Carlyle in Talks to Buy Energy Capital Partners
Carlyle Group, the Washington-based private-equity firm gearing up for an initial public offering, is in talks to purchase Energy Capital Partners, according to a person with direct knowledge of the negotiations.
Discussions began about three months ago and may not lead to a deal, said the person, who asked not to be identified because the matter is private.
Energy Capital Partners, a private-equity firm based in Short Hills, New Jersey, with offices in San Diego, has raised about $7 billion to invest in energy infrastructure assets including gas, electric and alternative power plants, according to its website. The firm gathered $4.34 billion last year for its second private-equity fund, as rising energy prices attracted investors.
Carlyle aims to take advantage of more stable stock markets to join U.S.-listed rivals Blackstone Group LP (BX), KKR & Co. and Apollo Global Management LLC. Blackstone, the world’s largest private-equity firm, has gained 22 percent this year in New York trading and KKR has risen 12 percent. Apollo has declined 11 percent since its March 29 offering.
Carlyle, which may raise about $1 billion by going public, told investors it was winding down a joint venture with New York-based investment company Riverstone Holdings LLC, the person said. Riverstone and Carlyle amassed a $1.1 billion fund in 2004 to buy energy assets, after gathering a $222 million pool in 2001.
An official at Carlyle Group declined to comment. Energy Capital Partners didn’t return a telephone message left after regular business hours.
The talks were reported earlier today by the New York Times’ Dealbook.
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