Quantum Energy Partners has formed Quantum Utility Generation, which will buy and develop conventional and alternative energy projects in North America. The Houston company will be capitalized with $1 billion of equity, $500 million of which has been committed by Quantum. Another $500 million in equity will come from other co-investing financial and strategic partners. Quantum is a buyout shop w iht more than $5.7 billion of assets under management.
Quantum Energy Partners, a leading energy private equity firm is pleased to announce the formation of Quantum Utility Generation, LLC (“QUG”), a power generation company that will be headquartered in Houston, Texas.
The QUG leadership team will include industry veterans Larry Kellerman as Chief Executive Officer, Sean O’Donnell as Executive Vice President and Chief Financial Officer and Tim Sullivan as Executive Vice President and Chief Commercial Officer. QUG will focus on the acquisition, operation and development of conventional and alternative energy projects in North America. The company will be capitalized with $1 billion of equity, $500 million of which has been committed by Quantum. An additional $500 million of equity will be provided by other co-investing financial and strategic partners.
“We are excited to be partnering with such an accomplished team to develop a long-term operating platform for Quantum’s investment efforts in the power sector,” said Dheeraj Verma, Managing Director at Quantum Energy Partners and Chairman of QUG. “This is an important step for Quantum in its continued strategy to expand its investments in the North American energy sector.”
Mr. Kellerman is an accomplished leader in the power generation sector with more than 30 years of industry experience. Mr. Kellerman has successfully developed, acquired, and managed numerous power generation assets and held senior management positions at Goldman Sachs, El Paso Corporation, Citizens Power and Portland General Electric, after beginning his industry career at Southern California Edison. He recently retired from Goldman Sachs where he was a Partner and the President of Cogentrix Energy, LLC, Goldman Sachs’ wholly owned power generation business.
Mr. O’Donnell spent the past 10 years at J.P. Morgan, where he was a Managing Director and the Head of North American Generation for the Power & Utilities group. In that role, Mr. O’Donnell advised utilities and independent power producers on strategic, financing and restructuring transactions involving dozens of conventional and renewable generation assets. Mr. O’Donnell previously worked in both J.P. Morgan’s Oil & Gas and Restructuring groups. Prior to his career with J.P. Morgan he was an officer in the US Navy.
Mr. Sullivan has spent over 25 years in the energy sector in both management and principal roles. During his career, Mr. Sullivan has been responsible for the operational, contractual and commercial activities on a variety of generation assets. He has also worked with numerous utilities to restructure long-term electricity off-take and fuel supply agreements in order to reposition, monetize or refinance assets for clients. He started his career at Niagara Mohawk, a utility in upstate New York and subsequently partnered with Mr. Kellerman during their time together at Citizens Power and El Paso Corporation. Mr. Sullivan was one of the leaders of the power and natural gas commercial efforts for AIG-Financial Products and was most recently a Managing Director in Deutsche Bank’s commodities group.
“We are excited to partner with Quantum Energy Partners in building an operating power company that can leverage a strong capital base, technical expertise and broad relationships in the energy sector to develop innovative commercial structures for the benefit of our customers. We look forward to working with the investor-owned and public power utilities, generation asset owners and regulatory agencies in being a value-added owner, operator and developer of generation assets,” concluded Kellerman.
About Quantum Energy Partners
Founded in 1998, Quantum Energy Partners is a leading provider of private equity to the global energy industry with more than $5.7 billion of assets under management. To learn more about Quantum Energy Partners, please visit Quantum’s website at www.quantumep.com. For investor relations, please contact Michael Dalton at (713) 452-2000.