SUMMIT, NJ, June 23, 2022 /PRNewswire/ — ECP today announced the successful completion of a continuation fund with $1.6 billion in capital commitments, and that the continuation fund subsequently entered into a purchase and sale agreement to acquire a portion of Calpine Corporation (“Calpine“), America’s first private competitive power company, ECP III and ECP IV, and consortium investors. The fund is backed by new and returning limited partners, and is anchored by Pantheon and existing investor in the Phoenix Insurance Consortium. The Continuation Fund provides investors in ECP III and IV, as well as the consortium of investment partners, with the opportunity to monetize a minority stake in their investment in Calpine while allowing new investors to invest in the company via the continuation fund. ECP’s direct participation in Calpine will increase as a result of this transaction.
Since ECP acquired the company in 2018, by Calpine strategically located natural gas and geothermal assets served as the backbone of the energy transition. The company remains committed to strengthening its industry-leading commitment to environmental stewardship and low-carbon power generation and has a strong pipeline of solar, wind, battery storage, capture, use and storage of carbon and hydrogen to further transform its business. Calpine currently operates 76 power plants, including The Geysers, the world’s largest geothermal power generation complex, generating approximately 7% of California Renewable Portfolio Standard 2020 requirement. The company today oversees a total power generation capacity of nearly 26 gigawatts, enough to power approximately 20 million homes.
“As the owner of one of the largest and cleanest natural gas fleets in the United States today, with a significant and growing green energy business, including its geothermal assets and project pipeline short term, Calpine is well positioned to serve as a model for environmentally friendly power generation as part of the ongoing energy transition,” said Tyler Reder, Managing Partner at ECP. “We are delighted to continue supporting the talented Calpine team as it builds on the company’s incredible momentum and seeks to provide clean, safe and reliable energy for a growing demand base across the country. »
PJT Partners acted as financial advisor in connection with the continuation fund transaction. Latham & Watkins acted as legal counsel to ECP in the creation of the Continuation Fund.
Calpine Corporation is the largest US producer of electricity from natural gas and geothermal resources and operates in major competitive wholesale and retail electricity markets in the United States. Through our wholesale business and our retail business, by Calpine diverse team of approximately 2,300 employees serves customers in 22 states, Canada and Mexico. Calpine operates a fleet of 76 power stations representing nearly 26,000 MW of production capacity. Environmental stewardship is fundamental to by Calpine philosophy and culture; in addition to operating the largest geothermal facility in the world and the youngest and most efficient gas-fired power plant parks, Calpine is a longtime advocate of the Clean Power Plan, the Paris Agreement, carbon pricing and decarbonization.
ECP, founded in 2005, is a leading investor in energy transition, electrification and decarbonization infrastructure assets, including power generation, renewable energy and storage solutions, environmental infrastructure and efficiency and reliability assets facilitating the energy transition. The ECP team, made up of 63 people with 500 years of collective industry experience, deep expertise and extensive relationships, has completed more than 60 transactions over the past 10 years, representing more than $45 billion of enterprise value. For more information, visit www.ecpgp.com.
Jonathan Keehner / Woomi Yun / Kara Brickman
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