Real assets-focused investment manager Foresight Group announced that it has raised €300 million in commitments at the first close of its energy transition fund, Foresight Energy Infrastructure Partners II.
Focused on long-term value creation, FEIP II is classified as an Article 9 fund under the EU’s SFDR regulation, and aims to invest in strategic energy assets that eliminate bottlenecks to the energy transition.
According to Foresight, the fund seeks to deliver capital growth and stable income through a diversified portfolio of energy infrastructure assets across renewable energy generation, energy storage and grid infrastructure. The company stated that FEIP II’s strategy was set “in the context of the significant market opportunity to decarbonise the global power system which is supported by strong regulatory tailwinds.”
Dan Wells, Foresight Group Partner and Fund Manager, said:
“We are delighted to announce the first close of the second vintage of our flagship energy transition fund. With the support of our investors, we are well positioned to continue our further fundraising momentum as we look to provide vital investment in the energy transition in Europe and beyond.”
Foresight has set a fundraising target of €1.25 billion for FEIP II, which it said it is confident of reaching during 2025. The fund’s predecessor, FEIP I, concluded its investment period earlier this year, with over €1 billion in capital deployed.
Richard Thompson, Foresight Group Partner and Fund Manager, said:
“We look forward to building upon the success of Fund I, investing in key strategic energy assets that remove bottlenecks to the energy transition facilitating the deployment of more renewables and the achievement of net zero goals. These critical infrastructure assets have long term value and in conjunction with FEIP’s unique approach to portfolio construction, are expected to deliver superior risk-adjusted returns for our investors.”