Foresight Group's acquisition spree, organic inflows and valuation uplifts have driven a 42% surge in assets under management, rising to £12.6bn.

The group's £3.3bn acquisition activity push, supported by continued organic inflows and valuation uplifts of more than £500m, saw its AUM grow from £8.8bn in the period. 

Volatile markets drove the firm's capital management division to report £163m in performance losses, but this was partially offset by net inflows of £26m in the period. AUM for this division was £1.5bn at the period end, down 8.5% on FY22.

Since the company's IPO in 2017, AUM has increased by 75%, driven by strategic acquisitions (61%) and organic growth (39%).

Infrastructure

In H1 FY23, AUM for the company's infrastructure division rose by 56% to £9.8bn from £6.3bn, following the completion of the acquisition of Australian-based Infrastructure Capital Group in September, which added around £3bn to the group's assets. 

The value of its sustainable energy infrastructure assets rose by around £200m, reflecting rises in merchant and forward contract energy pricing. 

Foresight Sustainable Forestry raises £45m to help fund £77m pipeline

Having deployed the full £13m of proceeds raised in its IPO, Foresight Sustainable Forestry Company completed a £45m equity raise in June 2022, within 12 months of its listing.

Foresight completed 24 capital deployment transactions over the period at a total value of £539m, more than the total deployed in the whole of the prior year. When coupled with future deployment rights of £409m, total potential investment rises to £948m in the period.  

Investment continued in core asset classes such as renewable energy generation, battery storage and fibre networks, while expanding into adjacent classes such as green hydrogen and aquaculture.

Private equity

The firm's private equity division saw its AUM rise by 37% from around £900m in FY22 to £1.3bn in the first half of the 2023 financial year. 

It also completed the acquisition of the technology ventures division of Downing in July 2022, which the firm said will be "immediately earnings enhancing" and further diversifies its existing ventures offering.

Capital deployed during the reported period was £46.3m across 31 equity transactions and £39.8m across secured lending investments.

Foresight acquires Downing's technology ventures division

Bernard Fairman, chair of Foresight Group, said: "Looking ahead, we anticipate the introduction of legislation in the UK and Europe to make the electricity markets more affordable to end users." 

"Market expectations are that there will continue to be strong demand for renewable energy investment, driven by a high commitment to energy transition strategies and recognition of the importance of renewable energy to future energy security." 

On the UK private equity front, Fairman said that the group is "successfully expanding" its regional footprint and are supporting its "varied and growing portfolio" of SMEs through these challenging times.