Foresight Group Holdings Limited (9LR.F) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. Welcome to the Foresight Group Holdings Limited Half Year Results Investor Presentation. [Operator Instructions] Before we begin we'd like to submit the following poll. And if you could give that your kind attention, I'm sure the company would be most grateful. And I would now like to hand you over to CFO, Gary Fraser. Gary, good morning sir.

Good morning. Thank you for that, and thanks to everyone for attending this morning. My name is Gary Fraser, as it's just been announced, and I'm the CFO of Foresight Group. I'll be taking you through the results presentation today for the half year ended 30th September 2023. I do encourage any questions either written or verbal once we get to that point in proceedings. But -- that being said, we'll kick off. So the highlights for the last 6 months. So performance in current markets has demonstrated for success in its diversified model. So we had strong core EBITDA growth generating GBP 27.6 million, plus 28% year-on-year. AUM was resilient and marginally up at GBP 12.2 billion, just 1% up. We've benefited from high-quality revenue. So 87% of our revenues were recurring annual revenues. So within our target of 85% to 90%. And in terms of AUM, over 90% is long-duration capital, and we're experiencing no management fee pressures. The investment opportunity with our -- in our key markets continues to grow. And we've got a pipeline of total future deployment rights in international infrastructure over GBP 5 billion now, so significantly increased year-on-year. And most recently, we had a first close of GBP 50 million in a Wales investment fund and GBP 10 million for a Northern Ireland investment fund. So -- and both of those were on the private equity side, so we continue to make good progress there. In terms of profitable growth. So you can see the track record from just around about the time of IPO in 2021 at GBP 10.6 million, all the way up to GBP 27.6 million at the end of September 2023 or first half of the year. So very strong core EBITDA growth. Average over the last 3 years is 38% a compound annual growth rate, so very healthy indeed. In terms of the margin, we've fallen slightly from 42.4% down to 40.7%. That's really as a result of two things. One is that we had a performance fee just post period end, which would have driven the margin up further, but also institutional fund raising for infrastructure is expected to fall in the first half of next year as opposed to the current financial year. And that is really the driver of growth in margin going forward. That being said, I expect the margin to increase in the second half of the year closer to our medium-term target of 43%. And if you take into account recent cost savings, if we annualize those, I'm sure, by the year-end when you take into account the increase in margin with the annualized cost savings. We'd actually be there or thereabouts in terms of our medium-term target at 43%. In terms of AUM, it's been a resilient period from full year '23 up to H1 '24 at GBP 12.2 billion, I think it's probably worth saying just pausing and thinking about that for a second. We had -- although we were flat during the period, we had net outflows in our oil business of several hundred million. That was more than offset by the performance in private equity and retail fundraising. So the business overall is three divisions. It's private equity, it's Foresight capital management, our oil business and infrastructure. And overall, I'm pleased between the three of them that we've managed to produce a slight positive in terms of AUM growth. A lot of businesses out there on the investment management side have seen net outflows for a significant period of time. So when I compare our business model to a lot of those, I'm very pleased at what we've been able to achieve during the period. In terms of the business model at Foresight is probably worth explaining a little bit why we've seen such success through several economic cycles. So in terms of distribution, I'm roughly speaking, 2/3 is institutional and 1/3 is retail. And I really like that split because during periods when institutional funds are not being raised because you tend to raise funds every 2 or 3 years once the money has been invested. We're still raising retail money on a regular basis. Literally on a daily basis, we can raise money for our VCTs, our EIS is our inheritance tax fund. So very solid in terms of that balance between the two different distribution models. In terms of the investment divisions and the split of profitability between them, almost 60% is from the Infrastructure division. 36% is from the private equity division and just 5% from our oil division. The latter there having suffered from outflows during the last few months. But the other two infrastructure and private equity division showing real resilient performance during the last 6 months. In terms of the underlying investment vehicles that Foresight has, approximately 91% are long-duration vehicles made up of 65% of vehicles that are evergreen and 26% that are LP/GP structures. So limited partnerships that typically are 10 years, but can extend as far as 12 years. And only 8% being [ ANOYX ], which tends to be shorter dated money. So very pleased with how that split is formed at Foresight with a principle being that we're looking for longer duration investment vehicles because they generate higher quality revenue. Finally, on that geography. So at the point of IPO, approximately 80% of Foresight's assets were invested in the U.K. Now that's down to 57%, and that's deliberate. For two reasons. One is we made some M&A activity during the last couple of years. So we invested in a company in Australia, ICT Australia, which added significant assets to Foresight. But also a lot of the investment opportunities that we're seeing now are non-U.K. opportunities, whether that's in Australia or in Europe more generally. So we're diversifying away from being a U.K.