Foresight Group has raised A$660m (€410m) to fund a continuation vehicle for global mass transit operator Kinetic, backed by Australian superannuation funds and international institutional investors.
The real assets fund manager said the oversubscribed capital raise allowed it to maintain its 30% equity stake in the business alongside co-investor TPG Rise Climate, following its initial investment in 2020.
Kinetic operates over 300 contracts across Australia, New Zealand, Europe and Asia, with recent growth driven by network electrification and major contracts in London, Stockholm, Victoria and Singapore.
Edward Lloyd, head of Australia at Foresight, said: “We’re pleased to introduce new institutional investors to Kinetic and to continue our investment in the business alongside TPG. The strong level of demand reflects the quality of Kinetic, the resilience of its underlying business and the opportunities we continue to see for further growth.
“Australia is an important market for Foresight, and the level of investor commitment reflects continued confidence in the opportunities we are bringing to market. There is a significant need for new energy and infrastructure investment, and institutional capital will be central to funding it. We continue to see a broad range of opportunities across renewable energy, energy storage and essential infrastructure.”
Adrian Kong, investment director at Foresight, said: “Kinetic is a key enabler in the shift to zero-emission public transport, combining essential transport infrastructure at scale, and is well placed to help governments decarbonise their networks. We are looking forward to investing in Kinetic’s next phase of growth.”
Macquarie Capital and Ashurst advised Foresight on the transaction.
To read the latest IPE Real Assets magazine click here.
