Gravis Capital Partners (GCP) has announced it will list its new vehicle – GCP Infrastructure Investments – on the London Stock Exchange on July 22, according to a prospectus released by the company.
GCP Infrastructure Investments aims to raise £50 million (€61 million; $73 million) via the placement and will use the money raised to provide subordinated debt for projects that form part of the UK’s private finance initiative (PFI) – the country’s standardised process of tendering public works to the private sector.
Specifically, GCP Infrastructure Investments – which is targeting a yield of eight percent per year – will serve as a feeder fund investing all of its net proceeds from the listing in the company’s GCP Infrastructure Fund. Oriel Securities is the sponsor and sole bookrunner on the offering.
GCP Infrastructure Fund, which was launched about this time last year, has already invested in £24 million worth of PFI debt, GCP said. This amount is expected to rise to £30 million by the time of the new vehicle’s listing. Once GCP Infrastructure Investments channels its proceeds from the public listing it will become the major shareholder in the GCP Infrastructure Fund.
Stephen Ellis, managing director of GCP, told Infrastructure Investor he is optimistic on the fund’s prospects: “I think that investors are hungry for yield, stability and security and we think we have a rational investment proposal that in the current climate is very enticing,” he says.
To find out more about GCP Infrastructure Investments, check out our interview with Stephen Ellis in the July/August edition of Infrastructure Investor magazine.