Foresight Group eyes more M&A as acquisitions boost assets

investmentweek.co.uk:

Two strategic acquisitions during the year helped boost the group’s assets by £3.3bn.

In its full year results published today (4 July), the sustainability-led infrastructure and private equity investment manager said assets under management increased to £12.2bn. 

Funds under management, reported separately, grew 35% to £9bn. Both figures were «well in excess» of its target, Foresight said. 

Two strategic acquisitions during the year helped boost the group's assets by £3.3bn. These were the purchase of Infrastructure Capital Group — now integrated as Foresight Australia — and the technology ventures division of Downing LLP.

Foresight Group AUM and FUM surge by more than 30%

Continued international expansion and diversification also helped increase assets, with AUM outside the UK growing from 23% at IPO in February 2021 to 43% as at 31 March 2023.

As at 30 June 2023, both AUM and FUM were marginally lower at £12bn and £8.8bn respectively, reflecting a combination of negative FX movements and net OEIC outflows.

This was partially offset by the in-house sales team channelling £0.3bn of inflows into high margin products.

Higher assets and funds under management led to a 38% increase in revenue at Foresight, to £119.2m, in the 12 months to the end of March 2023.

Performance fees also generated £5.8m during the year across the business, while dividends per share were increased by 46% to 20.1p, up from 13.8p.

Bernard Fairman, chair of Foresight Group, said after a record year of highly profitable growth, the company is now focused on further organic growth.

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«We have a strong pipeline of fundraising across asset classes scheduled for this year and beyond. This