Foresight Group Holdings has announced the successful first close of €300 million for Foresight Energy Infrastructure Partners II (FEIP II), the successor fund to FEIP I. The first close includes commitments from two new cornerstone investors, including Border to Coast Pensions Partnership, a UK pension pool for Local Government Pension Schemes.
FEIP II comes on the heels of the conclusion of FEIP I's Investment Period, which saw over €1 billion deployed in capital over three months. The new fund aims to construct a diversified portfolio of energy infrastructure assets, focusing on renewable energy generation, energy storage, and grid infrastructure to deliver capital growth and stable income.
According to Foresight, FEIP II's investment strategy is tailored to capitalize on the significant market opportunity to decarbonize the global power system, supported by favorable regulatory conditions. The fund is designated as an SFDR Article 9 fund, aligning its investments with the EU Taxonomy.
Dan Wells, a partner at Foresight Group and fund manager, expressed confidence in reaching the target fundraise of €1.25 billion by 2025, citing strong momentum in ongoing discussions with investors. He highlighted the support from investors and emphasized the fund's role in facilitating vital investment in the energy transition.
Richard Thompson, another partner at Foresight Group and fund manager, emphasized the fund's focus on strategic energy assets that remove bottlenecks to the energy transition, enabling the deployment of renewables and the achievement of net-zero goals. He anticipated superior risk-adjusted returns for investors through FEIP II's unique approach to portfolio construction.
