UK fund manager Foresight Group (Foresight) has acquired stakes in four healthcare Private Finance Initiative (PFI) projects in the UK, effectively doubling its PFI portfolio.
Foresight paid £11 million (€13 million; $17 million) to invest in four operational hospital projects, adding to the four education assets already in its PFI portfolio. The healthcare projects have over 20 years outstanding in their concession lives, Foresight said.
The acquisition was funded from cash raised by Foresight’s £33 million Infrastructure VCT Shares vehicle, which was the single largest venture capital trust (VCT) fundraising in the 2011/12 tax year. The fund targets secondary PFI and wider infrastructure projects.
The UK fund manager said it plans to close further acquisitions in the near future. “In addition to further secondary PFI acquisitions, it is our intention to make future primary market equity investments alongside strong contractor partners in the UK and Western Europe,” commented Richard Thompson, senior investment manager at Foresight.
As well as the Infrastructure VCT vehicle, which focuses on smaller assets, Foresight also targets “larger ticket” PFI and infrastructure transactions through the Foresight Inheritance Tax Service, an evergreen fundraising plan which aims to invest up to £50 million per year in larger PFI deals.
Outside of PFI, Foresight has been appointed by the UK’s Green Investment Bank to manage £50 million of an initial £80 million investment fund created by the government to develop green infrastructure across the country.
Foresight has more than £650 million of assets under management in funds including limited partnerships, Enterprise Investment Schemes and VCTs. The firm has invested more than £310 million in operating solar photovoltaic assets in the UK, Italy and Spain.