Infrastructure investor raises €1bn pool for sustainablility-led energy fund

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Foresight Group has closed a sustainability-led energy fund after securing 70% more than its original €500m (£430m) target.

The infrastructure and private equity manager has raised €851.4m (£727m) from 35 institutional investors across Europe and North America. It has also so far received co-investments of €170m (£145m).

The fund, Foresight Energy Infrastructure Partners (FEIP), says it has “a strong pipeline” of opportunities that have been crated by “the transformational change underway in global energy markets”.

FEIP’s investment strategy has been shaped to achieve specific decarbonisation objectives in line with the Paris Climate Agreement and it aligns with the UN’s Sustainable Development Goals.

The Fund has a strong pipeline of further opportunities in Europe, North America and Australia, leveraging Foresight’s deep investment team resources and its reputation and track record in the sector.

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.”

The Fund has made four investments to date, two construction stage onshore wind projects in Sweden and Finland, a portfolio of onshore wind projects in Spain and an energy-from-waste plant in Italy.