Silver Spring, MD (October 3, 2000) - Competitive Power Ventures, Inc. announced today that it has concluded a private equity financing with Warburg Pincus and certain individual investors for a commitment of $51million. Among the individual investors is Jacek Makowski, the founder of J. Makowski Company, who will sit the Company's Board. The Company was assisted in the financing by BNP Paribas.
Competitive Power Ventures is a power generation development company led by a team of experienced, successful developers. The Company will focus on the development of highly efficient and environmentally superior facilities in the range of 250 to 800 megawatts. Compatibility with local community standards is paramount to the Company's philosophy. Currently Competitive Power Ventures has five projects under development in Florida and Virginia. Over the next three years the Company intends to develop at least ten projects in the United States and Canada.
"With the equity investment by Warburg Pincus, CPV now has the financial resources to match our tremendous human resources," said Doug Egan, President of Competitive Power Ventures, Inc. "The current market for new power generation facilities is unprecedented. More than a decade of insufficient new plant construction combined with load growth fueled by the electronic economy have resulted in generation capacity shortages in most of the country. That opportunity, however, has given birth to an enormous surge of development activity. The difference between companies that succeed in developing the projects to meet the need and companies that fail will be the quality of the individuals that manage those projects."
Mr. Egan was formerly Senior Vice President for PG&E Generating Company where he ran the development group. Gary Lambert, formerly Vice President, Development for PG&E Generating and now Executive Vice President for Competitive Power Ventures shares responsibility for leading the Company. "With the team we have assembled, we believe we can develop efficient and economical power projects that are also highly compatible with the environmental and community standards that are so critical to maintain," Mr. Lambert said. "What is more, we can do so in a timely and cost-effective manner".
The Competitive Power Ventures project development team comprises energy industry and development professionals that have been involved in many successful projects over the past several years. They include Peter Podurgiel, Sean Finnerty and Patricia DiOrio, all formerly Managers in PG&E Generating Company's development group, Brad Dore, previously Senior Vice President, Business Development at Poseidon Resources Corporation, and Chris Broemmelsiek, former Vice President of Business Development at Alstom Power.
Howard Newman, Vice President of Warburg Pincus, said: "We believe there are significant opportunities in the rapidly evolving power generation industry. Well run companies that can act quickly and decisively have the chance to create substantial value over the next few years. We are pleased to add Competitive Power Ventures to the select list of companies that we are backing in this existing market".
Competitive Power Ventures is headquartered in Silver Spring, Maryland and has an office in Braintree, Massachusetts. Mr. Egan can be contacted at firstname.lastname@example.org and Mr. Lambert can be contacted at email@example.com.
Warburg Pincus is a major global equity firm that has invested more than $11 billion in over 420 companies since 1971. Investing out of the $5 billion Warburg Pincus Equity Partners, L.P. fund, and working in partnership with management, the firm takes an active role in the development of portfolio companies from start-ups to the creation of significant and durable businesses.
The firm invests in a broad array of industries, including energy, financial services, healthcare and education, information technology, the Internet, and media and communications. Other Warburg Pincus energy investments include Newport Generation, Inc; J. Makowski Company; Newfield Exploration; Marine Drilling; EEX Corporation; and Spinnaker Exploration. The firm has over 90 professionals with offices in New York, Silicon Valley, London, Munich, Hong Kong, Singapore, Tokyo and Sao Paulo. More information on Warburg Pincus is available at www.warburgpincus.com.
BNP Paribas has offices in 83 countries, a staff of over 77,000 employees, and operates in the world's seven largest financial centers. BNP Paribas is divided into six core businesses: corporate and investment banking; domestic retail banking; international retail banking; specialized financial services; private banking, asset management, securities services, insurance and real estate; and Paribas Capital. With assets of almost 700 billion Euro as of December 31, 1999, BNP Paribas is one of the world's largest financial institutions. Additional information on BNP Paribas is available at www.bnpparibas.com.