Carlyle Group Inc. announced that it will sell its SierraCol Energy unit to Prime Infrastructure Capital, a transaction that is expected to close in the first quarter of 2026. The deal follows Carlyle’s 2020 acquisition of SierraCol from Occidental Petroleum, during which Carlyle invested nearly $1 billion in capital expenditures and added more than 100 million barrels of oil equivalent to reserves.
Under Carlyle’s ownership, SierraCol generated $205 million in free cash flow in the 12 months ending October 2025, reflecting a robust production base that includes the Caño Limón and La Cira Infantas fields. Carlyle’s strategy has been to streamline its portfolio and reallocate capital toward higher‑growth areas such as credit, secondaries, and insurance solutions, thereby supporting its capital‑light fee‑generation model. "SierraCol reflects our conviction that investing in high‑quality assets can drive long‑term value creation, while playing a key role in Colombia's energy sector," said Bob Maguire, co‑head of Carlyle International Energy Partners.
Prime Infrastructure Capital’s acquisition expands its upstream oil and gas footprint in Latin America and complements its existing infrastructure and energy investments in the Philippines, where it recently increased its stake in First Gen’s gas assets. "This acquisition strengthens our oil and gas expertise and complements our existing asset base in the Philippines," said Guillaume Lucci, Prime Infra president and chief executive. The transaction aligns with Prime Infra’s broader strategy to build a more integrated energy value chain across onshore and offshore operations.
Carlyle had previously reported that it was seeking approximately $1.5 billion for SierraCol, although the financial terms of the current deal remain undisclosed. The sale is expected to have a neutral to slightly positive impact on Carlyle’s balance sheet, freeing capital that can be deployed to support its record fee‑related earnings and strong fundraising in FY 2025. "2025 was a record year for Carlyle, and we significantly outperformed the targets we set at the beginning of the year. We delivered record Fee Related Earnings and strong fundraising across the platform, reflecting disciplined execution of our strategy and continued confidence from our investors," said Harvey M. Schwartz, Carlyle CEO.
Tony Hayward, SierraCol executive chairman, welcomed the partnership, noting that Prime Infra will contribute to the sustainability of the business and provide SierraCol with access to long‑term capital. The transaction underscores Carlyle’s ongoing commitment to portfolio optimization while allowing Prime Infrastructure to deepen its presence in a high‑production region of Colombia.
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