NextEnergy Capital, a leading global renewables manager specialized in the solar+ infrastructure sector, has successfully concluded its second close, raising $265 million for its NextPower V ESG strategy. This brings the total commitments for the fund to an impressive $745 million to date.
The additional capital comes from various investors, including a UK LGPS investment pool, a Dutch pension fund, and an existing investor from a previous NextPower III ESG fund. These new investors join the likes of KLP, a German occupational pension fund, and a large Nordic pension fund who have already committed to the fund. More investors are currently in the due diligence process and are expected to contribute in the near future.
The investment strategy of NextPower V ESG focuses on the solar+ infrastructure sector in carefully chosen OECD markets. The goal is to establish significant portfolios in each target market, build an operational track record, and ultimately divest the portfolio by 2033. The fund leverages NextEnergy Capital’s successful track record since 2007, with over 400 utility-scale projects acquired and previous funds delivering impressive financial returns.
Once fully invested, NextPower V ESG is projected to generate approximately 4 gigawatts of clean energy, which can power up to 1.1 million households annually. This will also contribute to a significant reduction in fossil fuel consumption, estimated to be nearly 220 million cubic meters of natural gas each year.
Michael Bonte-Friedheim, CEO and Founding Partner of NextEnergy Group, expressed his delight at the fundraising progress and the attractive investment opportunities the firm provides. He emphasized the commitment to making sustainable long-term impactful investments.
Shane Swords, NextEnergy Capital Managing Director and Global Head of Investor Relations, highlighted the fund’s positive fundraising momentum and portfolio growth. He emphasized the tangible benefits that NextPower V ESG brings to local communities and countries, while offering strong and stable renewable energy returns for investors.
As NextEnergy Capital continues to expand its reach as a specialized solar+ investment manager, the success of NextPower V ESG further establishes the firm as a go-to investment manager in the renewable energy sector.
NextEnergy Capital’s successful fundraising efforts for its NextPower V ESG strategy demonstrate the growing interest and investment opportunities in the renewable energy sector. The company has raised a total of $745 million to date, with $265 million coming from its recently concluded second close.
The additional capital has been contributed by various investors, including a UK Local Government Pension Scheme (LGPS) investment pool, a Dutch pension fund, and an existing investor from a previous NextPower III ESG fund. Notably, KLP, a German occupational pension fund, and a large Nordic pension fund have also committed to the fund. More investors are currently in the due diligence process and are expected to contribute in the near future.
NextPower V ESG focuses on the solar+ infrastructure sector in carefully chosen OECD markets. The fund’s investment strategy aims to build significant portfolios in each target market, establish an operational track record, and divest the portfolio by 2033. This strategy leverages NextEnergy Capital’s successful track record since 2007, having acquired over 400 utility-scale projects and delivering impressive financial returns through previous funds.
The impact of NextPower V ESG is projected to be significant. Once fully invested, it is estimated to generate approximately 4 gigawatts of clean energy, which can power up to 1.1 million households annually. Additionally, this would contribute to a substantial reduction in fossil fuel consumption, estimated to be nearly 220 million cubic meters of natural gas each year.
The CEO and Founding Partner of NextEnergy Group, Michael Bonte-Friedheim, expressed his satisfaction with the fundraising progress and highlighted the attractive investment opportunities the firm provides. He emphasized the company’s commitment to making sustainable long-term impactful investments.
Shane Swords, the Managing Director and Global Head of Investor Relations at NextEnergy Capital, emphasized the positive fundraising momentum and portfolio growth of NextPower V ESG. Swords highlighted the tangible benefits that the fund brings to local communities and countries, while offering strong and stable renewable energy returns for investors.
The success of NextPower V ESG further establishes NextEnergy Capital as a go-to investment manager in the renewable energy sector. As the company continues to expand its reach as a specialized solar+ investment manager, it is well-positioned to capitalize on the increasing demand for clean energy investments.
Advantages of investing in renewable energy include long-term stable returns, contribution to environmental sustainability, and potential tax incentives or subsidies provided by governments. Renewable energy investments also often have a positive social impact, creating job opportunities and supporting local economies.
However, there are also key challenges and controversies associated with the sector. One challenge is the intermittency of renewable energy sources, such as solar and wind, which can affect the stability of the power grid. Additionally, the high initial capital costs involved in developing renewable energy projects can be a barrier for some investors.
Another controversy is the allocation of land for renewable energy projects, particularly in areas of high biodiversity or cultural significance. Balancing the need for clean energy with environmental and social considerations can be a complex issue.
Overall, the renewable energy sector presents significant investment opportunities, but careful consideration of market trends, risks, and sustainability factors is crucial.
For more information on the renewable energy market trends and forecasts, you can refer to the following link: International Energy Agency – Renewables.