CHICAGO, June 23, 2021 — GCM Grosvenor (Nasdaq: GCMG) (the “Company”), a global alternative asset management solutions provider, announced today that it successfully upsized its existing Term Loan by a principal amount of $110 million. The net proceeds will be used to repurchase certain fund investments and rights to future carry associated with Mosaic (collectively, the “Mosaic Assets”). GCM Grosvenor was able to secure a $13 million discount to the purchase price.
The Company has provided notice to exercise the repurchase option for the Mosaic Assets at an estimated net purchase price of $163 million, inclusive of the $13 million negotiated discount (the “Transaction”). Based upon values as of March 31, 20211, GCM Grosvenor will repurchase assets of $238 million, consisting of direct investments in its funds valued at $87 million and unrealized carried interest valued at $150 million. In addition, GCM Grosvenor will acquire rights to additional future carried interest associated with $423 million of carry dollars at work. The Mosaic Assets generated realized carried interest earnings of $14.7 million over the twelve-month period ended March 31, 2021 and realized investment income of $1.5 million over the same period.
The Transaction is expected to close on July 2, 2021 and will be funded by a combination of balance sheet cash and the net proceeds from the incremental Term Loan.
About GCM Grosvenor
GCM Grosvenor (Nasdaq: GCMG) is a global alternative asset management solutions provider with approximately $65 billion in assets under management across private equity, infrastructure, real estate, credit, and absolute return investment strategies. The firm is in its 50th year of operation and is dedicated to delivering value for clients in the growing alternative investment asset classes.
GCM Grosvenor’s experienced team of approximately 500 professionals serves a global client base of institutional and high net worth investors. The firm is headquartered in Chicago, with offices in New York, Los Angeles, Toronto, London, Tokyo, Hong Kong, and Seoul. For more information, please visit: www.gcmgrosvenor.com.
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the use of proceeds from the Term Loan and the closing of the Transaction. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including without limitation, the historical performance of GCM Grosvenor’s funds may not be indicative of GCM Grosvenor’s future results; risks related to redemptions and termination of engagements; effect of the COVID-19 pandemic on GCM Grosvenor’s business; the variable nature of GCM Grosvenor’s revenues; competition in GCM Grosvenor’s industry; effects of government regulation or compliance failures; market, geopolitical and economic conditions; identification and availability of suitable investment opportunities; risks relating to our internal control over financial reporting; and risks related to the performance of GCM Grosvenor’s investments. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” sections of the Annual Report on Form 10-K/A filed by GCM Grosvenor Inc. on May 10, 2021 and its other filings with the U.S. Securities and Exchange Commission. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and GCM Grosvenor assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.
Source: GCM Grosvenor
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1 The value of the Mosaic Assets is subject to change based on interim cash flows and changes in values between March 31, 2021 and actual Transaction date