∑ Increased total commitments to date to £595 million (target £500 million)
∑ Achieved third close six months after first close, within the two-year fundraising period
∑ Additional 94MW capacity added to Fund since second close, taking total capital deployed to 269MW
NextEnergy Capital ("NEC"), a global solar specialist in the renewables sector, is delighted to announce the third close of NextPower UK ESG ("NPUK ESG" or "Fund") at £595 million. The Fund has exceeded its target of £500 million and is working towards its hard cap of £1 billion, capturing the positive momentum behind the Fund.
The third close has been achieved six months after the Fund's first close in August 2022 and two months since its second close in December 2022. This close of NPUK ESG is comprised of commitments from multiple investors; Border to Coast Pensions Partnership; an existing institutional investor topping up their allocation; and the remaining committed capital from the UK Infrastructure Bank, who have now fully committed £250 million into NPUK ESG. Looking forward, the Fund expects to welcome additional investors in due course.
NPUK ESG is a private solar fund focused on unsubsidised new-build solar plants in the UK, which, at hard cap, will produce enough clean energy to power the equivalent of nearly 500,000 households or offset nearly 200,000 carbon-emitting cars on the road each year. From the Fund's proprietary project pipeline, NEC has already acquired its first five utility-scale solar assets totalling 269MW, of which two are operational. The Fund has deployed capital rapidly, with the first drawdown being seven weeks after the first close.
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.
NextEnergy Capital leads the global solar sector in offering innovative access to opportunities identified by a true solar specialist. The momentum is a testament to the NEC's deep knowledge and detailed preparation, leading to the rapid deployment of capital into our funds. We are expecting to conclude further acquisitions in the near future which will significantly increase the Fund's commitments."
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. Investors continue to recognise the value-add that a specialist and experienced manager offers, and we thank our LP base for their continued support.
NPUK ESG is classified as an article 9 Fund under the EU SFDRs, and at its hard cap, will produce enough clean energy to power the equivalent of nearly 500,000 households or offset nearly 200,000 carbon-emitting cars on the road each year."