BOOK 1
Fresno County Employees' Retirement Association
June 2015
The Notes and Disclosures following this presentation are an integral part of this presentation and must be read in connection with your review of this presentation.
Grosvenor® and Grosvenor Capital Management® are proprietary trademarks of Grosvenor Capital Management, L.P. and its affiliated entities.
This presentation has been prepared by Grosvenor Capital Management, L.P. (referred to herein as “GCM Grosvenor Public Markets”) and Grosvenor Securities LLC.
©2015 Grosvenor Capital Management, L.P. and Grosvenor Securities LLC. All rights reserved.
Table of Contents
 Section 1
Introduction
 Section 2
Firm Overview
 Section 3
Grosvenor Institutional Partners Update
 Appendix 1
Additional Information
 Appendix 2
Notes and Disclosures
2
Section 1
Introduction
Our Understanding of Your Situation
 Fresno County Employees' Retirement Association (“FCERA”) has increased its hedge fund target to 8%
from its current exposure of 4%
 The current 4% exposure is obtained through an investment in Grosvenor Institutional Partners, L.P. (“GIP”)
 FCERA is evaluating various options for implementing the increased allocation to hedge funds
 Four options have been discussed with FCERA’s general consultant, Verus
1. Partner with GCM Grosvenor (e.g., add capital to GIP, fund a customized account) 2. Engage an additional fund of funds manager
3. Engage a specialty hedge fund advisor
4. Leverage Verus’ contractual relationship with research provider Aksia
4
Our Objective Today
 Provide a brief update on GCM Grosvenor and our capabilities
 Provide an update on your investment in our flagship multi‐strategy fund, GIP
 Discuss the different options for FCERA (commingled, customized, hybrid approach) to work with us on implementing the additional allocation, detailing:
› Roles and responsibilities › Complete program expenses
› Ways in which other organizations implement hedge fund programs
 Answer any questions you have
5
Risk/Return Characteristics
Hedge Funds vs. Traditional Indices
Hedge fund strategies generally seek to provide superior risk‐adjusted returns versus traditional market indices.
Annualized return (%) versus annualized standard deviation (%)
January 1990 through March 2015
12%
HFRI Fund Weighted Composite Index 10%
Increased return
S&P 500 Index
Hedge fund index
Traditional Index
8%
HFRI Fund of Funds Composite Index
MSCI World Index
Barclays Global Aggregate Bond Index
6%
4%
2%
0%
0%
4%
8%
12%
16%
20%
Increased risk
Data sources: Bloomberg, Hedge Fund Research, Inc. (HFR), MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI
data contained herein. The MSCI data may not be further redistributed or used to create indices or financial products. This report is not approved or produced by MSCI.
Data updated quarterly. Additional information available upon request.
Past performance is not necessarily indicative of future results.
6
Section 2
Firm Overview
GCM Grosvenor
We are one of the world’s largest and most diversified allocators to alternative investments.
Who we are
Our guiding principles
 We offer investors comprehensive investment solutions for public markets (hedge funds) and › Seek attractive risk‐adjusted returns across asset classes
private markets (private equity, infrastructure and real estate)
 We are experienced investors with a proven performance track record
 We are a leader in customized investment programs tailored to meet specific client objectives
› Leverage our size and industry relationships to benefit clients
 We offer commingled funds with specialty exposures and structures
› Provide innovative investment solutions
 Our advisory services include full investment, operational and infrastructure support
› Deliver superior client service
 Our client base includes some of the world’s largest pension funds, banks, corporations › Always act with integrity and sovereign wealth entities
› Support our community
 Our global locations include Chicago, New York, Los Angeles, London, Tokyo and Hong Kong 1971
$49.9bn
$402mm
463
75%
92%
First year of investing
Assets under management
Capital invested alongside our clients
Employees AUM in customized client portfolios
Institutional client base
(as of May 1, 2015)
Data as of February 28, 2015, unless otherwise indicated.
Past performance is not necessarily indicative of future results. No assurance can be given that any investment will achieve its objectives or avoid significant losses.
