MJ Hudson advises NextEnergy Capital on the first close of its flagship private equity fund, NextPower III LP

MJ Hudson announces NextEnergy Capital’s first closing of NextPower III LP (NP III), a solar energy fund, securing initial commitments of c.US$160m.

NP III’s investment strategy is to invest in new-build solar photovoltaic (PV) projects internationally. NP III is expected to build a diversified portfolio that, when fully invested, will comprise an estimated 50 to 150 individual solar PV plants. It is anticipated that NP III will typically commit equity of between US$5 million to US$30 million per solar PV plant. NP III will invest a minimum of 75% of commitments in solar plants located in OECD and OECD Key Partner countries, with the option of investing up to 25% of commitments in non-OECD/non-OECD Key Partner countries.

Initial commitments to NextPower III were secured from a pool of institutional investors including a Swedish life insurance company, a Norwegian pension fund (KLP), and a further international investor in private equity, infrastructure and real assets.

As part of an integrated advisory service, MJ Hudson Law provided legal advice, from both London and Guernsey, whilst MJ Hudson IR & Marketing Solutions advised on preparation of the private placement memorandum (PPM) and investor pitch documents. The combined legal and investor relations offering on the preparation of the PPM in particular made the process of delivering this document more streamlined. Further, the joint London and Guernsey legal service allowed MJ Hudson to act as a single source of legal advice on the complex interplay between the two jurisdictions.

Eamon Devlin and Edyta Brożyniak led MJ Hudson’s legal team with support from Shervin Shameli, Daniel Lewin, Chris Dearie, Sam Burford, Ross Manton, Peter Mallon in London and Matt Wrigley and Rabie Abas in Guernsey. Nick Gordon and Matthew Craig-Greene led MJ Hudson IR & Marketing Solutions.

Commenting on the closing, Eamon Devlin, Partner of MJ Hudson, Law, said: ‘This first closing is a significant vote of confidence from investors in renewable energy as a sustainable and reliable asset class. We are delighted to see NP III reach this mile-stone – it is well on its way towards reaching the target fund size. I am pleased to see our legal and investor relations teams working together so seamlessly, and our London and Guernsey legal teams providing combined advice, reducing email traffic to the client.’

Rabie Abas, Group Partner of MJ Hudson, Law, added: ‘The novel solutions provided to NP III once again demonstrate the benefits of a City Firm approach combined with in-depth Guernsey law expertise.  We look forward to supporting NP III as it embarks on its investment program.’