GCP Infrastructure to consider new allocations as PFI has 'come and gone'

Currently 25% of the portfolio is in PFIs

Phil Kent, manager of the £1.1bn GCP Infrastructure investment company, will need to shift the portfolio asset allocation in the coming years as opportunities in private finance initiatives (PFI) have “come and gone”.

"PFI is a bit of a dirty word in the UK," Kent said. "The government has been pretty explicit over the last five years that they do not want to use those public-private procurement models to finance new infrastructure. "The sort of infrastructure that PFI/PPP (public-private parnerships) benefited - things like leisure and education - is today being funded by central government balance sheets." Kent tends to hold about 25% of the portfolio in PPPs. The weighted average life of an investment in the 11-year-old company is 13 years. As the cash comes back from those assets the mana...