NextEnergy Capital (NEC), a leading global renewables manager specializing in the solar+ infrastructure sector, announced the conclusion of its second close of $265 million for its fifth strategy, NextPower V ESG (NPV ESG). NPV ESG is an OECD-focused solar and battery storage strategy targeting $1.5 billion with a $2 billion hard cap that has secured $745 million in total commitments so far.
This new funding round includes commitments from a UK LGPS investment pool (a Dutch pension fund) and another re-up from an existing NextPower III ESG investor. These new investors join existing NPV ESG investors KLP (a German occupational pension fund) and a large Nordic pension fund. NPV ESG will continue welcoming further capital, with several investors currently active in due diligence.
NPV ESG’s investment strategy targets the solar+ infrastructure sector in selected OECD markets to build significant portfolios in each target market, establish an operational track record, and divest the portfolio at the end of the fund’s holding period in 2033.
NPV ESG utilizes NEC’s successful track record since 2007, with over 400 utility-scale projects acquired and previous funds delivering superior financial returns to investors. Upon reaching an investment ceiling and delivering c.4GW, NPV ESG is forecasted to generate enough clean energy to power up to 1.1 million households per year and avoid an estimated fossil fuel consumption of up to nearly 220 million m3 of natural gas annually.
KEY QUOTES:
“I am delighted to announce the second close of NextPower V ESG, with commitments from both new and existing institutional investors. Our continued fundraising progress demonstrates that NextEnergy Capital’s strategies continue to offer attractive investment opportunities for investors alongside making a sustainable long-term impactful investment.
NextEnergy Capital continues to expand its reach as the go-to specialist solar+ investment manager focused on OECD markets. Since its first close last year, NextPower V ESG has now received total commitments of $745 million to date, and its inaugural asset in the USA has started construction and secured a long-term power purchase agreement. The fund continues to draw significant interest from investors worldwide and I look forward to continuing our global fundraising activities and to announcing further investor commitments to NextPower V ESG and further fund investments shortly.
We are leveraging our very large pipeline to secure attractive assets for NextPower V ESG with a view to building an attractive and diversified portfolio.”
- Michael Bonte-Friedheim, CEO and Founding Partner of NextEnergy Group
“We are pleased to announce another strong close for NextPower V ESG, bringing commitments to $745 million, and would like to welcome and thank our new and existing investors in the fund. NextPower V ESG is our largest international fund to date that continues to deliver on NextEnergy Capital’s exemplary track record by showcasing positive fundraising momentum and portfolio growth. NextPower V ESG provides a real impact and tangible benefits to the communities and countries where its assets are located, whilst also providing an opportunity for investors looking for strong and stable renewable energy returns.
Investors continue to seek a specialist investment manager with a proven track record of successful delivery, deployment, and superior return generation, and we are thrilled that our experience in solar, and vast opportunities in the solar+ sector continue to be recognised as the go-to investment manager in this field.”
- Shane Swords, NextEnergy Capital Managing Director and Global Head of Investor Relations
