London-based Gravis Capital Partners, a fund manager, announced today that it is seeking to double the size of its fledgling subordinated debt fund – GCP Infrastructure Fund – through a new share issue.
Gravis is seeking to raise £60 million (€69 million; $96 million) in new equity via its feeder fund listed on the London Stock Exchange, GCP Infrastructure Investments. If Gravis manages to raise the full amount it set out to raise, it will effectively double the size of its £65 million subordinated debt fund, to date fully invested. The new issue is scheduled to close in mid-December, Gravis said.
Proceeds from the new fundraising will be used mainly to capitalise on a “significant pipeline of opportunities available,” Gravis said. However, part of the issue might also be used to pay down debt related to a debt facility which is currently being negotiated for GCP Infrastructure Fund.
Recently, the fund provided up to £15 million in loans to a portfolio of some 1,500 domestic solar panel installations in England. Gravis said the loans were being financed primarily using “significant recent and ongoing inflows of capital into the Master Fund [GCP Infrastructure Fund, an open-ended structure], but that it might also draw down on the above-mentioned debt facility to pay for the loans.
Gravis’ debut £65 million PFI subordinated debt fund was fully invested in May. The firm raised £40 million earlier this year through its listed feeder fund to help fund the Master Fund. GCP Infrastructure Fund is targeting returns of 8 percent.
In related news, Gravis said it is holding its first annual general meeting on November 11, where it will discuss the new share issue and seek to implement the statutory changes required to carry it out.