Infrastructure assets are generally considered to be assets that provide the services and facilities necessary for a society or economy to function successfully. Often infrastructure assets are sub-divided into two key sectors.
- Social infrastructure assets are typically procured by government to provide services to the general public, and would include hospitals, schools, prisons, court buildings and other such facilities.
- Economic infrastructure assets are assets to support the economic development of a society, and would include roads, railways, ports, power generation and transmission, water distribution and waste treatment.
UK infrastructure assets involving private sector investment are typically constructed and maintained by a private sector entity that generates its revenue from a long-term contract with a public sector or public sector-backed client. Investment in such infrastructure projects can generate an exposure to long-dated, predictable, often inflation-protected cash flows.
Gravis Capital Management Ltd is the Investment Adviser to GCP Infrastructure Investments Limited, a closed ended UK-focused infrastructure fund which is traded on the Main Market of the London Stock Exchange with a market capitalisation of c.£700 million. To find out more please go to GCP Infrastructure Investments Limited.
In January 2016 GCM announced the launch of the VT UK Infrastructure Income Fund, the first fund to offer investors access to the UK listed infrastructure sector through an open-ended structure. To find out more please go to VT UK Infrastructure Income Fund
GCM has significant experience in student accommodation, in the last 10 years the partners of GCM have advised on the financing, development, acquisition and management of student accommodation and educational property assets with a value in excess of £1 billion.
GCM launched the first student accommodation REIT in the UK in May 2013. The Fund invests in modern purpose built private student residential and academic facilities branded and managed by Scape Student Living located in and around London where the supply/demand imbalance is greatest. To find out more, please go to GCP Student Living plc.
Asset-backed investments are investments in projects that have contracted, predictable medium to long term cash flows and/or physical assets. Investments are typically made in single purpose, ring-fenced companies which own the relevant contract or asset. Asset-backed lending brings structural benefits including tight control and transparency over project cash flows and assets.
GCM has extensive experience in originating, structuring and managing project finance investments and, in October 2015, launched Project Finance Investments Limited, a closed ended investment company traded on the Main Market of the London Stock Exchange which focuses on asset-backed investments. To find out more, please go to GCP Asset Backed Income Fund Ltd