Foresight wins £50m green investment mandate

The infrastructure fund manager has been appointed by UK Green Investments – part of the UK government’s Department for Business, Innovation and Skills – to manage a £50m portion of an £80m investment fund for green infrastructure projects.

Foresight Group (Foresight), an English private equity and infrastructure fund manager, has won a £50 million (€61 million; $81 million) mandate to invest in green infrastructure across the UK.

The mandate comes from an initial £80 million investment fund set aside by the UK government’s Department for Business, Innovation and Skills (BIS). The award was granted by UK Green Investments (UKGI), a specialist team within BIS.

In a statement, Foresight said it would add to the £50 million with a further £50 million from “public and corporate pension funds and other institutional investors”.

The UK government is investing in green infrastructure through UKGI ahead of the much-touted Green Investment Bank (GIB) obtaining state aid approval. The GIB, which aims to accelerate private capital investment in the UK’s transition to a green economy, will be based in Edinburgh and London and be capitalised to the tune of £3 billion.

The award is the second such mandate won by Foresight, a waste and environmental investment management specialist. In March last year, it was appointed to manage £35 million from the London Green Fund – a holding fund managed by the European Investment Bank – alongside £25 million of funds from institutional investors. The capital was used to create the Foresight Environmental Fund, which aims to help London become a low-carbon city.

Foresight has more than £650 million in assets under management across limited partnerships, enterprise investment schemes and venture capital trusts. Its solar funds have invested more than £300 million in operating photovoltaic assets in the UK, Italy and Spain.