8
GCM Grosvenor Global Presence
Main Offices1
London (8)
New York (120)
Investment Professionals (29)
Non‐Investment Professionals (78)
Support (13)
Investment Professionals (6)
Non‐Investment Professionals (1)
Support (1)
Tokyo (13)
Investment Professionals (2)
Non‐Investment Professionals (10)
Support (1)
Chicago (300)
Los Angeles (6)
Investment Professionals (4)
Non‐Investment Professionals (1)
Support (1)
Executives (2)
Investment Professionals (48)
Non‐Investment Professionals (217)
Support (33)
Hong Kong (7)
Investment Professionals (6)
Support (1)
Data as of May 1, 2015.
1 Additional investment professionals (6) and non‐investment professionals (3) in other regional offices.
9
Comprehensive Alternative Investment Solutions
Business line
Public markets
Private markets
Investments
 Hedge funds
 Private equity, infrastructure and real estate
AUM
 $27.3 billion
 $22.5 billion






 Customized investment programs
 Commingled fund products
 Primary funds, secondaries,
Investment capabilities
Advisory services
Customized programs
Customized investment programs
Multi‐strategy portfolios
Single‐strategy portfolios
Opportunistic/direct investments
Hedge fund seeding
Small and diverse managers
 Full hedge fund advisory solutions
Commingled AUM
34%


co‐investments
Small, emerging and diverse managers
Regionally‐targeted investment programs
 Full private markets advisory solutions
Commingled AUM
13%
Customized AUM
66%
Customized AUM
87%
Data as of February 28, 2015.
GCM Grosvenor provides public markets services through Grosvenor Capital Management, L.P. and private markets services through GCM Customized Fund Investment Group, L.P.
10
Customized Investments
Public Markets A hedge fund solutions provider
Assets under management
 1994: First implemented solution
By portfolio type
 1996: First customized portfolio
Multi‐Client Portfolios
34%
Customized funds represent more than 60% of our hedge fund business
 58 relationships
 77 customized portfolios
› 71.0% of AUM is invested in multi‐strategy portfolios
Interactive and collaborative relationships
Customized Portfolios
66%
 Tailored to a client’s goals, needs, and resources
 Clients leverage our core investment, operations, risk management, and structuring capabilities
 Flexibility to evolve as a client’s governance, capabilities, and resources change  Broad knowledge‐sharing platform
 Comprehensive customized reporting program
Data as of March 31, 2015.
11
Actively Covered Hedge Funds
Public Markets
By Strategy
Hedge fund strategy
Credit
Relative value
Multi‐strategy
Event driven
Equities
Macro / CTA
Commodities
Dedicated portfolio hedges
Total count
Invested hedge funds
Actively followed
Total covered
46
10
9
8
49
12
7
1
142
155
84
49
42
249
159
92
10
840
201
94
58
50
298
171
99
11
982
Invested hedge funds
Actively followed
Total covered
117
17
8
0
142
594
112
105
29
840
711
129
113
29
982
By Region
Geographic focus
U.S./Canada and Global
Europe
Asia
Other1
Total count
Data as of April 1, 2015; data updated quarterly.
1 “Other” may include: Latin America, Middle East, Africa and not assigned.
12
The Four Core Investment/Operations Capabilities
Public Markets (As of May 1, 2015)
Investment
Risk management
Operations
Structuring
 Communication of outlook and opportunity set
 Risk management due diligence and monitoring
 Operational due diligence
 Identification of strategies and investment managers
 Risk/exposure aggregation
 Treasury and liquidity management
 Customized structuring of multi‐
client and single‐client Grosvenor portfolios
 Investment due diligence
 Portfolio construction
 Monitoring portfolios and investment managers
 Portfolio implementation
› Analytical tools
› Reporting
› Stress testing / scenario analysis
 Customization of risk reports
 Third‐party risk aggregation assistance
› Exception reporting
 Portfolio compliance monitoring
 Fund accounting and fund performance reporting
 Fund administration, parallel to third‐party administration
 Trade management and settlement
Investment Committee‐3
Research‐291
Risk Management‐8
Risk Management
Systems Development‐182
Portfolio Management‐171
 Underlying fund structuring,
including fee/term negotiation
 Assessment and negotiation of direct investment terms
 Implementation of regulatory compliance processes to match investment structure
Operations Committee‐3
Operational Due Diligence‐16
Attorneys‐73
Compliance‐5
Trade Management/Settlement‐10
Treasury/Liquidity Management‐9
Cross‐Functional Teams
Negotiate favorable fees/terms‐74
Fund Finance‐31
Media Research‐3
1
2
3
4
5
Structuring with investment managers‐65
One Vice President has dual responsibilities for Research and Portfolio Management; headcount appears within both groups.
