Latham & Watkins Advises Ares in Sale of Potomac Energy Center to Blackstone.

Blackstone Energy Transition Partners, a subsidiary of Blackstone, has entered into an agreement to purchase the Potomac Energy Center, a 774-megawatt natural gas power facility located in Loudoun County, Virginia, from Ares Management. In this major transaction, Latham & Watkins LLP represented Ares Management, offering comprehensive legal guidance across various aspects of the deal.

Latham & Watkins’ Role in the Transaction

The corporate deal team at Latham & Watkins was led by Trina Chandler, a partner based in Houston, and Caroline Phillips, a partner in New York. They were supported by associates Joshua Blankenship, Vera Bespalova, Brock Jones, and Stacey Hall. Additionally, Matthew Henegar (New York) and Joanna Gorska (San Diego) provided counsel on the financial aspects, with further support from associates Deborah Ogali and Bradford Taylor.

On corporate capital markets, Yvette Valdez (New York) and associate Naffie Lamin contributed their expertise, while Bryant Lee and Christine Mainguy (Houston) offered tax-related advice. Regulatory concerns were overseen by Natasha Gianvecchio and Tyler Brown (Washington, D.C.), while Robert Frances (San Diego) advised on real property issues. For employee benefits matters, Adam Kestenbaum (Washington, D.C.) and Krisa Benskin (Houston) provided guidance, with Kieran Dickinson (Washington, D.C.) handling intellectual property.

Environmental matters were managed by Joshua Marnitz (Los Angeles/Houston) and associate Phil Goldberg, and Andrew Galdes (Washington, D.C.) contributed insights on trade controls. Additionally, Jason Cruise (Washington, D.C.) provided counsel on HSR matters, while Elizabeth Park (Washington, D.C.) addressed FCC issues. Robert Brown (Houston) focused on data privacy, and Catherine Hein (Washington, D.C.) handled CFIUS matters.

Blackstone’s Perspective on the Acquisition

Bilal Khan, Senior Managing Director at Blackstone Energy Transition Partners, commented on the investment, saying:
“This investment underscores Blackstone’s commitment to investing in the electric infrastructure required to power AI innovation. We believe Potomac is well-positioned to help meet data center-driven power demand growth in Northern Virginia.”

Mark Zhu, Managing Director at Blackstone Energy Transition Partners, also shared his excitement about the deal, noting:
“We are particularly excited about this investment given the opportunity to supply reliable, baseload power to the region. Potomac is one of the most efficient gas power plants in the region and has the potential to integrate a hydrogen fuel blend in the future, which could provide future environmental benefits.”

Ares Management Corporation is a global alternative investment manager with a strong focus on delivering value to investors through diverse investment strategies. Founded in 1997, Ares offers a broad range of investment solutions across credit, private equity, real estate, and infrastructure. The company operates with a strong commitment to generating attractive risk-adjusted returns for its clients, leveraging deep expertise and an integrated platform.

Ares has a global reach, with offices across North America, Europe, and Asia, and provides access to both public and private investment opportunities. The company’s investment approach emphasises operational excellence, strategic growth, and value creation, aiming to create lasting impact in its portfolio companies and assets.

With a history of strong performance, Ares Management continues to focus on providing innovative investment solutions while maintaining a commitment to responsible investing and sustainability.

Blackstone Energy Transition Partners is a subsidiary of Blackstone, focusing on investments in sustainable energy and electric infrastructure. The firm targets projects that support the transition to a low-carbon economy, including renewable energy, energy storage, and carbon reduction technologies. By investing in natural gas, renewable power, and innovative solutions like hydrogen blends, the firm aims to meet growing energy demand while driving sustainability. Its goal is to modernise energy infrastructure and support the global shift to cleaner energy.

Latham & Watkins LLP is a leading global law firm known for its expertise in corporate, litigation, and transactional law. With over 2,000 attorneys in 14 countries, the firm advises clients across a wide range of industries, including technology, healthcare, finance, and energy. Founded in 1934, Latham & Watkins is renowned for its work with emerging companies, offering legal solutions for startups and growth-stage businesses. The firm’s Emerging Companies & Growth team helps navigate complex legal matters related to business formation, financing, and scaling, making it a trusted partner for innovative companies worldwide.

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