Award-winning EQT in first infrastructure investment

EQT and Fortistar have acquired MCV, a power plant in Midland in Michigan in the US, from GSO Capital Partners, Rockland Capital Energy, The Dow Chemical Company and other entities. The deal, which is expected to be finalised in Q2 this year, is supported by a debt package where WestLB and Union Bank N.A act as Joint Book Runners and Joint Lead Arrangers. Other financial institutions are expected to provide commitments in connection with the debt financing. Following the transaction, EQT will hold 65% of the equity invested, and Fortistar the remainder. The transaction represents the first investment from EQT's infrastructure fund which closed on EUR1.2bn in November last year. It is also the direct investment EQT makes in the US, after it opened its New York office in March last year.

MCV is one of the largest gas fired cogeneration projects in the US, with a production capacity of up to 1,560 megawatts of electricity and up to 1.35m pounds per hour of process steam for industrial use. The majority of the plant's power generation is sold through Consumers Energy Company, which is Michigan's second largest electric and gas regulated utility. MCV also supplies electricity and steam to The Dow Chemical Company and Dow corning Corporation.

At the SVCA Awards 2009 EQT was recognised for surpassing its target and closing its first infrastructure fund on EUR1.2bn. Ratos also received an award, for its SEK 4.3bn sale of Hagglunds Drives, reaping a 14x money multiple. The award for the investment most beneficial to society was given to KTH Chalmers Capital and SEB Venture Capital for their investment in Xylophane, a business develops renewable and biodegradable packaging material which is based on natural raw matter. A new award launched this year, the SVCA Hall of Fame, was given to Anne Holm Rannaleet for her work for increased transparency in the industry. The award is given to individuals who have contributed to the development of the private equity industry as a whole.

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