The Gravis GCP Asset Backed Income team is currently seeing opportunities in football finance and compressed natural gas (CNG) stations to provide investors with long-term stable income.
In the latest Portfolio Adviser video interview, Joanne Fisk, an associate at Gravis working on the GCP Asset Backed Income fund, says the return on loans to CNG stations and football companies has been a particularly attractive source of income.
She explains how in recent years supermarkets and haulage companies have increasingly moved away from diesel vehicles which has created a opportunity to tap into CNG stations where these vehicles refuel.
The team also made its first investment in football finance last summer and has become a sub participant in projects funding on an English Premier League club and one in Spain’s La Liga.
Fisk explains how these loans are secured against the clubs’ broadcast revenues over the current and upcoming seasons. The amount each club receives depends partly on performance but is also based on a formula which enables Gravis to set out a minimum base case on which to size its loans.
Elsewhere, Fisk outlines the fund’s philosophy and process as well as some of the other areas it is loaning money to companies, including student loans and domestic boiler companies.
Watch the video above for more.