Who manages the California Mezzanine Opportunity Program?
The Program is managed by GCM Grosvenor.
What type of companies are eligible for investment?
California-based companies; companies that have more of their employees reside or work in California than in any other state; or companies that have more facility locations in California than in any other state.
In what stages of funding is the Program interested?
The Program’s interest is in mezzanine investments along with some investment in equity or equity-like investments alongside mezzanine investments. The equity-like investments will seek to strengthen alignment and provide additional upside for mezzanine investments included in the Program.
- Mezzanine debt is typically unsecured, however we will seek to negotiate for security or higher priority to achieve the best risk-adjusted return as deemed appropriate for each individual investment
- Equity enhancements will also be sought
- No assurance can be given that the Program will achieve these objectives
If I have a business plan that I’d like considered for investment, how do I contact GCM Grosvenor?
Will the Program be investing alone?
The Program has the ability to be the sole investor in a round of financing or it can make co-investments alongside other financial sponsors. In addition, other capital formation opportunities with a nexus to California may also be considered if GCM Grosvenor believes that the risk-return dynamics are in line with current underwriting objectives.
What is mezzanine debt?
“Mezzanine” refers to the middle layer of financing in leveraged buyouts and growth investments. Mezzanine securities are subordinated to a company’s senior debt, but rank higher in priority of payment than common equity.
What is a private equity co-investment?
A private equity co-investment is an equity or debt investment in a private company generally alongside a financial sponsor.
What is a financial sponsor?
A financial sponsor contributes capital (equity or debt), capital markets expertise, contacts or experience to an investment. Typically, a financial sponsor is an investment management firm that has expertise in strategic initiatives, mergers and acquisitions, and joint ventures. The company’s CEO and other senior management maintain responsibility for day-to-day operations.