-centric business. And I expect to see the exposure to the U.K. reduced further over the next few years as we expand internationally as business. In terms of the detail behind the financials. So you can see in terms of AUM at the period end, slightly up at 12.245 from 12.167. So only a very small nominal increase of 1%. AUM was slightly down from 9 to 8.8, down 2%. And again, the principle behind that was outflows in the [ oil ] business. However, revenue was up by a very healthy 34%, up at GBP 67.8 million from GBP 50.7 million. So very attractive increase. And that is really a result of the full year impact of last year's organic fundraising as well as the M&A activity that I talked a little bit earlier on. Recurring annual revenue, as I mentioned right at the very start, was healthy at 87.3%, well within our target of 85% to 90%, and I would expect that to continue going forward. Core EBITDA, up from GBP 21.5 million to GBP 27.6 million, plus 28% period-on-period and core EBITDA margin at 40.7%, down slightly from 42.4% but I'd expect that to increase, as I said, in the second half of the year as a result of both revenues being generated but also some cost savings that we've implemented more recently. Finally, in terms of shareholder returns, the interim dividend will be 6.7p, and that will be paid on the 26th of January 2024. That's a 46% increase period-on-period. Again, very healthy. And so I think overall, that brings the yield on Foresight stock based on the current share price to about 5.1%. So in terms of how attractive it is a stock and an income generation stock, it's very attractive indeed. So just in a little bit more detail, the assets under management bridge. So we started the period at 12.2. Inflows and outflows roughly the same at GBP 0.4 billion. But it's worth saying that there's a difference between the inflows and the outflows, principally the outflows were oil cap flows, which tend to be lower margin outflows and the inflows tended to be on higher-margin products. So that overall mix, albeit flat is better in terms of both profitability and revenue generation. Some market movements in terms of valuations of GBP 0.2 billion down, but also debt under management increased, and that would be principally around infrastructure assets made. We had a small amount of FX foreign exchange movements, principally coming through as a result of European and Australian assets. So in terms of the 34% year-on-year increase in revenues from GBP 50.7 million up to GBP 67.8 million. So that GBP 17.1 million increase almost evenly split between organic growth and acquisition growth. But just going down into the details, GBP 7.7 million of the growth is organic and GBP 9.4 million related to the acquisitions of principally the Australian acquisition that I talked about a little bit earlier on. In terms of H2 FY '24, revenue will benefit from a full 6 months of management fees relating to higher-margin retail and private equity fundraising delivered in the first half of this year. With further retail and institutional fundraising two private equity funds, as I mentioned earlier, were launched in November. And we've already seen some incremental performance fees generated in the second half, approximately GBP 1.85 million delivered in November this year. So all the signs are very good in terms of revenue generation and profitability for the second half of the year. In terms of costs, it's always worth keeping a tight rein on costs, especially in a high inflationary environment, but why did costs increased during the period? Well, they're up 8% year-on-year on the rebased H1 FY '23 costs, principally because there was an average 7% salary increase for staff, reflecting say at higher inflationary environment, GBP 0.6 million increase following FY '23 reviewed senior staff remuneration by Korn Ferry, and there was a split of performance fees between the house and staff as well, which roughly generated GBP 0.35 million of additional costs. The full year increase in cost is expected to be around about 10% over and above the FY '23 rebased cost of GBP 76.7 million. And in terms of H2 FY '24 cost-saving initiatives, they are estimated to save GBP 1.9 million on an annualized basis. Our effective tax rate is unchanged at 20%. In terms of profitability, 28% year-on-year increase, up from GBP 21.5 million to GBP 27.6 million . That's 28% year-on-year, as I said. So very successful year and year-to-date fundraising into higher margin and longer tenure vehicles has driven that growth. The annualization of the FY '23 M&A activity has added GBP 3.8 million into profitability and as we said earlier, we're maintaining firm cost discipline and looking for cost savings wherever we can. We achieved the 40.7% core EBITDA pre [ SBP ] margin in H1 FY '24. And as I said, that's expected to increase in H2. And we remain confident in growing this margin as the business scales. So the key to unlocking further growth in the margin will be increases in institutional fundraising. And it's probably worth just saying that although there hasn't been material amounts of that on the infrastructure side during calendar year '23, we expect that to really accelerate in the first half of calendar '24. And that will be a critical success factor in the future. And it's one that I'm very confident on delivering. And next time we speak, I expect to be in a position to tell people about the success we've had in institutional fundraising. In terms of the outlook, so there's two principal levers to deliver further profitable growth. Focused approach to fundraising and M&A activity. So just taking each of those in [indiscernible]. So on institutional infrastructure, there's an initial power transition renewable energy generation. So we're looking at ARF, which is an Australian fund, an existing GBP 1 billion yield pay core plus energy infrastructure fund, but a diversified portfolio of wind, solar and hydro investments