TC Group, LLC., Riverstone Holdings LLC, Carlyle/Riverstone Global Energy and Power Fund II, LP, and Carlyle/Riverstone Global Energy and Power Fund III, LP, In the Matter of

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In the Matter of TC Group, L.L.C., a limited liability company, Riverstone Holdings LLC, a limited liability company, Carlyle/Riverstone Global Energy and Power Fund II, L.P., a limited partnership, and Carlyle/Riverstone Global Energy and Power Fund III, L.P., a limited partnership
FTC Matter/File Number:

0610197

Docket Number:

C-4183

Enforcement Type:

Part 2 Consents

Case Summary

The order settles charges that the proposed $22 billion deal whereby energy transportation, storage, and distribution firm Kinder Morgan, Inc. (KMI) would be taken private by KMI management and a group of investment firms, including private equity funds managed and controlled by The Carlyle Group (Carlyle) and Riverstone Holdings LLC (Riverstone) would threaten competition between KMI and Magellan in eleven metropolitan areas in the Southeast, likely resulting in higher prices for gasoline and other light petroleum products. The order requires that Carlyle’s and Riverstone’s interest in Magellan become a passive investment, by requiring them to: (1) removing all of their representatives from the Magellan Board of Managers and its boards of directors, (2) ceding control of Magellan to its other principal investor, Madison Dearborn Partners, and (3) not influencing or attempting to influence the management or operation of Magellan.