(Bloomberg) -- Bridgepoint Group Plc is in talks to acquire Energy Capital Partners, according to people with knowledge of the matter.
Bridgepoint is discussing buying ECP for about $1 billion in cash and stock, said one of the people, all of whom asked not to be identified because the information is private. While negotiations are advanced, a transaction hasn’t been finalized so terms may change and talks could still fall apart.
Representatives for London-based Bridgepoint and Summit, New Jersey-based Energy Capital Partners declined to comment.
ECP, led by founder Doug Kimmelman and managing partners Pete Labbat and Tyler Reeder, was founded in 2005 and has invested in energy-transition and infrastructure assets. Its holdings include a portion of Calpine Corp., which describes itself as the largest US generator of electricity from natural gas and geothermal resources. ECP, which has roughly $14.4 billion under management according to data compiled by Bloomberg, counts Blue Owl Capital Inc.’s Dyal Capital as a minority stakeholder.
Bridgepoint, run by Chairman William Jackson, has more than 37 billion euros ($38.6 billion) in assets under management, according to its website. A deal would help the firm diversify beyond its focus on private equity and credit investments in sectors including industrials, business services, consumer, technology, health care and financial services.
Alternative asset managers have turned to acquisitions to bolster their offerings amid a desire by limited partners, which include pension and sovereign wealth funds, to consolidate their relationships, in part to minimize fees. Last month, EQT AB completed its purchase of Baring Private Equity Asia, while General Atlantic agreed to buy credit manager Iron Park. Earlier this year, Oaktree struck a deal for a majority stake in 17Capital, and in 2021 CVC agreed to buy secondaries specialist Glendower Capital.
--With assistance from Will Louch.
(Updates with details about leadership at company)
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Author: Gillian Tan and Sonali Basak