- Foresight has raised €1 billion for its energy transition strategy (€851.4m in Fund, €170m from co-investors) and reached final close
- New commitments of €64 million raised since the interim close announced in August 2021
- Sustainability-led energy infrastructure Fund investing predominantly in Europe
London, 16 September 2021: Foresight Group (“Foresight”), a listed infrastructure and private equity manager group, announces the final close for Foresight Energy Infrastructure Partners (“FEIP” or “the Fund”), a sustainability-led energy transition infrastructure fund investing predominantly in Europe. FEIP has secured total commitments of €851.4 million, 70% over the €500 million original target. The Fund welcomed additional commitments of €64 million from existing Limited Partners and an Italian institutional investor at final close.
Including co-investments to date of €170 million, this represents a total capital pool in excess of €1 billion for Foresight’s energy transition strategy. Commitments were made by over 35 leading global institutional investors from Europe and North America.
The Fund’s strategy is to invest in opportunities created by the transformational change underway in global energy markets. Foresight is targeting a diversified portfolio of high-quality energy infrastructure assets with strong sustainability characteristics. FEIP’s investment strategy has been shaped to achieve specific decarbonisation objectives in line with the Paris Climate Agreement. It aligns with the UN’s 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).
The Fund has a strong pipeline of further opportunities in Europe, North America and Australia, leveraging Foresight’s deep investment team resources and its reputation and track record in the sector.
Dan Wells, Co-Manager of FEIP and Foresight Partner commented: “FEIP is a second-generation clean energy infrastructure fund. We intend to contribute meaningfully to the continued rapid build-out of a reliable, resilient and low-cost decarbonised power system which lies at the heart of the necessary transition of the global economy to a sustainable basis”.
Richard Thompson, Co-Manager of FEIP and Foresight Partner added: “The Fund’s strategy is to construct a resilient portfolio of infrastructure investments across renewables, storage and grid, which have complementary characteristics to mitigate risk, driving an enhanced risk adjusted return. With a real focus on renewable enabling infrastructure, the fund has been designed to both optimise the risk-adjusted return and maximise sustainability impact by removing bottlenecks to the energy transition created by the need for more flexibility and connectivity to accommodate the growth in renewables.”
Nigel Aitchison, Foresight’s Head of Infrastructure, also commented: “FEIP’s fundraising success highlights the attractiveness of its differentiated strategy and investor recognition of the profound importance of sustainability for the investing landscape.”
The Fund has made four investments to date, two construction stage onshore wind projects in Sweden and Finland, a portfolio of onshore wind projects in Spain and an energy-from-waste plant in Italy. FEIP’s strategy has been designed to align to the EU Green Taxonomy and each asset acquired by the Fund will also be so certified. Together with alignment to the UN’s Sustainable Development Goals, this provides investors with greater transparency on the impact credentials of the portfolio and gives assurance that projects are making a genuine contribution to global sustainability targets.
Foresight offers high quality Sustainability and ESG reporting which covers ongoing monitoring of metrics including greenhouse gas reduction and greenhouse gas intensity of invested capital, renewable energy generation, and diversion of waste from landfill.
Foresight has partnered with Worthwhile Capital Partners as Placement Agent for the Nordic region and Astrid Advisors for Europe ex Nordics. Ashurst LLP acted as legal advisor.
For more information please contact:
Robert Woolley, Foresight Group, RWoolley@foresightgroup.eu | +44 20 3763 6974
NOTES TO EDITORS
About Foresight Group LLP (“Foresight”):
Foresight Group was founded in 1984 and is a leading infrastructure and private equity investment manager. With a long-established focus on ESG and sustainability-led strategies, it aims to provide attractive returns to its institutional and private investors from hard-to-access private markets. Foresight Group manages over 300 infrastructure assets with a focus on solar and onshore wind assets, bioenergy and waste, as well as renewable energy enabling projects, energy efficiency management solutions, social and core infrastructure projects and sustainable forestry assets. Its private equity team manages five regionally focused investment funds across the UK, supporting over 100 SMEs. Foresight Group operates from 12 offices across six countries in Europe and Australia with AUM of £7.8 billion as at 30 June 2021. Foresight Group Holdings Limited listed on the Main Market of the London Stock Exchange in February 2021.
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.
About Astrid Advisors
Astrid Advisors is an independent specialist in fundraising and advisory services for private market strategies, focusing on infrastructure, real assets and private credit. Founded in 2019, the company partners with a select group of managers who have the potential to be outstanding and differentiated in their field and can demonstrate strong ESG credentials and sustainable investing philosophies.