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.
Committed/invested in Small & Emerging Managers.
Committed/invested in Diverse Managers.
Our platform extends across alternative asset classes
Hedge Fund Strategies
|Cumulative commitments||Assets under management||Cumulative commitments|
|Small & Emerging Managers||
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.
By investing with small and emerging managers, we seek to deliver the benefits and complementary exposure provided by the next generation of talent in alternative investments.
How we work with small, emerging, and diverse managers
We are a strategic investor to managers…
- + Serve as a catalyst for manager fundraising
- + Given our history, we are a “must-see LP” for those seeking to raise capital
- + Open-door policy often gives us a “first look” at upcoming funds and deal flow
- + We invest in innovative ways such as seeding, joint ventures, anchor investments, and co-investments
We go beyond investing with managers…
- + Identifying and hiring a team
- + Establishing operational capabilities
- + Fund structuring and documentation
- + Developing policies and procedures
- + Raising awareness of best practices
- + Marketing advice and planning
- + Regulatory registration and compliance
- + Selecting service providers
- + Establishing risk management processes
How we work with clients
We recognize and support our clients’ goals regarding their small, emerging, and diverse manager programs. Many are seeking diversified exposures and attractive performance from “best of breed” investment managers.1 Others may view inclusion as a competitive advantage that aligns with their organizations’ missions.
We collaborate with clients to tailor their investments to fit specific objectives, often spanning multiple alternative asset classes and including primary fund, secondary, and co-investment opportunities.
Key Benefits to Our 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.2
Other key benefits for our clients include:
Access to Managers
- High-quality, sizable universe of managers
- Continued access and preferred allocation to many over-subscribed funds
- Introductions to top-performing managers and aid in transitioning relationships to clients’ direct programs1
- Identify managers with demonstrated ability to generate attractive returns1
- Help develop strategic relationships early with managers that may result in enhanced allocations and opportunistic deal flow
- Often capture niche opportunities overlooked by other managers
- Can provide portfolio diversification and risk/return benefits1
Economics & Governance
- Seek advantageous terms and fees with managers based on GCM Grosvenor’s economies of scale
- Active presence as an advisor to our managers
Visibility & Perspective
- Frequently speak alongside, or on behalf of, our clients about their small, emerging, and diverse investments at company- or industry-specific events
- Broad perspective on the universe of small, emerging, and diverse fund offerings, as managers often seek us out early in their fundraising efforts
- Ability to execute investments that are reflective of our clients’ constituents
Select risks include: macroeconomic risk, liquidity risk, manager risk, capital markets risk, credit risk, and interest rate risk. Additional risks that result in losses may be present.
Investing with diverse managers is consistent with our firm’s commitment to diversity as well as our commitment to seeking the best possible risk-adjusted investment returns for our clients.
We are industry leaders
We have been recognized and awarded as a leader in small, emerging, and diverse manager investing. GCM Grosvenor hosts two signature conferences for the small, emerging, and diverse manager community that draw over 1,100 attendees annually to further raise the visibility of these managers.
GCM Grosvenor is a key partner/sponsor for other industry-leading events, including: NAIC Conference, NAA Pension Conference, Plan Sponsor and Minority Manager Conference, SEO Alternatives Conference, NASP Conference, Women’s Private Equity Summit and the Women’s Alternative Investment Summit.
Small & Emerging Managers:
Private equity and real assets: Funds with less than $1 billion, or managers that have launched three or fewer funds
Hedge fund strategies: Firms with assets under management of less than $2 billion, or that are less than three years old
Firms in which women or minority professionals account for at least 25% of firm economics
Hedge funds data as of January 1, 2020. Private equity and real assets commitments as of September 30, 2019.
- Past performance is not necessarily indicative of future results.
- NAIC, “Examining the Returns,” 2017. 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.