Apply on company website. GP-led deals have a slightly different form and rhythm, but the core principles of a secondary transaction remain the same. No assurance can be given that any investment will achieve its objectives or avoid losses. The secondary market grew from $37 billion in 2016 to $88 billion in 2019. Our distinctive secondary-sourcing network is useful across all markets, but in our view, it is even more powerful in the atypical, liquidity-demanding market we currently find ourselves. 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. See all Associate salaries to learn … According to a statement from the firm, GCM Grosvenor Secondary Opportunities Fund II has hit final close at its hard-cap of $700 million. Managing Director, Secondaries Investment - GCM Grosvenor (Organigramme) Créer une alerte pour suivre le parcours de Brian Sullivan. GCM Grosvenor Private Markets - Private Equity . The core of the secondaries market remains the traditional LP deal: the sale of a fund LP interest by a single seller, often as a part of a portfolio of interests. GCM Grosvenor has not independently verified third-party information and makes no representation or warranty as to its accuracy or completeness. Past performance is not necessarily indicative of future results. Home/Private Equity/ Pathway closes secondaries fund. As with LP deals, GP-led situations require buyers to focus on having an informed point of view on the assets, ensuring alignment of interests with the manager, and acquiring assets at a discount to intrinsic value. Its debut 2015-vintage secondaries fund collected $58.2 million, according to Secondaries Investor data. Courtesy of GCM Grosvenor. Investment Strategy Geography ; Coinvestment Fund; Fund of Funds (PE) Private Equity; USA; Global; Western Europe; See Diligence Group Related News: Where institutions connect and collaborate on diligence and secondaries. Small, Emerging, and Diverse Manager Investing, Securities Investor Protection Corporation, Acquiring assets at a discount to intrinsic value, Limited ability for the LP to influence the outcome once the investment has closed. Cookies. Interests in certain GCM Grosvenor investment products are offered through GRV Securities LLC., a Delaware limited liability company registered with the Securities and Exchange Commission as a broker-dealer and a member of the Financial Industry Regulatory Authority and Securities Investor Protection Corporation. Pathway closes secondaries fund. GCM Grosvenor®, Grosvenor®, Grosvenor Capital Management®, GCM Customized Fund Investment Group®, Customized Fund Investment Group®, and Consortium™ are trademarks of GCM Grosvenor and its affiliated entities. Grosvenor Capital Management, L.P. is not affiliated in any manner with Grosvenor Group Limited, a company that is headquartered in the United Kingdom. Manager Login. Continue Reading With a Free Trial. “Although GP-led secondary deals vary somewhat in structure from traditional LP interests, we see more similarities than differences.”. In seeking to mitigate such risks, it is often incumbent on the investor to manage exposure appropriately for the size of the program. GCM Grosvenor led a deal to pull remaining assets out of Denham Capital’s 2005 fund and move them into a new pool that gives the GP more time to manage the investments, sources told Buyouts. Duration risk can also arise from the stapled primary or follow-on commitments that increasingly accompany GP-led deals, particularly in tender situations. Less than a minute. With these added considerations, we believe the importance of deal selection is even more elevated when evaluating GP-led situations. Secondaries Associate GCM Grosvenor New York, New York 3 minutes ago Over 200 applicants. If you continue to use the site we will assume that you accept. Certain information included herein may have been provided by parties not affiliated with GCM Grosvenor. See the parent company profile. The Chicago-based firm closed GSF II after hitting the hard cap only months after a first close. It just means there is more information available. GCM Grosvenor refers to the combined accounts of (a) Grosvenor Capital Management Holdings, LLLP, an Illinois limited liability limited par tne rship, and its consolidated subsidiaries and (b) GCM, L.L.C., a Delaware limited liability company. Manager Login. SOURCE: GCM Grosvenor As the historical stigma and heavily discounted pricing once associated with these processes have lifted, GPs expanded their use of the secondary market, furthering its growth rate. 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. The company’s secondaries funds have historically had a real estate focus. This broad information and relationship advantage enhances our sourcing and market intelligence, provides valuable and differentiated co-investment deal flow, and provides us with unique information and access to secondary opportunities. Additionally, those with existing manager relationships may have a better vantage point and can act more quickly on fast-moving GP-led transactions, as it is likely they already have views on the relevant companies and managers. By tracking the amount of unrealized value in one dataset (shown below) we can see that the volume of unrealized value in 10+ year-old funds has increased dramatically over the past 10 years, just as the secondary market has. But these elements have always been a focus for secondary buyers as well. Managers – of primaries, secondaries, and co-investments – continue to value buyers and syndicate members who are long-term partners and are often willing to provide them with a level of insight and access to opportunities that secondary-only firms typically do not