Includes GCM Grosvenor Public Markets employees and consultants; data updated quarterly.
Burke Montgomery, General Counsel, is also counted under the Operations Committee.
Includes 1 professional from Portfolio Management, 2 from Research, and 4 from Operational Due Diligence.
Includes 2 attorneys from Legal and 4 professionals from Operational Due Diligence.
13
Multi-Track Due Diligence and Approval Process
Public Markets Initial due diligence
Investment Committee decides whether to initiate full due diligence
Sourcing and initial due diligence
Full due diligence and structuring Structuring decisions:  Commingled funds
 Separate accounts
 Trades ideas/themes
Proposed hedge fund
Investment
due diligence 


Approval
 Dual‐track process
 Must pass both
 CEO has veto authority
Quantitative analysis
Qualitative analysis
Reference checks Risk management due diligence 



Quantitative analysis
Risk management governance
Systems review
Risk limits and guidelines Operational
due diligence Operations



Structuring and legal review
Background investigations
Operations personnel evaluation
Operational capabilities and internal control review Public Markets Investment Committee (IC) approval



Structure investment
Review legal documents
Negotiate side letter agreements (as necessary)
Operations Committee (OC) approval
Approved hedge fund
14
Preferential Economics and Terms
Public Markets Our investment expertise, size and structuring skills enable the firm to create custom investment mandates and drive preferential terms, including improved fees.
GCM Grosvenor Public Markets‐approved hedge funds
72% of AUM
We select optimal means of access:
Our value‐add:
Commingled funds with preferential terms
Reduced fees based on investment size
28% of AUM
Separate accounts with underlying managers
Negotiated
side letters
Direct investments
Commingled funds with standard terms Custom mandates and structuring
Benefits1
Targeted exposure
Favorable terms
Improved fee structures
Goal: Enhanced Performance2
1 Not all underlying funds provide all of these benefits, including preferential economics and terms.
2 No assurance can be given that any investment will achieve its objectives or avoid significant losses.
References herein to “we”, “us”, and “our” are to GCM Grosvenor Public Markets.
As of January 1, 2015; data updated quarterly. Additional information available upon request.
15
We Achieve Fee Savings for Our Clients
Hedge Fund Programs: Select Portfolios1 (January 1, 2015)
The Notes and Disclosures immediately below this analysis and the Notes and Disclosures following this presentation are an integral part of this analysis and must be read in order for you to properly evaluate this analysis, and understand its significant limitations.  GCM Grosvenor Public Markets‐advised capital generally pays lower effective fees due to our:
› Negotiating expertise and industry leverage: Preferential fees obtained through side letters and separate account structuring
› Scale: Lower fees based on the aggregate level of advised capital allocated to an investment manager
 All fee savings are passed directly through to our clients
1‐year potential fee savings analysis
Lower effective fees versus standard fees
Based on hedge fund gross annual return assumptions
Gross ROR
Select
portfolio2
Commingled multi‐
strategy portfolio
Commingled equity portfolio
Commingled credit portfolio
Customized multi‐
strategy portfolio
0% or any negative 12%
10%
8%
60 bp 55 bp
54 bp
36 bp
106 bp 100 bp
91 bp
41 bp
89 bp 79 bp 88 bp
77 bp
72 bp
67 bp
65 bp
49 bp
1 The fee savings of the portfolios included in this report are not necessarily representative of fee savings of any other GCM Grosvenor Public Markets portfolios.
