Foresight reaches EUR342m first close for energy infrastructure fund

Foresight Group has secured total commitments to-date of EUR342 million (US$376.7 million) for its Foresight Energy Infrastructure Partners (FEIP) fund. 

The Group has secured commitments from 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.

Foresight has an extensive pipeline of investment opportunities and it is expected that the Fund will acquire assets rapidly, using EUR275 million (US$302.9 million) of the total EUR342 million (US$376.7 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 utilize 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.