receive. GP-led transactions have emerged as the most common type and represent the second highest source of volume among secondaries overall, with $26 billion in 2019. GCM Grosvenor has been active in secondary transactions since 2003, with over $2 billion committed to more than 100 investments. GCM Grosvenor has closed its latest secondary fund at $700 million. This estimate is based upon 23 GCM Grosvenor Associate salary report(s) provided by employees or estimated based upon statistical methods. Amid this growth, many funds participating in the market have expanded their focus beyond traditional limited partner (LP) interest deals and have been pursuing innovative deal structures in seeking to deploy much larger funds. Learn More About SecondaryLink Join Now! Report … Grosvenor’s latest fund is its $700 million GCM Grosvenor Secondary Opportunities Fund II, which it closed in February last year. We expect it to continue to climb, based simply on the amount of assets held in alternative investment funds and the growing adoption of the strategy by pensions and asset managers. Accept Don’t Accept Learn more. However, growth in the market is buffeted by other transaction types, typically labeled “complex” secondaries. A free inside look at GCM Grosvenor salary trends based on 96 salaries wages for 44 jobs at GCM Grosvenor. original story. Given the frequency of buyer syndicates in GP-led situations, it is usually easier for a buyer to control its exposure to individual companies and sectors by the size of its commitment to the transaction than in traditional LP deals. This site has been prepared by Grosvenor Capital Management, L.P. and GCM Customized Fund Investment Group, L.P. (which, together with their affiliates, are referred to herein as “GCM Grosvenor”). The COVID-19 pandemic impacted volumes for both LP and GP transactions in the first half of 2020, but we anticipate record volumes once again in 2021 and 2022 as pent-up demand and less distribution activity from underlying portfolios can drive both LPs and GPs into the secondary market for liquidity. Additionally, the Institutional Limited Partners Association (ILPA) issued guidance for GP-led deals in 2019, providing a framework for best practices in these transactions. National Conference on Public Employee Retirement Systems GP Led Transactions Typically involve private equity funds that are approaching, or have exceeded, the end of the fund’s stated life but still have assets remaining in the fund. Learn more about our global private equity platform. However, in a GP-led deal, having greater access to data does not necessarily make the underwriting more or less complex. The firm teamed up with Strategic Partners, Hamilton Lane and GCM Grosvenor to invest around $530 million in what is understood to be the largest example of a fundless sponsors applying GP-led tools to its portfolio. We expect this failure rate will decrease as norms continue to become more established. Past performance is not necessarily indicative of future results. Associate salaries at GCM Grosvenor can range from $56,362 - $140,984. Select risks include risks related to the lack of a liquid, transparent market for secondary investments, performance risk, and risks related to sourcing investments. In the three years prior to 2020, the private equity secondary market more than doubled in size, and, despite the lull in activity for the first half of this year, we expect its growth to continue. Unlock this article instantly, along with the rest of our premium content, newsletters and mandate charts. Learn More About DiligenceLink Join Now! In the following, we explore the growth and evolution of the secondary market, compare complex non-traditional transactions with traditional secondaries, and discuss the importance of a robust platform of manager relationships to access GP-led deals. And since secondary investors are typically not sector experts, they may likely need to rely at some level on the GP to help parse the information and evaluate investments. GCM Grosvenor has been investing in private equity since 1999. GCM Grosvenor has offered alternative investment solutions since 1971. See who GCM Grosvenor has hired for this role. Over this same period, the annual fundraising for private equity funds has increased three-fold, which implies that secondary market volume is poised to double yet again in the coming years as those funds reach maturity. The secondary market has expanded and evolved but has very much adhered to the same mandate: provide liquidity for limited partners. “Access to a broad opportunity set is the foundation that allows any investor to be selective in deal selection, and the secondary market is no different.”. We believe this wave of unrealized value in older funds will lead to a further increase in secondary transaction activity, particularly in GP-led liquidity offerings, as both GPs and investors become more familiar with that part of the market. Alternative assets investor GCM Grosvenor has wrapped up its latest secondary fund after raising $700m. GCM Grosvenor has been active in secondary transactions since 2003, with over USD2 billion committed to more than 100 investments. GSF II, which held its first close in May of 2017, reached the fund’s hard cap. GSF II will target funds oriented toward small and middle market buyout, special situation, growth equity, infrastructure and real estate investment strategies. Additionally, as GP-led deals have become more common, they are more easily evaluated. This is particularly attractive for many secondary-only platforms that often do not have relationships with managers to access detailed portfolio company information in traditional secondary transactions.