in Australia. So we're really looking to raise new funds for that and expect to be in a position to announce a successful first close during the first half of next year. In terms of [indiscernible], it's concentrating on systemic power transition. And so it's in areas like renewables, flexible generation and grid assets. So a good example would be battery storage or interconnectors between a different countries. And in terms of the wider net zero transition, we've got an international hydrogen fund that's seeking to develop and build a portfolio of low-carbon hydrogen and power to projects across the OEC country -- or OECD countries. On the institutional private equity side, there'll be a further rollout of our regional strategy currently with 14 active funds. So in that rollout, I would expect new funds covering new regions that we're not already in, but also new funds within existing regions where the existing fund may be in its runoff phase. On the retail side, we've got a successful ongoing fundraising near 50 in-house sales team generating inflows not only for our [ OICs ] but also for IHT, VCT and EIS funds. And if you excluding the OICs, I expect us to have a record year in retail fundraising this year. It's got off to a great start on the IHT and on the VCTs, both accelerating as we head towards the tax year-end. And so I think if we can continue that momentum into Q1 next year, it will be a record retail fundraising year for Foresight Group. In terms of M&A activity, we continue to apply a disciplined approach to assessing the market and deals will only be considered if they're accretive. This enables us to leverage our proven track record in this space. It's worth saying that I think at the moment, there's a bit of a disconnect between private market valuations and public market valuations, which means that vendor expert pricing expectations are still higher than I would like. That said, it makes it difficult for us to buy them with paper, our stock, if you like, because of our current rating. Therefore any acquisitions we do, they have to be at the right price and are more likely to be in cash as opposed to stock. In terms of summarizing everything that I've just said in terms of turning through the slides there. So in terms of growth, our 3-year rolling average target remains 20% to 25% growth in AUM and we're currently at 22%. Our focus is on high-quality earnings, so 85% to 90% target for recurring annual revenue, and we're currently at 87%. We've got a high degree of visibility in FY '24 earnings and FY '24 revenue will benefit from a full year of fees and significant FY '23 AUM growth, a combination of both organic and inorganic, as I mentioned earlier. In terms of operating leverage, our target for margin remains at 43%, even though we're currently at 40.7%, I expect the full year margin to be above that. And in terms of operational leverage going forward, this will be delivered through institutional infrastructure fund raising, which is the real key to unlocking driving that margin forward. Finally, in terms of shareholder alignment, I mentioned 6.7p interim dividend a little bit earlier. That is reflective of a 60% dividend payout ratio, which we expect to maintain. I think any excess cash over and above that, we would look at opportunistic buyback opportunities as well as M&A activity that I mentioned a little bit earlier on. That's a sort of a whistle-stop tour of the interim results for the period. Hopefully, that gives people a flavor of the success that we've had, but also a little bit of a hint of the outlook for the rest of the year and beyond. I think the key to driving performance going forward will be fundraising. And on that, I think private equity continues to fire on all cylinders, both on a retail and institutional basis, raising funds on both sides. I'm starting to see on the OIC part of the business, an increase both in terms of inflows, but in terms of performance as well. So I expect November's AUM to be higher than October's AUM on the basis of full oil flows, but also the performance of the underlying OIC investments as well. So I'm not going to call a change in the market there because the macro is still a little bit uncertain in terms of interest rates, albeit I hope that short-term interest rates have reached a peak based on recent inflation numbers in the U.K., the U.S. and Europe. So that will really benefit the OIC part of the business. I think as well it's worth saying that in that oil part of the business, we've signed up distribution agreements, not only in the U.S. and Europe now, but we've also focused in the U.K. by hiring a specific team that is OIC only focus. So when that market turns around, which I expect to be during the first half of next year, I really think that we're well positioned in terms of driving inflows into the oil part of the business. To give you a flavor due to the sort of high interest rate environment, that part of the business has gone from GBP 1.6 billion down to about GBP 900 million. I firmly believe that, that part of the business can be a multibillion pound part of the business and really helped drive AUM and profit growth going forward. So I think the key to unlocking that is not only distribution, but it's obviously also the right macroeconomic environment. We have the distribution in place and I think the macro environment is coming towards those strategies. Finally, on the infrastructure side, the key for next year is to raise institutional fund raising. There are a number of funds that I mentioned earlier that we're focusing on. [indiscernible], as I mentioned, pan-European infrastructure into the energy transition, international hydrogen funds, but also ARF in Australia, which is core plus infrastructure that we expect to raise both from existing LPs in Australia, but also new international LPs, both in Asia and beyond. So I think that gives you a summary. I'm very happy to take questions should there be any at the moment.

