TLDR:
Key Points:
- Quantum Capital Group is set to acquire Cogentrix Energy for approximately $3 billion from Carlyle Group.
- Investor interest in utilities is growing due to rising power demand driven by technological advancements like AI and data centers.
Private equity firm Quantum Capital Group has announced its plans to purchase U.S. independent power producer Cogentrix Energy from Carlyle Group for about $3 billion. This move comes as investor interest in utilities is on the rise, fueled by advancements in technology such as artificial intelligence and the growth of data centers, which are increasing power demand.
In a statement, Wil VanLoh, the founder and CEO of Quantum, highlighted the importance of reliable and efficient power infrastructure in the current market landscape. Cogentrix Energy, which was acquired by Carlyle from Goldman Sachs in 2012, operates 5.3 gigawatts of natural gas-fired power plants across multiple regional transmission areas.
The deal is expected to be finalized between the fourth quarter of 2024 and the first quarter of 2025, with Cogentrix continuing to be led by its current CEO John Ragan and management team. Quantum Capital, based in Houston, has a track record of managing significant equity commitments in the energy industry since its establishment in 1998.
The global power demand is set to see a significant increase, particularly from data centers, with usage expected to triple this year according to Morgan Stanley research. The acquisition of Cogentrix by Quantum Capital reflects a strategic bet on the growing demand for power in the U.S. market.
