Nations Energy Holdings

Investment Status: realized

Sector: Power Generation (Combined Heat & Power)

Geography: Ohio & Massachusetts

Initial Investment: Jan. 1, 2000

Date of Disposition:Dec. 1, 2004

In early 2000, Haddington’s principals believed that the continued deregulation of the U.S. electric industry created an opportunity to develop and operate state-of-the-art combined heat and power generation facilities. Many power plants provided utility services to particular business centers or districts inefficiently and were unable to operate within environmental regulatory limits on pollution. Haddington believed that an opportunity existed to provide business centers with increased efficiency and reduced pollution by developing such cogeneration facilities from the ground up or acquiring and then expanding and updating an existing facility.

In January 2000, Fund I acquired Nations Energy from Acetex Corporation. Initially, Fund I was the sole investor in Nations Energy. Subsequent investments by both Fund I and Fund II through December 31, 2003 were used to fund project development costs, project equity, and working capital. Haddington sold the operating assets of Nations Energy to Thermagen Power Group LLC in December 2004.