Perfect. Gary, thank you very much indeed for your presentation this morning. If I may just jump back in there before we look to take those questions. [Operator Instructions] Gary as you can see there we have received number of questions throughout your presentation this morning. I thank to all of those on the call for taking the time to submit their questions. Liz, if I may now hand over to you just to chair the questions. And if I could just ask you to read those out and give your responses where it's appropriate to do so, and I'll pick up from you at the end.

So we've a number of questions, as [ Dave ] has pointed out, sometimes through this that we've taken through as per order. So Gary, just kicking off. We got a question about what are the main trends that you consider or look at when identifying investments opportunity?

So I mean, I think in terms of -- if I look at infrastructure, which is the largest parts of Foresight Group, the energy transition and decarbonization agenda, is the biggest opportunity or trend that we've seen in a generation in terms of not only the ability to raise money but to deploy money. Our current deployment pipeline in that space is over GBP 5 billion. And I think if anything, it's going to get larger, not smaller. So I think the opportunity for us is to raise that money and invest it because we're effectively one of a few experts in that space that has a soup to nuts approach. So we manage the assets as well as making the investments. We've got a full 360 service. And I think that -- more and more, we're going to see opportunities in that space, more rollout opportunities. And then there's adjacencies. So hydrogen is effectively adjacent to our core infrastructure offering. So we're looking for opportunities that deliver returns to investors on the one hand. But within that, I think there's sectors within it. So there's renewable energy generation. There is storage capability. There's flexibility that I mentioned earlier, the interconnectors offer. There's hydrogen, this compressed natural gas for HGV vehicles, so there's subsectors within sectors. So I think what we're looking for are sectors that provide the right risk-reward return for investors on the infrastructure side. And I've named a few areas there that strike a chord with investors and that we're actively raising money for. On the private equity side, certainly, on the MBO side, the real key there is looking at businesses that can scale, but also have exceptional management teams. And so those are the core, the core principles that we're looking for there. And to give you an example, our Northwest fund, which has formed in and around the Greater Manchester area has an exceptional track record, I think the IRR there is about 35%. It made 17 investments from a fund of just under GBP 40 million, seven investments have been sold, and I think the average multiple of those seven investments is about 6x or 7x. So we're making good investments within a variety of sectors. But I think the one core factor that we see on a regular basis as well as the market that they're at is also that you've got exceptionally good management teams. So there's certainly different things there between the different divisions. Management teams are important, as I say, on the private equity side. On the infrastructure side, that's [ less ] of the case because often you're making direct investments into assets, whether that's wind turbines or solar, et cetera. So it's really been able to drive into sectors that generate the right risk/reward profile for investors.

