Excelsior Energy Capital has closed its second flagship fund at more than $1bn, significantly surpassing its $750m target as global institutional appetite for energy transition assets continues to grow.

The vehicle—Excelsior Renewable Energy Investment Fund II—will continue the firm’s strategy of investing equity into utility-scale solar, energy storage, wind, and other clean energy infrastructure across the United States.

Anchored by the Development Bank of Japan (DBJ), the fund attracted a broad mix of limited partners spanning the US, Japan, Europe, Australia, and the Middle East. The investor base includes strong re-up commitments from Fund I participants and new backing from pension funds, insurance companies, fund-of-funds, asset managers, endowments, and family offices.

More than half of the fund’s capital is already deployed across 15 projects totalling 2.25 GW of solar and battery storage capacity. Fund II also seeded Lydian Energy, a new Excelsior portfolio company focused on developing and constructing utility-scale solar and storage platforms across North America. Lydian currently has three large-scale projects under construction and a growing team of around 50 professionals.

Excelsior’s debut fund closed at $504m in 2021 and is fully committed across 16 assets representing 1.95 GW of generation capacity.

Sidley Austin advised on the fund formation, with legal counsel led by Partner Patrick Michel and Senior Managing Associate Ellen Murphy. Placement agent services were provided by DBJ Securities, Probitas Partners, and The Trinity Group.

The close of Fund II positions Excelsior as a key player in North America’s renewable energy private equity market and highlights the growing role of institutional capital in scaling clean energy infrastructure.

Source: IPE Real Assets