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Grosvenor Capital Management Review

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Grosvenor Capital Management, L.P.

Grosvenor Capital Management, L.P. is a global alternative asset manager with headquarters in Chicago and offices in New York, Los Angeles, Tokyo, Hong Kong, Seoul and London. In business since 1971 (as Grosvenor Partners), the firm pioneered the fund-of-funds or multi-manager approach and customized hedge and private equity funds. Today, it manages nearly $28.9 billion in assets.

Technically, Grosvenor Capital’s clients are the funds it advises and manages, but investors in those funds are generally institutional clients and very wealthy individuals and families. According to recent SEC data, more than half these investors are overseas (59%).

Grosvenor Capital Management Background

Founder Richard Elden is considered the father of the American fund-of-funds industry. Under his watch, the firm expanded from individual alternative portfolios to institutional asset management. As noted earlier, the firm is the first to offer customized hedge and private equity alternative funds. 

In 2006, Elden left the firm to start Lakeview Investment Manager, where he could be an activist investor. (He died in 2018.) Michael Sacks took over the helm at Grosvenor Capital and remains its CEO. Through several entities, he owns a controlling interest in GCM Holdings, which is the principal owner of the Grosvenor Capital. Other shareholders include former and current employees. 

What Types of Clients Does Grosvenor Management Accept?

As mentioned earlier, the firm’s clients are the funds it manages. According to its recent SEC filings, there are 124 private funds. But investors in these funds include high-net-worth individuals, trusts, estates, pension funds, profit-sharing plans, investment companies, pooled investment vehicles and state and municipal government entities. 

Grosvenor Capital Management Minimum Account Sizes

Grosvenor Capital provides its minimum account requirements in each private fund’s offering documents. According to SEC data, they range from $100,000 to $5 million, with the vast majority on the high end of the range. The firm may waive or change the minimum at its discretion. 

Services Offered by Grosvenor Capital Management

Grosvenor Capital’s primary business is advising and managing hedge and private equity funds worldwide. Its Commingled GCMLP Funds offer multi-strategy, credit-focused, equity-focused, macro-focused, commodity-focused and other specialty portfolios. 

The firm also offers customized investment vehicles and separate accounts tailored to investor needs. Additionally, it provides advisory services on a non-discretionary basis, accounting and financial reporting services, administrative support services and client services.

Grosvenor Capital Management Investing Philosophy

With help from the research, portfolio management and risk management teams, the four members of Grosvenor Capital’s investment committee set the target percentage ranges for assets in particular investment strategies within underlying exposure categories. Portfolio managers then generally follow these guidelines when making recommendations. 

The firm uses these investment strategies:

  • Broadly diversified, multi-strategy  
  • Global long/short equity  
  • U.S. long/short equity  
  • Global macro  
  • Commodities  
  • Global credit  
  • Completion (weighted toward strategies underrepresented in clients’ portfolios)  
  • Hedge fund seeding  
  • Multi-asset class  
  • Private equity, real estate and infrastructure 
  • Labor impact  
  • Opportunistic (a blend of several of the strategies above)

 Depending on the fund’s primary investment strategy, the firm assigns a strategy and sub-strategy to it. The sub-strategies for each strategy are:

Credit Strategies 

  • Fundamental credit 
  • Structured credit 
  • Long-short credit 
  • Distressed credit 
  • Emerging market credit 
  • Specialist credit  

Relative Value Strategies 

  • Convertible arbitrage 
  • Fixed income arbitrage 
  • Option volatility arbitrage 
  • Diversified relative value  

Equity Strategies 

  • Directional equity 
  • Low-net equity 
  • Fundamental market neutral equity 
  • Activism 
  • Event driven 
  • Emerging market equity 
  • Specialist equity  

Quantitative Strategies 

  • Directional quantitative strategies 
  • Non-directional quantitative strategies  

Multi-Strategy 

Macro Strategies 

  • Diversified macro 
  • Emerging market macro 
  • Specialist macro  

Commodities Strategies 

  • Diversified commodities 
  • Specialist commodities 

Portfolio Hedging Strategies 

  • Dedicated short equities 
  • Dedicated short credit 
  • Volatility protection 
  • Opportunistic hedging  

Strategic Investments Group Strategies 

  • Direct investments 
  • Co-investments

Private Markets Strategies 

  • Private equity 
  • Real estate 
  • Infrastructure 
  • Co-investment opportunities 
  • Secondary investments

Generally, Grosvenor Capital designs its funds for savvy investors who want to choose their strategy as well as have diversification and convenience.

Fees Under Grosvenor Capital Management

Grosvenor Capital provides fee schedules in each fund’s offering document, but generally, it charges a management fee based on a percentage of assets under management and/or a performance-based fee. The annual management fee may be up to 2%, may be on a tiered scale and may have a minimum. The performance-based fee may be up to 20% of capital appreciation or profits. 

Grosvenor Capital Management Awards and Recognition

In 2018, Principles of Responsible Investment gave Grosvenor Capital an A+ for its overarching approach to environmental, social and governance (ESG) considerations, and an A+ for ESG integration in specific categories. It was the third year in a row that the firm received these top grades.

What to Watch Out For

Grosvenor Capital works with very wealthy investors. It does not provide financial planning or wealth management services to individuals. So if you are looking for a financial advisor who can help steer your personal finances, this firm is probably not the right fit.

Disclosures

The firm had no disclosures to report in its most recent SEC filings.

Opening an Account With Grosvenor Capital Management

To contact Grosvenor Capital, call one of its offices in:

Chicago - (312) 506-6500, 

New York - (646) 362-3700 

Los Angeles - (310) 651-8270. 

You can also call one of its regional offices: 

Austin - (512) 410-1216

Boston - (312) 506-4588

Charlotte, North Carolina - (704) 594-3381

Columbus, Ohio - (614) 441-8540

Detroit - (248) 430-5738

Oakland, California - (510) 240-1016

Washington, DC - (312) 506-4531

Alternately, you can send an email to inquiries@gcmip.com.

Where Is Grosvenor Capital Management Located?

Grosvenor Capital’s headquarters are located at 900 North Michigan Avenue, Suite 1100, Chicago, Illinois 60611. 

All information was accurate as of the writing of this article. 

Tips for Finding a Financial Advisor

  • Don’t quite have millions to invest with Grosvenor Capital? There are plenty of other professionals who can help you. To start your search for a financial advisor, use SmartAsset’s matching tool. Simply answer questions about your financial situation and preferences and the program will match you with up to three suitable advisors.
  • One of the most important things to know about prospective advisors is whether they’re fiduciaries. Ideally, you want one who is. Fiduciaries must work in their client’s best interests, while advisors who are not bound by a fiduciary duty are simply required to make suitable recommendations to their clients.

How Many Years $1 Million Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about cost of living in retirement there.

Least
Most
Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology SmartAsset calculated the average cost of living for retirees in the largest U.S. cities. Using that calculation, we determined how many years $1 million would last in retirement in each major city.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors throughout the country. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%, reflecting the typical return on a conservative investment portfolio. Finally, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would last in each of the cities in our study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research