GCM Grosvenor Elevate Fund Holds Final Close at Nearly $800 Million, the Largest Debut Private Equity Seeding Fund of Its Kind, Signaling Strong Continued Support for Small and Emerging Firm Founders
GCM Grosvenor (Nasdaq: GCMG) has announced the final close of its inaugural Elevate Fund with nearly $800 million in committed capital. The fund, launched in 2023, focuses on making seed investments in small and emerging private equity firms targeting lower- and middle-market buyout strategies.
The fund received significant backing from CalPERS with a $500 million commitment, alongside investments from corporate, endowment, foundation, insurance, and family office investors. GCM Grosvenor, which manages $80 billion in total assets, including $20 billion with small and emerging managers, has already made two investments through Elevate:
- Excolere Equity Partners, led by Tony Miller (announced October 2023)
- Invidia Capital Management, founded by Jo Natauri (announced May 2024)
A third investment is expected to be announced soon, with plans for two to three more investments in 2025.
GCM Grosvenor (Nasdaq: GCMG) ha annunciato la chiusura finale del suo fondo inaugurale Elevate Fund con quasi 800 milioni di dollari di capitale impegnato. Il fondo, lanciato nel 2023, si concentra su investimenti iniziali in piccole e giovani società di private equity mirate a strategie di buyout nel mercato inferiore e medio.
Il fondo ha ricevuto un sostegno significativo da CalPERS con un impegno di 500 milioni di dollari, insieme a investimenti da parte di investitori aziendali, fondazioni, endowment, compagnie di assicurazione e family office. GCM Grosvenor, che gestisce 80 miliardi di dollari in totale, inclusi 20 miliardi con manager piccoli ed emergenti, ha già effettuato due investimenti attraverso Elevate:
- Excolere Equity Partners, guidato da Tony Miller (annunciato nell'ottobre 2023)
- Invidia Capital Management, fondata da Jo Natauri (annunciato a maggio 2024)
Un terzo investimento è previsto per essere annunciato a breve, con piani per due o tre ulteriori investimenti nel 2025.
GCM Grosvenor (Nasdaq: GCMG) ha anunciado el cierre final de su fondo inaugural Elevate Fund con casi 800 millones de dólares en capital comprometido. El fondo, lanzado en 2023, se enfoca en realizar inversiones iniciales en pequeñas y emergentes firmas de capital privado que buscan estrategias de compra en el mercado inferior y medio.
El fondo recibió un respaldo significativo de CalPERS con un compromiso de 500 millones de dólares, junto con inversiones de inversores corporativos, fundaciones, dotaciones, compañías de seguros y oficinas familiares. GCM Grosvenor, que gestiona 80 mil millones de dólares en total, incluyendo 20 mil millones con gerentes pequeños y emergentes, ya ha realizado dos inversiones a través de Elevate:
- Excolere Equity Partners, dirigido por Tony Miller (anunciado en octubre de 2023)
- Invidia Capital Management, fundado por Jo Natauri (anunciado en mayo de 2024)
Se espera que un tercer investimento sea anunciado pronto, con planes para dos o tres inversiones más en 2025.
GCM Grosvenor (Nasdaq: GCMG)는 거의 8억 달러의 자본이 약속된 첫 번째 Elevate Fund의 최종 마감을 발표했습니다. 2023년에 출시된 이 펀드는 중소형 프라이빗 에퀴티 기업에 초기 투자를 집중하고 있습니다. 이들 기업은 하위 및 중간 시장 매수 전략을 목표로 합니다.
이 펀드는 CalPERS로부터 5억 달러의 약속을 포함하여 자회사, 기부금, 재단, 보험 및 가족 사무소 투자자들의 상당한 지원을 받았습니다. 80억 달러의 총 자산을 관리하는 GCM Grosvenor는 소규모 및 신생 관리자를 포함하여 200억 달러를 관리하고 있으며, Elevate를 통해 이미 두 건의 투자를 진행했습니다:
- Tony Miller가 이끄는 Excolere Equity Partners (2023년 10월 발표)
- Jo Natauri가 창립한 Invidia Capital Management (2024년 5월 발표)
세 번째 투자는 곧 발표될 예정이며, 2025년에는 두세 건의 추가 투자를 계획하고 있습니다.
