First Reserve and Fortress Investment Group Secure Majority Stake in Island Energy Services for Enhanced Growth
In a strategic move set to significantly enhance the energy landscape of Hawaii, First Reserve and Fortress Investment Group have announced their agreement to acquire a majority stake in Island Energy Services, LLC (IES), a prominent integrated fuel logistics and infrastructure provider in the region. This partnership aims to leverage First Reserve's extensive experience in investing in value-added infrastructure to drive growth for IES, which has long been a critical player in Hawaii’s energy sector.
Island Energy Services boasts an impressive portfolio, with assets that encompass more than 5.7 million barrels of fuel storage capacity and 57 miles of pipeline infrastructure. This infrastructure is vital for importing, storing, and distributing fuel and has substantial connectivity to key locations, including the Honolulu Airport and Joint Base Pearl Harbor-Hickam. Additionally, IES operates Hawaii’s leading network of Texaco® service stations, comprising 50 locations strategically situated across the islands, serving major airlines, utilities, retailers, and government entities.
The current ownership, affiliated with One Rock Capital Partners, LLC, will continue to invest in IES, ensuring that the company benefits from a diverse array of financial backing. According to Gary Reaves and Neil Wizel, Managing Partners at First Reserve, this transaction represents a unique opportunity to use their extensive track record in infrastructure investment. They express confidence that logistical infrastructure, like that of IES, will play an essential role in catering to the increasing energy demands of the U.S. economy.
With plans to support the firm’s management in enhancing the operational capacity of IES, First Reserve aims to ensure that IES maintains its critical role as an energy partner for Hawaii. The company serves essential functions in importing, storing, and distributing refined energy products which fuel the local economy. First Reserve plans to assist in strategic initiatives that will focus on long-term growth and improved infrastructure utilization. This will not only cater to existing customers but also bring about new opportunities in a market that is evolving rapidly towards alternative energy solutions.
Paul Steen, Managing Director at First Reserve, expressed enthusiasm about the partnership, emphasizing the strategic growth opportunities that lay ahead for IES. He highlighted a committed vision towards incorporating biofuels into Hawaii's energy mix, which will help position the company favorably as the energy landscape continues to shift.
Drew McKnight, Co-CEO and Managing Partner at Fortress Investment Group, echoed these sentiments, stating that they are eager to collaborate with IES and First Reserve to enhance its energy infrastructure further. McKnight highlighted IES's significance to both Hawaii’s economy and its communities, noting the investment will help accelerate the company’s capabilities in renewable energy.
Jon Mauer, President and CEO of Island Energy Services, also welcomed the new chapter this partnership presents. He articulated a strong belief that with First Reserve and Fortress’s support, IES will continue to expand its services and offerings to better meet the pressing energy requirements of Hawaii’s island communities. He emphasized the ongoing importance of their network and resources, believing they can further solidify their reputation for providing reliable and high-quality fuels and services.
This strategic acquisition is expected to close in the third quarter of 2025, and it marks a pivotal moment in the ongoing evolution and maturation of energy services in Hawaii. With industry leaders like First Reserve and Fortress Investment Group backing Island Energy Services, the focus will likely shift towards innovative energy solutions that not only meet local needs but also align with the broader national goals concerning energy sustainability.
First Reserve is recognized as a premier private equity firm with a rich history in the infrastructure and energy sectors, founded in 1983. Its portfolio, encompassing over $34 billion, showcases the firm’s dedication to advancing environmental, social, and governance (ESG) principles within its investments. Meanwhile, Fortress Investment Group, founded in 1998 and managing around $50 billion in assets, is celebrated for its diversified investment strategies that span various asset classes including credit and real estate.
The collaboration between these two investment powerhouses and Island Energy Services is set to forge a pathway to innovation and growth, reinforcing Hawaii's commitment to transforming its energy landscape with enhanced infrastructure and sustainable practices.
Island Energy Services boasts an impressive portfolio, with assets that encompass more than 5.7 million barrels of fuel storage capacity and 57 miles of pipeline infrastructure. This infrastructure is vital for importing, storing, and distributing fuel and has substantial connectivity to key locations, including the Honolulu Airport and Joint Base Pearl Harbor-Hickam. Additionally, IES operates Hawaii’s leading network of Texaco® service stations, comprising 50 locations strategically situated across the islands, serving major airlines, utilities, retailers, and government entities.
The current ownership, affiliated with One Rock Capital Partners, LLC, will continue to invest in IES, ensuring that the company benefits from a diverse array of financial backing. According to Gary Reaves and Neil Wizel, Managing Partners at First Reserve, this transaction represents a unique opportunity to use their extensive track record in infrastructure investment. They express confidence that logistical infrastructure, like that of IES, will play an essential role in catering to the increasing energy demands of the U.S. economy.
With plans to support the firm’s management in enhancing the operational capacity of IES, First Reserve aims to ensure that IES maintains its critical role as an energy partner for Hawaii. The company serves essential functions in importing, storing, and distributing refined energy products which fuel the local economy. First Reserve plans to assist in strategic initiatives that will focus on long-term growth and improved infrastructure utilization. This will not only cater to existing customers but also bring about new opportunities in a market that is evolving rapidly towards alternative energy solutions.
Paul Steen, Managing Director at First Reserve, expressed enthusiasm about the partnership, emphasizing the strategic growth opportunities that lay ahead for IES. He highlighted a committed vision towards incorporating biofuels into Hawaii's energy mix, which will help position the company favorably as the energy landscape continues to shift.
Drew McKnight, Co-CEO and Managing Partner at Fortress Investment Group, echoed these sentiments, stating that they are eager to collaborate with IES and First Reserve to enhance its energy infrastructure further. McKnight highlighted IES's significance to both Hawaii’s economy and its communities, noting the investment will help accelerate the company’s capabilities in renewable energy.
Jon Mauer, President and CEO of Island Energy Services, also welcomed the new chapter this partnership presents. He articulated a strong belief that with First Reserve and Fortress’s support, IES will continue to expand its services and offerings to better meet the pressing energy requirements of Hawaii’s island communities. He emphasized the ongoing importance of their network and resources, believing they can further solidify their reputation for providing reliable and high-quality fuels and services.
This strategic acquisition is expected to close in the third quarter of 2025, and it marks a pivotal moment in the ongoing evolution and maturation of energy services in Hawaii. With industry leaders like First Reserve and Fortress Investment Group backing Island Energy Services, the focus will likely shift towards innovative energy solutions that not only meet local needs but also align with the broader national goals concerning energy sustainability.
First Reserve is recognized as a premier private equity firm with a rich history in the infrastructure and energy sectors, founded in 1983. Its portfolio, encompassing over $34 billion, showcases the firm’s dedication to advancing environmental, social, and governance (ESG) principles within its investments. Meanwhile, Fortress Investment Group, founded in 1998 and managing around $50 billion in assets, is celebrated for its diversified investment strategies that span various asset classes including credit and real estate.
The collaboration between these two investment powerhouses and Island Energy Services is set to forge a pathway to innovation and growth, reinforcing Hawaii's commitment to transforming its energy landscape with enhanced infrastructure and sustainable practices.
Topics Energy）
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