24th May 2021 15:11
(Alliance News) - London-based investment manager Foresight Group Holdings Ltd on Monday said the first close of its Foresight Regional Investment III LP fund, which is focused on small and medium-sized enterprises across the UK, came in at GBP65 million.
The Foresight Regional Investment III, which is the company's latest fund, is cornerstoned by the Greater Manchester Pension Fund with additional support from the Clwyd and Merseyside Pension Funds. This regional fund is one of five regionally focused investment funds across the UK that Foresight currently manages. These funds support over 100 small and medium-sized enterprises across the UK.
Foresight's regional investment funds are designed to capitalise on less competitive markets whilst also extending the benefits of private equity investment to "underserved" regional communities both for investors and small to medium-sized businesses.
In mid-April, the infrastructure and private equity investment manager reported estimated assets under management of GBP7.2 billion as at March 31. This a 60% increase from the prior year's of GBP4.5 billion.
Foresight noted that, as with its precursor, the Foresight Regional Investment III "has a flexible mandate and can deliver buyout, minority equity release and growth capital transactions."
The previous Foresight Regional Investment fund saw a net internal rate of return of 28%. The company also estimated that its investments in small to medium-sized enterprises in the region helped to create over 600 new jobs in the UK.
Foresight's Head of Private Equity, Russell Healey, emphasised pandemic recovery in his comment on the new fund: "Across the UK, our regional private equity business is helping to drive the growth of SMEs as the country looks to recover from the pandemic ... the region remains under-invested and Covid-19 has materially widened the equity gap, so increasing the opportunity for our latest fund to have a significant, positive impact on the local community while also delivering strong economic returns."
Foresight shares were trading up 1.0% at 423.00 pence each in London on Monday afternoon.
By Scarlett Butler; [email protected]
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