Border to Coast Pensions Partnership is among the initial investors contributing €300m to Foresight Group’s new energy infrastructure fund’s €1.25bn target by next year.

Foresight said the Foresight Energy Infrastructure Partners II’s (FEIP II) first close welcomed two new cornerstone investors to the strategy, including the UK local government pension scheme (LGPS) pension pool.

The firm said “momentum for future fund closes is strong, supported by multiple ongoing discussions with existing and new investors”, and it was confident of reaching its target fundraise of €1.25bn in 2025.

In September 2021, Foresight raised €851.4m for Foresight Energy Infrastructure Partners (FEIP I), the prior vintage.

Foresight said Fund II’s close comes three months after the conclusion of Fund I’s investment period, which – including co-investment of €170m – has deployed over €1bn in capital.

The latest fund, which will target a diversified portfolio of energy infrastructure assets across renewable energy generation, energy storage and grid infrastructure, will focus on “investing in strategic energy assets the eliminate bottlenecks to the energy transition”.

Dan Wells, partner and fund manager at Foresight Group, 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.”

Richard Thompson, partner and fund manager at Foresight Group, 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.”

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