NextPower V ESG Reaches $745 Million To Date
NextEnergy Capital (NEC), a prominent global renewables manager specializing in solar+ infrastructure, has achieved a significant milestone with the conclusion of its second close for NextPower V ESG (NPV ESG) fund, raising $265 million. NPV ESG, focused on OECD markets and targeting $1.5 billion with a $2 billion hard cap, has now secured a total commitment of $745 million.
The latest capital infusion includes contributions from a UK LGPS investment pool, a Dutch pension fund, and a reinvestment from an existing NextPower III ESG investor. These new investors join the ranks of existing NPV ESG backers, including KLP, a German occupational pension fund, and a major Nordic pension fund. Further capital is expected to be welcomed, with multiple investors actively conducting due diligence.
NPV ESG's investment strategy is centered on the solar+ infrastructure sector in meticulously chosen OECD markets. The objective is to develop significant portfolios in each target market, establish a robust operational track record, and divest the portfolio by 2033. Leveraging NEC's successful track record since 2007, with over 400 utility-scale projects acquired, previous funds have delivered superior financial returns to investors.
Upon reaching its investment ceiling and delivering approximately 4GW of clean energy capacity, NPV ESG is projected to generate enough clean energy to power up to 1.1 million households annually and avoid an estimated consumption of nearly 220 million m3 of natural gas per year.
Michael Bonte-Friedheim, CEO and Founding Partner of NextEnergy Group, expressed his delight at the second close of NPV ESG, emphasizing the attractiveness of NextEnergy Capital's strategies for investors seeking sustainable long-term investments. He highlighted the fund's successful progress since its first close and the commencement of construction for its inaugural asset in the USA, along with securing a long-term power purchase agreement.
Shane Swords, NextEnergy Capital Managing Director and Global Head of Investor Relations, welcomed the strong close of NPV ESG and expressed gratitude to new and existing investors. He emphasized the fund's contribution to positive impact in the communities and countries where its assets are located, offering investors opportunities for strong and stable renewable energy returns.
Investor interest in specialized investment managers with proven track records continues to grow, with NextEnergy Capital's expertise in solar and opportunities in the solar+ sector being recognized globally as the preferred investment manager in this field.
