Foresight Group Reports H1 FY26 Trading Update with AUM Growth and Fundraising Milestones

8 October 2025by Joshua Thompson5 min read73 views

This article covers information on Foresight Group Holdings Limited.

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.

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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.