Business is booming in the electricity market, and will only keep getting better.
Let’s take a look at ECP as a case in point. ECP is one of the top private funds in the power generation sector. With electricity demand continuing to rise, the fund is seeing deal after deal come through its doors.
Back in January, ECP portfolio company Calpine was sold to nuclear leader Constellation Energy. Calpine owns roughly 27 GW in natural gas facilities. The acquisition was valued around $20 billion in equity. As part of the deal, ECP also received 50 million shares in Constellation, making it the largest shareholder.
Late last year, ECP also acquired a majority interest in PROENERGY, which designs vertically integrated aeroderivative gas turbines and oversees 2.4 GW of power plants in Texas.
According to ECP’s founder Doug Kimmelman, “Our deal backlog is the largest it’s ever been.”
With the rise of AI and reshoring of manufacturing, we can expect to see more and more deals like this on the table. Tech like AI requires five nines reliability, and that’s something only steady sources like gas can provide.
