NextEnergy Capital has announced that its NextPower UK ESG (NPUK ESG) fund has raised £653 million, exceeding its initial fundraising target of £500 million. This result underlines the strong support of institutional investors for this fund specializing in solar assets.
The increase in capital came in particular from London LGPS CIV Limited, as well as other investors such as 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 with £250 million of matching finance.
Performance and Outlook
Operating assets and assets under construction now represent over 75% of NPUK’s total capacity, with dividends paid to date well ahead of expectations. When fully deployed at around 2GW of capacity, NPUK will deliver 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 posting significant growth in net asset value. The investment team takes a proactive approach to risk management and value creation, optimizing assets throughout the life of the fund before seeking to dispose of the portfolio.
Strategy and Realization
The NPUK ESG fund focuses on the acquisition of utility-scale, construction-ready solar and battery storage assets (BESS). These assets are then developed and commissioned to build up a substantial operational portfolio. Once operational, the assets generate income through secure contracts, offering a high degree of predictability on the fund’s performance.
Michael Bonte-Friedheim, CEO and founder of NextEnergy Group, said, “NPUK 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 show solid progress and pay robust dividends to its investors. The fund’s strategy aligns perfectly with that of the LGPS community.”
NextPower UK ESG’s impact on the renewable energy market is significant, demonstrating an ability to attract substantial investment and deploy it quickly and efficiently.
