NextEnergy Capital (NEC), an investment firm and asset manager, closed an $896 million fundraise for NextPower III ESG (NPIII ESG), a private fund that focuses on the international solar infrastructure sector, principally targeting projects in selected OECD countries, including the US, Portugal, Spain, Chile, and Poland.
The capital raised is above the target of $750 million and makes this NEC’s largest private fund to date. The capital was committed by a pool of top-tier and diversified investors, including pension funds, insurance companies, fund-of-funds, and family offices. The investor base came from nine countries.
According to the company, including co-investments closed to date, the total capital pool for its investment strategy exceeds $905 million.
NPIII ESG’s current portfolio has an installed capacity of 742 MW spread across 23 projects and two portfolios, having assessed more than 35 GW, while the fund has a further 521 MW in exclusivity and 3 GW under review.
“We are thrilled to announce the final close of NPIII ESG, having secured total capital commitments well above our target of $750 million from new and existing investors. There was enormous investor interest in the fund as investors’ appetite towards solar, ESG, and sustainability funds continued to grow. I am looking forward to the continued development of the fund’s portfolio, given the depth and quality of its current pipeline,” said Michael Bonte-Friedheim, founding partner & chief executive officer at NextEnergy Capital.
According to Mercom’s recently published Q4 2021 solar funding and M&A report, more than $30 billion was raised by 20 newly established funds that focus on renewable energy investments in 2021, compared to $18.1 billion raised by 19 new funds in 2020.
Earlier this month, NextEnergy Capital announced the sale of the entire portfolio of operating solar projects owned by NextPower II (the Fund) in Italy. The Fund’s portfolio comprises 105 individual solar plants for a total installed capacity of 149 MW. Its projects are located across Italy, in regions including Piedmont, Lombardy, Veneto, Tuscany, Puglia, Sardinia, Calabria, Campania, March, Molise, Abruzzo, and Emilia-Romagna.