Foresight Group Holdings – following recent strategic decisions the shares of this alternative asset manager are undervalued at 474p
Mark Watson-Mitchell - 30.07.2026
Invest, Build, Grow
Tomorrow, Friday, 31st July, over on the sunny island of Guernsey, Foresight Group Holdings (LON:FSG), the alternative asset management group, will be holding its AGM to approve its 2026 Report & Accounts.
The £540m-capitalised group’s shares, which are currently trading at 474p, have risen impressively since their 341p Low scored on Monday, 30th March this year.
The investment group’s Management has made a very strategic decision to streamline its operations by selling off one of its operations and that has certainly given its shares a fillip, one that I believe can still be bettered.
The Business
Founded in 1984, and now operating across the UK, Europe, and Australia, Foresight is a leading investment manager in real assets and capital for growth.
With decades of experience, the company offers investors access to attractive investment opportunities at the forefront of change.
The Management Group actively builds and grows investment solutions to support the energy transition, decarbonise industry, enhance nature recovery and realise the economic potential of ambitious companies.
It is a constituent of the FTSE 250 Index.
The group’s diversified investment strategies combine financial and operational skillsets to maximise asset value and provide attractive returns to its investors.
Its wide range of private and public funds is complemented with a variety of investment solutions designed for the retail market.
On Thursday, 11th June, the group announced that it had agreed to sell its public markets investment division, Foresight Capital Management, to Guinness Global Investors.
This strategic disposal, which includes 16 employees, will allow Foresight to streamline its operations and concentrate on its core Real Assets and Private Equity businesses.
The company anticipates meeting its FY26 core EBITDA pre-SBP consensus estimates, with completion expected in the third-quarter of 2026.
Full Year Results
On Monday, 29th June, the company reported strong full-year results for the period to end-March, with total revenue increasing 11% to £164.9m and core EBITDA pre-SBP growing 10% to £68.6m.
Assets under Management (AUM) rose 8% to £13.0bn and Funds under Management (FUM) increased 7% to £9.0bn, driven by record retail fundraising of £630m and institutional momentum.
Adjusted basic earnings per share saw a 13% increase to 46.4p, and the recommended final dividend of 19.0p per share takes the total dividend to 27.1p, a 12% year-on-year rise.
The company also noted that it utilised £9.6m of its share buyback program and is streamlining its operations by focusing on its core Real Assets and Private Equity divisions following the announced sale of its public markets division.
Management Comment
Executive Chairman Bernard Fairman stated that:
"FY26 was another year of profitable growth, with double-digit percentage increases in core EBITDA pre-SBP, adjusted earnings per share and dividend per share.
Investors continued to back our strategies with record retail fundraising of £630m - a fifth successive year high - alongside institutional momentum in our flagship FEIP II strategy and our regional private equity funds.
Our fundraising achievements remain underpinned by strong investment performance, with our Australian exits further enhancing the team's track record and contributing material performance fees to the Group.
We enter the new financial year wholly focused on our core Real Assets and Private Equity divisions with a diversified fundraising pipeline across institutional and retail investment vehicles managing long duration capital, and remain committed to our medium-term growth guidance."
The Equity
There are some 113.95m shares in issue.
Chairman Bernard Fairman holds 32,725,000 shares, representing 29.02% of the group’s equity.
Larger holders include Slater Investments (5.66%), Liontrust Investment Partners (5.16%), Gary Fraser (4.00%), David Hughes (1.86%), Chelverton Asset Management (1.20%), Scottish Widows Unit Trust Managers (1.18%), Unicorn Asset Management (1.11%), and Columbia Threadneedle Management (1.05%).
Analyst’s Views
The consensus of six analysts following the group, all of whom call the shares a Buy, have an average Target Price for its shares at 680p.
The Lowest call is for 550p, while the Highest is 768p.
They estimate that FSG Funds Under Management will end the year to 31st March 2027 at £10.8bn (£9.0bn), while looking for revenues of £181.2m (£164.9m), with core EBITDA pre-share-based payments at £76.6m (£68.6m), generating earnings of 50.4p (46.4p) and paying a 30.2p (27.1p) per share dividend.
For the 2028 year, FUM estimates are £12.0bn, revenues of £200.4m, EBITDA £87.2m, earnings of 59.8p and a 34.8p dividend.
The year to end-March 2029 consensus estimates suggest FUM of £12.7bn, with £224.5m revenues, £100.8m EBITDA, 71.7p earnings and paying a 41.0p per share dividend.
Jefferies has a 550p TP, Deutsche 700p, while Berenberg looks for a 560p TP.
At Cavendish Capital Markets, its analysts Jens Ehrenberg and Rahim Karim, rate this group’s shares as a Buy, with a 768p Target Price.
Foresight Group has sold its public markets division and will allow it to focus on its ‘competitive advantage in private markets’,
After the public markets sales decision, analyst Tom Mills, at Jefferies, retained his Buy recommendation and Target Price of 550p on the asset manager.
Analyst Andrew Watson, at Singer Capital Markets, has a 700p TP, stating that the group’s low PE continues to overlook the quality and growth in the now-purer private markets franchise.
My View
Streamlining its operations, allowing it to focus on core real assets and private equity businesses, has to be a sensible strategic decision enabling its Management to progress its competitive advantage in private markets.
The group’s shares, now 474p, could well carry on rising to break above the 542p High of two years ago.
I now set a 550p Target Price.
(Profile 30.07.26 @ 474p set a Target Price of 550p)
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