NextEnergy bags USD 896m for 3rd solar infrastructure fund

Llanwern solar farm. Image by NextEnergy Capital Group

January 31 (Renewables Now) - NextEnergy Capital has secured USD 896 million (EUR 802.2m) and thus achieved final closing for its third solar fund targeting infrastructure investments in OECD countries.

The London-based company said on Monday that the total capital available to NextPower III ESG, including co-investments, will amount to USD 905 million. The 10-year closed-ended environmental, social and governance (ESG) fund had a target of USD 750 million and a hard cap of USD 1 billion.

Set up to invest in selected OECD (Organisation for Economic Co-operation and Development) countries, among which the US, Portugal, Spain, Chile, Italy and Poland, NPIII ESG will have an installed capacity of roughly 2.5 GW when fully invested. Currently, its portfolio includes 742 MW of solar assets, while an additional 521 MW of projects are in exclusivity and 3 GW are under review.

Both new and existing investors have committed to investing in NextEnergy’s third fund, with the investor base coming from nine countries. It will seek an annual internal rate of return to investors of between 13% and 15%.

“There was an enormous amount of investor interest in the fund as investors’ appetite towards solar, ESG and sustainability funds continued to grow,” said Michael Bonte-Friedheim, Group CEO and founding partner.

(USD 1.0 = EUR 0.895)

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