A German occupational pension fund has become the latest investor to commit to NextEnergy Capital’s international solar fund.
NextEnergy said the unnamed German pension fund, a UK institutional investor and fund manager Derigo are among the investors to commit $232m (€195m) to NextPower III ESG (NPIII), taking the fund’s total capital raised to date to $530m – including a separately managed account.
NPIII targets projects in selected OECD countries, including the US, Portugal, Spain, Chile and Italy.
The manager said the NPIII fund, which has a $750m fundraising target and a $1bn hard cap, continues to enjoy significant fundraising momentum and is due to close at the end of 2021.
The ten-year closed-ended fund targets a gross internal rate of return of 13-15%.
NextEnergy said the fund has to date acquired 14 projects plus 1 portfolio with a total installed capacity of 400MW, adding that the fund has a significant portfolio of further acquisition targets.
Shane Swords, managing director and head of investor relations at NextEnergy Capital, said: “We are delighted to welcome the new investors to the fund. The quality of the institutional support is a real testament to NextEnergy Capital and the fund with the investment momentum and pipeline supporting new capital.
“These latest additions show continued investor appetite for NPIII and its global ESG solar strategy, NextEnergy Capital, as a highly experienced specialist solar company, and its exemplary track record since inception.”
Michael Bonte-Friedheim, group CEO and founder of NextEnergy Capital Group, said NextPower III ESG continues to go from strength to strength, with institutional investor interest increasing in parallel as the demand for renewable infrastructure globally continues to grow rapidly.
“By focusing purely on solar and developing a unique expertise in our sector, NextEnergy Capital Group continues to deliver outperformance, which is demonstrated in NPIII’s ability to secure very attractive risk-adjusted target returns in carefully selected projects and global renewable ESG benefits.”
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