GCP Asset Backed Income Fund : GABI (formerly Project Finance Investments : PROJ) aims to generate attractive risk-adjusted returns that are delivered primarily through regular, growing distributions and modest capital appreciation over the long term. It seeks to achieve this by investing in a portfolio that is comprised primarily of UK project finance debt investments. Project finance is primarily focused on long term finance of infrastructure and industrial projects. Such projects typically have contracted, predictable medium to long term cash flows and/or physical assets against which financing can be secured. The investments are typically made in a single purpose, ring fenced company that owns the contract or the asset forming the project, therefore the exposure is to the performance of that contract or asset only. The debt financing is typically secured by all of the project assets, including the revenue-generating contracts. Project lenders are given security on all of these assets and the lenders (or the highest ranking lender, if there is more than one) are able to assume control of a project if the project company has difficulties complying with the loan terms.
The fund manager’s website can be found here.
GCP Asset Backed Income Fund : GABI