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NEC holds first close of $1.5bn NextPower V ESG

NextEnergy Capital, a global solar specialist in the renewables sector, has held the first close of its fifth investment vehicle NextPower V ESG, which is targeting capital commitments of $1.5 billion with a $2 billion hard cap, at $480 million.

NextEnergy Capital (NEC), a global solar specialist in the renewables sector, has held the first close of its fifth investment vehicle NextPower V ESG (NPV ESG), which is targeting capital commitments of $1.5 billion with a $2 billion hard cap, at $480 million.

The fundraising to date comprises $330 million in direct commitments and $150 million in co-investment allocations. Investors in NPV ESG include KLP, a German occupational pension fund, and a large Nordic pension fund. 

NPV ESG expects to secure commitments from additional investors in its second close later this year, with several investors currently active in due diligence.

NPV ESG is a ten-year closed-ended vehicle that offers investors the opportunity to earn attractive risk-adjusted returns from investments in solar PV and energy storage infrastructure assets located in OECD geographies, targeting mid double-digit returns while contributing to the decarbonisation of the power generation sector, reducing electricity prices and increasing energy security. The fund’s projects will be backed by long-term stable cashflows, backed by robust, credit-worthy PPAs leveraging the team’s OECD-based PPA expertise, as well as regulated revenues.  

The fund’s primary geographic targets include Europe, North America, and Chile, where NextEnergy Capital currently manages an extensive solar PV infrastructure asset portfolio. NEC has identified a pipeline of investment opportunities for NPV ESG spanning over 14GW in these geographies.
 
NPV ESG is classified as an Article 9 Fund under the EU SFDR, and at its investment ceiling is forecast to produce enough clean energy to power the equivalent of up to 750,000 households per year and avoid an estimated fossil fuel consumption of up to 150 million m3 of natural gas per year.

The fund follows NEC’s previous OECD solar strategy, NPIII ESG, which reached its final close in January 2022, raising circa $900m in total commitments, including an SMA.  

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