case study
Customized small, emerging,
and diverse manager program
Customized Separate Account with Full Firm Services
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.
Sophisticated U.S. Pension fund partnered with GCM Grosvenor to access small, emerging, and diverse managers across private equity and real estate.\
Benefits of partnering with GCM Grosvenor
+ Build a portfolio of emerging managers and co-investments
+ Achieve strong diverse manager representation across strategies and asset types
Challenges the U.S. pension plan faced
+ Lacked the necessary internal resources required to achieve its long-term goals in the emerging manager category
+ Limited team and resources
Solution
+ Expanded its relationship with GCM Grosvenor across a range of products and structures including primary funds, co-investments, joint ventures, direct investments, seeding, and secondary transactions
+ Increased the value-added services, including facilitating relationships with capacity-constrained managers, developing a strategic plan and PE program guidelines, conducting bi-monthly deal flow calls, training sessions, placing GCM Grosvenor staff on-site, assisting with special projects, providing an annual review of investment plan, and sponsoring an emerging manager conference.
GCM Grosvenor collaborated with the pension plan to form a partnership
Summary
+ Program launched in 2015
+ Focus on small and emerging managers across private equity and real assets
Overview
Portfolio Construction
+ Built a portfolio of ‘fewer, institutional quality’ emerging managers
+ Focused and disciplined approach to sector specialists and value buyers
+ Platform and Fundraising risks were mitigated by committing to funds that are spin-outs
+ Focused and disciplined approach to sector specialists and value buyers
Value-added Services
+ Our relationships with managers allowed the client to initiate new relationships with fund managers who were out of the market or not accepting new investors into their fund
+ Developed strategic plan and private equity investment guidelines at the onset of the programs
+ Bi-monthly deal flow calls to discuss program updates and pipeline opportunities
+ Advised client on operations and potential risks for private equity investors
Training and Special Projects
+ Provided training sessions
+ Served as a conduit for additional staff hires
+ Sponsored and helped develop client’s Emerging Manager Conference
Benefits of partnering with GCM Grosvenor
Diligence & underwriting
Client training sessions
Regular investment pipeline calls
Supported client's emerging manager conference
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.
