Fundraising for NextEnergy Capital’s UK solar infrastructure fund has raised £625 million to date, with additional funding secured through an undisclosed UK defined benefit pension scheme.
NextPower UK (NPUK), a private solar fund under international investment company NextEnergy Capital, is looking to raise £1 billion for the initiative. NPUK focuses on acquiring utility-scale solar and battery energy storage system assets at the ready-to-build stage, and is building projects to develop a large operating portfolio.
Shane Swords, managing director and head of investor relations at NextEnergy Capital, said: “Since inception in August 2022, NPUK has shown solid progress and has already paid strong dividends to our investors, while demonstrating significant intrinsic value.
“This success is underpinned by a strong pipeline and rapid capital deployment, which began just seven weeks after the fund’s initial close, with the fund now operating almost 500 MW.”
The investment manager said that, in addition to additional capital from what he called a “large UK defined benefit scheme,” he expects further capital to be closed in the coming months.
NPUK is backed by the UK Infrastructure Bank and has already received investment from the UK’s public pension pool, the Border to Coast Pensions Partnership. Local government pension schemes in the UK, including LGPS Central, the Merseyside Pension Fund and the Brunel Pension Partnership, previously contributed to the closure of NPUK ESG.
NextPower Capital confirms that NPUK ESG has raised approximately £600 million from investors
Following NPUK ESG’s strong opening year, London-headquartered NextEnergy Capital has strengthened its global solar and storage pipeline.
In October 2023, NextPower confirmed that NPUK’s total fundraising was approximately £600 million. Solar and battery storage-focused fund NextPower V ESG secured $110 million (£85.75 million) in capital funding in March, including £77.9 million from a European pension fund.
Michael Bonte-Friedheim, CEO and Founder of the NextEnergy Group, said: “We are delighted to mark 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 amount committed to over £625 million, which is 25% above the £500 million target.
“This is a testament to NextEnergy Capital’s leadership in the solar industry. As a private new build solar strategy focused on acquiring utility-scale solar at the ready-to-build phase in the UK, NPUK investors benefit from the market-leading expertise we bring alongside our hands-on approach to value creation and asset optimization. ”
