Conduit makes further foray into Jamaica(5)

New York based Conduit Capital buys assets in Jamaica which it had previously sold as it increases its footing in the region.

Conduit Capital, the New York based private equity firm, has increased its holdings in Jamaica with the purchase of a power generation portfolio that it previously owned, from Basic Energy.

In a statement released today the firm, which focuses on infrastructure investment and development in Latin America and the Caribbean, said it had purchased portfolio including a 100 percent interest in Jamaica Energy Partners (JEP), a 55 percent share in Pedregal Power Company and the right to interests in two other development investments in the region.

 No price was disclosed and Conduit did not state which fund it made the investment from but it is currently investing from its $392 million Latin Power III fund.

JEP operates eleven barge-mounted, diesel-fired generating units. According to Conduit, their combined capacity represents approximately 20 percent of the electricity consumed on the island. As part of the deal, Conduit has also acquired the right to add further electricity generation capacity to JEP.

Conduit is no stranger to JEP having invested in the firm on behalf of it Latin Power funds I,II and III previously. In 2006, Conduit owned all of the assets of JEP but the firm sold them to Basic Energy in 2007 for $92.5 million.

“The changing market conditions gave us an opportunity to acquire strong operating assets in markets we know well and with first-class management teams,” said Juan Paez, partner at Conduit.

The Pedregal Power Company controls a thermal generating facility about 21 miles east of Panama City.

“Panama has long been on our list of countries that are attractive for investment for many reasons, including the stable political environment and the government’s willingness to work with investors to improve infrastructure,” continued Mr. Paez.

Conduit is currently fund raising for its $800 million Latin Power & Infrastructure IV fund, according to Probitas.