Foresight Group achieves ‘record year for profitability’ with eyes for further renewable expansion

Foresight Group Holdings, a sustainability-led infrastructure and private equity investment manager, achieved a record year of profitability and Assets under Management (AUM) with eyes for further solar and battery storage expansions.

The organisation said it saw “exceptional growth” of 38% and 35% in AUM and Funds under Management (FUM) in the financial year for 2023 to £12.2 billion and £9.0 billion respectively. In the previous financial year, Foresight had £8.8 billion AUM and £6.7 billion FUM.

Alongside this, Foresight confirmed that it's core EBITDA pre share-based payments grew 58% to £50.2 million, up from £31.8 million in 2022, representing a record year of profits for the organisation. Foresight's total revenue also grew from £86.1 million to £119.2 million.

However, the group is also targeting further expansion of its renewable portfolio. Within its financial results for the year 31 March 2023, the group stated that via its Foresight Energy Infrastructure Partners (FEIP) strategy, it plans for further diversification.

The group said that of total commitments, 90% of its FEIP I fundraising has been reserved for 13 existing investments spread across all areas of the strategy, including solar, onshore and offshore wind, green hydrogen production, battery storage and an international interconnector.

“This was a record year of highly profitable growth for Foresight, which saw the group extend its excellent track record of delivering against ambitious growth targets and materially increasing shareholder returns with a very significant increase to the dividend,” said Bernard Fairman, executive chairman of Foresight Group Holdings.

“The market opportunity for Foresight is very significant. Our infrastructure investment strategies cover the whole spectrum of renewable energy generation, transition and wider economic decarbonisation. This positions us well to support the broader energy transition by investing in real assets that are driving this change.

“Despite current uncertainty in the markets, we remain confident in the ability of our diversified business model to deliver profitable growth in FY24. This will be achieved through a combination of high-quality recurring revenue and a visible pipeline of high margin retail and institutional fundraising.”

Foresight has been increasing its battery storage portfolio in recent months via acquisitions. Solar Power Portal reported in late May 2023 that UK renewable developer Clearstone Energy had announced the sale of two battery energy storage system (BESS) projects in Southern England to Foresight Energy Infrastructure Partners.

Sundon BESS is a 49.5MW project North of London which will connect with National Grid’s Energy Park initiative, while Warley BESS is a 57MW project in Essex. Both sites have grid connection dates in 2024.

The financial results also rounds off what has been a hugely successful year for Foresight’s solar fund. The financial year of 2022 was the renewable investment company Foresight Solar Fund’s (FSFLs) “best year since IPO,” seeing inflation help mitigate the Electricity Generators Levy (EGL) and the company’s unaudited Net Asset Value experienced a slight increase.

Following the release of Foresight Solar Fund’s Q1 financial results for this year Solar Power Portal caught up with managing director at Foresight, Ross Driver, to discuss the company’s highlights from Q1 2023, geographical diversification and the UK Government’s net zero strategy.