Foresight Capital expands into the US asset management market

Foresight Capital expands into the US asset management market

LONDON, UK: Foresight Group Holdings, a leading infrastructure and private equity investment manager, announced its appointment as sub-adviser to the Cromwell Foresight Global Sustainable Infrastructure Fund, which launched on 31 January 2023. This new mandate represents an expansion of the Group’s geographic footprint into the attractive US asset management market.

This US Mutual Fund is the result of a newly formed partnership between Foresight and Baltimore-based Cromwell Funds and builds upon the growing track record of Foresight’s FCM division as a sub-adviser.

The Fund will replicate FCM’s existing global real infrastructure strategy, managed by the award winning FCM team. The UK and Luxembourg domiciled funds focusing on this strategy have raised gross inflows of £1.1 billion from investors since launch in June 2019.

This success has been underpinned by FCM’s sustainability-led, active and bottom‑up investment approach that draws on the wider Group’s experience in investing in private markets and applies these skills and knowledge to investing in public markets.

FCM’s capabilities and experience, alongside the strong and well-established distribution capabilities of Cromwell, will provide US investors with an attractive entry into a portfolio focussed on sustainable energy transition infrastructure.

The opportunity for the Fund and its investors is enhanced by the continued focus of global policies on decarbonisation, particularly the recent US Inflation Reduction Act.

For Foresight, the Fund provides a highly attractive and low cost route into the US, the largest asset management market globally.

Foresight managed funds have seeded a cornerstone investment into the Fund, in line with FCM’s previous UK fund launches, and the proven quality of Cromwell’s distribution capability will deliver access to the substantial US financial adviser channel to maximise the potential for future inflows.

Cromwell funds service the needs of US Financial Advisors nationwide, providing them with investment solutions. The Fund will benefit greatly from Cromwell’s distribution and marketing channels, with access to a dedicated Cromwell Funds sales team as well as to over 70 existing broker-dealer agreements. These agreements provide distribution access to over 70,000 financial advisers in the US.

Bernard Fairman, Executive Chairman of Foresight Group Holdings Limited, commented: “I am delighted to announce the launch of Foresight’s new US Mutual Fund in partnership with Cromwell which further expands our geographic footprint and strengthens our already resilient and diversified business model.

The US market offers a significant opportunity for Foresight and over the next 12 months we will build both the scale of the Fund and the US profile of the Foresight brand. We believe that the growth opportunities in the US offer the potential in the long term to exceed FCM’s current UK and European business.”

Brian Nelson, President, Cromwell Investment Advisors, stated: “We are delighted to have FCM join the Cromwell Funds and include their global infrastructure strategy in our product suite. This area of the market continues to receive increased interest by a wide range of investors. We look forward to introducing Foresight to the US marketplace and sharing FCM’s high-quality investment approach with the financial advisor and institutional channels.”

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