Energy investor ArcLight creates new unit to manage power assets

Jan 10 (Reuters) - Energy-focused buyout firm ArcLight Capital Partners has created a new unit to manage and operate its portfolio of power infrastructure investments, according to a statement seen by Reuters.

The move to create the new division, Alpha Generation (AlphaGen), will allow Boston-based ArcLight to streamline the running of its power assets, cut costs, and position itself to capitalize on energy transition investment opportunities.

The portfolio, to be managed by AlphaGen is valued at more than $3 billion, including debt, according to a person familiar with the matter, and has more than 13,000 megawatts of power generation capacity.

Notable investments in the portfolio include Eastern Generation, which primarily owns and operates power plants in New York and Connecticut, and Parkway Generation, which acquired natural gas-fired power plants in New Jersey and Maryland in 2022 from Public Service Enterprise Group (PEG.N), opens new tab.

ArcLight's ownership of each of its investments will remain inside existing funds, and future ArcLight power investments could be managed by AlphaGen, the source said.

AlphaGen will be run by former Vistra (VST.N), opens new tab Chief Executive Curt Morgan, ArcLight said in the statement. Morgan has been working as a senior advisor at ArcLight since September.

Other executives involved in running AlphaGen include power industry veteran Mark Sudbey, who will serve as interim head of AlphaGen until Morgan takes over as CEO on May 1, and former EDF Energy North America executive Mary Anne Brelinsky.

ArcLight is focused on investments in the power and energy infrastructure sectors, and has deployed almost $70 billion of capital since it was established in 2001.