FT reports: Carlyle considers selling electric power company Cogentrix

Potential Sale of Cogentrix by Carlyle Group

Private equity firm Carlyle has enlisted advisers to consider a sale of Cogentrix, a North Carolina-based power producer, potentially valuing the company between $3 billion to $4 billion. According to information from insiders, Carlyle is also looking to divest other power assets associated with its infrastructure business through separate transactions.

Rising Interest in Utility Firms

The growing interest in utility companies is partly driven by technological advancements such as artificial intelligence and the expanding demand from data centers, which have significantly increased power consumption. To facilitate the sale, Carlyle has engaged investment bank Lazard and legal firm Latham & Watkins. Neither Carlyle nor Latham & Watkins have issued comments on the matter thus far, and Lazard has opted not to provide any statements.

Background and Latest Developments

Carlyle acquired Cogentrix from Goldman Sachs in 2012, expanding its portfolio to include more than 70 diverse assets in gas, coal, solar, and other renewable energy sources. The current market conditions, marked by heightened interest in utility firms, make this an opportune moment for Carlyle to explore such sales. Notably, just last month, Global Infrastructure Partners and CPP Investments reached an agreement to privatize U.S. utility firm Allete in a deal worth $6.2 billion.