GIP completes CPV acquisition

The New York-based fund manager has acquired the independent power developer from US buyout firm Warburg Pincus.

Global Infrastructure Partners (GIP) now owns 100 percent of Competitive Power Ventures, an independent power developer with a portfolio of over 7,500 megawatts (MW) of wind and gas assets in North America, GIP spokesperson Jack Cowell told Infrastructure Investor on Monday.

The New York-headquartered fund manager has bought the business from Warburg Pincus, a US-based private equity firm which has backed CPV since 2000, through a transaction first announced in March.

GIP completed the acquisition through Global Infrastructure Partners II, its second vehicle. Closed on $8.25 billion in October 2012, the infrastructure fund is the largest ever raised. 

Through this transaction, GIP acquired equity interests in CPV’s power generation portfolio as well as in the company’s development and asset management platforms. CPV, however, does not own 100 percent of all the acquired assets, according to one source.

“GIP intends to fund CPV’s next round of corporate growth including constructing the Valley and Towantic projects as well as providing funding for CPV’s ongoing project development activity,” CPV said in the statement, referring to the 720MW and 785MW power generation facilities that will be built later this year in New York and Connecticut.

“This transaction gives CPV access to significant capital to invest in infrastructure at a time when this country is making major changes to the power system,” CPV president Gary Lambert said. “GIP’s funding, combined with CPV’s proven development and asset management expertise, is a potent combination to fuel growth as one of the premier generating companies in the US.”

CPV’s portfolio includes six gigawatts of projects at various stages of development. The Woodridge Energy Centre and the St. Charles Energy Centre – two natural gas fuelled, combined cycle power generation facilities each with a capacity of 725MW – in central New Jersey and southern Maryland, respectively, are already under construction.

“CPV also has several projects in the development pipeline and expects to announce its next round of projects in the coming year,” the company said.

CPV’s asset management division has more than 7,550MW of natural gas generation and wind power under management, according to the statement.

In addition to its New York headquarters, GIP also has offices in London, Colorado Springs, Connecticut and Sydney. It targets investments in power and utilities, natural resources infrastructure, air transport infrastructure, seaports, freight railroad, water distribution and treatment, and waste management. The firm invests in both OECD and select emerging markets.