Foresight Group H1 FY26: AUM up 3% to £13.6 billion and fundraising steps forward
Foresight Group’s half-year trading update is steady and generally positive. Core EBITDA pre-SBP (before share-based payments) is in line with management expectations and current FY26 consensus, and the Group expects recurring revenue to remain within its 85-90% target range. Assets under Management ticked up, fundraising advanced across retail and infrastructure, and a profitable realisation in Australia unlocked performance fees.
There are a couple of soft spots – notably net outflows in public markets and a slower first phase for FEIP II – but the strategic direction is intact.
Key numbers at a glance
| Metric | 31 Mar 2025 | 30 Sept 2025 | Change |
|---|---|---|---|
| Group AUM | £13.2 billion | £13.6 billion | +3% |
| Group FUM | £9.6 billion | £9.6 billion | +1% (rounding noted) |
On a constant currency basis, AUM was £13.5 billion (+2%) and FUM £9.6 billion (0%). Figures are unaudited and subject to rounding, per the RNS.
Divisional AUM breakdown: Real Assets drives the growth
| Division | FY25 | H1 FY26 | Change |
|---|---|---|---|
| Real Assets (previously Infrastructure) | £10.2 billion | £10.8 billion | +6% |
| Private Equity | £1.8 billion | £1.8 billion | (1)% |
| Foresight Capital Management (FCM) | £1.2 billion | £1.1 billion | (9)% |
Real Assets is doing the heavy lifting, helped by ongoing investor interest in energy transition infrastructure. Private Equity is broadly flat, and FCM is the laggard with a 9% decline.
Fundraising highlights: Retail momentum and FEIP II’s first phase
Retail flows: higher margin engines are revving
Foresight raised £223 million into higher margin retail vehicles, which are on track for another record year, backed by a strong H2 pipeline. Management also notes sustained demand for higher margin business relief products. That mix matters – higher margin products can disproportionately support profitability even if headline AUM growth is modest.
FEIP II: €505 million secured, deployment underway
- €505 million of commitments secured to date for Foresight Energy Infrastructure Partners II (FEIP II) from a blend of four new and three existing limited partners, marking the conclusion of the first fundraising phase.
- Target fund size remains €1.25 billion by mid-2027. Management acknowledges the first phase was slower than originally anticipated but expresses confidence, citing a strong pipeline and the benefit of initial deployment.
- FEIP II completed a combined £210 million investment into UK battery storage, acquiring Harmony Energy Income Trust (HEIT), alongside another Foresight fund.
My take: slower early momentum is a mild negative, but getting capital to work in battery storage should help convert pipeline interest into commitments. Early deployment can be a credibility boost with prospective LPs.
Australia realisation: Zenith sale triggers performance fees
In Australia, the sale of leading independent power producer Zenith Energy at a valuation materially above the fund’s prior holding value generated performance fees for Foresight. Performance fees are earned when funds outperform agreed benchmarks – they are lumpy by nature, but they drop straight to the bottom line when they appear. This is a clear positive for H1 profitability optics, albeit not recurring by definition.
Public markets: positive performance, but outflows continued
Foresight Capital Management delivered positive investment performance of £36 million, yet recorded net outflows of £136 million. That’s the other side of the ledger – decent investment returns, but client money still heading for the exits. Stabilising flows here would be helpful for sentiment, even if the Group is increasingly tilted to longer-duration private capital.
Profitability and revenue mix: guidance intact
Core EBITDA pre-SBP is in line with expectations and consensus for H1, and the Group expects FY26 recurring revenue to remain within the target 85-90% range. Recurring revenue refers to regular, predictable revenues such as management fees, as opposed to one-offs like performance fees.
Management reiterates guidance to double core EBITDA pre-SBP in the five years to FY29, underpinned by long-duration capital and a multi-faceted fundraising pipeline across institutional and retail channels. That ambition is still on the table after H1.
What to watch into H2 FY26
- FEIP II fundraising pace: Can the second phase accelerate towards the €1.25 billion target by mid-2027?
- Retail fundraising run-rate: With £223 million raised so far and a strong H2 pipeline, does FY26 deliver that “another record year” outcome?
- Regional private equity rollout: Post period end, a £90 million first close of a 16th regional fund (including £20 million already under management) shows continued institutional traction.
- FCM flows: Can positive performance start to stem the £136 million net outflows trend?
- Real Assets deployment: Further investments following the £210 million UK battery storage move could reinforce AUM growth and fee visibility.
How the pieces fit together
AUM growth of 3% to £13.6 billion is respectable in the context of mixed markets and currency moves. Real Assets’ +6% to £10.8 billion is the standout, aligning with Foresight’s focus on energy transition and infrastructure-like assets. Private Equity is stable, with new vintages building; FCM is the weak spot on flows, despite positive performance.
On fundraising, retail is a bright spot and strategically attractive because it is higher margin. FEIP II’s €505 million is a decent foundation, and the early battery storage deployment should help. The Zenith Energy sale adds a timely performance-fee kicker.
Bottom line for investors
This is a “steady progress” update with a few noteworthy wins. Positives: AUM up, retail fundraising momentum, FEIP II commitments secured with initial deployment, and performance fees from the Zenith exit. Negatives: a slower-than-hoped first phase for FEIP II and continuing outflows in public markets.
Net-net, Foresight looks on track operationally, with guidance intact and a strong H2 pipeline to lean on. The 2 December 2025 interim results will fill in the profit detail – including the scale of performance fees – but the direction of travel remains encouraging.
Note: All figures are unaudited and may be subject to rounding, as disclosed in the RNS.
