- NextEnergy Capital has raised $896 million for its global solar infrastructure fund, exceeding $750 million target
- It plans to spend the proceeds in carefully selected OECD nations, including the US, Portugal, Spain, Chile and Poland
- Investors for this round included pension funds, insurance companies, fund of funds and family offices from 9 countries
NextEnergy Capital (NEC) has recorded its largest private fund to date, achieving financial closure with $896 million raised for NextPower III (NPIII ESG), its ‘largest’ OECD focused solar infrastructure fund globally. The management said it is well over the target of $750 million.
The capital has been raised from a ‘top-tier and diversified investor base’ whose names were not revealed, but identified as including pension funds, insurance companies, fund of funds and family offices, all located in 9 nations. This, according to NEC, demonstrates strong demand from investors for solar PV especially as the fund raising was largely conducted with pandemic restrictions in some places.
“There was an enormous amount of investor interest in the fund as investors’ appetite towards solar, ESG and sustainability funds continued to grow,” said Group CEO and Founding Partner Michael Bonte-Friedheim.
NPIII ESG will principally target ‘carefully selected’ OECD countries to invest the proceeds in, including the US, Portugal, Spain, Chile and Poland.
NEC counts the fund’s portfolio to have an installed capacity of 742 MW across 23 projects and 2 portfolios. When fully invested, installing approximately 2.5 GW, NPIII ESG expects to provide clean energy for more than 1.3 million homes annually.
Global corporate funding for solar PV is on the rise. Market intelligence firm Mercom Capital Group recently calculated $27.8 billion was raised by the industry, the highest level over the last decade (see Global Corporate Funding For Solar In 2021).