Carlyle's Power Management Team Has Now Led Acquisitions Totaling
More Than $1.2 Billion in Enterprise Value Since Late 2012
WASHINGTON--(BUSINESS WIRE)--
Global alternative asset manager The
Carlyle Group (NASDAQ:CG), today announced it has agreed to acquire
the Red Oak power generation facility in Sayreville, New Jersey, and has
separately closed on the purchase of five power plants in California.
The acquisitions, which were executed in conjunction with Carlyle's
power affiliate Cogentrix, bring the total enterprise value of power
asset transactions since Carlyle funds acquired Cogentrix in late 2012
to more than $1.2 billion.
Robert Mancini, Carlyle Managing Director and Chairman of the Board of
Cogentrix, said, "Since Carlyle funds acquired Cogentrix, our power team
has committed approximately $600 million of equity capital. The North
American power generation sector is evolving, and we see significant
opportunities, both in the form of acquisitions and development, to
create value for our investors."
Red Oak, which is being acquired from Energy Capital Partners, is a
highly efficient, 823-MW natural gas-fired combined-cycle power plant
located in Sayreville, New Jersey. Red Oak currently operates under a
long-term power purchase agreement and is part of the PJM
Interconnection, the world's largest and most liquid competitive power
market.
The five California power generation facilities, together accounting for
320 MW, include the 122-MW Midway natural gas-fired plant in Firebaugh,
California, as well as the CalPeak portfolio of four natural gas-fired
plants totaling 198 MW in Escondido, Firebaugh, San Diego and Vacaville,
California. Carlyle is acquiring the Midway plant from an affiliate of
Starwood Energy Group Global LLC (Starwood) and the CalPeak portfolio
from the Blackstone Group L.P.'s GSO Capital Partners as well as
affiliates of Starwood and Tyr Energy.
Equity capital for the transactions, terms of which were not disclosed,
comes from Carlyle Power Opportunities Capital Partners L.P., a power
managed account, and Carlyle Infrastructure Partners, L.P., a $1.2
billion infrastructure fund. The Red Oak acquisition is subject to
customary closing conditions.
Added Mr. Mancini, "Red Oak is an attractive investment because it
benefits from stable cash flow generation and is strategically located
in a market that should benefit from strong secular trends. The
California plants are all highly responsive and flexible facilities that
represent important resources for transmission grid support and
providing reliable power during periods of peak demand within
California."
Cogentrix, a portfolio company of Carlyle Power Opportunities Capital
Partners and Carlyle Infrastructure Partners, is a developer, operator
and manager of independent power plants in North America. Founded in
1983, Cogentrix has been directly responsible for the development,
engineering, construction, operation and management of a portfolio
totaling 40 fossil and renewable power facilities with a combined
generating capability of around 8,000 megawatts.
About The Carlyle Group
The Carlyle Group (NASDAQ:CG) is a global alternative asset manager with
$180 billion of assets under management across 118 funds and 81 fund of
funds vehicles as of June 30, 2013. Carlyle's purpose is to invest
wisely and create value on behalf of its investors, many of whom are
public pensions. Carlyle invests across four segments — Corporate
Private Equity, Real Assets, Global Market Strategies and Global
Solutions — in Africa, Asia, Australia, Europe, the Middle East, North
America and South America. Carlyle has expertise in various industries,
including: aerospace, defense & government services, consumer & retail,
energy, financial services, healthcare, industrial, technology &
business services, telecommunications & media and transportation. The
Carlyle Group employs more than 1,400 people in 34 offices across six
continents.
Web: www.carlyle.com
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The Carlyle Group
Liz Gill, +1-202-729-5385
Elizabeth.gill@carlyle.com
Source: The Carlyle Group
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