Solar developer NextEnergy Group’s investment management arm NextEnergy Capital announced that it has raised a total of £733 million (USD$949 million) for NextPower UK ESG, its fund dedicated to new solar and energy storage facilities.

Launched in December 2021, NextPower UK ESG focuses on utility-level solar assets in the UK, and has already deployed over 70% of its committed capital from investors. The fund now has 249MW of operating solar assets in the UK, NextEnergy said, adding that it is expected to exceed 1GW of capacity when fully deployed. The fund is classified as an Article 9 Fund under the EU SFDR regulation.

At a final close of £733 million, the fund significantly exceeded its £500 million target.

Michael Bonte-Friedheim, Group CEO and Founding Partner of NextEnergy Group, said:

“NextPower UK clearly demonstrates the demand from investors for this type of strategy, run by a specialist investment manager with a significant track record of capital deployment into high-quality assets.”

The National Wealth Fund, the UK’s sovereign wealth fund, was the cornerstone investor into the fund, investing £250 million, NextEnergy said.

Stuart Nivison, Head of Portfolio Management at the National Wealth Fund, said:

“Our cornerstone investment in NextPower UK was our first deal to leverage this scale of additional independent investment, and it is exciting to see their success story play out through this milestone fundraise. Today’s announcement perfectly demonstrates the impact our investments can have. Catalytic capital deployed by the National Wealth Fund going forward can help mobilize institutional investment into clean energy projects across the UK, driving growth and providing greater capacity to power homes and businesses.”