Carlyle Explores Sale of Cogentrix with Potential Valuation

Private equity firm Carlyle has engaged advisers to explore the sale of Cogentrix, a North Carolina-based power producer that could be valued between $3 billion and $4 billion, according to a report by the Financial Times.

This decision comes as Carlyle plans to sell other power assets owned by its infrastructure business through separate processes.

Increasing Interest in Utility Firms:

The sale exploration occurs amid rising interest in utility firms driven by technological innovations, such as artificial intelligence and data centers, which are increasing power demand. This trend has prompted significant investments in the sector.

Advisory Roles and Market Impact:

Investment bank Lazard and law firm Latham & Watkins have been appointed to advise on the sale. Carlyle and Latham & Watkins have not responded to requests for comment, while Lazard declined to comment.

Cogentrix, acquired by Carlyle from Goldman Sachs in 2012, operates more than 70 gas, coal, solar, and other renewable energy assets. This diverse portfolio positions Cogentrix as a significant player in the energy sector.

Recent Industry Trends:

This move follows a recent trend of substantial transactions in the utility sector. For instance, Global Infrastructure Partners and CPP Investments agreed to take U.S. utility Allete private in a $6.2 billion deal last month.