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For Immediate Release: |
Contact: |
ENERGY INVESTORS FUNDS’ US POWER FUND II ACQUIRES TIERRA ENERGY
Acquisition Demonstrates Fund’s Strong Commitment to Wind Sector
NEW YORK, NY (December 6, 2005) – Energy Investors Funds, an established private equity fund manager that invests in the U.S. energy and electric power sector, today announced that its United States Power Fund II, L.P. has acquired a majority interest in Tierra Energy LLC, an Austin-based aggregator of natural gas-fired generation facilities and developer of wind farms. The financial terms of the transaction were not disclosed.
Tierra Energy is pursuing wind projects in Texas, Idaho and the Northeast, and owns and continues to develop a portfolio of natural gas-fired generation facilities. Energy Investors Funds’ investment provides corporate funding for Tierra and acquisition financing for two identified cogeneration projects currently under contract with an undisclosed third party. The transaction also secures the exclusive right to provide project-level equity for future development done in partnership with Tierra. Tierra’s current portfolio includes:
- Rupert and Glenns Ferry, which are both 10 megawatt, natural gas fired cogeneration facilities based in Idaho
- Octotillo, a West Texas-based 58 megawatt wind power development project expected to be completed in 2006 or 2007
- Notrees, a West Texas-based 150 megawatt wind power development project expected to be completed in 2007
“This investment provides EIF with control of two premium wind projects in West Texas that we believe are well suited to be developed as merchant projects,” said Terence Darby, the Energy Investors Funds managing partner who led the deal team with Keith Derman, senior associate. “With USPF II, we have the flexibility and capacity to underwrite larger equity investments than we have in the past and today’s transaction capitalizes on this capability.”
“Renewables are a key component of the U.S. solution to the power and energy crisis. Tierra has experienced management and development teams with expertise in wind farms and a strong deal pipeline of potential transactions, which positions us and our investors well to benefit from what we expect to be an increasing national focus on development in this area,” adds John Buehler, managing partner.
"We view this partnership with Energy Investors Funds as a great opportunity to expand our growing cogeneration and wind power business. We have been successful in executing on our business strategy, and we now own and operate cogeneration projects and are actively developing wind projects in Texas, Idaho and other parts of the United States. Together, the combination of our management experience and EIF’s financial resources will lead to the successful completion of numerous future projects," said David Marks, Tierra Energy chief executive officer.
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.
About Tierra Energy
Tierra Energy is a rapidly growing energy company based in Austin, Texas, that is building and managing a diversified portfolio of windpower and natural gas-fired power generation assets. Tierra employs a strategy of improving operational efficiency, reducing costs, and increasing overall project value through its active management involvement. For more information visit www.tierraenergy.com.