GCM Grosvenor (Nasdaq: GCMG) a annoncé la clôture finale de son fonds inaugural Elevate Fund avec près de 800 millions de dollars de capital engagé. Lancé en 2023, ce fonds se concentre sur des investissements initiaux dans de petites entreprises de capital-investissement émergentes visant des stratégies de rachat sur les marchés inférieur et intermédiaire.
Le fonds a reçu un soutien important de CalPERS avec un engagement de 500 millions de dollars, ainsi que des investissements de la part d'investisseurs d'entreprises, de fondations, de dotations, d'assurances et de family offices. GCM Grosvenor, qui gère 80 milliards de dollars d'actifs au total, dont 20 milliards avec des gestionnaires petits et émergents, a déjà effectué deux investissements via Elevate :
- Excolere Equity Partners, dirigé par Tony Miller (annoncé en octobre 2023)
- Invidia Capital Management, fondé par Jo Natauri (annoncé en mai 2024)
Un troisième investissement devrait être annoncé prochainement, avec des projets de deux à trois investissements supplémentaires en 2025.
GCM Grosvenor (Nasdaq: GCMG) hat den finalen Abschluss seines inauguralen Elevate Fund mit nahezu 800 Millionen US-Dollar an zugesagtem Kapital bekannt gegeben. Der 2023 ins Leben gerufene Fonds konzentriert sich auf Seed-Investitionen in kleine und aufstrebende Private-Equity-Firmen, die auf Buyout-Strategien im unteren und mittleren Markt abzielen.
Der Fonds erhielt erhebliche Unterstützung von CalPERS mit einem Engagement von 500 Millionen US-Dollar, neben Investitionen von Unternehmens-, Stiftungs-, Fondsgesellschaften, Versicherungsgesellschaften und Family Offices. GCM Grosvenor verwaltet insgesamt 80 Milliarden US-Dollar, einschließlich 20 Milliarden US-Dollar mit kleinen und aufstrebenden Managern, und hat bereits zwei Investitionen über Elevate getätigt:
- Excolere Equity Partners, geleitet von Tony Miller (angekündigt im Oktober 2023)
- Invidia Capital Management, gegründet von Jo Natauri (angekündigt im Mai 2024)
Eine dritte Investition soll bald angekündigt werden, mit Plänen für zwei bis drei weitere Investitionen im Jahr 2025.
- Successfully raised nearly $800M for debut private equity seeding fund
- Secured anchor investment of $500M from CalPERS
- Already completed two investments with established industry veterans
- Strong institutional investor backing across multiple sectors
- Pipeline of additional investments planned for 2025
- None.
Insights
The $800 million final close of GCM Grosvenor's Elevate Fund marks a watershed moment in the private equity seeding landscape, representing the largest debut fund of its kind. This achievement is particularly noteworthy given the challenging fundraising environment, suggesting strong institutional appetite for GP seeding strategies.
The fund's structure reveals several compelling aspects: First, the $500 million anchor commitment from CalPERS provides exceptional credibility and stability, while the diverse LP base including corporate, endowment, foundation and family office investors indicates broad market validation. This mirrors the evolution of the GP stakes market, which has grown into a multi-billion dollar institutional asset class.
The strategic focus on lower and middle-market buyout managers is particularly astute for three reasons:
- This segment typically offers higher return potential due to operational improvement opportunities
- It's less crowded than the large-cap space, providing better entry valuations
- There's substantial room for value creation through professionalization and institutional scaling
The initial investments in Excolere Equity Partners and Invidia Capital Management demonstrate a sophisticated thesis execution. Both investments leverage founders with exceptional domain expertise and institutional pedigrees - Tony Miller's education sector experience and Jo Natauri's healthcare background at Goldman Sachs position them well for success in their respective sectors.
For GCMG shareholders, this represents a significant positive development. The seeding business typically generates multiple revenue streams:
- Management fees on the seeding fund itself
- Revenue share from the seeded managers' economics
- Potential upside from GP stake ownership
With $20 billion already deployed in small and emerging managers, GCM Grosvenor's established track record and infrastructure provide competitive advantages in sourcing, due diligence and post-investment support. The plan to make 2-3 additional investments in 2025 suggests careful pacing and selective deployment, important for maintaining investment quality.
The successful close of the Elevate Fund represents a strategic masterstroke in GCM Grosvenor's evolution, effectively leveraging their $20 billion emerging manager platform to capture a growing market opportunity. This initiative is particularly well-timed as the private equity industry experiences generational transition, creating opportunities for new, specialized firms.
