Carlyle Group LP (Nasdaq: CG) continues to stock its portfolio with energy assets as it picks up the Red Oak power generation facility in Sayreville, N.J.
Red Oak is a 823-megawatt (MW) natural gas-fired combined-cycle power plant. Energy Capital Partners, a private equity firm with $8 billion in capital commitments with offices in Short Hills, N.J. and San Diego, sold the plant.
Separately, Washington, D.C.-based Carlyle closed a deal for five more power plants in California. They include the 122-MW Midway natural gas-fired plant in Firebaugh and the CalPeak portfolio of four natural gas-fired plants totaling 198 MW in Escondido, Firebaugh, San Diego and Vacaville, Calif. Terms of each deal were not disclosed.
Greenwich, Conn.-based Starwood Energy Group Global LLC sold the Midway plant, while GSO Capital Partners LP, an asset manager backed by the Blackstone Group LP (NYSE: BX), is exiting the CalPeak portfolio.
Carlyle facilitated each transaction through portfolio company Cogentrix, which it acquired from Goldman Sachs Group Inc. (NYSE: GS) in September 2012 for an undisclosed price. Goldman acquired Cogentrix in 2003, paying $115 million and assuming $2.3 billion in debt
The sale of Congentrix was seen as a way for Carlyle to gain expertise in energy after it opted to pursue deals in the sector separate from investment partner Riverstone Holdings LLC. Carlyle gained five Cogentrix plants in the deal, including two coal-fired plants in Virginia and another in Florida, and solar facilities in Colorado and California.