Impact Investing
NextPower UK ESG Exceeds Fundraising Target by 30%
NextPower UK (NPUK) raised capital from investors including London LGPS CIV, various UK pension funds, and international investors, with the UK Infrastructure Bank contributing £250 million. Over 75% of NPUK’s capacity is operational or under construction, with dividends surpassing expectations. NPUK focuses on solar and battery storage assets, achieving significant growth.
![NextPower](https://born2invest.com/wp-content/uploads/2024/07/nuno-marques-0GbrjL3vZF4-unsplash-e1720607469692.jpg)
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)
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in energynews. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us
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