NextEnergy Capital’s UK solar infrastructure fund has so far raised £625m (€730m) for fundraising efforts, securing additional capital from an unnamed UK defined benefit pension scheme.
The investment manager said NextPower UK ESG (NPUK), which seeks to raise £1bn, received the additional capital from a “large UK defined benefit scheme”, adding that “several investors are currently in late-stage due diligence and further capital expected to be closed in the following months”.
NPUK, a solar infrastructure fund backed by the UK Infrastructure Bank, already counts UK public pension pool Border to Coast Pensions Partnership among its investors.
UK local government pension schemes, including LGPS Central, Merseyside Pension Fund and Brunel Pension Partnership, also contributed to NPUK ESG’s previous closes.
NPUK is a private UK solar fund that focuses on acquiring utility-scale solar and battery energy storage system (BESS) assets at the ready-to-build stage and constructing them to build a large operating portfolio. Once the assets are operational, NPUK monetises its power sales through a contracted strategy.
Michael Bonte-Friedheim, NextEnergy Group CEO and founder, said: “We are delighted to mark yet another significant milestone with NextPower UK ESG, and I am proud to announce that a UK defined benefit scheme has joined us, bringing the total funds committed to over £625m, which is 25% above the target of £500m.
“This is a testament to NextEnergy Capital’s leadership in the solar energy sector. As a private new-build solar strategy that focuses on acquiring utility-scale solar assets at the ready-to-build stage in the UK, NPUK investors benefit from the market leading expertise we bring alongside our hands-on approach to value creation and asset optimisation.”
Shane Swords, managing director and head of investor relations at NextEnergy Capital, said: “Since its inception in August 2022, NPUK has demonstrated solid progress, and has already distributed strong dividends to our investors while showcasing significant NAV.
“This success is underpinned by a large pipeline and swift capital deployment, which commenced just seven weeks after the fund’s first close, with the fund now having nearly 500MW.”
To read the latest IPE Real Assets magazine click here.
