Designing the future
Foster + Partners’ iconic structures have inspired the world for four decades. As the firm embraces new growth opportunities, 3i’s global network and infrastructure expertise make it the perfect partner.
A revolutionary practice
In 1967, Norman Foster established a London-based practice that was to transform the perception of architecture globally. Over the next four decades, the firm grew into a world leader, designing a series of unforgettable buildings that were breathtaking in their conception, yet human in their concern for people, place and the environment. Distinctive additions to the landscape, the structures designed by Foster + Partners range from ground-breaking office buildings, such as New York’s Hearst Tower and London’s Swiss Re HQ, through to cutting-edge transport architecture, including the Bilbao Metro and the new Beijing airport.
In order to remain at the forefront of architectural design, Lord Foster refocused the firm in 2004 by reorganising its 1,000-strong workforce into design groups. These close-knit teams are hubs of creativity, guided by a design board of esteemed architects who champion the Foster + Partners hallmarks: excellence, innovation and service.
Forward looking
By 2006, Lord Foster’s focus on the future reflected three clear themes: Helping the firm make the most of international opportunities – in particular, the massive upgrade of Asian infrastructure; Creating more opportunities for equity stakes in the business – rewarding top executives and creating a tool to attract and incentivise the best talent; Enabling Lord Foster to combine his role as Chairman with increased time for his passions – innovative new structures, city planning and sustainable design. To achieve these aims, Lord Foster identified the need for a very special partner – one who would not only make a financial investment but genuinely engage with the firm’s pioneering vision.
Natural partners
From discussions with a number of potential investors, it quickly became clear that 3i was a natural fit for Foster + Partners. 3i’s emphasis on partnership and sustainable development matched the firm’s guiding beliefs. Furthermore, 3i has a long-standing track record of helping businesses create flexible new ownership structures and build global scale. The Growth Capital investment has significantly expanded the shareholder base to include management and employees. The ownership of Foster + Partners now includes all the senior partners within the practice, increasing the number of senior management shareholders from four to fourteen, whilst a further allocation of shares has been reserved for internal promotion and external recruitment purposes.
As the nations of Asia reinvent their built environment to support growth, 3i’s established infrastructure expertise will be immensely valuable. In India, where infrastructure opportunities are expected to total €240bn in the next five years, 3i’s strategic partnership with the government-backed India Infrastructure Finance Company delivers access to some outstanding projects. In the words of Lord Foster: “We’ve been very fortunate because we’ve found an investor that’s really quite special, an investor that shares our own agenda, with parallel, long-term interests in infrastructure, new markets and Asia. It’s very much a partnership.”
Bold ambitions
3i’s acquisition of a minority holding in Foster + Partners took effect in May 2007, in one of the largest ever deals for the UK Growth Capital business. Steve Nicholls, head of UK Growth Capital who has joined the Foster + Partners board, is clear on the rationale for the investment: “This is a fantastic partnership of two industry leaders with complementary global footprints. Foster + Partners has big ambitions and we’re looking forward to working with the management team as they expand and diversify their business.” The doors opened by 3i’s offices and contacts across Europe, Asia, the US and the Middle East will help the firm increase its international presence, and broaden its services to include complementary activities, such as project management.
At €130bn, the global market for architectural services is vast, yet the top ten participants, including Foster + Partners, account for less than 1% of the total – offering huge opportunities for growth. As Foster + Partners and 3i work together to seize these opportunities, new landmark structures will appear across the globe – doubling the size of the business and helping to make the second 40 years as inspiring as the first.