Energy firm Quantum Capital Group has agreed to acquire investment firm Carlyle's independent power producer Cogentrix Energy for $3 billion. (Source: Shutterstock)
Energy firm Quantum Capital Group has agreed to acquire independent power producer Cogentrix Energy for $3 billion, Quantum announced Aug. 5.
Managed by investment firm Carlyle, North Carolina-based Cogentrix’s platform comprises 5.3 gigawatts of natural gas-fired power plants, located throughout electricity servicers PJM, ERCOT and ISO-NE. Carlyle acquired Cogentrix’s power generation assets in 2012.
The deal came amid rapidly increasing electricity demand, thanks to “explosive” growth in data centers and AI, said Wil VanLoh, founder and CEO of Quantum.
“This growth is occurring at the same time our grid is becoming more unstable with additions of intermittent renewable power and continued retirements of coal-fired generation,” VanLoh said.
Quantum said it expects to grow Cogentrix’s platform with a focus on gas-fired power generation, renewables and battery storage. Quantum holds a number of oil and gas companies in its portfolio, including FireBird Energy II, Devon Energy, Rockcliff Energy and Antero Resources.
The transaction is expected to close between fourth-quarter 2024 and first-quarter 2025.
Cogentrix will continue to be led by its current CEO John Ragan and the existing management team.
Guggenheim served as Quantum’s financial adviser and King & Spalding and Vinson & Elkins provided legal advice to Quantum.
Lazard served as Carlyle’s financial adviser and Latham & Watkins as legal adviser.
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