Founded in 1984, Foresight Group (FSG) is a leading investment manager in real assets and growth capital for small- and mid-sized private companies.
Foresight seeks to provide attractive returns to its diverse institutional and retail client base across a broad range of fund strategies and investment vehicles.
Since floating on the London Stock Exchange in 2021, the group has almost doubled AUM (assets under management) to £13.2 billion while tripling core adjusted operating profit to £47 million.
At the 2025 full year results (26 June), the company announced new guidance to organically double core EBITDA (earnings before interest, tax, depreciation, and amortisation) over the five years to 2029. In addition, the group is actively pursuing earnings-accretive acquisitions to enhance growth and has committed to a share buyback programme of up to £50 million over the next three years.
Despite demonstrating consistently profitable growth and shareholder-friendly actions, the shares trade on a miserly 10.5 times consensus 2026 EPS (earnings per share), falling to 8.6 times in 2027, equating to 48% growth.
The 1.6 times-covered forecast 2026 dividend of 27.2p per share equates to a 6% yield. This represents a 12.4% increase on the 2025 dividend and takes dividend growth since flotation to 20% a year, underscoring the strong cash generation characteristics of the business.
MULTIPLE PILLARS OF GROWTH
Foresight’s largest division, with £10.2 billion of AUM, is private infrastructure investing comprised of 430 assets within 12 distinct asset classes across the UK, Europe and Australia.
The strategy seeks to capitalise on the long-term structural and regulatory tailwinds arising from decarbonisation, concerns around energy security and increasing demand for electricity for AI and data centres.
Foresight Energy Infrastructure Partners II SCSp is the group’s flagship energy transition strategy vehicle, building on its first fund which closed with AUM of £854 million in 2021. The second fund is aiming to raise £1.25 billion, of which £485 million has already been committed.
Foresight estimates investment in infrastructure to grow at a compound annual growth rate of between 8% and 9% across the UK, Europe and Australia between 2024 and 2030.
Leveraging the company’s experience of managing roughly £250 million of natural capital assets (forests, water, land, clean air), Foresight Natural Capital II is due to begin marketing in the current financial year with a target fund size of £500 million.
In a recent update the company highlighted new institutional inflows of between £20 million and £30 million.
Foresight Capital Management is the group’s public markets division looking after £1.2 billion of assets, enabling institutional and retail investors access to infrastructure, renewables and real estate investments through actively managed funds.
After a challenging period for publicly traded infrastructure funds, the division is targeting a return to growth.
Foresight announced the acquisition of impact fund investment manager WHEB in January for an undisclosed amount. Analysts at Deutsche Bank estimate WHEB has AUM of £700 million and could contribute annual revenues of £3.9 million.
As a result of strong performance and multi-year market tailwinds, fundraising for Foresight’s retail UK tax efficient products business is expected to eclipse the record £587 million achieved in 2025, itself up 35% from 2024.
Lastly, the group’s institutional private equity business is expected to provide further growth opportunities as the company looks to launch further vintages to consolidate coverage of the UK and Ireland, where 15 funds are currently active.
Tailwinds from government support for regional investments and increased pension fund allocations are expected to see the historical growth rates of 5% to 6% maintained.
In summary, we believe Foresight is a high-quality company offering the potential for double-digit profit growth and increasing shareholder returns, trading at a knock-down price, while a growing dividend and attractive yield provide downside protection.
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
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