Alternative asset manager Foresight Group has begun marketing its second solar energy-focused fund.
Foresight, which manages both generalist private equity funds as well as renewable energy-focused vehicles, has invested around 85 percent of its first solar fund, which it closed on €35 million in July, and is now launching its successor.
Foresight Solar Fund 2 will invest in up to 250 megawatts of solar projects, following the same investment strategy as its predecessor, with initial investments anticipated to be in southern Europe in both the construction of new assets and the acquisition of operating assets.
Among the opportunities the fund is looking to exploit is the market for operational solar plants in Spain, where a large number of assets are coming to market as the owners – often Spanish banks, real estate and construction companies – restructure their portfolios.
Foresight acquired such an asset in May this year on behalf of Fund I: a 9-megawatt plant, operated by BP Solar, bought from Banco Santander. The firm expects to execute similar Spanish deals as well as take advantage of the emerging operational asset market in Italy.
The target internal rate of return for the fund is “in the high teens”, according to the firm.
Foresight is based in the UK and manages funds in two distinct areas. Its institutional business targets environmental infrastructure and renewable energy, while its retail funds – tax-efficient venture capital trusts and other vehicles – target traditional private equity opportunities.