Case Study: Customized small, emerging, and diverse manager program

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.