Excelsior Energy Capital Closes $1B Renewable Fund

Excelsior Energy Capital, one of North America's premier independent investors in renewable energy, has announced the close of its Excelsior Renewable Energy Investment Fund II, LP at approximately $1 billion—more than its initial goal of $750 million. The high oversubscription reflects a strong endorsement by institutional investors worldwide of the firm's strategy of driving the energy transition faster through investments in solar, wind, energy storage, and more general clean infrastructure assets.

Fund II has already invested more than 50% of its capital in 15 projects aggregating 2.25 gigawatts (GW) of solar and battery storage capacity. This swift deployment reflects Excelsior's solid execution capabilities and dedication to advancing the growth of clean energy solutions throughout the United States. The diversified investor base of the fund consists of institutional capital from the United States, Japan, Europe, Australia, and the Middle East, with involvement from pension funds, insurance companies, asset managers, fund-of-funds, endowments, and family offices. The Development Bank of Japan (DBJ) anchored the fund, further confirming its strategic direction and long-term growth prospects.

“We’re proud to build on the success of our inaugural fund and grateful for the trust our investors have placed in us,” said Chris Moakley, Managing Partner at Excelsior Energy Capital. “Fund II allows us to continue executing on our disciplined investment strategy while expanding into select energy transition infrastructure opportunities. With a premier portfolio of solar and battery storage projects already in development, we are excited to provide solid returns while advancing the transition to cleaner, more resilient energy systems.

Success of the fund comes on the heels of Excelsior's initial renewable energy fund, which closed in 2021 at $504 million and is now fully invested in 16 projects with 1.95 GW of capacity in wind, solar, and storage facilities. Several of the Fund I limited partners have also returned to Fund II, showing that they remain convinced of the firm's performance and strategic direction. The close, too, has been achieved during a difficult fundraising climate, which makes the oversubscription of Fund II all the more significant.

"Surpassing our target, particularly in this fundraising environment, is an excellent result," stated Alex Ellis, Excelsior's Co-Founder and Partner. "The success of our Fund II fundraising is a reflection of the resilience of our investment thesis, the performance of our team, and the increasing need for sustainable infrastructure. We are sincerely grateful to our limited partners for their support and trust in our capacity to execute on their respective investment strategies."

One of the fund's major initiatives is the establishment of Lydian Energy, the first Fund II portfolio company. Lydian focuses on developing and building utility-scale solar and battery energy storage system (BESS) projects in North America. With three large-scale projects under construction and entering service this year, Lydian has already grown to a team of 50 and figures prominently in Excelsior's platform growth. The establishment of Lydian demonstrates the fund's value creation and asset development strategy in the renewable energy sector.

Excelsior's strategy has also strongly appealed to its anchor investor, the Development Bank of Japan. "We are honored to be backing Excelsior Energy Capital as an established manager with a robust track record of investment returns and significant passion for driving the energy transition," said DBJ Senior Vice President Shunsuke Motai. "Excelsior's expertise and rigorous investment approach are well matched with DBJ's long-term investment focus in the renewable energy space."

Legal advice to the fund was given by Sidley Austin LLP, with Partner Patrick Michel and Senior Managing Associate Ellen Murphy. Placement agent services were provided by DBJ Securities Co. Ltd., Probitas Partners, and The Trinity Group.

The final close of Excelsior Renewable Energy Investment Fund II not only reinforces the firm’s position as a key player in North America’s clean energy landscape but also signals a broader trend: private capital is playing an increasingly pivotal role in financing the energy transition. With an expanding portfolio of high-impact initiatives and a solid network of international investors, Excelsior is well-positioned to make substantial contributions to the decarbonization of the energy industry while generating compelling returns for its stakeholders.