Caliche Development Partners (Caliche), a company focused on the acquisition, development, and operation of natural gas and industrial gas storage assets as well as carbon sequestration, has attracted investment backing from Sixth Street, a global investment firm.
Sixth Street’s majority investment includes the company’s Golden Triangle Storage (GTS) facilities and carbon sequestration development project in Beaumont, TX, and its Central Valley Gas Storage facilities in Princeton, CA, according to a news release.
Sixth Street’s investment provides Caliche with additional resources to pursue new opportunities and to expand the GTS complex—including two natural gas caverns for which the company recently received a blanket certificate pursuant to section 7(c) of the Natural Gas Act.
Following the close of the transaction, Caliche’s leadership will continue to oversee day-to-day operations and will remain investors in the company. All employees in Caliche’s TX and CA offices and on-site at its facilities will also be retained.
Caliche CEO Dave Marchese previously spoke to ReSource about the company’s plans for expansion.
“We continue to meet the growing demand for the storage of natural gas and industrial gasses, including helium and hydrogen, and provide the infrastructure for lower environmental impact forms of energy through our commitment to safety, deliverability, asset integrity,” said Dave Marchese, CEO of Caliche. “We want to thank our long-standing partners Orion Infrastructure Capital and GCM Grosvenor for supporting our significant growth over the course of their investments, and we’re excited to keep executing our strategy as a growing platform powered by Sixth Street.”
Sixth Street’s Infrastructure team utilizes the firm’s long-term, flexible capital to deliver scaled solutions for companies across the power, midstream, renewables, transportation, and digital sectors. “Caliche supports key trends driving the future of global energy, including the export of domestically produced LNG to international markets and ensuring stable electricity delivery to consumers as renewable generation resources come onto the grid,” said Richard Sberlati, Partner at Sixth Street. “The company’s success comes from a combined 65 years of collective storage experience, and we look forward to partnering with the company’s management as they further grow the business.”
Sixth Street’s investment will be completed in stages: the Texas business is expected to close in late 2024 and California in mid-2025, subject to all necessary state regulatory approvals.
Barclays served as exclusive financial advisor and Willkie Farr & Gallagher LLP served as legal counsel to Caliche. Wells Fargo served as exclusive financial advisor and Vinson & Elkins LLP served as legal counsel to Sixth Street.
