Solar-focused business NextEnergy Group’s investment management arm NextEnergy Capital announced today that it has reached commitments of £595 million (US$715 million) at the third close of its private solar fund, NextPower UK ESG (NPUK ESG).
With the announcement, the fund has exceeded its target of £500 million less than six months into its two-year fundraising period following the first close. NextEnergy said that it s now working towards the fund’s hard cap of £1 billion.
Shane Swords, NextEnergy Capital Managing Director and Head of Investor Relations, said:
“We are delighted to have exceeded the Fund target for NPUK ESG at third close, driven by the strong momentum behind the Fund having achieved its first close only six months ago. This close represents another fantastic milestone for NextEnergy Capital as well as the solar sector in quick succession.”
Launched in December 2021, NPUK ESG focuses on unsubsidized new-build solar plants in the UK, and NextEnergy Capital has already acquired its first five utility-scale solar assets totalling 269MW from the fund’s proprietary project pipeline. The fund is classified as Article 9 under the EU SFDR regulation.
At hard cap, NextEnergy estimates that the projects supported by the fund will produce enough clean energy to power the equivalent of nearly 500,000 households each year.
Investors participating in the fund’s third close includedBorder to Coast Pensions Partnership, an existing institutional investor topping up their allocation, and the UK Infrastructure Bank, which has committed £250 million to the fund.
Michael Bonte-Friedheim, CEO and Founding Partner of NextEnergy Group, said:
“NPUK ESG continues to go from strength to strength and is actively accelerating the deployment of utility scale solar in the UK, providing additional renewable energy capacity, and increasing the UK’s energy independence.”