GCM Grosvenor Announces Successful Closing of Incremental Term Loan and Expected Closing of Mosaic Assets Repurchase on July ...
June 23 2021 - 5:00PM
GCM Grosvenor (Nasdaq: GCMG) (the “Company”), a global alternative
asset management solutions provider, announced today that it
successfully upsized its existing Term Loan by a principal amount
of $110 million. The net proceeds will be used to repurchase
certain fund investments and rights to future carry associated with
Mosaic (collectively, the “Mosaic Assets”). GCM Grosvenor was able
to secure a $13 million discount to the purchase price.
The Company has provided notice to exercise the repurchase
option for the Mosaic Assets at an estimated net purchase price of
$163 million, inclusive of the $13 million negotiated discount (the
“Transaction”). Based upon values as of March 31, 20211, GCM
Grosvenor will repurchase assets of $238 million, consisting of
direct investments in its funds valued at $87 million and
unrealized carried interest valued at $150 million. In addition,
GCM Grosvenor will acquire rights to additional future carried
interest associated with $423 million of carry dollars at work. The
Mosaic Assets generated realized carried interest earnings of $14.7
million over the twelve-month period ended March 31, 2021 and
realized investment income of $1.5 million over the same
period.
The Transaction is expected to close on July 2, 2021 and will be
funded by a combination of balance sheet cash and the net proceeds
from the incremental Term Loan.
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.
Forward-Looking Statements
This press release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995, including statements regarding the use of proceeds from
the Term Loan and the closing of the Transaction. These
forward-looking statements generally are identified by the words
“believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,”
“strategy,” “future,” “opportunity,” “plan,” “may,” “should,”
“will,” “would” and similar expressions. Forward-looking statements
are predictions, projections and other statements about future
events that are based on current expectations and assumptions and,
as a result, are subject to risks and uncertainties. Many factors
could cause actual future events to differ materially from the
forward-looking statements in this press release, including without
limitation, the historical performance of GCM Grosvenor's funds may
not be indicative of GCM Grosvenor's future results; risks related
to redemptions and termination of engagements; effect of the
COVID-19 pandemic on GCM Grosvenor's business; the variable nature
of GCM Grosvenor's revenues; competition in GCM Grosvenor's
industry; effects of government regulation or compliance failures;
market, geopolitical and economic conditions; identification and
availability of suitable investment opportunities; risks relating
to our internal control over financial reporting; and risks related
to the performance of GCM Grosvenor's investments. You should
carefully consider the foregoing factors and the other risks and
uncertainties described in the “Risk Factors” sections of the
Annual Report on Form 10-K/A filed by GCM Grosvenor Inc. on May 10,
2021 and its other filings with the U.S. Securities and Exchange
Commission. These filings identify and address other important
risks and uncertainties that could cause actual events and results
to differ materially from those contained in the forward-looking
statements. Forward-looking statements speak only as of the date
they are made. Readers are cautioned not to put undue reliance on
forward-looking statements, and GCM Grosvenor assumes no obligation
and does not intend to update or revise these forward-looking
statements, whether as a result of new information, future events,
or otherwise, except as required by law.
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
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 date
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