Recently, Quantum Capital Group, a private equity firm specializing in energy investment, announced that it will acquire US power producer Cogentrix Energy from PE giant Carlyle Group for a total consideration of approximately $3 billion (approximately RMB 21.5 billion).
According to the data, Carlyle Group initially acquired this power producer from Goldman Sachs in 2012 for an undisclosed amount. Since then, the Carlyle Group has almost doubled Cogentrix's assets by acquiring new power plants and expanding its business.
Currently, Cogentrix has 11 natural gas power plants located in some of the most electricity demanding markets in the United States, including Texas, Pennsylvania, and New England.
Will Van Loch, founder and CEO of Quantum Capital Group, said that in a market where electricity demand is growing so rapidly, it is very rare to have the opportunity to acquire a large natural gas power plant. Due to the explosive growth of data centers and artificial intelligence, the return of manufacturing, and the advancement of electrification processes, the demand for electricity is rapidly increasing. This is an opportunity acquisition, and we plan to support business growth
After twenty years of stagnation, the demand for electricity is on the rise. Investors have been looking for opportunities to acquire and invest in power plants, partly because they anticipate a significant increase in electricity demand as data centers and digital infrastructure for artificial intelligence expand, which could put pressure on energy supply.
Industry analysis suggests that the sale of Cogentrix by Carlyle Group to Quantum is unlikely to weaken its interest in the energy industry. In 2021, Carlyle Group established Copia Power, a renewable energy company that builds solar power plants and battery storage assets in the United States.
We will continue to be active in these areas through our existing portfolio companies and new investments we will make, "said Pooja Goyal, Chief Investment Officer of Carlyle Group's Infrastructure Division
According to the latest financial report released by Carlyle Group, the revenue for the second quarter of 2024 was 1.07 billion US dollars; This year, we have raised $18 billion, nearly half of the total fundraising target of $40 billion for 2024. Thus, Carlyle's asset size has reached a record high of $435 billion. However, the performance in terms of exit was not outstanding, with distributable income decreasing by 11.7% year-on-year. The decline in distributable earnings for this quarter is due to the decrease in profits earned by the private equity division from exit transactions, which is the largest contributor to Carlyle's distributable profits.
John Ryder, Chief Financial Officer of Carlyle Group, said on the earnings conference call, "In terms of exit activities, we see that competition is becoming more intense now, IPO is the real exit route, and the interest of strategic buyers has also increased. It is expected to increase in the second half of 2024