PRINT THIS PAGE Private equity consortium completes $3.65bn power deal22/07/2004. Source: AltAssets. 
 A private equity consortium comprising Blackstone Group, Hellman & Friedman, Kohlberg Kravis Roberts and Texas Pacific Group, have agreed to purchase power generation company Texas Genco from CenterPoint Energy for around $3.65bn.
The agreement provides for two separate transactions. In the fourth quarter of this year, Texas Genco will buy back 19 per cent of its own stock for $47 a share. Later, in early 2005, that stake will be sold to the private equity consortium along with CenterPoint's 81 per cent ownership.
The energy sector is proving increasingly popular among private equity firms. In March this year, Carlyle and Riverstone acquired ten Texas power plants from American Electric Power for $430m, and last year Kohlberg Kravis Roberts led a group of investors in the buy-out of UniSource Energy for nearly $3bn.
Specialist energy buy-out groups have also come to the fore. Energy Investors Fund, which has recently closed its fifth dedicated energy fund, acquired Black River Energy last month.
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