NextPower UK ESG Achieves Another Fundraising Close To Exceed Target by 30%

London, July 8th, 2024 –NextEnergy Capital is pleased to announce that NextPower UK ESG (“NPUK ESG”) has increased its total funds committed to date to £653m, exceeding its fundraising target of £500 million by 30%. NextEnergy Capital continues to build on its positive fundraising momentum.

The additional capital comes from London LGPS CIV Limited. Other investors in the fund include LGPS Central Limited, Border to Coast Pensions Partnership, Merseyside Pension Fund, Brunel Pension Partnership, Strathclyde Pension Fund, plus investors from the Middle East and Japan.  The UK Infrastructure Bank provided cornerstone match-funding capital of £250m and since then the Fund has been backed by a number of LGPS investors, helping them access solar PV projects in their local jurisdictions as well as pursuing levelling up agendas.

Operational and construction assets in the portfolio now stand in excess of 75% of NPUK’s total capacity with the Fund remaining on track to outperform its return, with dividends to date being significantly above the target.  Once fully deployed at approximately 2GW capacity, NPUK will provide enough clean energy to power around 500,000 UK households per year, making a significant ESG impact in the UK.

NPUK ESG is a private UK solar fund that focuses on acquiring utility-scale solar and battery storage (“BESS”) assets at the ready-to-build stage, constructing them through energisation in order to build a large operating portfolio of solar and BESS assets. Once the assets are operational, NPUK monetises the power generated through a fully contracted strategy enabling a high degree of predictability and visibility on the Fund’s cash yield. During the holding period, the investment team will take a hands-on approach to risk mitigation and value creation, optimising the assets over the fund’s life before looking to exit the portfolio.  Since its launch in August 2022, NPUK has already been able to make two distribution payments to its investor base, which have been in excess of target, alongside reporting impressive Net Asset Value growth.

Michael Bonte-Friedheim, NextEnergy Group CEO and Founder, said:

“I am proud that NPUK has total funds committed to date of over c.£653m, which is 30% above the target of £500m. This is a testament to NextEnergy Capital’s leadership in the solar energy sector at a critical time. As a private new-build solar strategy that focuses on acquiring utility-scale solar assets at the ready-to-build stage in the UK, NPUK investors benefit from the market leading expertise we bring alongside our hands-on approach to value creation and asset optimisation.”

Shane Swords, Managing Director and Head of Investor Relations at NextEnergy Capital, quoted:

“NPUK continues to demonstrate solid progress in addition to already distributing strong dividends to its investors.  NPUK’s success is underpinned by its large pipeline and swift capital deployment, which commenced just seven weeks after the fund’s first close, with the fund now having nearly 500MW. The Fund’s strategy has aligned really well with that of the LGPS community and it’s great to see so many LGPS investors backing renewable energy assets here in the UK.”

Download the full Press Release here