Infrastructure investor Foresight Group has secured €342m in commitments in relation to its Foresight Energy Infrastructure Partners fund.
FEIP will invest in all aspects of new low-carbon energy infrastructure, including wind, solar and hydropower projects, energy storage and transmission and distribution assets in Europe.
Foresight said the majority of investments will be made into greenfield projects where the company can “use its experience of managing projects during construction, with the aim of delivering a premium return to investors”.
The company has an “extensive pipeline” of investment opportunities and it is expected that the FEIP fund will acquire assets rapidly, using €275m of the total €342m of commitments that are available on first closing.
The fund will retain a proportional allocation for investment into operational projects to provide an element of cash yield.
Commitments to the fund have been made by institutional investors from across Europe, including DNB, Norway’s largest financial institution, PRI Pensionsgaranti, a Swedish mutually-owned insurance company, Arcano Earth Fund, managed by Spain’s leading alternative asset manager and the European Investment Bank.
Foresight partner Dan Wells said: “FEIP’s strategy has been designed specifically in the context of the evolving energy infrastructure sector, given the global transition to decentralised, digitised and decarbonised networks.
“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.”
Foresight partner Richard Thompson added: “Building on our track record of sustainable investments made on behalf of institutional investors, FEIP’s strategy has been closely aligned to selected UN Sustainable Development Goals.
The portfolio will be structured with the objective of delivering an attractive risk-adjusted return to institutional investors, whilst providing a material and positive environmental and social impact.”
FEIP’s investment strategy has been shaped to achieve specific decarbonisation objectives in line with the Paris Climate Agreement. It aligns with the UN Sustainable Development Goals, in particular with respect to affordable and clean energy, industry, innovation and infrastructure and climate action.