Carlyle completes Southeast PowerGen deal

The asset manager has added 2,815MW to its power generation portfolio with the acquisition of six power plants from ArcLight and GIC.

The Carlyle Group has completed its acquisition of a 75.05 percent stake in Southeast PowerGen, a portfolio of six natural gas-fired power plants in the state of Georgia, from Boston-based private equity firm ArcLight Capital Partners and Singapore’s sovereign wealth fund GIC, for an undisclosed amount.

The acquisition, which Carlyle is funding through Carlyle Power Opportunities Capital Partners LP and Carlyle Power Partners II LP, adds 2,815 megawatts (MW) to the firm’s power generation portfolio.

“Southeast PowerGen’s contracted assets are located in a region exhibiting strong electricity demand growth in the country and facing retirements of thousands of megawatts of coal-fired power generation,” Carlyle said in a statement.

The assets include four peaking facilities and two combined-cycle facilities. GE Energy Financial Services will retain the remaining 24.95 percent equity interest in the assets.

Carlyle also announced the completion of a $550 million recapitalisation of Southeast PowerGen, which will be used to pay down existing debt, provide a distribution to equity owners and fund certain reserve accounts.

New York-based law firm Stroock & Stroock & Lavan represented The Carlyle Group in both the acquisition and recapitalisation of Southeast PowerGen.

The Carlyle Group, based in New York, is a global alternative asset manager that invests across four platforms – corporate private equity, real assets, global market strategies and solutions worldwide. As of June 30, 2014, Carlyle had $203 billion of assets under management across 126 funds and 139 fund of funds vehicles.