News & Analysis

GCM Grosvenor raises almost $1bn for mid-market secondaries

The fund, which will invest in both LP- and GP-led secondaries opportunities, will primarily focus on buying interests in mid-market buyout funds.

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GCM Grosvenor has reached the final close on its third dedicated secondaries vehicle, three years after the firm closed its predecessor programme.

GCM Grosvenor Secondary Opportunities Fund III raised $972 million in commitments, according to a statement.

The vehicle will seek out both LP- and GP-led secondaries opportunities. It will primarily focus on buying interests in mid-market buyout funds and also has the capacity to invest in special situations, growth equity, real assets and venture.

The fund follows its 2018-vintage predecessor which closed on $700 million, according to Secondaries Investor data. Investors in the fund included San Diego City Employees’ Retirement System, South Yorkshire Pensions Authority and Cape Coral General Employees Pension Fund.

Secondaries volume reached between $100 billion and $110 billion last year, according to reports from Evercore and Jefferies – a dip on 2021’s record figures. LP-led activity outpaced GP-led deals last year making up $55 billion to $56 billion of volume.