NextEnergy Capital is planning to raise up to $2bn (€1.85bn) for its latest international solar infrastructure fund.
NextEnergy said it expects to raise $1.5bn with a $2bn hard cap for NextPower V ESG (NPV ESG), the newly launched value-add OECD international solar fund.
NextPower III ESG, the predecessor international solar strategy launched in 2018 and closed in last year with $896m commitments.
The manager said NPV ESG, which targets mid-double-digit returns, will have preferential access to NextEnergy Group’s pipeline of 13GW, “providing investment visibility and sourcing advantage”.
NPV ESG will mainly invest in OECD solar assets and adjacent technologies, such as energy storage, by focusing on geographies in which NextPower has already built an investment track record and operating presence and expertise, NextPower said.
The 10-year closed-ended fund is categorised as an article 9 product under the EU Sustainable Finance Disclosure Regulation.
Michael Bonte-Friedheim, CEO and founding partner of NextEnergy Group, said: “We are very excited to announce the launch of our fifth solar fund, NextPower V ESG, targeting $1.5bn for solar investments across OECD countries.
“NPV ESG will continue the investment strategy we successfully conceived and implemented in its predecessor fund NextPower III ESG. At full deployment, we expect the fund to own an installed capacity of c.3.5GW.”
Shane Swords, NextEnergy Capital managing director and head of investor relations, said: “NextPower V ESG provides investors with a highly compelling and attractive OECD market opportunity with a true solar specialist.
“The strategy follows significant research into investor interest and the market opportunity. There is significant demand and necessity for further solar deployment globally driven by climate change requirements and individual government targets.
“NPV ESG provides investors with a proven platform and pipeline to capture this opportunity, backed by an experienced manager with a unique track record and incredible momentum.”
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