Asian SWF Could Have a New Partner in Georgia Plants

Going direct by acquiring a passive interest in energy assets is a complex undertaking, even for experienced institutional investors. Relying on the operating partner’s valuable expertise, large public investors often channel capital in a variety of financial deals in which they play the sole role as a financial investor. How does an institutional investor fare in a scenario in which the majority-owner decides to exit, especially if that owner operates sub-entities that greatly influence the asset’s profitability?

–Update: Arclight Capital Partners has called the deal off with regard to selling Southeast PowerGen LLC.

Back in January 2011, Boston-based ArcLight Capital Partners, LLC, GE Energy Financial Services (lending arm of General Electric) and the Government of Singapore Investment Corporation Pte Ltd (GIC) agreed to become partners in five natural gas-fired power plants in Georgia. The combined assets, dubbed Southeast PowerGen LLC, became a major fully independent power producer in the Southeastern United States. Most of the portfolio’s power plants use GE gas-fired turbines and generate more than 2,500 megawatts of power.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


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