NextPower III is a private ESG infrastructure fund established to invest in the international solar sector, specifically to fund the construction and long-term ownership of solar power plants.
NextPower III’s target markets comprise mainly OECD countries, including the US, Portugal, Spain, Chile and Italy. The fund currently has commitments of c.US$530m, and a target size of US$750m. It is a ten-year closed-ended Fund targeting a gross IRR of 13-15%. The Fund has a hard cap of US$1bn.
The Fund has to date acquired 14 projects plus 1 portfolio with a total installed capacity of c.400MW. NPIII has a significant portfolio of further acquisition targets; there are currently five projects under exclusivity for an installed capacity of 453MW and a further 351MW 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.1,200MW. The Fund also has a significant additional pipeline of investment opportunities it is pursuing.
NEC currently forecasts NextPower III to achieve a portfolio of between 2.0GW and 2.5GW in operating solar projects across its target markets upon full capital deployment.
NextPower II is a private fund investing in operating solar power plants, focused on the Italian market.
NextPower II’s strategy is to consolidate the substantial, highly fragmented Italian solar market, and has commitments of €232 million, secured from Prudential Assurance Company, a subsidiary of M&G Prudential, a leading institutional investor with more than £500 billion of assets under management, and including Pantheon, an experienced investor in infrastructure, private equity and real assets with over US$42 billion in AUM.
NextPower II owns 98 solar plants in Italy comprising c.140MWp and is among the 10 largest solar asset owners in Italy.
Shortly after NextEnergy Capital's foundation in 2007, we invested our own capital into developing a number of solar power projects in Italy and the UK. In 2008 we raised an investment vehicle (NextPower I) to construct and operate 14 of these solar sites for c25MWp of installed capacity. The total capital invested by us, together with third party equity partners and bank debt financing in the 14 sites, amounted to €130 million.
Between 2008 and 2011 we also developed and subsequently divested a further 30 solar sites in Italy.