To date, the fund’s five investments have generated approximately 3.1 million union work-hours across multiple locations in the U.S. and Canada, and are projected to create over $4 billion in total economic impact. The full report can be found here.
“We maintain our conviction that aligning key stakeholders – including union labor, government, and private capital – when pursuing infrastructure investments is an effective strategy for generating strong risk-adjusted returns,” said Michael Sacks, Chairman and Chief Executive Officer of GCM Grosvenor. “The Fund’s performance and impact the Fund’s investments have made are testaments to this approach, and we are thrilled with these outcomes.”
“We are pleased that our investments continue to show progress,” said GCM Grosvenor Managing Director Jorge Ramirez. “LIF projects are hitting key development milestones and completing on budget, which in turn helps drive investment value for our clients.”
The Fund’s investments are also projected to create a combined $1.8 billion in wages and $480 million in local, state, and federal tax revenue for their regions.
“As we execute our existing investments and seek new ones, we are committed to our view that a labor focus can add value to infrastructure investments,” said Ramirez. “And, when combined with the increasing benefits to workers and their communities, we view this as a truly superior approach.”
About the Labor Impact Fund
The Labor Impact Fund originates and executes infrastructure projects that leverage the inclusion of union labor as a contributing factor to enabling attractive risk-adjusted returns. The goal of the strategy is to find compelling infrastructure investment opportunities that can be generated through close cooperation across labor, government, and private capital. The Fund held its final close on September 7, 2020, with $893 million in committed capital. For more about GCM Grosvenor’s Labor Impact Strategy, visit https://www.gcmgrosvenor.com/labor-impact-investing.
LIF has made five investments to date:
- In October 2021, LIF acquired a 40% ownership stake in Horizon Telecom and committed to providing additional growth capital to expand Horizon’s network.
- In November 2020, LIF committed equity capital to Vantage Data Centers’ newly established growth platform to develop, construct, and lease data centers.
- In May 2020, LIF agreed to provide debt financing to Bakersfield Renewable Fuels for the conversion of the former Alon oil refinery in Bakersfield, California into a renewable diesel refinery.
- In December 2019, LIF acquired a 49.9% equity interest to partner in the development and construction of the Long Ridge Energy Terminal.
- In 2019, LIF announced a partnership for the development of a cold storage platform across the U.S. West Coast, with the first development becoming operational in January 2022.
About GCM Grosvenor
GCM Grosvenor (Nasdaq: GCMG) is a global alternative asset management solutions provider with approximately $71 billion in assets under management across private equity, infrastructure, real estate, credit, and absolute return investment strategies. The firm has specialized in alternatives for more than 50 years and is dedicated to delivering value for clients by leveraging its cross-asset class and flexible investment platform.
GCM Grosvenor’s experienced team of over 520 professionals serves a global client base of institutional and high net worth investors. The firm is headquartered in Chicago, with offices in New York, Toronto, London, Frankfurt, Tokyo, Hong Kong, and Seoul.
For more information, visit: 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 expected future performance of GCM Grosvenor’s business. 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 presentation, 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 filed by GCM Grosvenor Inc. on February 25, 2022 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
Tom Johnson and Will Braun
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