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

Whats Happening:

Avenue Capital Group is selling a portfolio of energy transition-focused assets in California from its Avenue Golden Continuation Fund to Partners Group for $2.2 billion. The assets include 11 critical natural gas-fired power plants operated by Middle River Power, which has developed on-site battery energy storage systems to create Hybrid Energy Centers.

Key Moves:

• Avenue Capital Group selling California energy assets to Partners Group for $2.2 billion

• Portfolio includes 11 natural gas-fired power plants with battery storage systems

• Middle River Power, which operates the assets, is included in the sale

By The Numbers:

• $2.2 billion enterprise value for the transaction

• 11 critical natural gas-fired power plants included in the sale

• Avenue Capital Group has over $11 billion in assets under management

Key Quotes:

• "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." - Craig Hart, Senior Portfolio Manager, Avenue Golden Fund

• "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." - Marc Lasry, Co-Founder and CEO of Avenue Capital Group

Bottom Line:

Avenue Capital Group's sale of its California energy transition assets to Partners Group for $2.2 billion marks a significant exit for the fund. The transaction highlights the value created in the energy transition sector and demonstrates Avenue's ability to reposition assets to support long-term sustainability goals while generating returns for investors.

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