Infrastructure investments can satisfy investors’ needs for both consistent returns and sustainability goals. GCP Infrastructure Investments Limited is steeped in the market so we spoke to its Chairman Andrew Didham about the company’s 15 year history, how the firm and the market has developed and the prospects for the UK infrastructure sector going forward.
GCP was launched just after the global financial crisis – was that a challenge or an opportunity?
It was a time when traditional banks had pulled back from long-term lending and lending to non-core sectors. With new capital constraints and banks’ aversion to debt maturities of seven years or more, it presented a unique opportunity for the Company. GCP stepped in to provide much-needed capital to essential infrastructure projects.
We raised £40 million at IPO and the money was deployed across five investments. All were yielding over 9.5% at a time when the base rate was just 0.5%.
The original portfolio was entirely composed of subordinated Private Finance Initiative (PFI) investments, spread across sectors such as healthcare, education, leisure, accommodation, housing, and street lighting.
How has the portfolio evolved over time?
The Company’s evolution actually began quickly, and we became first movers or early backers of quite a few assets in the renewables space. For example, in 2011, just a year after IPO, the Company made its first renewable energy investment, lending £15 million for domestic rooftop solar panels. Today, that portfolio includes approximately 53,000 systems.
By 2013, the Company had broken new ground in the anaerobic digestion sector, with a portfolio of 15 small-scale, on-farm plants, and had become a pioneer investor in UK waste wood power stations. A year later, in 2014, GCP was among the first senior lenders to support a portfolio of supported living accommodation.
Five years after IPO, the portfolio was far more diversified, with the PFI allocation having fallen from 100% to 25%, and 75% in renewables spanning solar, biomass, wind, hydro-electric, anaerobic digestion, and asset finance. GCP was also added to the FTSE 250 Index in 2015.
In its first decade, GCP helped construct and operate infrastructure delivering a combined 3,700 GWh annually – enough to power nearly a million homes. It invested £800 million in renewables and helped displace approximately 900,000 tonnes of CO₂ each year.
How is the portfolio positioned today?
As of 2025, GCP holds £871 million in net assets across 48 investments and is still predominantly a debt portfolio. It has having delivered a total shareholder return of 178% since IPO and maintained consistent dividends for 15 years. An investor who committed £1,000 at IPO has since received £1,017 in income alone.
The make-up of the portfolio today is well-diversified and operational, with less than 1% exposed to assets in construction. There is 27% in PFI, which includes healthcare, education, waste, leisure, housing energy efficiency and justice, 14% in supported living and 59% in renewables, which include solar, biomass, wind, anaerobic digestion, hydro, gas peaking, geothermal, and electric vehicles.
Importantly, nearly half of the portfolio (49%) is inflation-protected. Total invested capital since inception stands at £1.96 billion** and the annualised gross loss ratio on capital invested is an impressive 0.41% – far lower than the equivalent high yield bond.
What is the outlook for the Company and the sector?
The UK infrastructure sector has undergone considerable transformation over the past 15 years. Sectors have risen and fallen in relative attractiveness. Solar and wind, for example, are now viewed by the Company’s investment adviser as offering lower risk-adjusted returns compared to other emerging areas. GCP’s strategy of being an early mover has allowed it to evolve with market dynamics, capturing enhanced returns and mitigating sector-specific risks.
Today, the Company invests across 17 different infrastructure segments, making it one of the most diversified investors in its space.
While the share price currently trades at a material discount to the Company’s published net asset value compared to the premium achieved post-IPO, the long-term outlook is promising.
With the UK government prioritising infrastructure through its 10-year strategy, the stage is set for renewed momentum. Structural themes such as decarbonisation, ageing populations, digitalisation, and deglobalisation also continue to fuel demand for high-quality infrastructure.
For investors, especially income seekers, GCP’s near 10% yield, share price discount and strong fundamentals could present an attractive entry point.
Disclaimer: No information contained in this article should be construed as providing financial, investment or other professional advice and should not be considered as a recommendation, invitation, or inducement to subscribe for, dispose of or purchase any such securities. Professional investors only. Capital at risk. Past performance is not a guide to future performance.
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