PFI Education and Healthcare Portfolio

The Private Finance Initiative (PFI) was introduced by the UK Government in 1992 as a procurement method to enable public sector infrastructure projects, including schools, hospitals, libraries, fire and police stations, to be financed by private sector capital.

Due to tight budgetary restraints in government, the PFI scheme was the only way to deliver key infrastructure projects as well as being a profitable opportunity for investors.

In the 24 years since the PFI market was launched, more than 900 projects have been procured through PFI with a capital value in excess of £70 billion.  

SECONDARY PFI MARKET OVERVIEW

Secondary PFI projects are operational assets where the construction phase is complete and the income stream is predictable for the duration of their concession period. Foresight ITS funds acquire equity stakes that were originally invested to finance part of the construction phase and where shareholders are keen to sell their holdings as the projects enter the lower risk operational phase.

We expect the market to remain strong as primary market investors continue to recycle their equity investments to generate cash, and established secondary market funds embark upon rationalising their asset portfolios.

   

Foresight's funds have invested in the following secondary PFI projects in the UK.

Date of Investment Location Investment £m Project
April 2013 North West 1.4 Wharfedale Hospital
April 2013 Scotland 3.1 Stobhill Hospital
April 2013 Scotland 3.5 Lochgilphead Hospital
April 2013 North East 3.6 Bishop Auckland Hospital
January 2013 West Midlands 2.3 Staffordshire Schools
January 2013 West Midlands 1.9 Sandwell Schools
December 2012 Scotland 2.3 Stirling Schools
October 2012 Northern Ireland 2.0 Drumglass High School
Total   19.3