Wednesday, May 9, 2018

PEU Golden Age of Carlyle

Forbes reported:

The Carlyle Group is investing billions in United States infrastructure the government can no longer afford, with particular interest in electric microgrids, a Carlyle executive said in Chicago Monday. 

"We think that actually we're in sort of the golden age of infrastructure in the United States," Andrew Marino, managing director of the Carlyle Group, said at the Microgrid 2018 conference in Chicago.
Microgrid Knowledge reported:

“We established a platform to own and operate microgrids and distributed energy resources (DER) to serve organizations and institutions – from campuses to hospitals and the military – that demand predictable pricing and efficient, reliable energy,” said DEN CEO Karen Morgan. “Working together with Schneider Electric and The Carlyle Group, we aim to transform the market to deliver holistic Energy-as-a-Service with innovative financial and technology solutions.” 

Funding and equity for future moves and investments for the new strategic alliance will stem in part from Carlyle Global Infrastructure Opportunity Fund—a Carlyle fund that makes infrastructure investments.

Carlyle's first target for electric microgrids?  It's Puerto Rico, America's private equity underwriter (PEU) friendly commonwealth.

"We're going to get some lights on down in Puerto Rico together," added Mark Feasel, vice president of utility and smart grids for Schneider.
This isn't Carlyle's first deal with Schneider Electric.  In April 2014 Carlyle purchased Custom Sensors and Technology from Schneider.  Carlyle flipped CST in July 2015 to Sensata Technologies.  No word on how much Carlyle made from that deal.

Carlyle plans to put hundreds of millions into owning and operating microgrids.  Typical PEU move picking off profitable customers from public electric utilities.  Now how can Carlyle and company get federal subsidies for their strategy?  They will find a way.