2 “Commingled multi‐strategy portfolio” represents Grosvenor Institutional Partners, L.P., our flagship commingled multi‐strategy portfolio; “Commingled equity portfolio” represents Grosvenor
Enhanced Long/Short Equity Master Fund, Ltd., our flagship commingled long/short equity portfolio; “Commingled credit portfolio” represents Grosvenor Opportunistic Credit Master Fund IV,
Ltd., our most recently created commingled credit portfolio; “Customized multi‐strategy portfolio” represents our most recently created, fully‐funded customized multi‐strategy portfolio as of
the date above.
This information is provided to present the potentially lower effective fees that apply to GCM Grosvenor Public Markets‐advised assets in certain Underlying Funds. The analysis is presented, and
assumes certain gross return rates for the Underlying Funds, for illustrative purposes only; it is not intended to imply that any GCM Grosvenor Public Markets‐advised assets will achieve a
specific return or “fee savings” over any period. A number of assumptions were made in preparing this analysis, some of which are discussed in the slide following this presentation entitled “Fee
Savings Notes and Disclosures”. Additional detail concerning the methodology used and assumptions made to calculate potential fee savings is available upon request.
16
Competitive Advantages
Public Markets
Broad coverage of hedge funds
 Proprietary database of over 3,700 investment management firms.
Large, specialized staff
 We believe our Investments, Operations, Risk Management and Legal Teams are among the largest and most experienced in the industry.
Economic and structural advantages
 We use our size and scale to structure unique and efficient ways to access underlying hedge funds by negotiating:
 Our Investments Team actively tracks—and can offer insight on— 982 hedge funds globally.
› Customized strategy exposures
› Fee savings and alignment of interests
› Control provisions and improved liquidity
Disciplined due diligence  We perform separate and distinct investment, risk management, and operational process
due diligence, and believe this depth and breadth of manager research is unparalleled in the industry.
Risk analytics and aggregation
 Proprietary risk tools allow us to perform sophisticated exposure and risk analytics for individual hedge funds, multi‐manager portfolios and full hedge fund programs.
Knowledge transfer
 We are committed to sharing knowledge with our clients through reporting and communications that emphasize transparency.
Data as of April 1, 2015; data updated quarterly.
17
Section 3
Grosvenor Institutional Partners Update
Executive Summary
Grosvenor Institutional Partners, L.P. We believe Grosvenor Institutional Partners, L.P. (“GIP”) presents a compelling investment opportunity.  GCM Grosvenor’s flagship multi‐strategy fund includes our highest conviction investment ideas
Best ideas of our global investment team  Our investment team seeks to identify the best investment opportunities globally and the most qualified managers with whom to execute those ideas  Ability to tactically shift capital to strategies where we see the most attractive opportunities  Ability to leverage our size and scale to drive advantageous economics and Investment execution All‐weather, absolute return focus
investment terms
 Isolate targeted exposures through customized fund structures




Low volatility and consistently positive return stream
Reasonably concentrated and liquid portfolio
Modest broader market directionality designed to minimize systematic market risk
Proven track record of preserving capital in down markets
No assurance can be given that the Fund will achieve its objectives or avoid significant losses. Past performance is not necessarily indicative of future results, and the performance of the Fund
could be volatile.
19
Allocation Overview
Grosvenor Institutional Partners, L.P. (May 1, 2015)
We look at exposure in two different ways.
Asset allocation by strategy classification1,2,4
Asset allocation by “look‐through” strategy exposure1,3
Percent of fund’s net asset value
Percent of capital (gross)
Credit, 24.0%
Equities, 24.3%
Credit, 25.2%
Equities, 39.5%
Event Driven, 6.6%
Relative Value, 9.1%
Multi‐Strategy, 12.3%
Other, 1.4%
Cash and receivables, 2.9%
Macro, 6.8%
Event Driven, 6.2%
Macro and Commodities, 13.0%
1
2
3
4
Relative Value, 15.5%
Commodities, 6.3%
Cash and receivables, 6.9%
“Cash and receivables” (if present) may include: cash, bank loans, and net receivables/payables.
“Other” (if present) may include: accrued fees and expenses, residual positions with underlying funds from which the Fund has redeemed, foreign exchange hedges, and general trades.
“Other” (if present) may include: reinsurance and real estate (hard assets).
“Event Driven” does not include event driven exposure within dedicated equity and credit strategies.
