Quantum Capital Group has reached an agreement to acquire Cogentrix Energy from The Carlyle Group for $3 billion. Matt O'Connor, a partner at Carlyle's Global Infrastructure team, characterized the deal as beneficial for all parties involved.
Wil VanLoh, CEO of Quantum, emphasized the strategic timing of the acquisition, citing rising electricity demand from sectors like data centers and AI, alongside challenges such as grid instability and coal plant retirements. He stated that the Cogentrix assets are essential for providing reliable and efficient power infrastructure.
Cogentrix, based in Charlotte, North Carolina, operates a portfolio of 5.3 gigawatts of natural gas-fired power plants across three major U.S. electric power transmission operators: ERCOT, PJM, and ISO-NE. The company will retain its current leadership, with CEO John Ragan and the management team continuing post-acquisition.
Michael MacDougall, a partner at Quantum, outlined plans for Cogentrix's growth, focusing on gas-fired power generation, renewables, and battery storage to ensure clean and affordable power for customers. This acquisition follows a series of strategic moves in the energy sector, including recent deals by I Squared Capital.
Carlyle initially acquired Cogentrix in late 2012, and Pooja Goyal, CIO of Carlyle's Global Infrastructure, noted the company's progress in decarbonization while maintaining grid reliability. The transaction reflects Carlyle's expertise in the energy and infrastructure sector, and the firm is eager to continue investing in this rapidly evolving area.
The announcement coincided with Carlyle's second-quarter results, which revealed a 13% year-over-year increase in total assets under management, reaching $435 billion. Financial advisors for the deal included Guggenheim for Quantum and Lazard for Carlyle, with legal counsel provided by King & Spalding and Vinson & Elkins for Quantum, and Latham & Watkins for Carlyle.
In a separate development, Sofinnova Investments has appointed Dr. Maha Radhakrishnan as an executive partner. Dr. Radhakrishnan brings over 20 years of experience in medical strategy and operations within the biotechnology and pharmaceutical sectors. She previously served as chief medical officer at Biogen, where she oversaw the approval of several significant products, including treatments for hemophilia and Alzheimer's disease.
Before her tenure at Biogen, Dr. Radhakrishnan held leadership roles at Sanofi, Bioverativ, Bristol Myers Squibb, United Health Group, and Cephalon. Sofinnova Investments, based in Menlo Park, California, focuses on life science companies across the value chain. Dr. Jim Healy, managing partner at Sofinnova, highlighted Dr. Radhakrishnan's extensive drug development expertise as a valuable asset for guiding portfolio companies from clinical development to commercialization.
Dr. Radhakrishnan expressed her commitment to advancing innovative therapeutics and creating transformative value for patients, looking forward to leveraging her experience in the industry.
