GCP SOVEREIGN Debt Infrastructure, a UK-based investment firm, is launching a $250m (£156m) debt infrastructure fund to provide financing for major power and water projects in the Gulf, it emerged yesterday.
GCP, which plans to list on the London stock market’s specialist fund market by December, has partnered with frontier markets investment bank Exotix on the new vehicle. It will be run out of Dubai, led by Exotix’ chief executive Philip Southwell. Stephen Ellis, a partner at GCP, told City A.M. he expects to have invested the full $250m within six months of closing, so that the firm can start generating returns.
He said that the firm has already agreed terms with its core targets, which are major water desalination plants and power plants.
GCP plans to invest in floating-rate, subordinated debt, unlike its UK vehicles, in projects with an operational track record of one to ten years, with a particular focus on Saudi Arabia and Abu Dhabi.
GCP launched an investor roadshow in the UK last week and has launched one in the Gulf this week, mainly aimed at institutional investors.