20
Key Investment Manager Characteristics
Grosvenor Institutional Partners, L.P. (May 1, 2015) Investment manager characteristics1
Portfolio characteristics
Tenure (years) vs. AUM ($ billions)
 Number of investment managers
35
40
Investment Manager
 Largest investment manager allocation
8.4%
 Average investment manager allocation
2.5%
 Median investment manager allocation
2.4%
 10 largest investment manager allocations
41.4%
 20 largest investment manager allocations
66.5%
Median
30
20
10
0
0
10
20
30
40
50
Tenure
1 Based on the most current data available to GCM Grosvenor, which are not necessarily current as of the date above.
21
Performance Relative to Benchmark Index
As of December 31, 2014
Trailing:
3‐year
4‐year
5‐year
HFRI Fund of Funds Composite Index USD1
5.68%
2.71%
3.30%
Grosvenor Institutional Partners, L.P.2
8.94%
5.64%
5.87%
HFRI Fund of Funds Composite Index USD1
0.35%
‐1.40%
‐0.60%
Grosvenor Institutional Partners, L.P.2
3.64%
1.22%
2.20%
HFRI Fund of Funds Composite Index USD1
‐2.31%
‐7.67%
‐7.67%
Grosvenor Institutional Partners, L.P.2
‐1.48%
‐6.75%
‐6.75%
Annualized Rate of Return Comparison
Alpha vs. S&P 500 Index Comparison
Maximum Drawdown Comparison
 A return highlighted in blue indicates that GIP outperformed the respective index over that period.
 The performance of the HFRI FoF Composite Index equally weights the returns of over 600 fund of funds. Data provided through 12/31/2014.
1 For the 1‐year performance period ending December 31, 2014, the HFRI FoF Composite Index annualized rate of return was 3.37%, alpha vs. S&P 500 was 0.25%, and maximum drawdown was
‐1.27%. For the 2‐year performance period ending December 31, 2014, the HFRI FoF Composite Index annualized rate of return was 6.12%, alpha vs. S&P 500 was ‐0.20%, and maximum
drawdown was ‐1.39%.
2 For the 1‐year performance period ending December 31, 2014, the Grosvenor Institutional Partners, L.P. annualized rate of return was 3.30%, alpha vs. S&P 500 was 0.55%, and maximum
drawdown was ‐0.76%. For the 2‐year performance period ending December 31, 2014, the Grosvenor Institutional Partners, L.P. annualized rate of return was 9.09%, alpha vs. S&P 500 was
2.79%, and maximum drawdown was ‐0.76%.
Data source: Hedge Fund Research, Inc. (HFR).
Past performance is not necessarily indicative of future results, and the performance of any index or fund could be volatile. No assurance can be given that any investment product will achieve
its objectives or avoid significant losses.
22
Performance Relative to Peers
Grosvenor Institutional Partners, L.P. (As of December 31, 2014)1
1 Grosvenor Institutional Partners, L.P. places in the second quartile for 1‐year and the top quartile for 2‐year performance periods ending December 31, 2014. The full performance track record
is presented on slide 27 of this presentation.
Grosvenor Capital Management, L.P. (“GCMLP”) has provided this analysis to present the effective “ranking” of Grosvenor Institutional Partners, L.P. compared to a peer group of similar multi‐
strategy products selected by GCMLP. The peer group consists of all multi‐strategy products offered by the largest 25 fund of hedge funds firms (as published by Institutional Investor’s Alpha
magazine in March 2014 for AUM data as of December 2013) for which returns are available from MercerInsight through December 31, 2014 as of the report’s creation date (March 3, 2015). The
universe is not an official or “standard” Mercer Universe, but a customized universe created for this purpose. For a detailed discussion of the methodology used to construct the peer group and
the limitations of such methodology, please refer to the Notes and Disclosures that accompany this presentation. Past performance is not necessarily indicative of future results and the returns
of any GCMLP‐managed fund could be volatile. Returns for additional periods are provided elsewhere in this presentation. Utilizing a different peer group or different period may produce
different results.
