NextPower UK ESG Exceeds Fundraising Target by 30%

NextEnergy Capital has announced that its NextPower UK ESG fund (NPUK ESG) has raised £653 million, exceeding its initial fundraising target of £500 million. This result highlights the strong institutional investor support for the solar asset fund.

The capital increase came from London LGPS CIV Limited, as well as other investors including LGPS Central Limited, Border to Coast Pensions Partnership, Merseyside Pension Fund, Brunel Pension Partnership, Strathclyde Pension Fund, and investors from the Middle East and Japan. UK Infrastructure Bank also contributed £250 million in matching funding.

Performance and Perspectives of NextPower

Operational and under construction assets now represent over 75% of NPUK’s total capacity, with dividends paid to date well in excess of expectations. Once fully deployed at around 2GW of capacity, NextPower UK will provide substantial energy to the UK market.

Since its launch in August 2022, NPUK has already made two distribution payments to its investors, exceeding initial targets and delivering significant growth in net asset value. The investment team takes a proactive approach to risk management and value creation, optimising assets throughout the life of the fund before seeking to exit the portfolio.

Strategy and Implementation

The NextPower UK ESG Fund focuses on acquiring utility-scale, construction-ready solar and battery storage (BESS) assets. These assets are then developed and commissioned to form a significant operational portfolio. Once operational, the assets generate revenues through secured contracts, providing high predictability over the fund’s performance.

Michael Bonte-Friedheim, CEO and Founder of NextEnergy Group, said: “NextPower UK has exceeded its initial fundraising target, demonstrating investor confidence in our strategy and expertise.”

Shane Swords, Managing Director and Head of Investor Relations at NextEnergy Capital, added: “NPUK continues to demonstrate solid progress and deliver robust dividends to its investors. The fund’s strategy is very much aligned with that of the LGPS community.”

NextPower UK’s ESG impact on the renewable energy market is significant, demonstrating an ability to attract substantial investment and deploy it quickly and effectively.

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(Featured image by Nuno Marques via Unsplash)

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