0 

00:00:09.435 –> 00:00:11.405 

Screen opens with a blue overlay over a cityscape and “2024 Market Outlook Highlights of GCM Grosvenor’s Annual Forum” overlayed in white text. There is soft music playing in the background.  

Dianna Henrich: What the outlook is for 2024, 

1 

00:00:11.945 –> 00:00:14.245 

Screen switches to Dianna Henrich sitting at a desk with a blue curtain behind her  

Dianna Henrich: but most importantly, what does that mean 

2 

00:00:14.265 –> 00:00:15.445 

Dianna Henrich: for the opportunity set 

3 

00:00:15.545 –> 00:00:18.285 

Dianna Henrich: and how we plan to deliver for you our clients? 

4 

00:00:18.745 –> 00:00:20.325 

Screen changes to Fred Pollock standing in front of a blue curtain. “The opportunity in private equity” appears on the bottom of the screen in transparent text with a blue outline. 

Fred Pollock: The real story with private equity 

5 

00:00:20.425 –> 00:00:21.965 

Fred Pollock: for us is all about the flywheel. 

6 

00:00:22.485 –> 00:00:24.845 

The screen changes to a cityscape with a quote box that says “I think everybody seems to be pointing to 2024 as the year the private equity market hopefully gets back to some level of normalcy” in white text.  

Lee Brashear: I think everybody seems to be pointing to 2024 

7 

00:00:24.985 –> 00:00:27.685 

Lee Brashear: as the year the private equity market hopefully gets back 

8 

00:00:27.685 –> 00:00:29.005 

Lee Brashear: to some level of normalcy. 

9 

00:00:29.155 –> 00:00:30.245 

The screen changes back to Dianna sitting at a desk with a blue curtain behind her. 

Dianna Henrich: Secondaries is one 

10 

00:00:30.245 –> 00:00:32.325 

Dianna Henrich: of the hottest markets in private equity today, 

11 

00:00:32.625 –> 00:00:34.085 

The screen changes to show an overlay of a chart called “Secondaries Are an Increasing Share of LP Distributions” that shows 2013-YTD 2023 on the x axis and 0%-25% on the y axis, with the line trending upwards from around 5% in 2013 to around 20% in 2023. There is a callout on the bottom right of the screen that says “300% Increase.”  

Brian Sullivan: So this percentage has increased 

12 

00:00:34.085 –> 00:00:35.965 

Brian Sullivan: 300% over the last 10 years. 

13 

00:00:36.465 –> 00:00:40.885 

The screen changes to Brian Sullivan standing in front of a blue curtain. 

Brian Sullivan: And for ’23, the secondary market will represent about 20% 

14 

00:00:41.385 –> 00:00:43.965 

Brian Sullivan: of the private equity distributions for investors. 

15 

00:00:44.545 –> 00:00:46.525 

The screen changes back to Fred standing in front of a blue curtain. 

Fred Pollock: And we are still focused on structural alpha 

16 

00:00:47.035 –> 00:00:50.245 

The screen changes to Peter Braffman standing in front of a blue curtain. 

Peter Braffman: Co-invest, you know, secondaries joint ventures 

17 

00:00:50.245 –> 00:00:52.805 

The screen changes to a white background with an infographic showing primary funds, co-investments, secondaries, and joint ventures, and strategic partnerships all flowing together to unlock access, control, reduced fees, closer proximity to the asset, and sourcing.  

Peter Braffman: to get close to the assets, to eliminate layer of fees 

18 

00:00:53.105 –> 00:00:54.725 

Peter Braffman: and create some alfa.  

19 

00:00:54.965 –> 00:00:55.965 

The screen changes to Michael Kirchner standing in front of a blue curtain. 

Michael Kirchner: In these strategic partnerships, the 

20 

00:00:55.965 –> 00:00:59.245 

Michael Kirchner: total cost of implementation is incredibly attractive 

21 

00:00:59.725 –> 00:01:01.725 

Michael Kirchner: relative to a portfolio of primary investments. 

22 

00:01:02.025 –> 00:01:04.365 

We provide catalytic capital to these firms 

23 

00:01:04.365 –> 00:01:07.405 

The screen changes back to Dianna sitting at a desk in front of a blue curtain. “GP Seeding & Manager Selection” appears on the bottom of the screen in dark blue text with a light blue outline.  

Dianna Henrich: through commitment to their fund, co-investment capital, 

24 

00:01:07.905 –> 00:01:09.765 

Dianna Henrich: and also potentially working capital. 

25 

00:01:10.105 –> 00:01:11.165 

The screen changes to Elizabeth Browne standing in front of a curtain.  

Elizabeth Browne: The structure and the use 

26 

00:01:11.165 –> 00:01:12.525 

Elizabeth Browne: of different technologies in terms 

27 

00:01:12.525 –> 00:01:15.845 

Elizabeth Browne: implementing these partnerships is, is nascent and growing, 

28 

00:01:16.545 –> 00:01:18.925 

The screen changes back to Peter standing in front of a blue curtain.  

Peter Braffman: But there’s tremendous value in these investment 

29 

00:01:18.925 –> 00:01:21.125 

Peter Braffman: management companies as well 

30 

00:01:21.125 –> 00:01:23.325 

Peter Braffman: as in the operating companies that supports them. 

