GCM Grosvenor has closed its labor impact fund at $893 million. The fund originates and executes infrastructure projects.
CHICAGO, September 14, 2020 – GCM Grosvenor, a global alternative asset manager, announced today that it completed the final close for its Labor Impact Fund (the “Fund”) on September 7, 2020, Labor Day in the United States, with $893 million in committed capital, at the high end of its targeted range.
GCM Grosvenor’s Labor Impact Fund originates and executes infrastructure projects that leverage the inclusion of union labor as a contributing factor to enabling attractive risk-adjusted returns. The goal of the strategy is to find compelling infrastructure investment opportunities that can be unlocked through close cooperation across labor, government and private capital.
“We are grateful for the support of our investors; they share our vision that the Labor Impact Fund’s strategy is an effective way to deploy infrastructure capital,” said Fred Pollock, GCM Grosvenor’s Chief Investment Officer. “Our robust investment activity to date demonstrates the effectiveness of our differentiated approach to infrastructure investing. We believe that our strategy will generate positive outcomes for labor, improve infrastructure assets and communities, and generate an attractive risk-adjusted return.”
The Labor Impact Fund has made three investments to date:
• In May 2020, the Fund agreed to provide $85 million in debt financing to Bakersfield Renewable Fuels for the retooling of the former Alon oil refinery in Bakersfield, California.
• In December 2019, the Fund acquired a 49.9% equity interest in the Long Ridge Energy Terminal from Fortress Transportation and Infrastructure Investors (NYSE: FTAI) for $150 million in cash.
• Earlier in 2019, the Fund announced a partnership for the development of a cold storage platform across the United States and Canada, with the first development anticipated to break ground later this year.
These investments combined are projected to generate more than 1.4 million union workhours during construction alone, while providing significant boosts to local governments and economies.
To identify investment opportunities, the Fund leverages GCM Grosvenor’s $57 billion investment platform, its network of manager relationships and industry partners, as well as those in government and organized labor.
To achieve the Fund’s desired goals, investments in the Fund are verified to meet standards for including union labor and are monitored for adherence to their investment and labor impact theses.
“We view the Fund’s responsible contractor policy and overall labor and government due diligence processes as strategic advantages in pursuing infrastructure investments,” said Jon Levin, President of GCM Grosvenor.
About GCM Grosvenor
GCM Grosvenor is a global alternative asset management solutions provider with approximately $57 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 485 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, London, Tokyo, Hong Kong and Seoul.