Foresight draws super funds' attention in new investment

Foresight Group has raised $660 million from institutional investors, including super funds, to support rising public transport demand.

The firm said the transaction attracted strong demand from super funds and international institutional investors, reflecting confidence in Kinetic's future growth. It forms part of a continuation structure through which Foresight will remain a significant shareholder in Kinetic.

Foresight investment director Adrian Kong said Kinetic is a key member for the energy transition.

"Kinetic is a key enabler in the shift to zero-emission public transport, combining essential transport infrastructure at scale, and is well placed to help governments decarbonise their networks," Kong said.

"We are looking forward to investing in Kinetic's next phase of growth"

The transaction does not change Kinetic's shareholding structure, with Foresight retaining its 30% interest, alongside TPG Rise Climate, it said.

Foresight's investment in Kinetic began in 2020 and has supported the business' continued expansion, which saw Kinetic growing from Australia to other parts of the world, including New Zealand, Europe, the UK and Asia.

Kinetic currently has more than 300 contracts globally and the business is observing a rising public transport demand, which is fuelling its continued expansion, including recent growth in Victoria, Singapore and major rail operations in London and Stockholm.

Foresight head of Australia Edward Lloyd said Australia remains an important market for its infrastructure investment strategy.

"The strong level of demand reflects the quality of Kinetic, the resilience of its underlying business and the opportunities we continue to see for further growth," Lloyd said.

"Australia is an important market for Foresight, and the level of investor commitment reflects continued confidence in the opportunities we are bringing to market. There is a significant need for new energy and infrastructure investment, and institutional capital will be central to funding it.

"We continue to see a broad range of opportunities across renewable energy, energy storage and essential infrastructure."

Foresight manages around $5 billion of assets in Australia.