The Carlyle Group is investing billions in United States infrastructure the government can no longer afford, with particular interest in electric microgrids, a Carlyle executive said in Chicago Monday.
"We think that actually we're in sort of the golden age of infrastructure in the United States," Andrew Marino, managing director of the Carlyle Group, said at the Microgrid 2018 conference in Chicago Monday.
"Why? A lot of really simple reasons. First of all, the infrastructure in this country is horrible. The rail system, the airports, the electricity grid, it's all in need of a significant upgrade, particularly as you think about comparing us to our peers and other First World countries. Secondly, we've gotten to a point where we can no longer finance our own infrastructure upgrades and development as a country."
Carlyle Group invests about $200 billion, mostly from pensions, in private businesses and real estate. It ventured into microgrid development only six months ago with an initial pool of $500 million.
"We see this as a huge opportunity, not only for our investors but for the country," Marino said. "The market is going there, it's going to happen, it's a trend that's identifiable by everybody in this room regardless of what you think the impediments are.
"We're just helping that move along, and we're happy to do it."
Carlyle has financed Dynamic Energy Networks (DEN), which owns and operates microgrids. Schneider Electric provides technical expertise. The partnership represents $100-$150 million of Carlyle's multi-billion interest in infrastructure, said Karen Morgan, CEO of DEN. The team is working with airports, seaports, universities and the industrial sector, she said.
"We're going to get some lights on down in Puerto Rico together," added Mark Feasel, vice president of utility and smart grids for Schneider.
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