GCM Grosvenor hits $700m secondaries hard-cap

The firm, which focuses on deals of under $50m, was originally targeting $250m, according to a filing with the SEC.

GCM Grosvenor, an alternatives investment manager with $50 billion under management, has raised nearly triple the original target of its latest secondaries fund.

According to a statement from the firm, GCM Grosvenor Secondary Opportunities Fund II has hit final close at its hard-cap of $700 million. Filings with the Securities and Exchange Commission dated 25 May 2017 put the fund’s target at $250 million.

Investors include public pension plans, financial institutions and endowments from the US, Europe and Asia, the statement notes.

Secondary Opportunities Fund II will focus on transactions of less than $50 million in size with a particular emphasis on small- and mid-market buyout funds, special situations, growth equity, infrastructure and real estate.

Brian Sullivan, managing director and head of the firm’s secondaries business, said, “[Investors], like us, view secondaries as a means to diversify their private equity portfolio with mature, high-quality assets, while seeking to mitigate the J-curve and reduce blind-pool risk. We continue to see value in the secondary market, and are confident we will identify compelling opportunities on behalf of our investors.”

The Chicago-headquartered firm’s first, 2015-vintage secondaries fund had achieved a multiple of 1.43x and an internal rate of return of 35.5 percent as of end-September 2016, according to a quarterly report seen by Secondaries Investor.

Grosvenor GCM develops customised investment programmes for pension funds, sovereign wealth funds, financial institutions, charities and other types of limited partner. It has launched secondaries funds, fund of funds, and mezzanine/debt funds, according to PEI data.