Seed shareholders Pequot Capital Management and SoftBank Venture Capital have just been joined by Exelon Capital Partners to re-fuel the high-octane service provider to the tune of $50 million. Exelon is the lead investor in the latest round.

Exelon was created last year as the corporate venture-capital group of PECO Energy Co., which recently merged with Unicom Corp. to form Exelon Corp., the country's biggest utility company. With the Everest investment, its funding commitments are approaching the $150-million mark.

The new funds will help the firm "accelerate our growth, both through the introduction of high-margin user services and strategic acquisitions that broaden our sell-into base and profitability," says Everest founder, president and CEO Jeff Feldman.

And while some observers, including Cannon Carr of CIBC World Markets, predict that a shakeout is in the works for the local broadband industry, "this private placement provides it with strong financial backing for expansion."

Indeed, the shakeout process may already have begun. In late summer, Everest added the business of Metrocomm International, which provides telecom service in the NY metro area, to its own stable."Not all building-centric service providers will survive," agrees Joseph Kerecman, general partner with Exelon Capital Partners. "We feel Everest's business plan is complementary with our other ventures in building and maintaining telecom infrastructure."

Everest's service package includes high-speed Internet access, long-distance phone service, digital broadcast satellite TV and related broadband applications. Its target market is multi-tenant commercial buildings, especially offices, as well as hotels.