Just building on that a little bit or taking your answer on it is -- during the presentation, you talked about an expanding geographic diversification. And by -- that also translates to actually reducing our [indiscernible] in the U.K. given we were OE-centric business a number of years ago. And the question is about is the current U.K. market weakness, not a good time to be investing more heavily at these market loans.

Investing into the U.K. .

Yes. .

I take the point. I think the problem is that we're still seeing better returns in non-U.K. assets and non-U.K. investments. So when we see investments in the U.K. the competition tends to be higher, and that tends to drive prices up and turn stock. And so we're just not seeing the right risk-reward return on assets in the U.K. at the moment. I think -- the one area I would say with that is not true, and we are active investors is in development pipeline. So development pipeline in the U.K. is an area that we're very active in, and we are seeing attractive enough returns in that space. So we're not doing nothing in the U.K. but we're not doing secondary asset purchases in the U.K. because the return profile is just not attractive enough for our investors.

That makes sense. And just a final one on the geographic theme for now. Would like an update on progress in terms of attractive in flows from North America.

So in terms of -- we signed a distribution agreement for our oil business with Cromwell Funds at the end of January this year. We're seeing inflows in that part of the business in the U.S. There are small inflows but inflows nonetheless. But the same macro restrictions are true in America as they are in the U.K., namely, there's high interest rates. I expect interest rates to fall more quickly in North America. So I expect to see inflows into our oil products increased during the first quarter, if not the first half of next year. First year was always going to be principally about marketing our products in the U.S. I think we've done that over the last 11 months since we did the deal. So I really do believe that, that set us up for flows to come through from North America during calendar year 2024.

Thanks, Gary. And I suppose just building on that one to some extent. So you just outlined the significant opportunity we have with SEM. But believe that it's been potentially not the best period of performance for it. So has -- is there any opportunity to adjust fixed costs in that side of the business in order to realign that with the drop in revenues that we've seen? .

I think the answer is yes, and we've done that. I think it's also true to say, as I mentioned earlier, we've looked to reducing cost and resourcing appropriately across the whole business, and that's led to GBP 1.9 million of annualized cost savings. Some of which comes through for FCM. So it's a very pertinent question. And absolutely, that's something we have looked at and we have done. .

And then just one -- a couple here to touch on valuation. So I think it might be helpful for this audience. If you could just go through a little bit in terms of the valuation process that we've gone through into that Foresight in terms of how that works and how external parties get involved? And then specifically, how any private equity valuations have changed given our exposure to [indiscernible] Capital of private credit recently.

