Who manages the Fund?
The Fund is managed by GCM Grosvenor.
GCM Grosvenor is a global alternative asset management firm with approximately $50 billion invested in hedge fund strategies, private equity, infrastructure, real estate and multi-asset class solutions. It is one of the largest, most diversified independent alternative asset management firms worldwide.
The firm has core expertise in product and custom investment solutions. Its product solutions provide turn-key access to both diversified and specialized alternative investment portfolios. Its customized investment solutions give clients an active role in the development of their alternatives programs.
GCM Grosvenor has offered alternative investment solutions since 1971. The firm is headquartered in Chicago, with offices in New York, Los Angeles, London, Tokyo, Hong Kong and Seoul. GCM Grosvenor serves a global client base of institutional and high net worth investors.
What type of companies are eligible for investment?
Colorado-based companies, companies with a significant presence in Colorado or companies initiating, expanding or consolidating operations in Colorado.
What stages of funding is the Fund interested in?
- Mezzanine (typically debt, with some equity enhancement)
- Growth capital (mature companies in need of financing to grow operations or make acquisitions)
If I have a business plan that I’d like considered for the program, should I contact GCM Grosvenor or Colorado PERA?
Will the Fund be investing alone?
The Fund will primarily focus on making co-investments alongside other financial sponsors. In addition, other capital formation opportunities with a nexus to Colorado may also be considered if the risk/return dynamics are in line with current underwriting objectives.
What is a private equity co-investment?
A private equity co-investment is an equity or debt investment in a private company generally alongside a financial sponsor. Typically, the co-investor maintains minority ownership while the financial sponsor maintains controlling ownership. Often, co-investors will source co-investment opportunities through prior relationships, where the Fund is managed by the financial sponsor and the co-investor is an existing limited partner.
What is a financial sponsor?
A financial sponsor either contributes capital (equity or debt), capital markets expertise, contacts or experience to an investment. As a business owner or advisor, a financial sponsor typically handles the company’s capital structure and balance sheet as well as strategic initiatives, including mergers and acquisitions, joint ventures and management restructurings. The company’s CEO and other senior management typically maintain responsibility for day-to-day operational issues.
Is the Fund only interested in making investments?
Part of the ethic of an in-state program is to help build the overall state investment climate. Foremost, we seek to generate an appropriate risk-adjusted return for Colorado PERA and the people who depend on Colorado PERA. However, the program also includes working with the community to evaluate and advise deals, make connections, sponsor events, undertake outreach programs and bring together investors and entrepreneurs.
I have a business, but we are just getting started. Does it make sense for me to contact the Fund?
The Fund seeks to make co-investments in businesses that are defined as growth capital, buyout or mezzanine, rather than at start-up stage. The Fund is also looking at investments in Infrastructure/energy. If you are unsure about potential fit, do not hesitate to contact GCM Grosvenor.
No assurance can be given that the Fund will achieve its objectives or avoid significant losses.