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ArcLight launches new LLC to manage power infrastructure portfolio

ArcLight launches new LLC to manage power infrastructure portfolio
(Photo Credit: ArcLight)

ArcLight Capital Partners, a middle market infrastructure firm, announced it has formed Alpha Generation, LLC (AlphaGen) to provide strategic management and oversight of its power infrastructure portfolio, worth nearly $2 billion in annual revenue.

AlphaGen will oversee the strategic, commercial, and operational activities for ArcLight’s funds’ power infrastructure assets and portfolio. It’s one of the largest in the country and provides critical supply to key demand centers, including the tri-state area of New York, New Jersey, and Connecticut.

“The creation of AlphaGen builds on ArcLight’s leading position as a proven and experienced power infrastructure investor,” said Dan Revers, managing partner of ArcLight. “We believe power infrastructure will play an increasingly critical and necessary long-term role as demand increases on the back of electrification, data center growth, and AI amongst other things. To help support this growth and create value, we have brought together an industry-leading team with a proven track record of strategic, operational, and commercial experience overseeing and operating power generation assets.”

Curt Morgan, a longtime industry executive, has been named Chief Executive Officer and Chairman of AlphaGen, effective May 1, 2024. Morgan was previously CEO of Vistra, an integrated retail electricity and power generation company. Morgan is currently a Senior Advisor to ArcLight, and Mark Sudbey will serve as interim CEO until Morgan joins.

“I am excited to partner with ArcLight, one of the leading domestic infrastructure investors. We believe AlphaGen’s infrastructure is well positioned to deliver safe, reliable, and critical power to meet current and increasing demand,” Morgan said. “I look forward to working with Mark, Mary Anne, and the rest of the leadership team to help drive value, mitigate risk, and capitalize on new investment opportunities which a portfolio such as this is likely to create.”

ArcLight recently acquired Duke Energy’s commercial distributed generation portfolio, which includes REC Solar’s operating assets, development pipeline, and O&M portfolio, as well as distributed fuel cell projects managed by Bloom Energy.

ArcLight said its acquisition of the distributed generation business further expands the firm’s focus on developing strong standalone renewable platforms across the infrastructure sector. Employees of the distributed generation business transitioned to ArcLight to maintain business continuity for its operations and customers.