A sale of Calpine – a portfolio company of Pantheon Infrastructure (PINT) – has been agreed between Energy Capital Partners (ECP) and Constellation Energy, for a combination of cash (c.25%) and Constellation stock (c.75%), which will be subject to certain lock-up restrictions. The transaction, which will create the largest clean energy company in the US, represents an equity valuation of Calpine of approximately US$16.4bn based on Constellation’s 20-day volume-weighted average share price of US$237.98 on 10 January 2025. The sale remains subject to various regulatory clearances and approvals, which PINT says are expected to occur within 12 months.

The final amount and timing of proceeds remain subject to, amongst other factors; the timing of the completion, any transaction costs and taxes, foreign exchange rates, any intervening distributions, any subsequent movements in the value of Constellation’s stock, and any instruments or transactions PINT may undertake to hedge against such movements. However, assuming the equity valuation stated above is reflected in the Company’s NAV at 31 December 2024 without any such adjustments, PINT says that it would expect an increase in NAV attributable to the sale of approximately 3p per share, or 2.6% of the NAV of 116.2 pence per share at 30 September 2024.

PINT invested in Calpine as part of a direct secondary transaction with ECP announced in June 2022. Calpine remains one of the largest generators of electricity from natural gas and geothermal resources in the US, with operations across the CAISO (California), ERCOT (Texas), and PJM (13 states and the District of Columbia) power markets and current power generation capacity of 27 GW. The total amount invested was around US$54m (or around £46m), and PINT used foreign exchange hedging instruments to mitigate against any material foreign exchange movements.

Assuming it proceeds as planned, the sale of Calpine is expected to result in PINT’s first realisation since its IPO.