23
The Value of Strategy and Manager Selection
Grosvenor Institutional Partners (“GIP”) (as of March 31, 2015)
Based on the outlined methodology, we find that GIP, our flagship multi‐strategy portfolio, exhibits both strategy and manager selection outperformance over the majority of measured time periods. Trailing period outperformance (annualized)
1 Year
3 Year
5 Year
7 Year
Since
01/2003
Benefits from strategy selection
❶ GIP strategy
3.45%
7.99%
5.69%
3.38%
5.45%
0.25%
5.91%
4.45%
1.84%
4.57%
+2.08%
+1.24%
+1.54%
+0.88%
0.25%
5.91%
4.45%
1.84%
4.57%
0.31%
2.14%
0.74%
‐0.64%
1.32%
Outperformance ‐0.06%
+3.77%
+3.71%
+2.47%
+3.25%
asset weighted –
❷ GIP strategy
equal weighted
Outperformance +3.20%
Outperformed in all cases
Benefits from manager selection
❸ GIP strategy Equal weighted
–
❹ HFR strategy
Equal weighted
Outperformed in most cases
Past performance is not necessarily indicative of future results and the returns of a portfolio may be volatile. Additional information on our methodology and its limitations is available upon
request. Utilizing a different trailing period may produce different results.
24
Lower Effective Fees
Grosvenor Institutional Partners, L.P. (the “Fund”) (January 1, 2015)
The Notes and Disclosures immediately below this analysis and the Notes and Disclosures following this presentation are an integral part of this analysis and must be read in order for you to properly evaluate this analysis, and understand its significant limitations.  GCM Grosvenor Public Markets‐advised capital Our terms versus managers’ standard terms
generally pays lower effective fees due to our:
› Negotiating expertise and industry leverage: Preferential fees obtained through side letters and separate account structuring
› Scale: Lower fees based on the aggregate level of advised capital allocated to an investment manager
 All fee savings are passed directly through to our Management Performance
fee
fee
Hurdle
rate
Preferred
return
Managers' standard terms
1.68%
19.92%
0.29%
0.20%
Our terms
1.32%
17.56%
0.65%
0.82%
Benefit to our clients
0.36%
2.36%
0.36%
0.62%
1‐year potential fee savings analysis
Based on hedge fund gross annual return assumptions
clients
Fee savings
12% Gross ROR
10% Gross ROR
8%
Gross ROR
0% or any negative Gross ROR 60 bp
55 bp
54 bp
36 bp
References herein to “we”, “us”, and “our” are to GCM Grosvenor Public Markets.
This information is provided to present the potentially lower effective fees that apply to GCM Grosvenor Public Markets‐advised assets in certain underlying funds. The analysis is presented, and
assumes certain gross return rates for the underlying funds, for illustrative purposes only; it is not intended to imply that any GCM Grosvenor Public Markets‐advised assets will achieve a
specific return or “fee savings” over any period. A number of assumptions were made in preparing this analysis, some of which are discussed in the slide following this presentation entitled “Fee
Savings Notes and Disclosures”. Additional detail concerning the methodology used and assumptions made to calculate potential fee savings is available upon request.
25
Appendix 1
Additional Information
Historical Net Performance
Grosvenor Institutional Partners, L.P. (April 30, 2015)
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Grosvenor Institutional Citigroup U.S. Three‐Month Partners, L.P.
Treasury Bill Index
15.64%
5.96%
8.39%
4.09%
2.48%
1.70%
11.40%
1.07%
7.22%
1.24%
7.13%
3.00%
9.77%
4.76%
11.08%
4.74%
‐20.59%
1.80%
14.23%
0.16%
6.81%
0.13%
‐3.67%
0.08%
8.63%
0.07%
15.21%
0.05%
HFRI Fund of Funds Composite Index
4.07%
2.80%
1.02%
11.61%
6.86%
7.49%
10.39%
10.25%
‐21.37%
11.47%
5.70%
‐5.72%
4.79%
8.96%
HFRX Global Hedge Fund Index
14.29%
8.67%
4.72%
13.39%
2.69%
2.72%
9.26%
4.23%
‐23.25%
13.40%
5.19%
‐8.87%
3.51%
6.72%
2014
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Year
1.54%
1.26%
‐0.11%
0.58%
3.30%
0.01%
0.01%
0.01%
0.00%
0.03%
0.56%
1.54%
0.28%
0.95%
3.37%
1.11%
0.65%
‐0.57%
‐1.74%
‐0.58%
2015
January
February
March
April
Year‐to‐Date (4 months)
‐0.39%
1.58%
0.52%
0.13%
1.84%
0.00%
0.00%
0.00%
0.00%
0.01%
0.16%
1.71%
0.60%
0.33%
2.82%
‐0.29%
2.02%
0.33%
0.21%
2.28%
146.31%
6.06%
4.35%
32.75%
1.86%
0.57%
78.75%
3.86%
5.12%
66.02%
3.36%
5.69%
Since 01/2000
Cumulative Return
Annualized Return
Annualized Standard Deviation
Data sources: Bloomberg, Hedge Fund Research, Inc. (HFR).
