UK-based investment management firm NextEnergy Capital (NEC ) has raised a total of $896m in capital for the NextPower III Environmental, Social and Governance (ESG) fund.

The capital was raised from a diversified investor base, including pension funds, insurance companies, fund-of-funds and family offices.

NEC said that the capital exceeded its target of $750m and is the company’s largest private fund to date.

The NextPower III ESG fund focuses on solar infrastructure segments in overseas markets, especially those in select Organisation for Economic Co-operation and Development (OECD) nations such as the US, Portugal, Spain, Chile and Poland.

The fund has a portfolio of 742MW of installed capacity located across 23 projects and two portfolios, having assessed more than 35GW. It also has a further 521MW in exclusivity and 3GW under review.

NEC Group founding partner and CEO Michael Bonte-Friedheim said: “We are thrilled to announce the final close of NPIII ESG, having secured total capital commitments well above our target of $750m from new and existing investors.

“There was an enormous amount of investor interest in the fund as investors’ appetite towards solar, ESG and sustainability funds continued to grow.

“I am looking forward to the continued development of the fund’s portfolio given the depth and quality of its current pipeline.

“This is an exciting time for NEC as we continue to demonstrate to investors our strong track record as the preeminent investment manager in the international solar sector and continue to identify attractive investment opportunities in the sector for investors to access.”

Earlier this month, NEC sold its entire solar project portfolio, owned by NextPower II in Italy, for an undisclosed sum.

The portfolio consists of 105 individual solar power facilities with a total installed capacity of 149MW.