UBS Asset Management has made its second US investment for its latest infrastructure fund.

The Archmore International Infrastructure Fund II has acquired a 10.8% interest in CPV Towantic Energy Center in Connecticut.

The 785 megawatt combined-cycle power generation facility is under construction and the interest was sold by GE Energy Financial Services, a unit of General Electric.

GE will retain a 24.5% stake in the project, while affiliates of Ullico and Competitive Power Ventures will own 13.7% and 51% respectively.

When completed, the facility will sell energy, capacity and ancillary services into ISO-New England, one of the most developed power markets in the US, serving over 6.5 million businesses and households across six states in the New England region.

The facility has fixed-capacity pricing for the first seven years of operations providing it with stable cash flow over that period.

Using the latest generation of GE turbines, construction of the plant is being undertaken by GE and Gemma Power Systems, with oversight by CPV.

Construction is approximately 65% complete with commercial operations due to commence by the middle of next year.

Floyd Gent, head of infrastructure equity Americas at UBS Asset Management’s real estate and private markets business, said: “This transaction provides us with access to a state-of-the-art energy facility with the capacity to provide ultra-efficient and reliable power to a significant market over the long term.

“The payment structure will deliver us with stable and attractive cash flows alongside our reputable new partners in this venture, who each demonstrate impressive track records in the energy space.”