(Conduit Capital) September 28, 2010 – Conduit Capital Partners LLC, a private equity investment firm focused on energy infrastructure investment and development in Latin America and the Caribbean, today announced that it has sold its indirect interest in Edegel, Peru’s largest electric power company, for $50 million. The interest was purchased by Inkia Energy, Conduit’s current partner in this investment.
“This sale is a further validation of the success of Conduit’s investment philosophy and performance,” stated George Osorio, Managing Partner at Conduit. “Edegel was an exciting investment in the fastest-growing economy in Latin America over the last several years with a government that is dedicated to meeting its country’s growing infrastructure needs. We are pleased to have taken part in the growth of Edegel and Peru, and we look forward to our continued involvement in Peru’s energy sector through Latin Power III’s ownership of Kuntur, a $3 billion gas and liquids pipeline being developed in the south of Peru.”
Latin Power II acquired its seven percent indirect interest in Edegel for approximately $21 million in 2002. Through Edegel’s sale of electric power through contracts and power on the spot market, Conduit received just under $20 million in distributions up to the time of sale. Conduit’s total realization on its investment was 3.3x invested capital.
This transaction constitutes the sale of the last remaining asset of Conduit Capital Partners’ Latin Power II Fund. Latin Power II is a vintage 1998 fund that was closed with $157 million of committed capital. Latin Power III has $392 million of capital, was raised in 2006 and is now 90% committed.
About Conduit Capital Partners
Based in New York City, Conduit Capital Partners, LLC is a private investment firm focused exclusively on energy infrastructure investment and development in Latin America and the Caribbean. Through its management of the Latin Power Funds, Conduit has made investments in Mexico, Chile, Peru, Brazil, Argentina, Colombia, Jamaica, Honduras, Panama, Costa Rica and Guatemala. Founded in 1993, Latin Power I was the first private equity fund exclusively dedicated to infrastructure investments and the first institutional sized private equity firm dedicated to Latin America.