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Gravis more than doubles fund size with new fundraise

The debt fund tapped the market for a better-than-expected fundraise of £67m, adding to the £65m it had already fully invested from the same vehicle. The fund aims to use the new money to capitalise on ‘significant investment opportunities to provide debt financing to UK infrastructure projects’.

London-based Gravis Capital Partners, a fund manager, has successfully managed to raise £67.4 million (€80.8 million; $105.8 million) through a new share issue, more than doubling the size of its fledgling open-ended subordinated debt fund – GCP Infrastructure Fund.

The raise exceeded expectations, considering that Gravis was only originally targeting £60 million in new money through its London-listed feeder fund, GCP Infrastructure Investments. Gravis’ debut £65 million PFI subordinated debt fund was fully invested in May. 

“The significant participation in the fundraise by both new and existing investors demonstrates the quality of the company’s investment proposition,” Ian Reeves, Gravis’ chairman, commented in a statement. “The fundraise more than doubles the size of the company and the additional capital raised will allow the Master Fund [GCP Infrastructure Fund] to take advantage of the significant investment opportunities to provide debt financing to UK infrastructure projects,” he added.

In a previous statement, Gravis had indicated that it might also use proceeds from the fundraise to pay down debt related to a facility which was being negotiated for the GCP Infrastructure Fund.  The latter recently provided up to £15 million in loans to a portfolio of some 1,500 domestic solar panel installations in England.

The GCP Infrastructure Fund is targeting returns of 8 percent.