NextPowerUK ESG fundraising target now exceeded by 37%

London, 18 September 2024 – NextEnergy Capital (“NEC”), a leading global renewables manager specialised on the solar+ infrastructure sector, is pleased to announce that it has closed another £30m in NextPower UK ESG (“NPUK ESG”), increasing total funds committed to date to £683m and exceeding its fundraising target of £500m by 37%.  The additional capital comes from a Local Government Pension Scheme.  NextEnergy Capital continues to build on its positive fundraising momentum with further investors in late-stage due diligence.

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:

“NPUK has now exceeded its fundraising target by 37%, raising £683m of committed capital from investors from around the world. 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’s strategy is aligned really well with that of institutional investors looking for UK renewables exposure and it’s great to see another LGPS investor backing renewable energy assets here in the UK.  NPUK’s success continues to be underpinned by its large pipeline, exemplary performance and swift capital deployment, which commenced just seven weeks after the fund’s first close, with the fund now having nearly 500MW.”

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