Foresight Group Holdings Limited, a leading infrastructure and private equity investment manager, has released its trading update for the financial year ended 31 March 2024. The company reported significant year-on-year growth in core EBITDA pre-Share Based Payments (SBP), in line with market expectations. This growth was supported by successful fundraising into higher margin and long tenure investment vehicles, as well as the annualization of prior year acquisition activity and cost discipline.
Assets under Management (AUM) and Funds under Management (FUM) decreased modestly to £11.9 billion and £8.4 billion, respectively, against challenging market conditions. However, the company saw record annual retail fundraising into higher margin evergreen vehicles and institutional private equity inflows, including the launch of two new funds. On the downside, there was a reduction in AUM within the lower revenue margin Foresight Capital Management division, adverse foreign exchange movement, and downward valuation adjustments to infrastructure assets.
Foresight Group Holdings Limited maintained high-quality revenue visibility, with recurring revenue within the target range of 85-90%. Looking ahead, the company is confident in the momentum behind its scalable energy transition strategies and the strength of its higher margin strategies to support continued core EBITDA pre-SBP growth. Specific drivers for FY25 include fundraising into higher margin vehicles, the quality of the retail distribution platform, and a robust institutional infrastructure fundraising pipeline.
Bernard Fairman, Executive Chairman of Foresight Group Holdings Limited, expressed confidence in achieving profitable growth in FY25, stating, "As an international investment manager, we bring investors closer to the opportunities driving the transition to cleaner energy, decarbonized infrastructure, and the economic potential of growth companies." The company is encouraged by improving sentiment in the institutional infrastructure fundraising market and positive reception to the second vintage of its flagship energy transition strategy.
Foresight's Full Year Results to 31 March 2024 are scheduled to be released on Thursday 27 June 2024, with a presentation for analysts on the same day.