The Carlyle Group to acquire Power Generation Portfolio from IFM Investors

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The Carlyle Group to acquire Power Generation Portfolio from IFM Investors

Global alternative asset manager The Carlyle Group and global fund manager IFM Investors have announced 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.

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