Foresight Closes Sustainable Energy Infrastructure Fund at €342 Mn

Foresight Group has announced that it has secured total commitments to-date of EUR 342 million to Foresight Energy Infrastructure Fund.

Foresight Group, a leading infrastructure and private equity investment manager, has announced that it has secured total commitments to-date of EUR 342 million to Foresight Energy Infrastructure Fund.

Commitments to the Fund have been made by institutional investors from across Europe, including the life insurance company in 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.

The group has an extensive pipeline of investment opportunities and it is expected that the Fund will acquire assets rapidly, using EUR 275 million of the total EUR 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.

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.”