PSP Investments Divests FirstLight’s U.S. Operations to Hull Street Energy

The Public Sector Pension Investment Board (PSP Investments) has agreed to sell the U.S. operations of FirstLight to private equity firm Hull Street Energy, in a deal that shifts a major Northeast clean power portfolio to new ownership while PSP retains its Canadian platform.

The U.S. portfolio includes approximately 1.4 gigawatts of installed capacity across hydroelectric generation, energy storage and renewable assets in Massachusetts, Connecticut and Pennsylvania. The transaction also encompasses FirstLight’s Allegheny Hydro portfolio. PSP, which acquired FirstLight in 2016, said it has supported the company’s growth into a leading North American clean power platform spanning hydro, storage and renewables.

FirstLight’s H2O Power and Hydromega businesses in Canada, which together make up the firm’s Canadian platform, will remain under PSP Investments’ ownership. FirstLight’s U.S.-based employees, led by President and CEO Justin Trudell, will transition with the assets to Hull Street Energy, while the Canadian operations continue under their existing leadership.

“We value what the team has built at FirstLight and are grateful for the support of PSP Investments during their ownership,” Trudell said. “We are excited to continue leading the U.S. business and to be partnering with Hull Street Energy in this next chapter in the FirstLight story.”

FirstLight’s Canadian platform will continue to operate clean power projects and advance a pipeline of wind, solar, hydro and battery storage developments in Quebec and Ontario.

“This transaction reflects our disciplined approach to portfolio management and return optimization while preserving exposure to projects in Canada with long-term, inflation-linked cashflows,” said Andrew Alley, managing director and global head of infrastructure investments at PSP Investments.

Evercore acted as sole financial advisor, while Latham & Watkins and Foley Hoag served as legal counsel to PSP Investments.