Talen Energy
Talen is a power producer and infrastructure company whose assets include the sixth largest nuclear power station in the USA and conventional power generation assets in the Northeastern States. It is growing revenues and cash flow through its critical role in the artificial intelligence value chain as a provider of carbon-free energy to data centre operators.
- Pillar
- Quoted Equities - Stocks
- Theme
- SMID-cap
- Status
- Exited
- Geography
- USA
- Invested date
- September 2023
Talen was RIT’s largest direct single stock at the beginning of 2024 and saw material appreciation throughout the year following several catalysts. Since our initial purchase in September 2023 until we fully exited the position in December 2024, Talen’s share price rose 265%. Given how successful the investment was, we started realising profits as the share price appreciated.
In March 2024, the company sold its data centre shell and signed a long-term power purchase agreement with Amazon Web Services, which added approximately $1.5–2bn to the company’s value. Later that month, the company sold its Texas-based natural gas plants for $785m, above analyst estimates.
In July, the company also listed its stock on the Nasdaq. In September, the company unveiled new 2025/26 targets showing a tripling in free cashflow. The company also bought back approximately 20% of its shares using proceeds from disposals and free cashflow.
