Investment Fund 5 · 2026 Vintage · Energy Storage

Energy Storage


Grid-scale battery energy storage and compressed air storage systems. — targeting a net IRR of 13–18% across contracted, operator-led energy assets.

$12.55B
Fund Size
13–18%
Net IRR Target
$2M
Minimum Commitment
In Formation
Deployment Status
Strategy

Investment thesis

Fund 5 owns grid-scale battery energy storage and compressed air energy storage systems that firm the grid and monetize volatility. We underwrite conservative cycle-life assumptions, augmentation reserves, and long-term service agreements with tier-one integrators, targeting contracted revenue — tolling agreements and capacity contracts with investment-grade counterparties — that de-risks the arbitrage component of storage economics while preserving upside.

Coverage

Target asset types

  • 4-hour-plus lithium-ion battery storage systems
  • Flow battery and long-duration chemistries
  • Compressed air energy storage (CAES)
  • Hybrid storage-plus-generation co-located assets
Sample deal profile

Corpus Christi Storage Hub

A 600 MW / 2,400 MWh battery storage facility contracted under a tolling agreement with a regional grid operator, providing capacity and ancillary services with a tier-one integrator service agreement.

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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