Alternative asset manager The Carlyle Group’s infrastructure fund is to acquire from Goldman Sachs Group the North American power generation assets held by Cogentrix Energy, which include five coal and solar power projects in Florida, Virginia, Colorado and California, as well as a development pipeline of gas and renewable power projects.
The transaction includes the Charlotte, North Carolina-based Cogentrix team, including professionals who will continue to initiate new power generation projects and acquisitions as well as bring their power asset management and operating expertise to Carlyle’s future investment activity in the power sector.
Equity for this investment comes from Carlyle Infrastructure Partners, a USD1.14bn fund. Terms of the transaction, which is subject to customary regulatory approvals and is expected to close during the fourth quarter of 2012, were not disclosed.
Daniel A. D’Aniello, Carlyle chairman and co-founder, says: “Carlyle has long been committed to investing in energy and expanding its dedicated capabilities in this important segment of the global economy. We are delighted to have the Cogentrix development team as a key resource in the build-out of our long-term energy and power investment strategy.”
The transaction includes significant ownership stakes in coal-fired power plants in Jacksonville, Florida (Cedar Bay) and Hopewell and Portsmouth, Virginia; solar power facilities in Daggett, California (Sunray), and Alamosa, Colorado. Goldman Sachs will retain a minority stake in Cedar Bay. Cogentrix has operating and development personnel with experience developing and acquiring over 7,000 net megawatts of power generation during the past three decades.
