A recently formed affiliate of Hull Street Energy, has completed the acquisition of 100% of the ownership interests in Nautilus Hydro, LLC from funds managed by affiliates of The Carlyle Group. Nautilus Hydro, owns five hydroelectric generation facilities located in Massachusetts on the Chicopee and Deerfield Rivers. As a result of this transaction, Hull Street Energy has added approximately 18 MW of long-lived, renewable generation assets to its New England portfolio.
Carlyle acquired the Nautilus Hydro facilities in June 2016 with its acquisition of the Nautilus Power portfolio (formerly Essential Power) and its subsidiaries. Since Carlyle's acquisition, Cogentrix Energy Power Management, LLC ("Cogentrix"), Carlyle's affiliated independent power producer, has overseen the plants' management, operations and maintenance. Cogentrix has agreed to support a transition to Hull Street Energy's asset management group over the next several months.
Hull Street Energy acquired Nautilus Hydro as part of its strategy to build and grow a significant presence in the rapidly evolving North American power sector. Collectively, Hull Street portfolio companies now own and operate approximately 465 MW of strategically positioned generation assets located in Massachusetts, Connecticut, Rhode Island, New Jersey and Montana. The fleet provides critical reliability and low-carbon energy services to the regional power grid.
Manatt, Phelps & Phillips, LLP acted as legal counsel to Hull Street Energy and Chadbourne & Parke LLP acted as legal counsel to Carlyle and Cogentrix on the transaction.
About Hull Street Energy, LLC
Hull Street Energy is a private equity firm that acquires, optimizes and grows middle market power businesses through the application of industry-leading risk management, efficiency enhancements and commodity contract structuring. Hull Street Energy was established by a team with extensive, long-standing expertise in the power industry. They bring to the firm's investments a unique combination of deep technical and commercial knowledge of the electricity industry, and top-tier financial investment expertise. Headquartered in Bethesda, Maryland, the team leverages its decades of experience and unique knowledge of North American electricity infrastructure, including fuel inputs, generation assets, transmission and distribution systems, and electricity demand-side businesses to build value for our investors and stakeholders.
About The Carlyle Group and Cogentrix
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $162 billion of assets under management across 287 investment vehicles as of March 31, 2017. Carlyle's purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,550 people in 31 offices across six continents.
Cogentrix is a leading independent power producer with a long track record of successfully acquiring, developing, constructing, operating and improving power generation assets. Consistent with its engineering origins and culture, Cogentrix maintains a disciplined and well-designed approach to asset improvement. The firm's ability to enhance value has resulted in achieving superior operating performance from its power generation assets while maintaining a minimal and well-managed risk profile. Based in Charlotte, North Carolina, Cogentrix serves as Carlyle's power asset management platform. The Cogentrix team has extensive engineering, operational and commercial experience across a broad range of generation technologies and markets. The firm's broad base of capabilities allows it to assist Carlyle in the assessment and pursuit of a wide array of market opportunities. Cogentrix manages Carlyle's power portfolio, which has a total net generation of approximately six gigawatts throughout the U.S.