An asset-backed lending fund run by infrastructure investors Gravis Capital Partners (GCP) announced today it was considering a further £70m fundraise through a new share issue.
This latest raise for the GCP Asset-Backed Income Fund (Gabi) brings the total raised this year to £150m, an impressive feat for a fund which listed just 20 months ago.
The rapid growth is indicative of growing investor demand for debt-based strategies – especially when, like Gabi, the fund is diversified across a range of sectors from social housing to energy.
“Very importantly, we've done what we told investors we would do which has built quite a bit of investor confidence in us,” said GCP's director David Conlon.
“But it is also an interesting space, and I think there is a real desire for yield from the investor base.”
The fund, which considers itself an alternative lender in infrastructure, raised £106m when it listed in December 2015. It is now trading at a market value of more than £250m, and earlier this month lent £11.1m secured against a 70-bed UK care home.
“We're here to take advantage of the space that's been left by the bigger high street banks as they suffer from more regulation and are less able to fund the deals. We consider ourselves to be a more nimble alternative,” said Conlon.
The fund has already deployed the £80m it raised earlier this year, and is on track to its goal of raising and deploying £150m per year.