The Carlyle Group, the world's second-largest private equity firm, has agreed to acquire US power plant developer Cogentrix Energy LLC from Goldman Sachs Group Inc for an undisclosed sum, increasing its presence in the energy sector.

The purchase includes five conventional and renewable power plants in Florida, Virginia, Colorado and California, and a development pipeline with over 550 megawatts (MW) of operational capacity.

Charlotte, North Carolina-based Cogentrix is a leading developer and operator of power plants in North America. Cogentrix has the expertise and over three decades of experience in developing and acquiring over 7,000 MW of power generation.

Goldman Sachs acquired the company in 2003 for around $115 million, assuming $2.3 billion in debt. Since then, it has sold many of the power plants and has transformed the company into more of a developer of power plants.

Through the acquisition of Sunray Energy, a player in the solar energy field, in 2009, Cogentrix became one of the few owners of commercial scale solar thermal plants in the US.

Carlyle chairman and co-founder Daniel D'Aniello said, ''Carlyle has long been committed to investing in energy and expanding its dedicated capabilities in this important segment of the global economy. We are delighted to have the Cogentrix development team as a key resource in the build-out of our long-term energy and power investment strategy.''

''Access to the world-class development team at Cogentrix will deepen our existing infrastructure investment capabilities, enabling us to pursue an active program of acquiring and developing conventional and renewable power projects across the US,'' Robert Dove, Carlyle managing director commented.

Cogentrix intends to expand its US-based solar portfolio business through development of new projects and the acquisition of existing assets or projects in late stage development.

The purchase includes two coal-fired power plants in Hopewell and Portsmouth, Virginia and another one, the Cedar Bay plant in Jacksonville, Florida.

Solar power projects comprise a 43-MW plant in Dagget, California and a 30-MW Alamosa power plant in Colorado.
Goldman Sachs will retain a minority stake in the 258-MW plant in Cedar Bay.

The acquisition will be funded through Carlyle Infrastructure Partners, a $1.14 billion investment fund. The terms of the transaction have not been disclosed. Carlyle expects to close the deal in the fourth quarter of 2012, subject to customary regulatory approvals.

Washington-based Carlyle Group manages assets worth $156 billion across four segments: private equity, real assets, global market strategies and fund of funds. The group has expertise in diverse industrial sectors, including aerospace, defence, retail, energy, financial services, healthcare, technology, telecommunications, media and transportation.

Carlyle has been an investor in the energy sector through its Carlyle Energy Mezzaine Partners, Carlyle Infrastructure Partners and Carlyle Equity Opportunities Partners.

The firm has recently agreed to invest in Sunoco Inc's Philadelphia refinery. Other investments in the past two years include TexOak Energy, an upstream oil company with assets in Texas and Oklahoma; Plainfield Renewable energy, a biomass gasification power plant in Connecticut; exploration and production companies Black Raven Energy in Colorado and Core Minerals in Indiana.

Carlyle, which had a long-time partnership with New York-based private equity firm Riverstone Holdings LLC in energy investments, had invested in companies, including pipeline operator Kinder Morgan Inc, offshore oil explorer Cobalt International Energy Inc and shipper Seabulk International Inc.

Though the relationship is continuing, Riverstone chose to raise its seventh fund independent of Carlyle and Carlyle has also decided to pursue its energy investments independently.