Goldman’s Kimmelman to start power fund

Doug Kimmelman, one of the major players behind Goldman Sachs’ power investments, will launch a $1bn private equity fund to invest in North American electricity assets.

Doug Kimmelman, one of the founders of Goldman Sachs’ power investment group, has left the firm to launch a $1 billion (€800 million) private equity fund that will invest in North American electricity assets.

Reportedly, Kimmelam left Goldman last week after 22 years of working for the financial services giant, to set up Energy Capital Partners. He will be joined by Scott Helm, a co-founder of Goldman’s Orion Power Holdings, and Thomas Lane, a senior Goldman mergers and acquisitions advisor.

Energy Capital will reportedly be based in the New York area. It will focus on US-based investing in power plants and transmission lines, in addition to natural gas distribution and storage.

In 1998, Kimmelman helped Goldman set up the Orion Power venture with Baltimore’s Constellation Energy Group. Goldman eventually sold its 37 percent stake in Orion to Reliant Resources for $4.8 billion in equity and assumed debt in late 2001.

Most recently in April, Goldman Sachs’s private equity arm, Goldman Sachs Capital Partners, announced the final close of its fifth global buyout fund on $8.5 billion (€6.6 billion). The fund is expected to mainly invest in large LBOs led by other private equity groups in North America, Europe and Asia.