FSG Foresight Group Holdings Limited

LEI: 213800NNT42FFIZB1T09

28 January 2025

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THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION. FOR IMMEDIATE RELEASE

Foresight adds over £800 million to Group AUM

Foresight Group Holdings Limited ("Foresight", the "Group") is a leading investment manager offering institutional and retail investors a diverse range of listed and private investment solutions in real assets located in the UK, Europe and Australia, and growth capital for businesses across the UK and Ireland.

The Group is pleased to announce the:

1.    Acquisition of the trade and assets of WHEB Asset Management LLP ("WHEB", the "Acquisition")

2.    Appointment as sub-investment manager and sub-distributor for the Liontrust Diversified Real Assets Fund

3.    Raising of new additional institutional funds into Foresight Natural Capital Ltd ("FNC")

Combined, this activity has increased Group Assets Under Management ("AUM") by over £800 million, primarily driven by the Acquisition.

1.    Acquisition of the trade and assets of WHEB

Headquartered in London, WHEB is a leader in impact investing, managing a single global mid-cap equity strategy that invests in listed companies whose products and services provide solutions to key sustainability challenges. WHEB's key employees, including the management team, will join Foresight and be integrated into the Foresight Capital Management ("FCM") division. The fund manager and investment team will retain their existing responsibilities and continue to be based in London. The Acquisition will reinforce FCM's position as a leader in impact investing in public markets, represents FCM's entry to the Australian market via WHEB's joint venture with Pengana Capital Group, unlocks distribution synergies, and supports product and customer diversification of the division.

The Acquisition is anticipated to be immediately accretive to core EBITDA pre SBP. The Acquisition is structured with 50% upfront consideration, 50% deferred consideration and a management performance entitlement payable in cash over a three-year period, subject to certain performance targets. The Acquisition is structured to align incentives and will be funded from existing cash resources, with completion expected in the first half of 2025.

2.    Appointment as sub-investment manager and sub-distributor for the Liontrust Diversified Real Assets Fund

On 27 January 2025, Foresight was appointed sub-investment manager and sub-distributor for the Liontrust Diversified Real Assets fund. This appointment will become effective on 3 February 2025, with the fund manager retaining his existing responsibilities and joining Foresight's FCM division, bringing 18 years' investment management experience. The Fund is expected to benefit from Foresight's distribution and investment capabilities over time.

3.    Fundraising in Foresight Natural Capital Ltd

FNC raised additional capital from two UK local government pension schemes which doubles their existing positions. The new investment will be used to expand the investment pipeline and provides a strong platform ahead of the launch of our forthcoming European natural capital strategy. 

Bernard Fairman, Executive Chairman of Foresight Group Holdings Limited, commented:

"We continue to pursue opportunities to support business growth, and today's announcement is a prime example of our proactive management.

The FCM transactions further diversify our product offerings, bring significant investment experience and add scale to the division. We are also pleased to see continued demand from institutional investors as we look to leverage our substantial sector experience for our forthcoming European natural capital strategy. In combination with recent retail fundraising, as well as positive foreign exchange movements, this represents a strong start to 2025.

We reiterate our guidance to double core profitability over the five years to FY29."

About Foresight Group Holdings Limited

Founded in 1984, Foresight is a leading investment manager in real assets and capital for growth, operating across the UK, Europe, and Australia.

With decades of experience, Foresight offers investors access to attractive investment opportunities at the forefront of change. Foresight actively builds and grows investment solutions to support the energy transition, decarbonise industry, enhance nature recovery and realise the economic potential of ambitious companies.

A constituent of the FTSE 250 index, Foresight's diversified investment strategies combine financial and operational skillsets to maximise asset value and provide attractive returns to its investors. Its wide range of private and public funds is complemented with a variety of investment solutions designed for the retail market.

Foresight is united by a shared commitment to build a sustainable future and grow thriving companies and economies.

Visit https://foresight.group for more information.

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Disclaimer - Forward-looking statements

This announcement, prepared by Foresight Group Holdings Limited (the "Company"), may contain forward-looking statements about the Company. Such forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "projects", "estimates", "plans", "anticipates", "targets", "aims", "continues", "expects", "intends", "hopes", "may", "will", "would", "could" or "should" or, in each case, their negative or other various or comparable terminology. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors which are beyond the Company's control and are based on the Company's beliefs and expectations about future events as of the date the statements are made. If the assumptions on which the Company bases its forward-looking statements change, actual results may differ from those expressed in such statements. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including those set out under "Principal Risks" in the Company's annual report for the financial year ended 31 March 2024. The annual report can be found on the Company's website (https://www.foresightgroup.eu/). Forward-looking statements speak only as of the date they are made. Except as required by applicable law and regulation, the Company undertakes no obligation to update these forward-looking statements. Nothing in this announcement should be construed as a profit forecast.