Foresight Group Holdings has secured commitments of €300m in the first close of Foresight Energy Infrastructure Partners II, the successor fund to FEIP I.
The first close welcomes two new cornerstone investors to the strategy, including Border to Coast Pensions Partnership, a UK pension pool for Local Government Pension Schemes.
The first close comes three months after FEIP I’s Investment Period concluded, having deployed over €1bn in capital.
FEIP II seeks to deliver a total return in the form of capital growth and stable income by constructing a diversified portfolio of energy infrastructure assets across renewable energy generation, energy storage and grid infrastructure.
The diversified investment strategy has been set specifically in the context of the significant market opportunity to decarbonise the global power system which is supported by strong regulatory tailwinds, Foresight said.
The investment strategy of FEIP II is focused on long-term value creation, with a focus on investing in strategic energy assets the eliminate bottlenecks to the energy transition.
FEIP II is an SFDR Article 9 fund which aims to make investments aligned to the EU Taxonomy.
Dan Wells, partner at Foresight Group and fund manager, said: “The momentum for future fund closes is strong, supported by multiple ongoing discussions with existing and new investors.
“We are confident of reaching at least our target fundraise of €1.25bn during 2025, marking a scaling up of nearly 50% on the prior vintage.
“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 at Foresight Group and fund manager, added: “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.”