Foresight Group has raised €851.4m for its sustainability-led energy transition infrastructure fund, exceeding its target by 70%.
The manager said the final close for the Foresight Energy Infrastructure Partners (FEIP) fund, which invests predominantly in Europe, surpassed the €500m original target.
FEIP welcomed additional commitments of €64m from existing limited partners and an Italian institutional investor at final close.
Including co-investments to date of €170m, this represents a total capital pool in excess of €1bn for Foresight’s energy transition strategy, the manager said.
Commitments were made by over 35 global institutional investors from Europe and North America.
The manager said FEIP has a strong pipeline of further opportunities in Europe, North America and Australia.
Nigel Aitchison, Foresight’s head of infrastructure, said: “FEIP’s fundraising success highlights the attractiveness of its differentiated strategy and investor recognition of the profound importance of sustainability for the investing landscape.”
Dan Wells, co-manager of FEIP and Foresight partner, said: “FEIP is a second-generation clean energy infrastructure fund. We intend to contribute meaningfully to the continued rapid build-out of a reliable, resilient and low-cost decarbonised power system which lies at the heart of the necessary transition of the global economy to a sustainable basis.”
Richard Thompson, co-manager of FEIP and Foresight partner, said: “The fund’s strategy is to construct a resilient portfolio of infrastructure investments across renewables, storage and grid, which have complementary characteristics to mitigate risk, driving an enhanced risk-adjusted return.
“With a real focus on renewable enabling infrastructure, the fund has been designed to both optimise the risk-adjusted return and maximise sustainability impact by removing bottlenecks to the energy transition created by the need for more flexibility and connectivity to accommodate the growth in renewables.”
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