31 

00:01:23.865 –> 00:01:25.925 

The screen changes to Brian Sullivan standing in front of a blue curtain. 

Brian Sullivan: Our platform and the relationships 

32 

00:01:25.995 –> 00:01:28.005 

Brian Sullivan: that come from it have been a really, uh, 

33 

00:01:28.005 –> 00:01:31.005 

Brian Sullivan: tremendous asset in helping us to get access to some 

34 

00:01:31.005 –> 00:01:32.565 

Brian Sullivan: of these oversubscribed situations. 

35 

00:01:34.065 –> 00:01:36.645 

The screen changes show “The Infrastructure Opportunity: Cold Storage, Logistics, Data Centers” in a blue diamond shape written in white text.  

Fred Pollock: We continue to like defensive and resilient sectors, 

36 

00:01:36.715 –> 00:01:38.525 

The screen changes to show Fred standing in front of a blue curtain.  

Fred Pollock: cold storage, logistics, data centers. 

37 

00:01:38.905 –> 00:01:40.525 

The screen changes to show Matthew Rinklin on the right half of the screen standing in front of a blue curtain. On the left is a pie chart that says “Top Three Players Have >50% Market” and the breakdown is Lineage Logistics 25%, Americold 18%, U.S. Cold Storage 6%, Interstate Warehousing 2%, Freezpak Logistics 1%, Other 45%. 

Matthew Rinklin: The industry remains highly 

38 

00:01:41.005 –> 00:01:42.805 

Matthew Rinklin: fragmented with 45% 

39 

00:01:42.805 –> 00:01:46.005 

Matthew Rinklin: of the market having less than 1% market share. 

40 

00:01:47.685 –> 00:01:50.845 

The screen changes to show “The Credit Opportunity” in a blue diamond shape written in white text. Then it switches to a quote on screen outlined in a white box that says “I really view this as the beginning of a multi-year period of returning to normal allocations in the credit space after a zero interest rate environment.”  

Fred Pollock: I really view this as the beginning of a multi-year period 

41 

00:01:50.985 –> 00:01:53.685 

Fred Pollock: of returning to normal allocations in the credit space 

42 

00:01:53.685 –> 00:01:55.445 

Fred Pollock: after a zero interest rate environment. 

43 

00:01:55.705 –> 00:01:56.765 

The screen changes to show Steve McMillin standing in front of a blue curtain.  

Steve McMillan: One of the nice things, 

44 

00:01:56.825 –> 00:01:59.645 

Steve McMillan: and probably the single best thing about allocating 

45 

00:01:59.645 –> 00:02:01.685 

Steve McMillan: into credit today is, 

46 

00:02:02.105 –> 00:02:03.925 

Steve McMillan: is it’s is truly an investing 

47 

00:02:03.925 –> 00:02:05.245 

Steve McMillan: environment, it’s not a trade. 

48 

00:02:05.465 –> 00:02:07.565 

The screen changes to show David Richter standing in front of a blue curtain. 

David Richter: We believe active credit selection is important 

49 

00:02:07.665 –> 00:02:09.845 

David Richter: and passive should be avoided. 

50 

00:02:10.465 –> 00:02:13.285 

David Richter: Second, being junior in the capital structure, 

51 

00:02:13.505 –> 00:02:16.205 

David Richter: we don’t think we need to take that risk. 

52 

00:02:16.665 –> 00:02:19.405 

The screen changes to show a chart titled “While Spreads Remain Below 10-Year Average, Yields are Well Above.” The x axis shows 2013-2024 and the y axis goes from 300-1,200. There are two trend lines for the current U.S. high yield percentile rank. A light blue line shows the index yield, and a dark blue line shows the index spread. There are 10-year average lines on the chart, the index spread 10-year average is around 450 and the 10-year index yield average is about 650. From 2013-2020 the yield remains higher than the spread, but they ebb and flow in parallel. In 2020 we see large spike in both to well above average, but the spread overlaps the yield. They both decline dramatically through 2021 until they begin rising in 2022 largely in parallel again. The gap between the yield and spread is much larger now, with the yield well above the 10-year average and the spread below.  

Fred Pollock: It’s very rare, at least during the last 15 years 

53 

00:02:19.405 –> 00:02:21.725 

Fred Pollock: that you found environments and markets like this. 

54 

00:02:22.195 –> 00:02:24.125 

The screen changes back to Dianna sitting at a desk with a blue curtain behind her. 

Dianna Henrich: This once in a decade event creates one 

55 

00:02:24.125 –> 00:02:26.005 

Dianna Henrich: of the most attractive environments for investors 

56 

00:02:26.035 –> 00:02:27.885 

Dianna Henrich: that are really willing to lean in. 

57 

00:02:28.585 –> 00:02:31.085 

The screen changes to Michael Kirchner standing in front of a blue curtain. 

Michael Kirchner: Uh, it’s time to partner up and get to work on a solution. 

58 

00:02:31.305 –> 00:02:33.365 

The screen changes to show a background video of a moving train with a dark overlay over it. The words “We look forward to the opportunity of 2024” show up on screen with a white box underneath that says “To learn more about GCM Grosvenor opportunities, please email us at [email protected].” The screen eventually fades to all blue with a white GCM Grosvenor logo in the middle as the video ends.  

Michael Kirchner: Uh, the train’s definitely leaving the station.