Gravis targets £200m from listing its first global infra fund

The UK-based fund manager could seek up to £350m on the LSE, depending on investor demand, and is looking to allocate up to 40% of gross assets invested in its latest vehicle to the US.

London-based fund manager Gravis Capital Partners is looking to raise more than £200 million ($277 million; €224.4 million) from the listing of its first global infrastructure fund.

The Global Diversified Infrastructure fund is set to be admitted to London’s Stock Exchange at the beginning of next month, with Gravis looking to raise at least £200 million by issuing 200 shares at a price of 100 pence each. However, it could increase the issue size to raise as much as £350 million, depending on investor interest.

The vehicle will primarily invest in private infrastructure funds, although Gravis opened the door to making co-investments either directly or through funds, as well as investing directly in single assets or groups of assets that fall within the investment policy.

The fund will aim to generate returns of between 8 percent and 10 percent through investments in the energy, accommodation, transport and utility sectors. Gravis added that fees will be 0.65 percent on net asset value, with no performance fees charged.

While previous Gravis funds have predominantly focused on the UK, the latest offering has highlighted the US as a main driver of opportunity, in addition to Europe and Canada. A smaller percentage of the fund – 5 percent to 20 percent – will target Australia.

Gravis said it is “engaged in various stages of discussion” on a pipeline of investments with a value  topping £500 million. Typical investment sizes are set to be between £10 million and £20 million and the fund is expected to be substantially committed within eight months of the IPO.

Global Diversified Infrastructure would be Gravis’s sixth infrastructure fund, with the GCP Student and Gravis Clean Energy funds its sector-specific vehicles. However, barring isolated investments, these have largely been focused on UK investment. Its offerings have also typically been debt investments, although the new fund will have a focus on “providing equity-like exposure to infrastructure projects”.

The firm had about £2.3 billion of assets under management, as at the end of last year.