Washington, DC – Global alternative asset manager The Carlyle Group (NASDAQ: CG) today announced it has agreed to acquire the Malaga Peaking Plant located in Fresno, California. The 96 MW acquisition is being done in conjunction with Carlyle portfolio company Cogentrix Energy Power Management, LLC and increases Carlyle’s power generation assets to more than 4,400 MW, including six plants totaling more than 400 MWs in California. The acquisition is subject to typical closing conditions. The terms of the agreement were not disclosed.
Matt O’Connor, Carlyle Managing Director and Co-Head of Carlyle Power Partners, said, “Malaga represents an important addition to our portfolio of efficient, flexible generation facilities in California. Assets like Malaga represent important resources to support the expansion of intermittent renewable generation in the state, providing reliable electricity when renewable generation is not available.”
In September 2013, Carlyle funds acquired five natural gas-fired peaking generation assets totaling 320 MW in California, where increases in the amount of power generated by renewable resources are creating unique opportunities in the power sector.
Malaga, currently owned by the Kings River Conservation District, is a 96 MW, natural gas-fired power plant, which began commercial operations in 2005. The plant historically operated under a power purchase agreement with the California Department of Water Resources, but under Carlyle ownership it will sell energy and capacity into the open market.
Cogentrix, a Carlyle portfolio company, is a developer, operator and manager of independent power plants in North America. Founded in 1983, Cogentrix has been directly responsible for the development, engineering, construction, operation and management of a portfolio totaling 47 fossil and renewable power facilities with a combined generating capability of over 12,800 gross megawatts.
Equity capital for this transaction will come from Carlyle Power Opportunities Capital Partners L.P.
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $203 billion of assets under management across 129 funds and 141 fund of funds vehicles as of September 30, 2014. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Global Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,700 people in 40 offices across six continents.