NextPower V ESG Reaches $745 Million To Date
April 29 2024 - 2:30AM
Business Wire
NextEnergy Capital (“NEC”), a leading global renewables manager
specialised on the solar+ infrastructure sector, is delighted to
announce 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 to date.
The new capital 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 carefully selected OECD markets, with the objective of
building significant portfolios in each target market, establishing
an operational track record and divesting the portfolio at the end
of the fund’s holding period in 2033. NPV ESG leverages 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 its investment ceiling and
delivering c.4GW, NPV ESG is forecasted to generate enough clean
energy to power the equivalent of 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.
Michael Bonte-Friedheim, CEO and Founding Partner of NextEnergy
Group, said:
“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.”
Shane Swords, NextEnergy Capital Managing Director and Global
Head of Investor Relations, said:
“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.”
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