Past performance is not necessarily indicative of future results, and the performance of the portfolio could be volatile.
27
Executive Summary
Fresno County Employees' Retirement Association (April 30, 2015)
Performance summary1
Account summary
Fund
3M US T‐Bills
Fund Details
Performance
Grosvenor Institutional Partners, L.P. (the "Fund")
Target Annualized Return: 90‐Day U.S. T‐Bills + 500‐1000 basis points
Inception Date
Strategy
Currency
AUM (4/30/2015)
January 1, 2000 Multi‐Strategy USD $5,461M
Client Capital Account
Initial Investment Date
November 2009 Opening Balance
$50,000,000
Additional Subscriptions
$78,548,034
(Redemptions)
Cumulative Investment Results
Balance as of April 30, 2015
$0
$24,961,774
$153,509,808
1 Target returns and target volatility are hypothetical in nature and are shown for
illustrative, informational purposes only. See the slide labeled “Target Returns, Forward
Looking Estimates, and Risk Parameters” following this presentation for additional
information regarding target returns and target volatility. There can be no assurance
that the fund will achieve its objectives or avoid losses.
Data source: Bloomberg
Past performance is not necessarily indicative of future results, and the performance of the
portfolio could be volatile.
Recent
2015
1st Quarter
2nd Quarter (1 month)
Year to Date (4 months)
1.76%
0.15%
1.90%
0.01%
0.00%
0.01%
2014
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Year
1.57%
1.30%
‐0.06%
0.63%
3.47%
0.01%
0.01%
0.01%
0.00%
0.03%
Trailing 12 Months (05/2014‐04/2015)
Client ‐ Since Initial Investment
Fund ‐ Since Inception
4.46%
6.08%
6.06%
0.02%
0.07%
1.86%
Standard Deviation
By Period (Annualized)
Trailing 12 Months (05/2014‐04/2015)
Client ‐ Since Initial Investment
Fund
Target
Fund ‐ Since Inception
2.23%
3.62%
4.35%
< 8%
< 8%
< 8%
Beta vs. S&P 500
Fund
Target
0.20
0.23
0.15
< 0.20
< 0.20
< 0.20
By Period (Annualized)
By Period
Trailing 12 Months (05/2014‐04/2015)
Client ‐ Since Initial Investment
Fund ‐ Since Inception
28
GCM Grosvenor Fund Performance
Definitions and Methodology – Strategy Selection
We measure the value of our strategy selection by calculating the excess return of a portfolio on an asset‐weighted basis versus an equal‐weighted basis.
Strategy selection outperformance = ❶ Asset‐weighted portfolio strategy ROR – ❷ Equal‐weighted portfolio strategy ROR Different Weights
Methodology:
 Categorize the portfolio’s Grosvenor portfolio strategy return
Weight (%)
Grosvenor portfolio strategy return
Weight (%)
Credit ROR
x
GCM strategy weight
Credit ROR
x
1/(# of strategies)
Equity ROR
x
GCM strategy weight
Equity ROR
x
1/(# of strategies)
Macro ROR
x
GCM strategy weight
Macro ROR
x
1/(# of strategies)
RV ROR
x
GCM strategy weight
RV ROR
x
1/(# of strategies)
+ …
…
❶ Asset‐weighted portfolio strategy ROR + …
…
❷ Equal‐weighted portfolio strategy ROR constituent funds by strategy
 Compare a portfolio with our strategy weights versus an equal‐
weighted portfolio
This comparison partially controls for manager selection.1
If the difference between the two returns is positive, this implies that we have successfully allocated capital to strategies that have outperformed over the given time period.
