Real Assets
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Investment overview and market opportunity
As at 31 December 2025, the Foresight ITS fibre portfolio comprises three fibre‑to‑the‑premises (“FTTP”) alternative network operators (“altnets”).
Foresight has invested in these businesses to fund the build‑out and expansion of their fibre‑optic networks and to support the long‑term operation of those networks through the provision of high‑speed broadband services, predominantly to residential customers across the South and East of England.
Foresight ITS began investing in the fibre broadband sector in October 2020. Since that time, the portfolio companies have matured significantly, with network deployment broadly reaching the scale originally envisaged at investment. As a result, the strategic focus across the portfolio has largely shifted from network expansion to customer acquisition and penetration across the existing footprint, supporting revenue growth, cash generation and long‑term asset value.
The investment case for fibre infrastructure continues to be supported by strong structural tailwinds. UK government policy is targeting nationwide gigabit‑capable broadband coverage by 2030, alongside a clear ambition to address the rural‑urban digital divide. Demand for faster and more reliable fixed broadband continues to increase, with average monthly data usage per fixed broadband connection rising from 315GB in 2019 to 535GB in 2023.
While many households may not yet fully utilise gigabit speeds, rising data consumption, remote working, digital services and streaming are expected to drive sustained long‑term demand for FTTP networks.
Case study: Fordie Estate
Connect Fibre installs full FTTP broadband networks using fibre‑optic cables directly connected to homes and businesses. This technology enables connection speeds of approximately 1,000 Mbit/s, significantly outperforming Fibre‑to‑the‑Cabinet (“FTTC”) solutions, which typically deliver speeds of between 35 and 80 Mbit/s.
Foresight's initial investment in November 2021 supported Connect Fibre in building a network capable of passing approximately 100,000 premises across the UK. By 2024, this target had increased to around 185,000 premises, reflecting both accelerated deployment and additional strategic investment. A key component of this growth has been the company’s success in securing government‑backed contracts administered by Building Digital UK (“BDUK”), a public body tasked with ensuring nationwide access to gigabit‑capable broadband.
Unlike other portfolio companies, where network deployment has largely concluded, Connect Fibre continues to expand its network materially alongside its focus on customer acquisition. The company has secured £16.5 million of grant funding to build a fibre network in Northeast Staffordshire, passing approximately 6,500 premises, as well as a further £33 million contract in Derbyshire, covering around 18,500 premises. These projects target “white” premises - locations without existing gigabit‑capable infrastructure - where access to high‑quality broadband has historically been limited.
Competition in these rural areas is expected to be relatively low, enhancing the long‑term value and defensiveness of the networks once constructed. To date, the awarded BDUK contracts cover only around 15% of total white premises across Derbyshire and Northeast Staffordshire, suggesting further potential awards as the programme progresses. In addition, Connect Fibre can “infill” surrounding premises by extending from the same backhaul infrastructure used for the grant‑funded builds, significantly reducing marginal construction costs compared to standalone deployments.
Sustainability credentials
The ITS fibre portfolio delivers positive sustainability outcomes by improving digital connectivity, particularly in underserved rural communities. Reliable high‑speed broadband is increasingly viewed as essential infrastructure, enabling access to education, healthcare, public services and employment opportunities, and supporting broader economic inclusion.
Connect Fibre’s participation in Project Gigabit directly aligns with UK government objectives to reduce digital inequality by extending gigabit‑capable broadband to hard‑to‑reach areas. Enhanced rural connectivity supports local businesses, enables remote and flexible working, and reduces the need for travel, contributing to lower carbon emissions over time.
From an environmental perspective, FTTP infrastructure is more energy‑efficient and future‑proof than legacy copper‑based networks, requiring lower maintenance and enabling significantly higher capacity without the need for repeated upgrades. By investing in modern fibre infrastructure, the ITS portfolio supports the transition to a more resilient, efficient and sustainable digital economy while delivering long‑term returns from essential infrastructure assets.