Foresight announces first closing of European-targeted, sustainability-led energy infrastructure fund securing commitments of €342 million

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  • Fund to invest in predominantly European energy infrastructure assets
  • Investing across all aspects of new energy infrastructure in order to diversify portfolio and to maximise sustainability impact by accelerating the transition to low-carbon energy systems


Foresight Group (“Foresight”), a leading infrastructure and private equity investment manager, announces that it has secured total commitments to-date of €342 million to Foresight Energy Infrastructure Partners (“FEIP” or “the Fund”).

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Commitments to the Fund have been made by institutional investors from across Europe, including: DNB, Norway’s largest financial institution; PRI Pensionsgaranti, a Swedish mutually-owned insurance company; Arcano Earth Fund, a sustainable infrastructure Fund of Funds managed by Spain’s leading alternative asset manager, Arcano Capital; a number of Swedish pension foundations acting through COIN, an investment management consultancy; IMAS Foundation, a sister foundation to the INGKA Foundation, owner of INGKA Group, which in turn owns the majority of IKEA's department stores globally; and the European Investment Bank.

Foresight has an extensive pipeline of investment opportunities and it is expected that the Fund will acquire assets rapidly, using €275 million of the total €342 million of commitments that are available on first Closing.
FEIP will invest in all aspects of new low-carbon energy infrastructure. This includes: (i) a diverse range of renewable energy generation technologies particularly wind, solar and hydropower; (ii) flexible renewable-enabling infrastructure, such as batteries and other forms of energy storage; and (iii) transmission and distribution assets.

It is expected that the majority of investments will be made into greenfield projects where Foresight can utilise its experience of managing projects during construction, with the aim of delivering a premium return to investors. The Fund will retain a proportional allocation for investment into operational projects to provide an element of cash yield.

Commenting on the first closing, Dan Wells, Partner at Foresight, said: “FEIP’s strategy has been designed specifically in the context of the evolving energy infrastructure sector, given the global transition to decentralised, digitised and decarbonised networks. While we are delighted with the commitments secured for the first Closing, the team’s focus is on the future and the rapid deployment of FEIP into a high-quality asset portfolio.”

Richard Thompson, Partner at Foresight, added: “Building on our track record of sustainable investments made on behalf of institutional investors, FEIP’s strategy has been closely aligned to selected UN Sustainable Development Goals. The portfolio will be structured with the objective of delivering an attractive risk-adjusted return to institutional investors, whilst providing a material and positive environmental and social impact.”

FEIP’s investment strategy has been shaped to achieve specific decarbonisation objectives in line with the Paris Climate Agreement. It aligns with the UN Sustainable Development Goals (“SDGs”), in particular with respect to Affordable and Clean Energy (SDG 7), Industry, Innovation and Infrastructure (SDG 9) and Climate Action (SDG 13). Foresight offers high quality Sustainability and ESG reporting which covers ongoing monitoring of metrics such as greenhouse gas reduction and greenhouse gas intensity of invested capital, renewable energy generation and diversion of waste from landfill among others.

Advisers:
The Foresight team was advised by Worthwhile Capital Partners, who acted as Placement Agent in the Nordic region, and with Ashurst LLP who acted as Legal Counsel.

ENDS

For more information please contact:
Ben Thompson, Foresight Group, bthompson@foresightgroup.eu | +44 (0)20 3667 8155

NOTES TO EDITORS

About Foresight Group LLP (“Foresight”):

Foresight is a leading independent infrastructure and private equity investment manager which has been managing investment funds on behalf of institutions and retail clients for more than 35 years.

Foresight has circa £4.5 billion of Assets Under Management, of which over £3 billion relates to energy infrastructure. Foresight currently manages more than 200 renewable generation assets globally, with a total generating capacity of 2GW.

In Solar, Foresight has invested in over 100 solar plants and has more than 1.3GW of solar generation assets under management around the world. In Wind, Foresight has more than 600MW of wind generation assets of which 370MW are operational across the UK, France, Germany and Sweden.

Foresight manages 39 bioenergy and waste projects processing over 1.7 million tonnes per annum, having mobilised over £1 billion of capital investment.

In addition, Foresight manages 170MW of Reserve Power assets and three utility scale Battery Storage projects providing 46MW of Enhanced Frequency Response (“EFR”) services to National Grid.

Foresight is headquartered in London with regional offices in Manchester, Nottingham, Edinburgh, Cambridge, Milton Keynes, Leicester and Guernsey and international offices in Sydney, Rome, Madrid and Seoul.

www.foresightgroup.eu

About Worthwhile Capital Partners:

Worthwhile Capital Partners is an independent placement agent focusing on investment strategies that support institutional investors in the Nordic region in their ambition to meet their return and sustainability targets. Founded in 2018, the company supports fundraising across sectors such as climate change mitigation, sustainable use of water and marine sources, the circular economy, a healthy and efficient ecosystem and pollution prevention.

www.worthwhilecap.com