Capital Power Announces MOU with Apollo for $3 Billion Partnership to Pursue Merchant U.S. Natural Gas Generation Assets
Simpson Thacher is representing Capital Power Corporation (“Capital Power”) in connection with its MOU with funds managed by affiliates of Apollo Global Management, Inc. (“Apollo Funds”) to form an investment partnership to pursue the acquisition of merchant U.S. natural gas generation assets, with potential committed equity of up to $3 billion. The partnership combines Apollo Funds’ capital strength with Capital Power’s operating and commercial expertise to accelerate Capital Power’s U.S. natural gas growth strategy and expand earnings. The MOU contemplates equity commitments of up to $2.25 billion from Apollo Funds and $750 million from Capital Power, with Capital Power electing a 25% to 50% working interest in each acquisition, operating acquired assets and receiving management and performance fees.
Capital Power is a leading independent power producer with approximately 12 GW of power generation capacity at 32 facilities, plus battery energy storage across North America.
The Simpson Thacher team includes Eli Hunt, Javad Asghari, Sonia Lopez and Soraia Esteves.