On 13 December 2023, GCP Asset Backed Income Fund Limited (LSE:GABI) announced that its board (the "Board") would be commencing a strategic review to consider how it may best deliver value to shareholders (the "Strategic Review"). Following a further announcement on 29 January 2024, the Board has engaged extensively with shareholders in seeking feedback to inform its decision-making process. As part of this process, the Board has specifically sought shareholders' views in respect of i) the potential continuation of the Company in its present form in accordance with its current investment policy delivered by Gravis Capital Management Ltd, the Company's investment manager (the "Investment Manager"), paired with a partial capital return ("Continuation"), ii) a wind-down of the Company with an orderly realisation of its assets (the "Orderly Realisation") and iii) a potential sale of the entire issued share capital of the Company and/or its assets (a "Potential Sale").

Feedback on the future strategic direction of GABI has been provided to the Board by shareholders representing a majority of the total voting rights in the Company. Whilst differing views have been expressed by shareholders on the future of the Company, a majority indicated a preference for an Orderly Realisation or a Potential Sale. Further, whilst a minority of shareholders indicated a preference for Continuation, the Board believes that the likely scale and take-up of returns of capital that would be necessary to provide an exit for shareholders would be substantial and that, as a result, the Company would no longer be of a viable size to provide sufficient liquidity and scale.

Alongside shareholder feedback, the Board has also considered the prevailing and persistent discount to net asset value at which the Company's shares have traded over the course of the past 18 months, the liquidity of trading in its shares, and the limited prospects for achieving greater scale in the foreseeable future and wider market conditions. Accordingly, the Board has reached the conclusion that shareholder value will be best served by a proposed orderly realisation and return of capital. The Board will explore all avenues for optimising shareholder value.

Parties interested in a Potential Sale should contact Barclays. Alex Ohlsson, Chairman of GABI, commented: "The Board thanks shareholders for the constructive feedback provided as part of the shareholder engagement process. The extensive feedback has been invaluable in informing the Board's decision-making process and in formulating proposals for an orderly wind-down of the Company".