EQT agrees debut infrastructure deal

A private equity owned fund has agreed its first direct infrastructure investment with the acquisition of a Michigan-based power plant.

Despite the credit crunch, private equity owned EQT Infrastructure Fund has closed its first deal, agreeing to buy a power plant in Michigan.

The fund closed in November on €1.2 billion, and will buy 65 percent of Midland Cogeneration Venture (MCV), a 1,560 mega-watts gas plant, from Blackstone-owned GSO Capital Partners and Rockland Capital Energy, which acquired the plant in August 2006.

The remaining 35 percent went to Fortistar, the New York-based clean energy contractor.

The price was not disclosed and the deal should complete in the second quarter of this year.