Menu burger Close thin Facebook Twitter Google plus Linked in Reddit Email arrow-right-sm arrow-right
Tap on the profile icon to edit
your financial details.

Grosvenor Capital Management Review

Your Details Done
by Updated

This review was produced by SmartAsset based on publicly available information. The named firm and its financial professionals have not reviewed, approved, or endorsed this review and are not responsible for its accuracy. Review content is produced by SmartAsset independently of any business relationships that might exist between SmartAsset and the named firm and its financial professionals, and firms and financial professionals having business relationships with SmartAsset receive no special treatment or consideration in SmartAsset’s reviews. This page contains links to SmartAsset’s financial advisor matching tool, which may or may not match you with the firm mentioned in this review or its financial professionals.

Grosvenor Capital Management, LP

Grosvenor Capital Management 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.

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, a large chunk of these investors are overseas.

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. 

Grosvenor Management Client Types and Minimum Account Sizes

As mentioned earlier, the firm’s clients are the funds it manages. Investors in these funds include high-net-worth individuals, investment companies, pooled investment vehicles, pension and profit-sharing plans, and state and municipal government entities. 

The minimum for launching or maintaining a Customized GCMLP separate account is a whopping $100 million. The firm may waive or change these minimums 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  
  • 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

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. 

What to Watch Out For

Grosvenor Capital Management does not list any disclosures on its SEC-filed Form ADV.

Opening an Account With Grosvenor Capital Management

To contact Grosvenor Capital, call one of its offices, which are located around the globe. You can also send an email or visit the firm's headquarters in Chicago.

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

Tips for Finding a Financial Advisor

  • SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
  • 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 Long $1mm 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 the cost of living in retirement for that location.

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

Methodology We analyzed data on average expenditures for seniors, cost of living and investment returns to determine how many years of retirement a $1 million nest egg would cover in cities across America.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. 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. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

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