GCM Grosvenor Announces $85 Million Upsizing of Term Loan to Enable Repurchase of Mosaic Assets
June 14 2021 - 7:30AM
GCM Grosvenor (Nasdaq: GCMG), a global alternative asset management
solutions provider, announced today that it will seek to upsize its
Term Loan by $85 million to enable the repurchase of certain fund
investments and rights to future carry associated with Mosaic
(collectively, the “Mosaic Assets”). Based upon values as of March
31, 20211, GCM Grosvenor will repurchase assets and carried
interest at net asset value of approximately $238 million
(consisting of fund investments valued at $87 million and
unrealized carried interests net asset value of $150 million) and
rights to additional future carried interest associated with $423
million of carry dollars at work, for an estimated March 31, 2021
purchase price of $176 million (the “Transaction”). The Mosaic
Assets generated realized carried interest earnings of $14.7
million2 over the twelve-month period ended March 31, 2021 and
realized investment income of $1.5 million over the same period.
“In addition to being an immediately accretive transaction to
our shareholders and simplifying our structure, we believe there is
considerable upside provided by the long-term growth in the value
of the carried interest and investments associated with Mosaic,”
said Michael Sacks, Chairman and Chief Executive Officer of GCM
Grosvenor. “Over the last quarter alone, we saw Mosaic’s unrealized
carried interest at NAV increase by 31% to $150 million as of March
31, 2021.”
The Transaction, funded by a combination of balance sheet cash
and debt, is expected to close in the third quarter of
2021.
About GCM Grosvenor
GCM Grosvenor (Nasdaq: GCMG) is a global alternative asset
management solutions provider with approximately $65 billion in
assets under management across private equity, infrastructure, real
estate, credit, and absolute return investment strategies. The firm
is in its 50th year of operation and is dedicated to delivering
value for clients in the growing alternative investment asset
classes.
GCM Grosvenor’s experienced team of approximately 500
professionals serves a global client base of institutional and high
net worth investors. The firm is headquartered in Chicago, with
offices in New York, Los Angeles, Toronto, London, Tokyo, Hong
Kong, and Seoul. For more information, please visit:
www.gcmgrosvenor.com.
________________________1 The value of the Mosaic Assets is
subject to change based on interim cash flows and changes in values
between March 31, 2021 and actual Transaction date2 The amount
shown represents the redeemable noncontrolling interest had the
transaction occurred on March 31, 2021 and included all tax carry
attributable to the Mosaic interests from such time forward,
consistent with Mosaic’s rights to carry for all future periods
Source: GCM Grosvenor
Public Shareholders ContactStacie
Selingersselinger@gcmlp.com312-506-6583
Media ContactTom Johnson and Will
BraunAbernathy
MacGregortbj@abmac.com / whb@abmac.com212-371-5999
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