The fund's structure incorporates several sophisticated elements:
- Focus on lower and middle-market buyout strategies allows for greater value creation potential
- Sector-specific approach evidenced by initial investments in education and healthcare
- Comprehensive support model including strategic guidance and operational resources
The selection of initial portfolio managers reveals a clear investment thesis centered on domain expertise and institutional credibility. Both Tony Miller and Jo Natauri bring sector-specific knowledge and established networks that can drive deal flow and value creation. This approach helps mitigate the typical risks associated with first-time funds.
For GCMG, this initiative creates multiple value drivers:
- Recurring revenue streams from fund management fees
- Participation in portfolio managers' economics
- Enhanced deal flow and co-investment opportunities
- Strengthened position in the growing sponsor solutions market
The diverse LP base spanning institutional, corporate and private wealth investors provides validation of both the strategy and GCM's execution capability. The significant commitment from CalPERS, a sophisticated institutional investor, serves as a powerful endorsement of the platform.
CHICAGO, Jan. 23, 2025 (GLOBE NEWSWIRE) -- GCM Grosvenor (Nasdaq: GCMG), a leading global alternative asset management firm, today announced its inaugural Elevate Fund (“Elevate”) has completed its final close with nearly
Elevate builds on GCM Grosvenor’s strong, multi-decade track record of investing in small and emerging managers and the firm’s position as a leading investor in the small- and middle- and middle market. The
“We are proud to celebrate this significant milestone for our Elevate strategy,” said Elizabeth Browne, Managing Director and Co-Head of GCM Grosvenor’s Elevate Strategy. “The depth and quality of our limited partners underscores a growing market recognition of the value being created by emerging managers in private equity and our ability to structure partnerships with some of the best firm founders in market today.”
Elevate’s diversified investor base includes the California Public Employees’ Retirement System (CalPERS), which launched the strategy with a
"Our partnership reflects an ongoing commitment to innovation in emerging manager investing,” said Peter Cashion, Managing Investment Director for Sustainable Investing at CalPERS. “We look forward to continued success in supporting the next generation of exceptional investment talent.”
To date, Elevate has made two investments, with a third expected to be announced in the coming weeks. The first investment, Excolere Equity Partners, a leading education and human capital management investment firm founded by Tony Miller, former Co-Founder and COO of The Vistria Group and Deputy Secretary of the U.S. Department of Education, was announced in October 2023. The second investment, announced in May 2024, was with Invidia Capital Management, a healthcare investment firm founded by Jo Natauri, a 25-year healthcare veteran who most recently served as Partner and Global Head of Private Healthcare Investing at Goldman Sachs.
“We are excited to have Tony and Jo as partners and value their exceptional domain expertise, the caliber of the firms they have built and the quality of companies in which they continue to invest,” said Kevin Nickelberry, Managing Director and Co-Head of GCM Grosvenor’s Elevate Strategy. “Their notable progress in establishing leading firms and effectively raising and deploying capital is both inspiring and a compelling affirmation of their vision, capabilities, and leadership.”
Elevate expects to make two to three more investments in 2025.
About GCM Grosvenor
GCM Grosvenor (Nasdaq: GCMG) is a global alternative asset management solutions provider with approximately
About Excolere Equity Partners
Excolere Equity Partners is a private equity firm based in Los Angeles focused on the Education and Human Capital Management sector. Working in partnership with management, Excolere leverages its extensive sector experience, operational expertise and public policy insights to accelerate the growth, enhance the impact, and increase the long-term value for the companies in which it invests. For more information, please visit https://excolerepartners.com.
About Invidia Capital Management
Invidia Capital Management is a healthcare-oriented private equity firm based in New York and focused on upper-middle market investments in North America. It was founded in 2024 by Jo Natauri, formerly the Global Head of Private Healthcare Investing at Goldman Sachs. Jo Natauri has 25+ years of experience in the healthcare sector, with a diverse background that includes private equity investment, board membership, investment banking, and operational leadership. Invidia aims to reinvent the approach to the middle market by leveraging mega-cap expertise and network, utilizing a wide array of value creation levers, offering broader exit options, and maintaining a balanced risk/reward profile. For more information, please visit www.invidiacap.com.
Media Contact
Tom Johnson and Abigail Ruck
H/Advisors Abernathy (on behalf of GCM Grosvenor)
tom.johnson@h-advisors.global / abigail.ruck@h-advisors.global
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