Carlyle's Arm signs up to $2B deal with Diversified Energy.

Carlyle's Arm signs up to $2B deal with Diversified Energy.

In a significant move in the energy sector, Carlyle's Arm, a division of Carlyle Group, has signed a deal worth approximately $2 billion with a diversified energy company, Plenitude. This strategic partnership aims to bolster Carlyle's Arm's presence in the renewable energy market and support Plenitude's growth initiatives.

Plenitude, a €12 billion diversified energy transition company, operates in over 15 countries globally. It combines renewable energy production, retail solutions, and energy management, with a focus on sustainability and community impact. The company's extensive network of 21,500 charging points for electric vehicles further underscores its commitment to the energy transition.

The deal, facilitated by Ares Management Corporation, sees Carlyle's Arm acquiring a 20% stake in Plenitude for approximately €2 billion. This investment highlights Carlyle's Arm's strategic alignment with Plenitude's growth strategy, which is focused on enduring profitability and positive community impact.

Joel Holsinger, partner and co-head of alternative credit at Ares, commented on the transaction, stating, "This deal underscores the strength of the Ares platform, which leverages experience across its diversified businesses to deliver flexible capital at scale. We are excited to support Plenitude as it executes its growth strategy." Stefano Questa, partner and co-head of European alternative credit at Ares, added, "Plenitude is an established leader in energy transition, and we are delighted to be part of its next phase of growth."

Stefano Goberti, CEO of Plenitude, expressed enthusiasm about the deal, noting, "The deal is a further endorsement of the quality of our strategic approach. Ares' entry into the company highlights the progression of Plenitude's value and becomes part of our growth journey."

The deal comes as Eni, the parent company of Plenitude, continues to drive its decarbonization efforts. In December 2023, Energy Infrastructure Partners (EIP) announced it was acquiring up to a 9% interest in Plenitude, initially agreeing to invest €500 million with an option to increase the total investment to €700 million.

This transaction marks a significant milestone for Carlyle's Arm, positioning it to benefit from the growing renewable energy market and Plenitude's robust growth strategy.

References:
[1] https://realassets.ipe.com/news/ares-takes-20-stake-in-enis-12bn-renewables-firm-plenitude/10131236.article