCo, LLC (“MXP HoldCo”). This ownership is shared alongside I Squared and WhiteWater Midstream, solidifying a robust and collaborative partnership structure. WhiteWater Midstream, through its operational control of MXP HoldCo, will continue to oversee the day-to-day operations of the Matterhorn pipeline, ensuring its efficient and reliable service to the market.
The successful closure of this GP-led secondary transaction for Matterhorn Express Pipeline reinforces FIC's strategic approach to infrastructure investments, focusing on high-quality, essential assets that are critical to the evolving energy landscape. It also exemplifies a sophisticated financial mechanism that allows investment firms to manage portfolios dynamically, balancing continued growth support with liquidity provisions for their investors.