Yes. I mean I think in terms of valuations more generally, first, the infrastructure. They tend to be valued on a discounted cash flow. So the key there is your discount rate and discount rates have been going up over the last 6, 12 plus months because interest rates have been going up. So the sort of the delta between your risk-free rate and your discount rate has been going up as interest rates have gone up. But at the same time, valuations haven't moved materially because despite the discount rate going up, revenues have been going up because energy price inflation has been going up as a result of two things. One is just generally caused by geopolitical events like the war in Ukraine, but also because revenues and a lot of subsidy-based assets have an annual RPI linking, and therefore, you've got your revenues going up, your discount rates going up, but you're not seeing huge amounts of volatility in the underlying valuations. Of course, you're getting movement, but it's not as much volatility as you might have expected in a higher interest rate environment. In terms of the private equity side, principally profit-based assets, you would look at a public-based comparatives. And you would take a discount to that to get a price earnings multiple and make an appropriate calculation on that basis. I think. So as the market has been moving up or down, the valuation of our underlying assets will move up and down as well. And that's true of MBOs as it is a venture capital as well. I think the key determining factor of whether you're getting valuations right or wrong, is whether or not you're selling the ultimate asset at a profit to what you're holding it at. And I'm pleased to say that on most instances, if not virtually all instances, we're selling assets for a premium over what they're being held out in the book. So we are getting the valuations correct on that basis.

And then talking about valuations at a higher level. So the valuation of Foresight Group. And there's a comment that markets that seems to undervalue the business as it is, which might be a current cyclical challenge or it might be something else. The question referenced is that the chairman has previously said at the share price and an interview with the times. The oil price will go up, and will stay in the market where we'll get [ reasonable ] price all [indiscernible] again. And the audit is just interested in your view.

So I think on the back of the results that we've just generated, we're delivering profitability, 28% increase year-on-year. that sets us up to have a good second half of the year, which will be a stronger half. I think consensus for the year is about GBP 59 million. I'd like to think we can achieve or even exceed that as a target. So my focus is on driving performance. And I think if we're growing profitability at these levels, 20%, 25% a year in addition to AUM at the same level, the share price will have to go up because we're delivering year after year after year. So I think you will see it at a sensible price in the future. I think it will go up because of how we're delivering. And I think fundraising in FY '24 will be the catalyst for driving the share price up. So my view is continue doing what we're doing, continue delivering on profitability and AUM targets, raise our funds next year and the share price will take care of itself.

And then I just got a couple of more technical questions on cost that I like to cover. The first being, what exactly is SBP and what is driving the increase in this measure for the most recent period?

So SBP is Share-Based Payments. And what's driven in the most recent period as part of the acquisition in Australia, part of the acquisition was done through shares. And so those shares go through the profit and loss account, if you like, is a share-based payment and they have to be treated as such. Normally, in the old days, when I was a trainee, that would have gone through as an acquisition cost, but things have developed since then. I was going to say go better, but I think will just say developed. And now that because most of the people when we made the acquisition have stayed on, and they are the beneficiaries of the share-based payments, it actually gets treated as post-transaction remuneration and therefore, that's why it's increased so much in the period. And there will be a bit of volatility because we'll have to value that on an annual basis. And so we will see some volatility in the number going through the P&L for share-based payments as we value the deferred consideration of the acquisition aim between now, and I think it's about 2025, 2026.

And then just more broadly on administration expenses. So I think it's worth potentially highlighting how well these have been managed in the period. But there are some variations within that and some fairly large swings. One of those being that there's been a quite significant increase in the admin expense within the private equity segment. I wonder if you could give a bit more color on that and the question is whether that's temporary or permanent increase?

Yes. So the first thing is on the increase on the PE side. So principally, this year, we had our BCT fund launches, all of the work went into that. So they're earlier this year than they were last year. So the work that was done to launch the two prospectuses was done earlier. And so you're seeing all of that in the first half, whereas most of it we've seen in the second half last in the prior year. Now the benefit of that is that we're actually seeing a much quicker fundraising season for the BCT. So we launched them earlier, but also because of performance, 1-, 3- and 5-year performance, the money is coming in at a quicker rate than prior year as well. So we're likely to close one of them potentially even this month in December. And the other one in January. So we put all the work in early. They're likely to close much earlier. Last year, I think we closed both of them probably in April time, but I think they're likely to close much, much quicker. So the investment was earlier, but the money is coming in earlier, and so it will generate more revenue. So it was worth spending the money earlier in the year to generate those additional revenues. I think we've also had some abort fees on certain funds that maybe didn't take off, but those weren't material amounts. But I think additionally, we're looking ahead at the future of Foresight. There's a lot of talk about making efficiencies within IT, a lot of talk about AI and how that can help business processes. And so that's something we've been investing in that will ultimately save us cost in the future. So there's a number of reasons behind it. Hopefully, those core reasons give you some color on the reasons behind the increase. But ultimately, I would expect what we're doing now to yield more revenues going forward, but also to save costs going forward.

