Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to the Class A Notes, Class B Notes, and Class C Notes to be issued by GCM Grosvenor Diversified Alternatives Issuer LLC (in such capacity, the “Issuer”).
The primary purpose of the Issuer will be to utilize the Notes’ proceeds to make capital commitments to various closed-end fund vehicles to be managed by Grosvenor Capital Management, LP and its affiliates (GCM). Proceeds from the Notes will initially be used to acquire Liquid Assets, Liquid Products, and finance various transaction costs. As capital calls are made from the underlying Drawdown Products, the Investment Manager will utilize available cash flows and if required, will liquidate the transaction’s Liquid Products to finance these obligations.
GCM is a large independent alternative asset manager. Founded in 1971, GCM now has a global presence, with 166 investment professionals headquartered across nine global offices. As of June 30, 2021, the Company manages $67 billion of AUM for over 500 institutional clients through SMAs (77%) and commingled funds (23%). Approximately $41 billion of AUM is invested in private markets, including private equity, private credit, and infrastructure. The remaining $26 billion is invested broadly across absolute return strategies. GCM has a diverse institutional investor base coupled with a lengthy track record of stable performance and demonstrated capital raising capabilities.
Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.
A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be located here.
This credit rating is endorsed by Kroll Bond Rating Agency Europe Limited for use in the European Union and by Kroll Bond Rating Agency UK Limited for use in the UK. Information on a credit rating’s endorsement status is available on its rating page at KBRA.com.
Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority pursuant to the Temporary Registration Regime. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.
Gopal Narsimhamurthy, Senior Director (Lead Analyst)
+1 (646) 731-3392
Edward Napoli, Director
+1 (646) 731-1284
Pramit Sheth, Senior Managing Director (Rating Committee Chair)
+1 (646) 731-2330
Business Development Contact
Sted Dowd, Managing Director
+1 (646) 731-2479