Quantum Capital Group announced Monday that it has agreed to acquire North Carolina’s independent power producer Cogentrix Energy for $3 billion.
The Cogentrix platform, backed by funds from Carlyle, is comprised of 5.3 gigawatts of natural gas-fired power plants located throughout several power markets: PJM power on the Atlantic coast, ERCOT in Texas and ISO-NE in New England.
Guggenheim served as Quantum’s financial advisor, while King & Spalding and Vinson & Elkins provided legal advice. Lazard served as Carlyle’s financial advisor and Latham & Watkins as legal advisor.
The King & Spalding team advising Quantum was led from Houston by partner David Runnels and from New York by partner Enrico Granata along with associates Andrew Ketner, Austin Paalz, Thomas Hafen and Matt Kraemer.
A Latham & Watkins team led by New York partners David Allinson and Daniel Williams counseled Carlyle and Cogentrix with lawyers from New York, Chicago and Washington, D.C.
“We are at a critical juncture in the evolution of the domestic power market. Electricity demand is rapidly increasing thanks to explosive growth in data centers and AI, the reshoring of manufacturing, and the electrification-of-everything,” said Wil VanLoh, founder and CEO of Houston-based Quantum.
“This growth is occurring at the same time our grid is becoming more unstable with additions of intermittent renewable power and continued retirements of coal-fired generation. Now more than ever, we need reliable and efficient power infrastructure. This is what the Cogentrix assets provide.”
Quantum Capital has made more than $27 billion in equity commitments since its founding in 1998.