It's rare when a private equity underwriter (PEU) has a willing buyer for an affiliate, before the company joins the PEU family. But that's the case with The Carlyle Group's Mountain Water, which serves Missoula, Montana. The Missoula City Council has long wanted to buy their public water source, owned by a private company, Park Water. Park struck a $102 million deal with Carlyle's infrastructure fund to sell Mountain Water.
Montana's Public Service Commission voted 3-2 to approve Carlyle's purchase. For Carlyle to make its 20% annual return on investment, after three years it would need to sell Mountain Water to the City of Missoula for $176.3 million. Watch how long Carlyle holds and how much they want for Mountain Water. It will be telling.
Incidentally, the Missoulian called Carlyle a $160 billion investment firm. Carlyle's website differs:
The Carlyle Group is a global alternative asset manager with $148 billion in assets under management in 89 active funds and 52 fund of fund vehicles.What's $12 billion amongst friends?
Update 10-20-12: Carlyle owned Mountain Water requested a rate increase of just more than 5 percent. The case is set to be heard in the next few months
