NextPower UK ESG (NPUK ESG), the UK solar arm of NextEnergy Capital has secured £600m in commitments from investors, exceeding its £500m target.
NPUK ESG achieved first close in August 2022 and had further financial closes in the following nine months.
It said the success of its first year is attributable to the swift deployment of capital that generated attractive cashflows starting just seven weeks after the fund’s first close with the acquisition of two operational seed assets, Llanwern, (South Wales, 75MW), and Strensham (Worcestershire, 40MW).
Since then, NPUK ESG has gone on to acquire a further seven utility scale solar assets giving NPUK ESG a diversified portfolio of nine assets with a capacity of 416MW.
The fund’s initial result is owed to the value delivered through its sourcing strategy and strong operational asset performance. The fund distributed a net dividend of 10% 12 months after the Fund’s first close.
NPUK ESG is on track to achieve or exceed its targeted return profile of an unlevered 9%-11% gross IRR with cash yields of 4%-6%.
Once fully deployed having constructed approximately 2GW in new solar generation capacity, NPUK ESG will provide enough clean energy to power around 500,000 UK households.
NextEnergy Group chief executive and Founder Michael Bonte-Friedheim said: “NextPower UK ESG continues to go from strength to strength having made significant progress since its first close some 12 months ago.
“The fund has already allocated circa 60% of its £595m committed capital, acquired 416MW across nine UK solar assets, and made its first distribution of circa 10% to investors.
“The NextPower UK ESG team is making good progress on the construction of the portfolio and the fund continues to attract interest from investors around the world, with several in advanced due diligence with the next close scheduled for the end of the year.”