This is taking total funds of NPIII raised to date to US$ 530m (including a separately managed account). The new commitments include a German occupational pension fund, Derigo and a UK institutional investor.
NPIII is a private fund exclusively focused on the international solar infrastructure sector, principally targeting projects in carefully selected OECD countries, including the US, Portugal, Spain, Chile and Italy. The fund has to date acquired 14 projects plus 1 portfolio with a total installed capacity of c.400 MW. This ten-year closed-ended fund is targeting a gross IRR of 13-15%.
Solar fund has a hard cap of US$ 1bn
The above commitments were completed amidst the backdrop of the global COVID-19 pandemic, and follow other recent commitments from investors based in the Americas. NPIII is now close to three quarters of the way to achieving its fund-raising target of US$ 750m.
The Fund has a hard cap of US$ 1bn. It continues to enjoy significant fundraising momentum and is due to close at the end of 2021.
Expected total installed capacity of 1.2 GW by end of 2021
NPIII has a significant portfolio of further acquisition targets; there are currently five projects under exclusivity for an installed capacity of 453 MW and a further 351 MW under advanced negotiation. During the third and fourth quarter of 2021 these acquisitions are expected to be completed bringing the Fund’s total installed capacity to c.1,200 MW. The Fund also has a significant additional pipeline of investment opportunities it is pursuing.
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Investors joining the Fund at this stage benefit from an existing portfolio of high-quality operating assets, alongside an exciting pipeline of in-construction and pre-construction assets internationally, including possible co-investment opportunities. The Fund is looking to start paying sustainable cash distributions to investors from as early as next year.
NPIII: Goal of 2.5 – 3.0 GW
NEC currently forecasts NextPower III to achieve a portfolio of between 2.5 GW and 3.0 GW in operating solar projects across its target markets upon full capital deployment.
Shane Swords, Managing Director and Head of Investor Relations, commented: “We are delighted to welcome the new investors to the Fund. The quality of the institutional support is a real testament to NEC and the Fund with the investment momentum and pipeline supporting new capital.
These latest additions show continued investor appetite for NPIII and its global ESG solar strategy, NextEnergy Capital, as a highly experienced specialist solar company, and its exemplary track record since inception.”
Investments in 241 solar projects
Michael Bonte-Friedheim, Group CEO and Founder of NextEnergy Capital Group, commented:
“NextPower III ESG continues to go from strength to strength, with institutional investor interest increasing in parallel as the demand for renewable infrastructure globally continues to grow rapidly. NEC has surpassed significant milestones, including a number of awards received, having now invested into 241 individual solar projects with a total installed capacity in excess of 1,400MWp.
By focusing purely on solar and developing a unique expertise in our sector, NextEnergy Capital Group continues to deliver outperformance, which is demonstrated in NPIII’s ability to secure very attractive risk-adjusted target returns in carefully selected projects and global renewable ESG benefits.” (hcn)
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