Alternative investment solutions platform CION Investments and GCM Grosvenor, a global alternative asset management firm, are launching CION Grosvenor Infrastructure Fund, or CGIF. Declared effective by the U.S. Securities and Exchange Commission, CGIF is an interval fund that allows individual investors, through their financial advisers, access to GCM Grosvenor’s institutional private infrastructure platform.
The fund expects to launch with approximately $300 million of seed capital sourced from a major institutional investor yet to be named. Before commencing distribution, it anticipates merging with a $220 million portfolio in committed net assets that is broadly diversified and includes the traditional infrastructure sectors of transportation, digital, energy and energy transition, as well as supply chain and logistics. This seed portfolio is expected to be accompanied by an additional cash commitment of approximately $80 million.
CION and GCM Grosvenor said they believe infrastructure is a compelling investment opportunity at the beginning of a multi-decade growth cycle. According to the companies, significant amounts of public and private investment capital are necessary for infrastructure to successfully meet the upgrades and buildouts required to keep pace with global climate, demographic and technological change, and the persistent demand for investment capital creates an attractive long-term environment.
“Private assets have always been our focus, and we believe that within private markets, infrastructure is in a particularly strong position for growth. Infrastructure as an asset class is only a couple decades old, and GCM Grosvenor was one of the first institutional managers to see the potential in the opportunity. The firm has built a strong track record, a differentiated and flexible sourcing network, and has an approach to investment selection that focuses on increasing alpha,” said Michael A. Reisner and Mark Gatto, co-chief executive officers of CION.
For investors, the companies said infrastructure can provide capital appreciation and income and has distinct characteristics – such as inflation protection potential, low correlations to other private and public assets, and lower potential volatility – that can help them construct portfolios with potential to meet long-term goals.
“We believe that the infrastructure space presents a compelling investment opportunity and that GCM Grosvenor’s platform is uniquely positioned to deliver solutions for investors. Our approach to infrastructure has consistently been about building a well-diversified portfolio, across multiple factors including geography, asset concentration, and sector exposure,” said Michael Sacks, chairman and CEO of GCM Grosvenor.
“We focus on utilizing our powerful sourcing network to see, evaluate and onboard infrastructure assets from multiple different fronts,” added Sacks.
CION Investments is an open-source provider of alternative investments designed to redefine the way individual investors can build their portfolios and meet their long-term investment goals. It currently sponsors another interval fund, CION Ares Diversified Credit Fund, which manages approximately $6 billion in assets.
GCM Grosvenor (Nasdaq: GCMG) is a global alternative asset management solutions provider with approximately $80 billion in assets under management across private equity, infrastructure, real estate, credit, and absolute return investment strategies. GCM has a team of approximately 550 professionals serving a global client base of institutional and individual investors and is headquartered in Chicago.
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