Foresight raises solar energy fund

01 December 2008

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Fund

Alternative asset manager Foresight Group, focused on environmental infrastructure investments, has raised EUR40m to date on its first solar investment vehicle: Foresight European Solar Fund LP. The fund launched in mid-2008 and is based in Jersey. It has a 10+2-year lifespan, however the manager expects the investment period to be five years. A EUR50m soft-cap is targeted, with the capacity to deploy EUR400m in assets.

Minimum subscriptions were set at EUR500,000 but the average subscription at the first close was EUR1m. Management fees, carry and hurdle have been set at "industry standards." The fund is expected to reach final closing in early 2009, in time to commence raising a second EUR100m solar fund.

Investors

The investor base consists mostly of ultra-high-net-worth individuals. There are no institutional investors in the Fund although there is considerable institutional interest in the second EUR100m fund.

Investments

Foresight's European Solar Fund will invest in solar photovoltaic opportunities concentrating initially in Italy but also in Greece and secondary assets in Spain, with the intention of expanding to other Southern European markets and potentially the US in the future. The fund will invest an average equity ticket of around EUR6-7m in development projects or already operating farms. The manager is looking to take advantage of the long-term government-backed incentives, in the form of feed-in tariffs and asset-backed projects using established technologies, to build a dedicated portfolio of projects in this fast-growing renewable energy sector. Foresight has already secured framework agreements, representing more than 250MWs, with five Italian construction companies in the solar PV sector, and is expecting to close the first deal by year's end.

People

The fund will be managed by Jamie Richards. Prior to joining Foresight, Richards worked at PricewaterhouseCoopers, Citibank and Macquarie, both in London and Sydney. He has led cleantech investments in fuel efficiency and supercapacitors. His current environmental infrastructure investments include biomass company, Ogen, and carbon credits company, Sindicatum. He will lead a team of five solely dedicated to the solar fund. Depending on funds raised, the team is expected to increase to a maximum of 12 people.

The Foresight Group focuses primarily on investments in unquoted UK and European companies and offers investors access to a number of proprietary investment products. It currently manages EUR250 million across a number of funds. These include the Foresight UK Sustainable Investment Fund, a £25m (EUR31.25m) equity fund focused on investments in environmental infrastructure.

Name: Foresight European Solar Fund LP

Intermediary closing: EUR40m November 2008

Focus: Solar energy, Southern Europe

Contact: Jamie Richards

Address: Foresight Group

ECA Court

South Park

Sevenoaks Kent

TN13 1DU

Tel: +44 1732 471800

Fax: +44 1732 471810.