Investment Fund 4 · 2026 Vintage · Distributed Energy & Microgrids

Distributed Energy & Microgrids


Distributed energy resources, microgrids, district energy networks, and industrial cogeneration and energy efficiency. — targeting a net IRR of 13–18% across contracted, operator-led energy assets.

$11.50B
Fund Size
13–18%
Net IRR Target
$2M
Minimum Commitment
In Formation
Deployment Status
Strategy

Investment thesis

Fund 4 owns distributed energy resources, microgrids, and district energy networks that serve load close to the point of consumption. The strategy extends to industrial cogeneration and energy efficiency assets that reduce total system cost while improving reliability for hosts. We underwrite to contracted or tariffed revenue from creditworthy hosts — commercial, industrial, and institutional — and favor sites with existing interconnection and multi-year service histories.

Coverage

Target asset types

  • Commercial and industrial on-site solar and storage
  • Resilience-focused microgrids for critical facilities
  • District energy and thermal networks
  • Industrial cogeneration (CHP) and energy efficiency retrofits
Sample deal profile

Hyperscale CHP Campus

A 220 MW combined heat and power installation serving a hyperscale data center campus under a 15-year energy services agreement, with waste-heat recovery supplying an adjacent district energy loop.

Representative, illustrative profile of the asset type this fund targets. Not an offer, commitment, or existing holding.

Fees & terms

Vehicle summary

VehicleDelaware limited partnership
Preferred return8% compounded annually
Carried interest20% above 8% pref (100% GP catch-up)
Fund term12–15 years + two 1-year extensions
Investment period5–6 years
Minimum LP commitment$2 million
GP commitment2% of total fund commitments
Distribution waterfallEuropean (whole-fund)
Fund administratorIndependent third-party administrator (to be appointed)
AuditorPricewaterhouseCoopers LLP
Legal counselLepore Law Group
We size each fund to the durability of its cash flows, not the appetite of the moment. Concentration follows conviction, and conviction follows underwriting.
Alzaro Energy Investment Committee

Talk to our investor relations team

For fund materials, capital account information, and partnership inquiries, reach Alzaro Energy directly.

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