London-based infrastructure and private equity investment manager Foresight Group has plans to launch Renewable Energy Income Fund (FREIF), the firm’s first Australian infrastructure debt fund.
The closed-end debt fund will aim to raise between A$150 million ($101 million) to A$200 million ($135 million) and have a five-year lifespan. The firm was unavailable to comment on the fund’s launch schedule.
The fund will lend on Australian infrastructure assets, such as solar, wind, bioenergy, energy efficiency and energy storage that combat climate change and contribute to a global decarbonization agenda, according to the firm’s website. It will require a minimum investment of A$100,000 ($67,000).
“Infrastructure debt can be less susceptible to market volatility, tends to offer superior risk-adjusted returns, and can provide a reliable income stream over time,” according to Foresight Group. “By holding senior security over the assets, infrastructure debt aligns with strong capital preservation strategies.”
The fund aims to tap into that potential and provide Australian investors with access to infrastructure by investing in small-scale renewable projects.
Over the next 20 years, the world is predicted to invest a total of $10.2 trillion into power generation technology, three-quarters of which will go to renewable energy sources, said the group.
“Small-scale solar in Australia is forecast to grow rapidly, faster than any other form of energy generation,” according to Foresight Group. “And, unlike larger-scale renewable projects, smaller projects have lower connection costs and can be located close to demand, making them more efficient with power travelling shorter distances.”
The firm manages £4 billion ($4.8 billion) for institutional investors, family offices, private and high-net-worth individuals. It has offices in the United Kingdom, Europe, APAC, and Australia.
