Quantum Capital Group and its associates are buying Cogentrix Vitality, a U.S. impartial energy producer, from funds managed by Carlyle for a complete consideration of roughly $3 billion.
The Cogentrix platform is comprised of 5.3 gigawatts of environment friendly and versatile pure gas-fired energy crops, positioned all through PJM, ERCOT, and ISO-NE, which assist the reliability, resiliency, and affordability of the U.S. electrical energy market, Carlyle stated in a information launch.
Headquartered in Charlotte, North Carolina, Cogentrix has a multi-decade monitor report of efficiently buying, creating, establishing, working, and optimizing standard and renewable energy era property all through the USA, in accordance with the discharge.
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The transaction is topic to customary regulatory approvals and is predicted to shut between the fourth quarter of 2024 and the primary quarter of 2025.
“We’re at a important juncture within the evolution of the home energy market. Electrical energy demand is quickly growing because of explosive progress in information facilities and AI [artificial intelligence], the reshoring of producing, and the electrification-of-everything,” stated Wil VanLoh, Founder and CEO of Quantum. “This progress is going on on the identical time our grid is turning into extra unstable with additions of intermittent renewable energy and continued retirements of coal-fired era. Now greater than ever, we’d like dependable and environment friendly energy infrastructure. That is what the Cogentrix property present”.
Michael MacDougall, Accomplice at Quantum, stated, “We’re thrilled to accomplice with the Cogentrix workforce. Having stewarded greater than 18 gigawatts of property over its 40+ yr historical past, the Firm is a confirmed chief in constructing, managing, and optimizing energy era property of all know-how varieties. We anticipate to meaningfully develop the Cogentrix platform, with a concentrate on gas-fired energy era, renewables, and battery storage. Our purpose is to ship clear, dependable, and reasonably priced energy to prospects.”
“We’re happy to have supported Cogentrix’s efforts to ascertain decarbonization aims for its fleet of pure gas-fired energy era property whereas persevering with to assist grid reliability, a important steadiness required to effectuate the power transition,” Pooja Goyal, CIO of World Infrastructure at Carlyle, stated. “This profitable transaction is a testomony to the deep sector experience of our power and infrastructure platform at Carlyle. We look ahead to persevering with our funding actions on this quickly rising space, together with partnering with our administration groups on progress alternatives and deploying capital in new investments”.
“We’re grateful for Carlyle’s partnership, which has supplied us with the instruments and capabilities to seize a rising alternative set throughout the U.S. energy market,” Cogentrix CEO John Ragan stated. “As we glance to the longer term, we’re assured Quantum’s deep information of the power markets, profitable monitor report of enterprise constructing, and threat administration capabilities will drive important long-term worth for our prospects, workers, buyers, and different stakeholders.”
Following the completion of the transaction, the corporate will proceed to be led by present CEO John Ragan and the prevailing Cogentrix administration workforce, in accordance with the discharge.
Based in 1998, Quantum is a number one supplier of personal fairness, credit score, and enterprise capital to the worldwide power and power transition business, having managed along with its associates greater than $27 billion in fairness commitments since its inception, the discharge stated.
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