Excelsior Closes Second Renewable Energy Fund at $1B

Excelsior Energy Capital announced the closing of its second fund, Excelsior Renewable Energy Investment Fund II LP, at just over $1 billion, significantly surpassing its initial $750 million target. Fund II nearly doubles the size of its predecessor, which closed at $504 million in 2021.

Fund II focuses on middle-market investments in operating wind, solar, and battery storage projects across North America, building on Excelsior’s strategy of targeting late-stage, high-quality renewable assets.

The raise was led by the Development Bank of Japan Inc. (DBJ) and drew a wide range of limited partners from the U.S., Japan, Europe, Australia, and the Middle East. The fund received significant backing from investors returning from Fund I, including pension plans, insurance companies, fund-of-funds, diversified asset managers, endowments, family offices, and more.

Chris Moakley, managing partner, credited the oversubscription to the firm’s proven track record—Fund I deployed $504 million across 16 investments totaling 1.95 GW of projects.

To date, Fund II has invested more than half its capital, supporting 15 projects that encompass solar and battery energy storage initiatives with a combined capacity of 2.25 GW. Excelsior has introduced Lydian Energy as its first portfolio company within Fund II. Lydian, which specializes in developing and constructing utility-scale solar and battery storage systems across North America, has three significant projects currently in progress, slated for completion this year.

Sidley Austin LLP served as legal counsel for Excelsior, led by 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.