Case Study: Multi-Asset Class Strategic Partnership

case study

Multi-Asset Class Strategic Partnership

Private equity and infrastructure separately managed account program

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 pension fund sought out a partner to assist them in the design and management of a private equity co-investment portfolio aimed at complementing a growing primary portfolio.

 

Benefits of adding a strategic partner:

+ The pension was able to accelerate design and implementation of a co-investment program

+ Following the success of the initial co-investment portfolio, the pension partnered with GCM Grosvenor to enter two new alternative asset classes (infrastructure and absolute return strategies) and had GCM Grosvenor serve as a dedicated middle and back-office administrator

 

Challenges the pension plan faced:

+ Governance and speed of execution

+ Middle-market / small middle-market deal origination

+ Familiarization with infrastructure and hedge fund asset classes

+ Staff and technology to administer the pension’s growing private markets program

GCM Grosvenor collaborated with the pension plan to form a strategic partnership comprising private equity, infrastructure, and absolute return strategies.

Strategic Partnership Overview

+ Leverage the entire GCM Grosvenor platform’s staff, resources and expertise to design, implement, and monitor private equity co-investments, infrastructure, and absolute return programs

+ Launch of two customized private equity co-investment programs

+ Development of a private equity joint venture program consistent with the client's strategic initiative of partnering with industry leaders in innovation and technology

+ Launch of two customized infrastructure programs

+ Launch a customized hedge fund portfolio

+ Administration of $90 billion+ of AUM and 425+ private equity and infrastructure funds

+ GCM Grosvenor provides monitoring, reporting, cash flow projections, and program modeling on an ongoing basis

Benefits of a strategic partnership with GCM Grosvenor

Diligence & execution

Routine deal flow and client update calls

Extension of existing staff

Tactical, efficient capital deployment

Targeted exposures across multiple metrics

Knowledge transfer and training

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.