Paladin Capital Group has completed a successful exit of its 49.9% ownership stake in Guardian Lima Holdings, a joint venture of a 60 million gallon per year biofuel production facility located in Lima, Ohio. Paladin’s stake in the joint venture was purchased by Guardian Energy Holdings, the 50.1% owner and strategic partner in the joint venture. With the closing of the transaction, Guardian Energy now owns 100% of the facility.
The Paladin III Fund, through a wholly-owned special investment vehicle, originally purchased the idle facility in 2009 and created the joint venture partnership with Guardian Energy in 2010 to implement significant capital investments and operational improvements to the facility. The facility has operated successfully since 2011, producing both fuel ethanol and feed products, with Guardian Energy and its affiliates providing operations and management services as well as handling sales and marketing for the full output of the facility.
“This exit marks another successful realization for our investors in Paladin III, and validates a unique investment strategy we have executed on in the alternative energy sector. Guardian Energy has been an ideal strategic and financial partner for us in this investment, and we wish them continued success with the business going forward”, said Mourad Yesayan, Vice President at Paladin.