Energy Investors Funds has acquired the Channelview cogeneration facility, an 865 MW gas-fired power plant near Houston, Texas. EIF acquired the plant from Global Infrastructure Partners and Fortistar using capital from its EIF United States Power Fund IV. Terms of the deal were not disclosed.
Energy Investors Funds (“EIF”), an established private investment firm focused on the energy sector, announced today that it has acquired the Channelview cogeneration facility, an 865 MW gas-fired power plant located near Houston, TX, from Global Infrastructure Partners (“GIP”) and Fortistar. Terms of the deal were not disclosed.
EIF United States Power Fund IV, L.P., a fund managed by EIF, was responsible for the deal. Channelview, which began operations in 2002, is located near the Houston Ship Channel. Channelview sells steam and electricity under long-term contract with a large industrial customer. The facility also sells power under a series of off-take agreements to the ERCOT market. The facility is one of the cleanest and most efficient gas-fired generation facilities in Texas, and is located in the Houston Zone, the most constrained area in ERCOT.
“We’re very excited about this deal and project,” said Mark Voccola, Partner with EIF. “Channelview has a solid operating history and long-term contracts with a very stable industrial partner, which we believe creates an exciting value proposition going forward.”
Jonathan Bram, the GIP Partner leading the Channelview transaction, commented, “We congratulate EIF on its purchase of Channelview, a state-of-the-art asset with market-leading efficiency that makes it both productive and environmentally friendly.”
About Energy Investors Funds
EIF was founded in 1987 as one of the first private equity fund managers focused on the independent power and electric utility industry. EIF’s investment strategy is to create geographically and technologically diversified portfolios of electric power-related assets across the power generation, transmission, and midstream sectors that are expected to provide superior risk-adjusted equity returns with current cash flow and capital appreciation. EIF has raised over $5 billion in equity capital and currently manages multiple private equity funds from its offices in Boston, New York, and San Francisco. These funds have made over 100 diversified investments with an underlying asset value greater than $15 billion. EIF-managed funds own approximately 4,000 MW of capacity in facilities that are currently operating or under construction and an additional 6,000 MW in facilities that are in various stages of development. EIF closed on its latest fund, EIF United States Power Fund IV, L.P., in October 2011, with $1.713 billion in capital commitments. For more information, visit www.eif.com
About Global Infrastructure Partners
Global Infrastructure Partners is an independent infrastructure fund with over $16.5 billion under management that invests worldwide in infrastructure assets and business in both OECD and select emerging market countries. GIP targets investments in single assets, and portfolios of assets and companies in power and utilities, natural resources infrastructure, air transport infrastructure, seaports, freight railroad, water distribution and treatment and waste management. GIP has offices in New York, London and Colorado Springs, with an affiliate in Sydney and portfolio company operations headquarters in Stamford, Connecticut. For more information, visit www.global-infra.com.
Fortistar, headquartered in New York, has over a 25-year track record in investing in the power sector with particular expertise in operating and optimizing cogeneration assets. The company has interests in over 60 projects located in the United States and Canada, including a growing renewable energy portfolio. For additional information, visit www.fortistar.com.