- Avenue Capital Group has agreed to sell a portfolio of energy transition-focused assets in California to Partners Group for $2.2 billion. - The sale involves the Avenue Golden Continuation Fund, L.P. and assets operated by Middle River Power. - Middle River Power was formed in 2016 and has become a leading independent power producer in the U.S. - The portfolio includes 11 natural gas-fired power plants with a mix of nine simple-cycle and two combined-cycle gas turbine plants. - Middle River has developed on-site battery energy storage systems at its gas-fired plants to enhance energy reliability and reduce carbon footprint. - These hybrid energy centers facilitate long-term contracts with utilities of up to 15 years. - Middle River also manages approximately 4.8 gigawatts of capacity for third-party power plant owners outside California. - Craig Hart stated that the business has evolved into a reliable, lower carbon power provider over the past nine years. - Marc Lasry expressed that the investment made in California was crucial for achieving the state's carbon goals. - Guggenheim Securities and Morgan Stanley acted as financial advisors, while Latham & Watkins served as legal counsel for the transaction. - Avenue Capital Group specializes in opportunistic credit and special situations investments globally, with over $11 billion in assets under management.

Avenue Capital Group Agrees to Sell Portfolio of Assets of the Avenue Golden Continuation Fund, L.P. to Partners Group in $2.2 Billion Transaction:


NEW YORK, March 18, 2025 /PRNewswire/ -- Avenue Capital Group ("Avenue"), a global investment firm, today announced that it has agreed to sell a portfolio of energy transition-focused assets in California from the Avenue Golden Continuation Fund, L.P. ("Avenue Golden Fund"), a fund managed by Avenue and operated by Middle River Power ("Middle River"), to Partners Group at a $2.2 billion enterprise value. Avenue formed Middle River in 2016 to operate and manage Avenue's investments in the power sector. The platform has grown over the years and today stands as a leading energy transition-focused independent power producer in the U.S.

The Avenue Golden Fund's portfolio being sold to Partners Group include 11 critical natural gas-fired power plants, including nine simple-cycle peaking facilities and two combined-cycle gas turbine plants. The assets are operated by Middle River which has pioneered a strategy where it develops on-site battery energy storage systems ("BESS") at its existing gas-fired power plants to create Hybrid Energy Centers. The BESS, which are charged by surplus renewable energy from the grid, store energy that can be discharged when needed, reducing the overall carbon footprint of the peakers while enhancing reliability. The creation of these Hybrid Energy Centers has enabled Middle River to unlock longer-term contracts of up to 15 years with utilities. Middle River, which is included in the sale, also provides asset management services to third party owners of power plants totaling around 4.8 GWs of capacity outside of California.

Craig Hart, Senior Portfolio Manager, Avenue Golden Fund, said: "We have been pleased to work with Middle River over the last nine years to develop a purpose-built energy transition business that delivers reliable, affordable, and lower carbon power to support the ongoing, multi-decade energy transition. Over this time, we have repositioned the business from a collection of largely-merchant thermal assets to a highly-contracted energy transition business that is poised for future growth. We wish the Middle River team continued success with Partners Group, as we at Avenue look forward to continuing to optimize and transition our existing and future power investments in the rapidly evolving U.S. power markets."

Marc Lasry, Co-Founder and CEO of Avenue Capital Group, said, "The realization of our Avenue Golden Fund - Middle River investment represents a landmark transaction for the Avenue Energy team and a strong outcome for our fund investors. We entered California in 2016 with the view that the core natural gas-fired generating fleet was fundamental to achieving the state's ambitious carbon goals. Our thesis then was the same as it is now: namely, that properly positioned, well-maintained natural gas-fired power plants would remain grid-critical throughout the energy transition."

Guggenheim Securities and Morgan Stanley & Co. LLC acted as financial advisors on the transaction for Avenue and Latham & Watkins served as legal counsel.

About Avenue Capital Group Avenue Capital Group is a global investment firm focused primarily on making opportunistic credit and other special situations investments across the United States, Europe and Asia. Avenue, founded in 1995 by Marc Lasry and Sonia Gardner, draws on the skills and experience of over 60 investment professionals, and more than 180 employees worldwide operating from its headquarters in New York and offices in Dublin, London, Luxembourg, Hong Kong, New Delhi, Singapore, Sydney, Abu Dhabi and Silicon Valley. Avenue has assets under management over $11 billion.

Avenue Capital Group contact: Todd Fogarty, Kekst CNC, [email protected]

SOURCE Avenue Capital Group