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For Immediate Release: |
Contact: |
ENERGY INVESTORS FUNDS SELLS INTEREST IN MASSPOWER
BOSTON, MA (January 11, 2006) – Energy Investors Funds, an established private equity fund manager that invests in the energy and electric power sector, today announced that it has successfully sold all its ownership interests in MASSPOWER to Silver Ship MP Partners, LLC.
MASSPOWER is a 240 megawatt (gross) gas-fired cogeneration plant located in Springfield, MA. The facility has been in operation since 1993 and formerly had approximately 97 percent of its output contracted under long-term power purchase agreements with Boston Edison Company, Commonwealth Electric Company, Massachusetts Municipal Wholesale Electric Company, and Western Massachusetts Electric Company. The remaining energy was sold on the New England spot market. The plant has been operating mostly as a merchant facility since the termination of its largest power purchase agreements in March 2005.
In 1997, Energy Investors Funds’ Project Finance Fund III, L.P. acquired a 17.5 percent interest in MASSPOWER. Then, in 2004, Project Finance Fund III, L.P. partnered with Energy Investors Funds' United States Power Fund, L.P. to acquire an additional 12.5 percent interest.
“This was a fantastic investment, one of the best in the Project Finance Fund III portfolio,” said Rick Carlson, Energy Investors Fund’s Vice President. “We enjoyed a long and successful relationship with MASSPOWER and our investors benefited.”
“Over its nearly 20-year history, Energy Investors Funds has consistently generated top returns for its investors and MASSPOWER is just the latest example of our ability to successfully obtain and realize value for our investors,” adds John Buehler, Managing Partner. “As we invest United States Power Fund II, we will continue to seek out similar opportunities that allow us to adhere to a philosophy of hands-on financial, operational, and strategic management of power assets in the United States.”
About Energy Investors Funds
Energy Investors Funds was founded in 1987 as the first private equity fund manager dedicated exclusively to the independent power and electric utility industry. Our consistent, proven investment strategy is to create geographically and technologically diversified portfolios of electric power-related assets that provide superior risk-adjusted equity returns with current cash flow and capital appreciation. As investment managers we seek to mitigate commodity risk (fuel and electricity) by focusing primarily on acquiring power assets with long-term off-take contracts. Energy Investors Funds has mobilized over $1.75 billion in capital, and currently manages six private equity funds from its offices in Boston, New York, and San Francisco. These funds have made over 65 diversified investments, with a combined underlying asset value exceeding $5 billion. For more information visit www.eifgroup.com.
