Development Bank of Japan Inc. ("DBJ") has decided to invest in the Excelsior Renewable Energy Investment Fund II ( "Fund II") established by Excelsior Energy Capital (headquarters: United States; Managing Partner Christopher Moakley; Partners Anne Marie Denman, Alex Ellis and Ryan Fegley; hereinafter referred to as "EEC") to invest in renewable energy projects in the United States.
EEC is a fund management company established in June 2017, led by a management team collectively having over 75 years of experience acquiring, owning and operating renewable energy assets in the United States.
DBJ in 2017 co-established a joint venture with EEC which manages Excelsior Renewable Energy Investment Fund I ("Fund I"), the predecessor fund of Fund II, and provided seed capital for the launch of Fund I. Fund I successfully completed its fundraising from Japanese and international investors at the end of December 2020.
Backed by the robust track record in Fund I, EEC has decided to establish Fund II as a successor fund, and DBJ has decided to contribute core capital to Fund II.
The renewable energy market in the United States is expected to expand further because of the Inflation Reduction Act. Fund II will invest in PV and wind power projects as well as projects such as storage, CCS or green hydrogen, all of which draw the attention of the market due to their contributions toward transition to low carbon society or de-carbonization of society.
Through Fund II investment in these renewable energy projects, DBJ will acquire knowledge of state -of-the-art industry practice in the United States, thereby enhancing its ability to continue to contribute to the development of the energy industry in Japan and the realization of a decarbonized society.
Note 1. This investment is in line with DBJ's GRIT Strategy, in which "G" stands for "Green," realization of a green society; "R" stands for "Resilience & Recovery," construction of a flexible, strong, safe and secure regional, social and industrial infrastructure; "I" stands for "Innovation," initiatives for innovations considered feasible for commercialization; and "T" stands for "Transition/Transformation," strategic initiatives for transition toward carbon neutrality and other goals, based on current business fundamentals. These are the Bank's priority areas under its Fifth Medium-Term Management Plan.
Note 2. DBJ is a current investor in Fund I. DBJ is not being compensated directly or indirectly to promote Fund II to other investors by this disclosure. DBJ indirectly has an interest in the general partner and management company of Fund I and Fund II. The interest in these entities is material but not controlling.
Inquiries:
Corporate Finance Department, Division 5
Telephone: + 81 (0)3 3244 1620