Hedge Fund Acquisitions: Magnetar Buys Metallurgical and Steam Coal Company

New York (HedgeCo.net) – $7.5 billion hedge fund investor Magnetar Capital announced that Lightfoot Capital Partners, LP has entered into a definitive agreement to sell its interests in International Resource Partners LP, a metallurgical and steam coal company, to James River Coal Company in a cash transaction valued at $475 million. The transaction is expected to close in the first half of 2011, subject to various closing conditions.

Magnetar, together with partners, formed Lightfoot in 2007 to pursue investments in energy- related businesses and assets. Lightfoot led an investor group in 2007 to acquire Central Appalachian coal assets through IRP and build it into a leading eastern United States coal company with an international presence. Lightfoot is the general partner and largest limited partner of IRP. Since acquiring IRP, Lightfoot’s management team has been instrumental in driving significant value to the company.

The agreement represents an attractive realization for Magnetar and supersedes prior plans to complete an initial public offering of IRP. Magnetar plans to continue expanding the scope and scale of its energy and natural resource platform, and will continue to support Lightfoot’s future growth plans.

Editing by Alex Akesson

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