Co-Investment Strategic Partnership
50% GCM Grosvenor Sourced / 50% Client Sourced
This example was selected by GCM Grosvenor because it is representative of the types of services we offer and is presented for illustrative purposes only, and is not intended to be representative of GCM Grosvenor funds, strategies or investments. Unless apparent from the context, all statements herein represent GCM Grosvenor’s opinion.
Select risks include: information risk, management risk, risks related to reliance on third parties, and risks related to the sale of investments.
A large U.S state public pension plan had an existing private equity primaries business and wanted to establish an active co-investment practice.
Benefits of adding a co-investment program:
+ Private equity co-investments provide an opportunity that seeks to replicate the same exposures within primary funds, typically on a no fee/no carry basis
Challenges the U.S. pension plan faced:
+ Lacked governance process to quickly and efficiently assess and execute co-investments
+ Unable to source sufficient deal flow
+ Limited team and resources
Solution: Strategic Partnership with GCM Grosvenor
GCM Grosvenor collaborated with the pension plan to form a strategic partnership
+ Evergreen structure program launched in 2019
+ In the first four years, initially targeting 50% in GCM Grosvenor sourced co-investments and 50% in U.S. public pension plan sourced co-investments
Strategic Partnership Overview
1. Deals sourced from GCM Grosvenor
+ GCM Grosvenor sources the co-investments, conducts due diligence and executes each deal with full discretion
+ Leverages GCM Grosvenor’s scale and deep, long-term industry relationships to identify opportunities and generate capacity in situations that may be hard to access
2. Deals sourced from U.S. public pension plan
+ Leverage GCM Grosvenor’s staff, resources and expertise to execute co-investments sourced from the public pension plan’s existing private equity primaries portfolio
+ At the client’s request, GCM Grosvenor will complete preliminary due diligence, comprehensive due diligence and deal execution
+ GCM Grosvenor provides monitoring, reporting, cash flow projections and program modeling on an ongoing basis
Benefits of a private equity co-investment strategic partnership with GCM Grosvenor
This example was selected by GCM Grosvenor because it is representative of the types of services we offer and is presented for illustrative purposes only, and is not intended to be representative of GCM Grosvenor funds, strategies or investments. Unless apparent from the context, all statements herein represent GCM Grosvenor’s opinion. Past performance, if presented, is not indicative of future returns, and it should not be assumed that any future investments will be profitable.