By David French
(Reuters) – Calpine Corp’s $16.4 billion sale to Constellation Energy (NASDAQ:) is set to generate a handsome windfall for the power producer’s owners, but has also stoked hopes within the private equity world that similar mega-exits may help an industry struggling to return investor cash.
The trio of investors – Energy Capital Partners (WA:) (ECP), Canadian pension fund CPP Investments and Access Industries – and their limited partners are expected to pocket a return of around four times their original outlay, according to people familiar with the matter.
Not only was the Jan. 10 agreement the largest transaction in the U.S. power industry in nearly two decades, but the Calpine owners are also set to reward investors holding significant positions in their portfolios. In the case of ECP, liquidating around a quarter of its $5 billion third flagship fund, as well as stakes in other ECP vehicles, two of the…
