Foresight Renewable Energy Income Fund

OPEN FOR INVESTMENT

A unique offering, Foresight Renewable Energy Income Fund (FREIF) is designed for investors looking for an attractive and reliable income stream.

As market volatility and low interest rates persist, traditional income sources such as property and bonds have demonstrated their susceptibility to downturn risk and have delivered unsatisfying returns. To secure long-term returns, investors are having to adapt and strengthen the defensive component of their portfolios.

So where is the ‘smart money’ going? In recent years, a number of leading institutions have turned to renewable energy infrastructure to future-proof their portfolios.

In fact, over the coming two decades, the world is predicted to invest a total $10.2 trillion into power generation technology - and nearly three quarters of this sum will go to renewable energy sources.

While the sector’s potential is clear, investors need to be aware that not all renewable energy investment offerings are built the same way.

Until now, most Australian investors seeking exposure to the infrastructure sector could find it solely through equity products, while only larger institutional investors benefited from access to infrastructure debt.

Infrastructure debt can be less susceptible to market volatility, tends to offer superior risk adjusted returns, and can provide a reliable income stream over time. By holding senior security over the assets, infrastructure debt aligns with strong capital preservation strategies.

Tapping into this potential, Foresight Renewable Energy Infrastructure Fund is a unique opportunity for Australian wholesale investors to access infrastructure via a debt fund managed with the expertise of a leading global infrastructure investor.

Key characteristics of infrastructure debt products:

Security

Security Image

Infrastructure debt is specifically designed to minimise the risk of default and to maximise recovery in the unlikely event of default

Diversification

Diversification Image

Infrastructure assets are relatively demand-insensitive, and are therefore less susceptible to market movements, meaning they provide diversification to traditional asset classes such as equities or corporate bonds

Long duration

Long duration Image

Population and economic growth will drive demand for energy infrastructure assets. This growth means that energy infrastructure investments have the potential to deliver predictable, sustainable income for investors

Register your interest in FREIF

Foresight Renewable Energy Income Fund  

A unique offering, Foresight Renewable Energy Income Fund is designed for investors looking for an attractive and reliable income stream.

The Fund will capitalise on the inefficiencies in the Australian debt market that have left small-scale renewables projects underserved.

"Small-scale solar in Australia is forecast to grow rapidly, faster than any other form of energy generation. And, unlike larger-scale renewable projects, smaller projects have lower connection costs and can be located close to demand, making them more efficient with power travelling shorter distances."

Objective

The Fund offers investors direct exposure to Australian renewables and targets a risk-adjusted 4.0-% - 4.5% margin over the Reserve Bank of Australia cash rate. Distributions will be paid quarterly.

Strategy

The Fund is a closed-end fund targeting a five-year life. The Fund will target higher yields achievable as it is an underserved part of the market due to the size of the loans. The Fund will lend to infrastructure assets located in Australia (including solar, wind, bioenergy, energy efficiency and energy storage) that combat climate change and contribute towards the global decarbonisation agenda.

Structure

Unregistered managed investment scheme

Investment Manager

Foresight Group Australia Pty Ltd

APIR Code

OMF0104AU

Target Yield

4.00% to 4.50% margin over the RBA Cash Rate, post fees

Investor Type

Australian 'wholesale' investors

Minimum Investment

AUD $100,000

We believe that there are five reasons why investors will find this an attractive investment opportunity:

Five Reasons to Invest

Attractive risk-adjusted income

FREIF targets a materially higher income than cash, government bonds or corporate bonds - with lower volatility than equities, real estate or high yield debt instruments.

Access to illiquidity premiums

FREIF provides wholesale investors with a rare access point to capture the complexity and illiquidity premiums from the debts of small-scale renewable energy projects.

Secure against real assets

The debt portfolio of FREIF will have senior ranking security over the underlying renewable energy projects, which offer protections to reduce the risk and impact of underperformance.

A true diversifier

FREIF targets a diversified portfolio in the small-scale renewable energy infrastructure asset class, which has a low correlation with more traditional sources of income, such as equities, real estate and high yield debt instruments.

Climate Bonds Initiative certified

FREIF will be governed by a sustainability framework certified by Climate Bonds Initiative, aligning with investors' sustainable and responsible investment objectives.

Our fund

Contact us

Contact Us

Our team

Team

View our Australian infrastructure portfolio

View portfolio