Key Takeaways
- • Schroders proposed taking over the investment mandate of GCP Asset Backed Income (GABI) from Gravis earlier in 2023, according to Investment Week.
- • The trust was hit by two sudden fund manager departures and a set of bad loans, prompting the approach.
- • Schroders' pitch reflects a re-focus towards real estate debt, per the reporting.
- • The primary source provides limited detail on deal terms, fee structures, or the outcome of the approach.
Summary
Schroders approached GCP Asset Backed Income (GABI), the investment trust managed by Gravis, in an effort to win its investment mandate earlier in 2023, Investment Week reported on 4 October 2023. According to the publication, the approach followed a period of turbulence at the trust, which suffered two sudden fund manager departures as well as a set of bad loans.
The proposed transition would have seen Schroders assume management of the GABI portfolio, a move that Investment Week linked to the asset manager's re-focus towards real estate debt. The report indicates the bid was made earlier in the year, but the primary source does not detail the size of the mandate, the proposed terms, or whether the trust's board or Gravis progressed the discussions.
For institutional allocators, the story illustrates how manager departures and credit underperformance in asset-backed income vehicles can trigger competitive mandate reviews among larger managers seeking exposure to real estate debt. Further details on the outcome were not available in the source material reviewed.
The proposed transition would have seen Schroders assume management of the GABI portfolio, a move that Investment Week linked to the asset manager's re-focus towards real estate debt. The report indicates the bid was made earlier in the year, but the primary source does not detail the size of the mandate, the proposed terms, or whether the trust's board or Gravis progressed the discussions.
For institutional allocators, the story illustrates how manager departures and credit underperformance in asset-backed income vehicles can trigger competitive mandate reviews among larger managers seeking exposure to real estate debt. Further details on the outcome were not available in the source material reviewed.
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