Growth exceeding the entry investment case

Asset overview

Calpine, now part of Constellation, is one of North America’s leading power producers, operating a diversified portfolio of 79 assets across 22 US states and Canada, with total generating capacity in excess of 27GW, sufficient to power approximately 27 million homes. The portfolio is predominantly natural gas-fired power generation, complemented by geothermal generation, battery energy storage systems, carbon capture and sequestration, and solar assets.

Investment thesis

At the time of PINT’s investment, Calpine was a vital supplier to the US electricity grid, providing reliable power generation capacity and playing an important role in the energy transition. The business benefited from highly predictable, diversified cash flows underpinned by contracts supported by a robust hedging programme. Calpine also had a strong renewables development pipeline of solar and battery storage projects, financeable through cash flows from existing assets and expected to significantly expand renewable generation capacity over the investment period.

Value creation

Since Pantheon’s investment in June 2022, Calpine has delivered growth exceeding the entry investment case, driven by strong electricity demand from data centre expansion, underpinned by cloud adoption and AI-related load growth. The business was well positioned to benefit from strengthening US power market fundamentals, particularly in its two largest wholesale markets, PJM and ERCOT¹, where Calpine operates a significant portion of its generation fleet. These market tailwinds were complemented by targeted portfolio actions, including expansion in Texas and accelerated development activity in PJM, and a disciplined hedging strategy helped manage merchant price volatility.

During the investment period, Calpine also made notable progress advancing multiple carbon capture and storage projects, supporting the long-term clean energy goals.

Transaction update

The sale of Calpine to Constellation was announced in January 2025 for a consideration of cash and Constellation shares. Following the receipt of all required regulatory approvals, the transaction was completed in January 2026. PINT received $28.5 million in cash and more than 325,000 Constellation shares, of which 50% are subject to lock-up until July 2026, with the remaining shares subject to lock-up until July 2027. As at 31 December 2025, the MOIC was 3.0x.

1. PJM (Pennsylvania, Jersey, Maryland): PJM Interconnection is a regional grid operator that runs wholesale electricity markets across the Mid-Atlantic and parts of the Midwest. U.S. ERCOT: The Electric Reliability Council of Texas (ERCOT) is the grid operator for most of Texas and runs the state’s wholesale electricity market.