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US Carlyle and Madison Dearborn team up to buy out Williams Energy Partners for $1.1bn.22/04/2003. Source: AltAssets. 
 US-based Madison Dearborn Partners and Carlyle Group's Carlyle/Riverstone Energy and Power Fund II, have jointly acquired a 54.6 per cent stake in publicly traded energy investment subsidiary Williams Energy Partners in a buy-out worth $1.1bn.
The transaction will include $512m payment and will also have the effect of removing $570m of the partnership's debt from Williams' consolidated balance sheet.
‘The financial strength and breadth of the commercial relationships of Madison Dearborn and Carlyle/Riverstone will further enhance Williams Energy Partners' ability to make accretive acquisitions,' said Don Wellendorf, chief executive officer of Williams Energy Partners.
Carlyle formed a joint venture with Riverstone Holdings in 2000 to pursue global energy private equity investment opportunities. Madison Dearborn Partners focuses on investments in the natural resources, communications, consumer, healthcare and financial services sectors. Both partners are committing equal amounts of capital to the Williams take over.
US private equity firms are becoming increasingly active in domestic energy markets as the debt-laden industry struggles to stay afloat following massive acquisition and expansion programmes.
Last year saw final closes for ArcLight Energy Partners Fund at $950m and Lime Rock Partners second fund, which closed above its $320m target in just ten months. Texas-based Natural Gas Partners recently held a final close at $600m, well above its $450m target.
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