And I suppose just on the back of that, do you think you were now as a business in the right space in terms of cost? Or is there a significant investment that is needed? Or what's the trajectory of costs going forward?

So I think our key cost is our personnel cost, and I think we're in the right place there. I have no idea of what salary increases will be next year. But it feels like we're beyond the worst of the high inflationary environment. So imagine the average annual salary increases next year will be lower than this year. And therefore, I'd like to think that overall, our costs -- the increase in cost next year will be much smaller than they have been this year, while at the same time, getting a benefit in terms of increasing revenues. So overall, I think that will be the key. As I said earlier, that will drive margin and we should see margin increasing next year. .

Perfect. And then during the slide, you mentioned the company benefits from long-duration capital. And there's been a question here just in terms of can you provide some color on amortization periods of customer contracts. As these seem low, I wonder if there's any link between these things or give a little bit more color in terms of electric customer contract.

So I mean, on average, LP/GP structures tend to be 10 years, 10 plus 1 plus 1. Over the last couple of years, we've raised a lot of funds. I'm principally in the private equity space. So we raised four last year. We've already raised two this year. So that's six funds that have a 10-year potentially 12-year life. We also have several investment trusts and closed-ended funds. They are multiple billions of pounds. So they have -- they're effectively evergreen. And we have one or two LP/GP structures that are evergreen as well. Additionally, our Australian funds effectively evergreen funds as well. So there's a number of large private equity and institutional funds that are either closed-ended, so no effect of fixed life or they have long-dated assets that we've raised recently. So -- which helps us really because infrastructure assets tend to be 30-, 40-year assets. So being able to take a long-term view when we're investing, I believe, is ultimately an investor's best interest.

That's it from Q&A for this morning. So thank you, Gary, and I will pass back to Dave.

Perfect. Gary, Liz, thank you very much indeed for addressing all of those questions that came in from investors today. And of course, if there are any further questions that do come through, we'll make these available to you immediately after the presentation has ended, just few to review to then add any additional responses, of course, where it's appropriate to do and we'll get all those responses published on the platform. But Gary, perhaps before really just looking to redirect those on the call to provide you their feedback, which I know is particularly important to yourself and the company. If I could please just ask you for a few closing comments to wrap up with, that would be great.

Sure. So hopefully, you've heard from me today about the results. The outlook going forward, I think, is very positive, both for the remainder of this year to March '24 and beyond. I think 2024 will be a banner year in terms of fundraising for Foresight, and that gives me a lot of confidence in terms of continuing to deliver on what we've already delivered building on that in the future. We've had 3 good years since IPO, and I expect the fourth year to be to be -- to build on that in terms of performance and delivery. So my final words would just be thank you to everyone that's dialed in today to listen to me talk about Foresight. If there's anything that you didn't feel that you could ask now and you want to reach out to the company going forward. By all means, please do that, I'll be happy to answer questions directly as well. Thank you to our hosts for hosting it. It's been very successful again. And on that, I wish everyone a very good Monday and the rest of the week. Thank you very much.

Perfect Gary. That's great, thank you once again for updating investors this morning. Could I please ask investors not to close this session as shall now be automatically redirect for the opportunity to provide your feedback in order that the management team can really better understand your views and expectations. This will only take a few moments to complete, but I'm sure it'll be greatly valued by the company. On behalf of the management team of Foresight Group Holdings Limited, we would like to thank you for attending today's presentation. That now concludes today's session. So good morning to you all.