Carlyle Group is in talks to purchase Energy Capital Partners, according to a person with direct knowledge of the negotiations.
Discussions began about three months ago and may not lead to a deal, said the person, who asked not to be identified because the matter is private.
Private equity firm Energy Capital Partners has raised about $7 billion to invest in energy infrastructure assets including gas, electric and alternative power plants, according to its website. The firm gathered $4.34 billion last year for its second private equity fund, as rising energy prices attracted investors.
An official at Carlyle Group declined to comment. Energy Capital Partners didn’t return a telephone message left after regular business hours.
Carlyle, which is gearing up for an IPO which could raise about $1 billion, told investors it was winding down a joint venture with investment company Riverstone Holdings, the person said. Riverstone and Carlyle amassed a $1.1 billion fund in 2004 to buy energy assets, after gathering a $222 million pool in 2001.