Foresight to ‘rapidly’ deploy new €342m raise throughout Europe

• European investor Foresight Group expects to “rapidly” deploy the proceeds of its latest fund raise, targeting renewables, flexible infrastructure and grids across Europe.

This morning, Foresight confirmed that its new Foresight Energy Infrastructure Partners (FEIP) fund has secured €342 million (US$377 million) in commitments from institutional backers including DNB, the European Investment Bank and IMAS Foundation, which is a sister foundation of IKEA owner INGKA.

Foresight said it has already amassed an “extensive pipeline of investment opportunities” throughout Europe, stating that it expected to “acquire assets rapidly”.

Indeed, around €275 million (US$303 million) of the initial raise has already been earmarked for acquisitions.

The fund will acquire assets in three categories, namely renewable generation, flexible ‘renewable-enabling infrastructure’ such as batteries, and transmission and distribution assets.

Foresight has extensive expertise in those areas, with more than 2GW of generation under ownership. Some 1.3GW of that is solar, the majority of which is located in the UK. It also manages around 170MW of reserve power assets and three large-scale battery storage projects providing frequency response services to the UK’s electricity system operator, National Grid.

While not explicitly mentioned in today’s statement, Foresight has had a long-standing interest in Spain’s thriving PV market, snapping up a 50MW subsidy-free project in Andalusia last May which forms part of a 116MW-strong portfolio of subsidy-free solar farms Foresight holds in Iberia.

Dan Wells, partner at Foresight Group, said FEIP’s strategy had been designed specifically “in the context of the evolving energy infrastructure sector”.

“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,” he added.