Carlyle Raises $1.5B for Second Power Generation Fund

Apr 12 2016 | 10:01pm ET

Carlyle has closed on its second power generation buyout fund with more than $1.5 billion in commitments from a diverse group of global investors. 

Carlyle Power Partners II targets power generation assets throughout North America, and leverages the technical, engineering and management capabilities of its Cogentrix Energy, a North Carolina-based power operations platform that is a portfolio company of Carlyle's infrastructure fund. 

The global alternative asset manager becomes the latest to close on a billion-dollar infrastructure-related fund. Brookfield Asset Management is nearing $10 billion for its third fund, while Goldman Sachs announced a $1.5 billion first close for its latest infrastructure fund, energy specialist Stonepeak Partners closed its second fund in January at $3.5 billion, and Morgan Stanley raised $3.6 billion in early March for its second infrastructure fund.

Carlyle's new fund launched in 2014, and has already made three transactions since its initial closing, each involving highly competitive gas-fired power plants, the company said.  

Carlyle Power Partners was formed in December 2012 with the acquisition of Cogentrix and five operating assets. Since then, Carlyle has closed or announced investments in 25 additional power plants located throughout the United States, and following completion of the fund’s February acquisition of Essential Power, the portfolio will include 28 facilities representing a total capacity of over 5,800 megawatts.

“We appreciate the strong show of support that we received from our current and new investors for our second power fund,” said Bob Mancini, managing director and co-head of the Carlyle Power Partners team.  “We believe CPP II is well positioned to capitalize on the market and regulatory forces driving major changes across the power generation landscape.”

New York-based Carlyle Group is one of the world’s largest alternative asset managers, with $183 billion of assets under management across 126 funds and 160 fund-of-funds vehicles as of December 31, 2015 that invest across four segments – corporate private equity, real assets, global market strategies and investment solutions.

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