Manchester, Tuesday 19 January 2016 – Foresight Group ("Foresight”) is pleased to announce the first close of the £60 million Foresight Regional Investment Fund (the "Fund”) with capital commitments of £38 million.
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Regional Fund to focus on investment in SMEs in the North West of England, North East Wales and South Yorkshire ("The Region”)
- Fund achieved first close of £38 million
- Fund to target investments of up to £5 million into profitable growth companies
- Fund to invest in growth equity and buyout transactions
The Fund, which reflects collaboration between Local Government Pension Schemes ("LGPS”), has attracted substantial commitments from new Limited Partners, with an anchor investment from Greater Manchester Pension Fund, along with South Yorkshire Pensions Authority and Clwyd Pension Fund.
Consistent with Foresight’s Private Equity strategy, the Fund will invest up to £5 million in UK growth SMEs, targeting established, profitable businesses with strong management teams across a broad variety of sectors. The Fund is targeting companies based in the North West of England, North East Wales and South Yorkshire. The Fund has a flexible investment mandate in terms of deal type, investing in MBOs, MBIs, Equity Release and Growth Capital transactions.
Foresight plans to announce the opening of its regional office in Manchester during Q1 2016 and the process for recruiting local investment professionals to supplement Foresight’s existing eleven strong Private Equity team is well underway as part of the Fund’s deployment strategy.
The Fund is Foresight Private Equity’s second institutionally backed, commercially focused regional fund, following the launch in October 2013 of the Foresight Nottingham Fund, a £40 million fund to invest in businesses in Nottinghamshire. Foresight will continue to raise similar regional funds around the UK.
Russell Healey, Partner, Head of Private Equity, Foresight Group commented;
"We are delighted to have attracted a number of new institutional investors to Foresight, reflecting the quality of our team and our track record of successful investment into high growth UK SMEs. This Fund continues the rollout of Foresight’s Regional Fund strategy to address the current structural gap in the SME funding market."
James Livingston, Partner, Foresight Group, commented:
"The Region has a large number of underfunded SMEs, particularly within the engineering and hi-tech manufacturing sectors, creating opportunities for Foresight to support strong management teams in growth companies, create jobs, and deliver commercial returns to investors. We are excited to be opening a regional office in the Manchester area and are looking forward to working with local advisers to identify and execute further high quality investments in the SME market.”
Mark Burrows, Head of Institutional Capital, Foresight Group, commented:
"It’s great to see LGPS’ collaborating in this way which shows a desire to invest regionally, whilst generating appropriate returns.”
The fundraise follows an active period for Foresight Private Equity in which it has successfully completed nine investments and nine realisations since January 2015.
For more information contact:
Ben Thompson, Foresight Group firstname.lastname@example.org +44 (0)20 3667 8155
About Foresight Group LLP ("Foresight”):
Foresight Group 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 30 years.
Foresight has over £1.8 billion of assets under management across a number of funds, including Listed Vehicles, Limited Partnerships, Enterprise Investment Schemes (EISs) and Venture Capital Trusts (VCTs).
Foresight’s Private Equity team, comprising eleven investment professionals, manages a portfolio of more than 35 companies, typically investing between £1m and £5m equity in UK SMEs.