News Briefs

ECP wraps up $1.6bn Calpine continuation fund

In conjunction with the fundraising, ECP has agreed to acquire a portion of Calpine, a power company, from ECP III and ECP IV along with various investors.

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  • Pantheon is the fund’s anchor investor
  • The fund provides ECP III and IV investors as well as investment partners to monetize a minority stake in their Calpine investment while enabling new investors to invest in the company through the continuation fund
  • ECP originally acquired Calpine in 2018

ECP has closed its $1.6 billion continuation fund for Calpine Corporation, a generator of electricity from natural gas and geothermal resources.

In conjunction with the fundraising, ECP has agreed to acquire a portion of Calpine, a power company, from ECP III and ECP IV, along with various investors.

Pantheon is the fund’s anchor investor.

The fund provides ECP III and IV investors as well as investment partners to monetize a minority stake in their Calpine investment while enabling new investors to invest in the company through the continuation fund

ECP originally acquired the company in 2018.

Currently, Calpine operates 76 plants, including The Geysers, a geothermal electrical generation complex in the world, generating approximately 7 percent of California’s 2020 Renewable Portfolio Standard requirement.

On the transaction, Tyler Reeder, managing partner at ECP, expressed keen enthusiasm. “As the owner of one of the largest and cleanest natural gas fleets in the U.S. today with a material and growing green energy business, including its geothermal assets and near-term project pipeline, Calpine is well positioned to serve as a model for environmentally responsible power generation amidst the ongoing energy transition,” he said in a statement. “We are thrilled to continue supporting the talented Calpine team as it builds on the incredible momentum across the business and seeks to provide clean, safe and reliable power for a growing base of demand across the country.”

PJT Partners served as financial advisor on the continuation fund transaction. Latham & Watkins served as legal counsel to ECP on the formation of the Continuation Fund.

Founded in 2005, ECP is an energy investor.