The Carlyle Group has agreed to acquire Princeton, New Jersey-based Essential Power, a 1,767 net MW power generation portfolio. The seller is IFM Investors. No financial terms were disclosed.
Washington, DC and New York – Global alternative asset manager The Carlyle Group (NASDAQ: CG) and global fund manager IFM Investors are pleased to announce that Carlyle has agreed to acquire Essential Power, a 1,767 net MW power generation portfolio with headquarters in Princeton, New Jersey, from IFM for an undisclosed amount. The facilities, located throughout the Mid-Atlantic and New England, include natural gas-fired, petroleum-fired and hydroelectric generating units.
Essential Power’s portfolio includes:
Newington, a 575 MW gas-fired combined cycle in New Hampshire;
An 80% interest in Lakewood, a 265 MW gas-fired combined cycle in New Jersey;
Ocean Peaking Power, a 358 MW gas-fired peaking facility in New Jersey;
Rock Springs, a 358 MW gas-fired peaking facility in Maryland;
Three gas-fired peaking units totaling 189 MW in Massachusetts;
Petroleum-fired peaking units at three locations in Massachusetts; and
Five hydroelectric plants located in Massachusetts.
Matt O’Connor, Carlyle Managing Director and Co-Head of Carlyle Power Partners, said, “We are excited to add this diversified portfolio to our power generation holdings. Collectively, Essential Power’s assets are well positioned in markets characterized by strong demand, transparency and reliability.”
With the close of the acquisition, the total power generation portfolio of Carlyle Power Partners will grow to approximately 5,800 net MW. Equity capital for the transaction will come from Carlyle Power Partners II, L.P.
Julio Garcia, Head of Infrastructure – North America for IFM Investors said, “IFM Investors has been a long-term owner of Essential Power, which has electricity generating assets in ISO New England and PJM, two key US power markets. Essential Power’s portfolio is a modern fleet with a strong operational track record. Being predominantly gas-fired and including hydroelectric generation, the plants are well positioned to continue serving the communities that rely upon them. We are pleased that an owner with a substantial established generation platform, such as Carlyle Power Partners, is acquiring the company.”
The acquisition is subject to closing conditions, including regulatory approvals.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $188 billion of assets under management across 126 funds and 160 fund of funds vehicles as of September 30, 2015. 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 investment 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, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,700 people in 35 offices across six continents.
About IFM Investors
IFM Investors is a global fund manager with US$47 billion under management as of December 2015. Established over 20 years ago and owned by 29 non-profit pension funds, IFM Investors’ interests are deeply aligned with those of its investors. Investment teams in Australia, North America and Europe manage institutional strategies across infrastructure, debt investments, listed equities and private capital. IFM Investors has offices in six locations: Melbourne, Sydney, New York, London, Berlin and Tokyo.