NextEnergy Capital, based in London, has achieved a significant milestone with the second close of its fifth investment fund, NextPower V ESG, amassing a total financing of $745 million (EUR 696.3 million) thus far.
According to the British firm's announcement on Monday, the USD 265 million second close was bolstered by investment commitments from a UK LGPS investment pool, a Dutch pension fund, and a reinvestment from an existing NextPower III ESG investor. These new investors have joined NextPower V ESG's existing pool, which includes notable names such as KLP and a large Nordic pension fund.
NextPower V ESG, launched in January 2023, targets solar and battery storage projects in OECD countries, with a primary focus on Europe, North America, and Chile. The fund aims to raise between USD 1.5 billion and USD 2 billion and has already secured a robust pipeline of projects. Its inaugural asset is a 100-megawatt solar park under construction in Florida, USA, with a power purchase agreement (PPA) in place. Additionally, the fund holds exclusivity over an 18-gigawatt pipeline across Spain, Poland, Italy, Canada, and the United States.
Upon reaching its investment ceiling, NextPower V ESG is projected to deliver 4 gigawatts of capacity, generating green power for up to 1.1 million homes annually. Michael Bonte-Friedheim, CEO of NextEnergy Group, expressed confidence in the fund's trajectory, stating, “The fund continues to draw significant interest from investors worldwide, and I look forward to continuing our global fundraising activities and to announcing further investor commitments to NextPower V ESG and further fund investments shortly.”
