Private credit continues to rapidly evolve as an alternative asset class. But with more capital chasing fewer high-quality opportunities, sourcing has become one of the most important differentiators.
Today, being able to access the right deals – often before they are broadly marketed – can make the difference between deploying capital strategically or not at all. In this increasingly competitive landscape, we believe access may be the new alpha.
why access matters more than ever in private credit
Several macro trends underscore the growing importance of access to differentiated deal sourcing:
Record levels of private equity dry powder have shifted the balance of power toward borrowers. North American PE dry powder remains near historic highs with direct lending accounting for 20% in 2024.1
Private markets now dominate LBO financing, with 84% of LBO financings (by deal count) in 2024 placed in the private credit markets.2
Heightened competition among lenders means many high-quality deals are quickly filled through tightly held relationships, often with no formal syndication process.
As a result, institutional investors increasingly seek managers who offer more than capital – they want those with the sourcing edge to access high-quality opportunities before the window closes.
The GCM Grosvenor Platform Advantage
GCM Grosvenor has built one of the industry’s broadest and most differentiated sourcing ecosystems. Through its open architecture platform and extensive manager network, the firm accesses a high volume of deal flow and curates a selective portfolio of opportunities.
Key features of the platform include:
Unique Access: The strategy is designed to capitalize on sourcing opportunities that may offer attractive pricing and terms, while seeking to minimize the ramp-up period common in many private credit vehicles
Complementary Exposure: Portfolio sourcing, liquidity, and spread characteristics are designed to complement and diversify existing direct lending and private credit allocations.
Sourcing Advantage: GCM Grosvenor maintains 775+ manager relationships across private equity, private credit, and hedge fund strategies and sources 300+ senior loan opportunities annually from a base of 150+ sourcing partners. These opportunities are sourced through four primary channels:
Directly from private equity sponsors From private credit managers From hedge fund managers Through a co-lending relationship with a large leveraged finance desk in the marketplace
The firm’s deep and longstanding relationships—often built over decades and across fund vintages—enable GCM Grosvenor to receive early looks, proprietary carve-outs, and preferred allocations in tightly held sponsor-led transactions.
What this means for investors
Access translates into tangible advantages for institutional investors:
Preferential Allocations: GCM Grosvenor is frequently carved into new issue loans by sponsors, gaining exposure to deals not broadly syndicated.
Selectivity and Curated Deal Flow: From over 300 sourced opportunities annually, only a fraction are fully underwritten and advanced to execution, underscoring the selectivity of the portfolio construction process.
Breadth of Exposure: The strategy maintains flexibility to invest across borrower sizes. This dynamic capital allocation allows the strategy to pursue the highest risk-adjusted opportunities without artificial size constraints
Diversification Across Sectors and Partners: The portfolio spans sectors including technology, healthcare, industrials, and consumer discretionary. Opportunities are sourced from a diverse set of GPs, including private equity sponsors, private credit managers, and credit hedge funds, many of whom are longstanding platform partners.
Relationship Capital is the New Competitive Edge
In today’s market, relationship capital is as critical as financial capital. Trusted partnerships built over multiple cycles are now the primary gateway to proprietary and limited-access transactions.
With its deep network, seasoned team, and broad investment platform, GCM Grosvenor is well positioned to continue delivering high-quality senior secured credit exposure. For investors seeking curated access to private credit, the difference isn’t just what you invest in—it’s who gets you there first.
1 Data Source: 2024 Annual Global markets Fundraising Report
2 Data Source: Pitchbook Private Credit Charts and Data
