(Alliance News) - Foresight Group Holdings Ltd on Tuesday said its interim assets and funds under management fell from its financial year-end, but the firm remained optimistic in its outlook.

Foresight Group is a London-based infrastructure and private equity manager.

In the six months ended September 30, Foresight said it expects core earnings before interest, tax, depreciation and amortisation pre-share-based payments to be 20% to 25% ahead of the prior year period.

It explained that this has been driven by a successful prior year and year-to-date fundraising into higher margin and longer tenure vehicles.

Assets under management and funds under management were GBP12.1 billion and GBP8.8 billion, respectively in the period. These are down 0.6% and 2.4% from GBP12.2 billion and GBP9.0 billion at March 31.

Foresight noted that "high quality" revenue visibility was maintained in the six-month period, with recurring revenue within its target range of 85% to 90%.

Looking ahead, Foresight said: "In comparison to retail fundraising, the market for institutional fundraising remains challenging and this has necessarily slowed the pace but not the size or scope of our institutional fundraising activities."

However, the company thinks that this should start to improve in the first half of 2024.

It added that it remains confident in continuing its "strong track record" of core Ebitda pre-SBP growth, alongside our stated target AuM growth rate of 20% to 25% per annum on a rolling three-year average basis.

"Over the last six months we have seen strong inflows into higher margin retail vehicles and successful institutional fundraising in our private equity business," said Chair Bernard Fairman.

"We have also seen continuing growth in our substantial international infrastructure deployment pipeline which reflects the very significant investment opportunities created by the worldwide energy transition."

Shares in Foresight were up 1.4% to 405.60 pence each in London on Tuesday morning.

By Sophie Rose, Alliance News reporter

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