GCM Grosvenor, a global alternative asset management solutions provider, will seek to upsize its Term Loan by USD85 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 USD238 million (consisting of fund investments valued at USD87 million and unrealized carried interests net asset value of USD150 million) and rights to additional future carried interest associated with USD423 million of carry dollars at work, for an estimated March 31, 2021 purchase price of USD176 million. The Mosaic Assets generated realised carried interest earnings of USD14.7 million over the twelve-month period ended March 31, 2021 and realized investment income of USD1.5 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,” says Michael Sacks, Chairman and Chief Executive Officer of GCM Grosvenor. “Over the last quarter alone, we saw Mosaic’s unrealised carried interest at NAV increase by 31 per cent to USD150 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.
