Energy Capital Partners to acquire US power plant

The energy infrastructure-focused US private equity firm, which closed its second fund on $4.3 billion last year, has agreed to acquire a 575MW natural gas-fired power plant in Pennsylvania for an undisclosed sum.

Energy Capital Partners, a US private equity firm focused on investments in North American energy infrastructure, has agreed to acquire a 575-megawatt natural-gas fired power plant from Greenwich, Connecticut-based firm Strategic Value Partners (SVP).

Energy Capital Partners has agreed to acquire 100 percent of SVP's investment in Liberty Electric Generation, the owner of the Pennsylvania power plant. Financial details for the deal were not disclosed. 

SVP said in a statement that the firm had begun investing in Liberty Electric's distressed debt when the company was facing “severe operational and financial challenges”. SVP said it had acquired 100 percent equity ownership of the company by 2007 through restructuring of Liberty Electric's debt.   

Liberty Electric’s 2010 earnings before interest, taxes, depreciation and amortisation (EBITDA) were $73.7 million, according to a statement. The sale is expected to close in the third quarter of 2011.

Energy Capital Partners is based in New Jersey and San Diego, California, and closed its second fund on $4.3 billion last year. Previous investments include Empire Gen Holdings, which owns a 635-megawatt natural-gas fired plant in New York, as well as North American energy infrastructure companies Summit Midstream Partners, Power Line Services, 21st Century Transmission, and Cardinal Gas Storage, according to the firm’s website.