Small, Emerging, and Diverse Manager Investing

Small, Emerging, and Diverse Manager Investing

We serve as a catalyst for growth and opportunity

As institutional investors seek new sources of return, they are increasingly recognizing the benefits of investing with small, emerging, and diverse managers. For the past 30+ years we have developed specific expertise in funding and supporting these managers as part of our broad investment activity across alternative investments. We have an experienced team, a wide network of contacts, and broad proprietary sourcing capabilities, all of which support our platform.

$ 0 bn

Committed/invested in Small & Emerging Managers.
First investment in 1989.

$ 0 bn

Committed/invested in Diverse Managers.

First investment in 2002.

Commitments and Investments to managers that are both small/emerging and diverse are reflected in both Small and Emerging Managers commitments/investments total and Diverse Managers commitments/investments total.

Our Platform

Private Equity

Cumulative Commitments

Absolute Return Strategies

Assets Under Management

Real Assets

Cumulative Commitments

Small and Emerging Managers

$11.8 bn

$2.9 bn

$3.4 bn

Diverse Managers

$5.6 bn

$1.9 bn

$1.3 bn

Our Commitment to Women and
Diverse Managers

Our Advance Strategy was established in 2019 to focus on investing with high-quality, hard-to-access, and often overlooked private equity investment opportunities led by women and minority-owned managers with proven track records.1

How We Work With Clients

We believe investing with small, emerging, and diverse managers is good business. We have extensive experience sourcing and creating customized portfolios to meet our clients’ specific needs and performance objectives. Surveys, studies, including one recently conducted by NAIC found here, and our own research and experience support these managers’ ability to produce attractive risk-adjusted returns and the potential to generate alpha.1

Access to Managers

We have a high-quality, sizable universe of managers, access to preferred allocation to many over subscribed funds, and can aid in transitioning relationships to clients' direct programs.*

Investment Opportunity

We identify managers with demonstrated ability to generate attractive returns*, and we help deploy strategic relationships with managers that may result in enhanced allocations and opportunistic deal flow.

Complementary Exposure

We often capture niche opportunities overlooked by other managers, which can provide portfolio diversification and risk/return benefits.*

Economics & Governance

We seek advantageous terms and fees with managers based on our economies of scale, and are an active presence as an advisor to managers.

Visibility & Perspective

We frequently speak alongside, or on behalf of, our clients about their small, emerging, and diverse investments at company- or industry-specific events, and have a broad perspective on the universe of fund offerings, as managers often seek us out early in their fundraising efforts.

How We Work With Small, Emerging, and Diverse Managers

We are a strategic investor

We invest in innovative ways such as seedings, joint ventures, anchor investments, and co-investments

Serve as a catalyst for manager fundraising

Open-door policy often gives us a first look at upcoming funds and deal flow

We go beyond just investing

Identifying & hiring a team

Service provider selection

Establishing risk management processes

Regulatory registration and compliance

Establishing operational capabilities

Marketing support

Raising awareness of best practices

In The News

"In the simplest terms, investing in diverse managers has generated returns, and we also think it is a good way to address the wealth gap in this country."

Emerging Manager Monthly, May 2021
Emerging Manager Monthly May 2021

Industry-Leading Events

GCM Grosvenor hosts two signature annual conferences focused on further raising the visibility of small, emerging, and diverse managers as well as creating a more inclusive industry.

18th annual
June 8+10, 2021
Virtual Conference  

15th annual
October 12+14, 2021
Virtual Conference  

Related News and Insights

The Overlooked Alternative

As institutional investors crowd into alternatives in search of returns and diversification, the search for alpha becomes more challenging. One idea that investors might consider: Maybe it’s not what you’re investing in, but who you’re investing with.

Read More »

Absolute return strategies data as of July 1, 2021 includes investments by longer-duration credit programs managed by the Absolute Return Strategies team. Private equity and real assets commitments as of March 31, 2020.

 

Note: small manager private equity (PE), infrastructure (Inf), and real estate (RE) funds are typically funds with less than $1 billion in size for real assets, buyout, and special situations, or less than $500 million in size for a venture capital fund. Small absolute return strategies managers (AR) are funds with less than $2 billion in firm AUM. Emerging managers are PE, Inf, and RE funds that have launched three or fewer funds and AR managers less than 3-years old. Diverse managers are firms in which women or minority professionals account for a significant percentage of the management company or economics depending on the strategy. 

 

*Past performance is not necessarily indicative of future results.

 

1. NAIC, “Examining the Returns,” 2019. Past performance is not necessarily indicative of future results. No assurance can be given that any investment will achieve its objectives or avoid losses.

 

Investments in alternatives are speculative and involve substantial risk, including strategy risks, manager risks, market risks, and structural/operational risks, and may result in the possible loss of your entire investment. Past performance is not necessarily indicative of future results. The views expressed are for informational purposes only and are not intended to serve as a forecast, a guarantee of future results, investment recommendations, or an offer to buy or sell securities by GCM Grosvenor. All expressions of opinion are subject to change without notice in reaction to shifting market, economic, or political conditions. The investment strategies mentioned are not personalized to your financial circumstances or investment objectives, and differences in account size, the timing of transactions, and market conditions prevailing at the time of investment may lead to different results. Certain information included herein may have been provided by parties not affiliated with GCM Grosvenor. GCM Grosvenor has not independently verified such information and makes no representation or warranty as to its accuracy or completeness.