Foresight Group, an investor in global infrastructure, natural capital and growing UK companies, has raised a further £27m of fresh equity capital for Foresight Natural Capital Ltd (FNC) from East Riding and West Yorkshire pension funds. The funding will be used to grow and diversify the investment pipeline.
The new investment brings the total net asset value of Foresight’s UK natural capital strategy, which includes FNC, to £300m.
FNC’s portfolio mostly consists of afforestation (the planting of trees for new woodland creation) and established forestry assets. However, the pension fund money will enable the venture to explore other natural capital opportunities such as Biodiversity Net Gain projects, peatland restoration and opportunities focused on regenerative agriculture.
Darran Ward, head of alternatives at West Yorkshire Pension Fund said: “We view nature as keystone infrastructure and an emerging asset class, producing long-term returns for our members aligned with our core investment beliefs, whilst providing critical ecosystem services essential for sustainable businesses and communities. We look forward to working with Foresight as active, engaged shareholders to expand the strategy, drive returns and deliver impact.”
Neil Berry, investment manager at East Riding Pension Fund added: “As a long term investor, we are pleased to continue developing our relationship with Foresight in delivering Natural Capital solutions for our members. We consider that investment in Natural Capital solutions provides suitable risk adjusted returns as well as climate change mitigation as part of an overall net zero ambition.”
East Riding is part of the Border to Coast Pool while West Yorkshire is part of Northern LGPS.
Once fully planted, FNC claims that its afforestation portfolio will be equivalent to around 28% of the total land in the UK that was used for afforestation in the year to March 2024.
