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Carlyle acquires Red Oak power generation facility

Alternative asset manager The Carlyle Group has completed the acquisition of the Red Oak power generation facility located in Sayreville, New Jersey.

The acquisition was executed in conjunction with Cogentrix Energy Power Management, which was acquired by Carlyle funds in late 2012, and brings the total number of power generating facilities acquired since then to 11 with an aggregate enterprise value of more than USD1.2bn. Financial terms were not released.
Robert Mancini, Carlyle managing director and chairman of the board of Cogentrix, says: “This acquisition is a great opportunity to create value for our fund investors by taking advantage of the changing power generation landscape in North America. We are excited to add a modern, highly efficient, natural gas-fired facility like Red Oak to our portfolio of power holdings.”
Red Oak, acquired from Energy Capital Partners, is an 823-MW, combined-cycle power plant and currently operates under a long-term power purchase agreement. The facility is part of the PJM Interconnection, the world’s largest and most liquid competitive power market.
Equity capital for this transaction came from Carlyle’s Power and Infrastructure funds.
Cogentrix, a Carlyle portfolio company, 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 totalling 41 fossil and renewable power facilities with a combined generating capability of over 10,000 megawatts.

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