The energy infrastructure and private equity manager Foresight Group recorded strong growth during the six-month period ended September 30, 2021.
During this period, Assets Under Management (AUM) stood at £ 8.1bn (€ 9.5bn) and Funds Under Management (FUM) at £ 6bn as of September 30, 2021, which is equivalent to an annualized growth rate of 25% and 34% respectively over the period.
Retail net inflows over the six-month period have returned to levels similar to those seen in the six-month period leading up to the pandemic, giving the Board additional confidence in the outlook for fiscal 2022 , said Foresight.
The investor has seen a strong deployment of capital in its core business areas of infrastructure and private equity with £ 295million deployed during the period, compared to £ 206million for the same period of six months last year.
He also successfully closed Foresight Energy Infrastructure Partners (FEIP), with total commitments of 851 million euros secured, 70% ahead of the initial target.
The board added that the group’s expectations for revenue and core EBITDA for the full year through March 31, 2022 remain unchanged.
Executive Chairman Bernard Fairman said, “The past six months have continued to build on the positive momentum we’ve seen since the listing of Foresight in February.
“We have experienced substantial growth in FUM due to strong retail net inflows and further institutional fund closures and, along with the short-term pipeline of new fund launches and deployments, this gives the board confidence. necessary to achieve the group’s objectives for fiscal year 2022.
“The current volatility in electricity prices in the UK and beyond has given a positive boost to Foresight’s balanced portfolio of infrastructure assets.
“More broadly, it highlights the need to further accelerate the transition to a reliable, resilient and low-carbon energy system, a space in which Foresight has established itself as a leader.
“Foresight owns and operates around £ 4bn of power generation assets.
“Much of the output is either fixed-price income from revolving bond certificates or sold forward at fixed prices.
“However, around 15% are benefiting from the near quadrupling of electricity prices and about 25% more are expected to benefit in the same way, as their patches expire in the next two years, if electricity prices remain high.
“Power generating assets are valued using third party power curves which continue to maintain that electricity will return to its long term average of £ 40 to £ 50 per MWh after approximately one year.
“The current market dynamics offer significant upside potential to these curves, which would benefit Foresight in the medium term.
“At the next COP26, we expect world leaders to announce new goals to fight climate change.
“These goals should add further momentum to our strategy and business model and will further strengthen Foresight’s significant growth potential.”