1 GCM Grosvenor’s strategy attribution methodology cannot fully eliminate the impact of manager selection.
Additional information on our methodology and its limitations is available upon request.
29
GCM Grosvenor Fund Performance
Definitions and Methodology – Manager Selection
We measure the value of our manager selection by calculating the excess return of an equal‐
weighted portfolio of a portfolio’s strategy constituent returns over an equal‐weighted portfolio
of appropriate strategy‐specific hedge fund indices.
Manager selection outperformance =
❸ Equal‐weighted portfolio strategy ROR – ❹ Equal‐weighted hedge fund strategy indices ROR
Different Returns
Methodology:
 Categorize the portfolio’s constituent Grosvenor portfolio strategy return
Weight (%)
funds by strategy
HFR
Return1
Weight (%)
Credit ROR
x
1/(# of strategies)
HFR Credit ROR
x 1/(# of strategies)
Equity ROR
x
1/(# of strategies)
HFR Equity ROR
x
1/(# of strategies)
Macro ROR
x
1/(# of strategies)
HFR Macro ROR
x
1/(# of strategies)
RV ROR
x
1/(# of strategies)
HFR RV ROR
x
1/(# of strategies)
+ …
…
❸ Equal‐weighted portfolio strategy ROR + …
…
❹ Equal‐weighted HF strategy indices ROR
 Select hedge fund indices that we believe best represent each strategy group
 Compare equal‐weighted portfolios of both
If the difference between the two returns is positive, this implies that we have successfully allocated capital to managers that have outperformed over the given time period.
1 The representative hedge fund indices used are: 50/50 Blend of HFRX ED Credit Arbitrage & Distressed Restructuring (credit), HFRX RV Arbitrage (relative value), HFRX Equal Weighted (multi‐
strategy), HFRX Event Driven (event driven), HFRX Equity Hedge (equities), HFRI Macro (Total) (macro), HFRX Macro Commodities (commodities), HFRI Short Bias (portfolio hedges).
Additional information on our methodology and its limitations is available upon request.
30
Appendix 2 Notes and Disclosures
Fee Savings – Public Markets
Notes and Disclosures (January 1, 2015)
Grosvenor has presented you with an analysis of potential fee savings of investing in a Grosvenor Fund. Please consider the following when reviewing this analysis:
1. Grosvenor‐advised assets may obtain a potentially lower effective fee on assets managed by a particular Investment Manager by investing in a Portfolio Fund managed by
such Investment Manager that has been specifically created for investment by Grosvenor‐advised assets (a “Grosvenor Separate Account”). As further described in #2 below,
Grosvenor has compared the fees borne in a Grosvenor Separate Account to the fees borne in another commingled fund managed by the same Investment Manager pursuant
to the same or similar mandate (“Manager’s Commingled Fund”). In cases where the Investment Manager does not manage a commingled fund pursuant to the same or
similar mandate, another commingled fund managed by the Investment Manager may be used for comparison purposes. The Grosvenor Separate Account may differ from
the relevant Manager’s Commingled Fund in material respects, including, but not limited to: risk/return profile, investor liquidity and investment mandate and guidelines.
The Grosvenor Separate Account may incur operating expenses (excluding the impact of management and performance fees) that exceed those paid by investors in the
Manager’s Commingled Fund.
2. For Portfolio Funds that are Grosvenor Separate Accounts, Grosvenor has compared the fee rates borne by Grosvenor Separate Accounts to the maximum fee that an
investor would bear in the Manager’s Commingled Fund. For Portfolio Funds other than Grosvenor Separate Accounts, Grosvenor has compared the fee rates borne by
Grosvenor‐advised assets to the maximum fee that an investor would bear in the same Portfolio Fund (or share class) in which such Grosvenor‐advised assets invest.
3. The analysis may include investments in vehicles designed to participate a specific investment theme (which may represent a single investment or group of related
investments) (a “Direct Opportunity”). In such cases, the analysis compares the fee terms of a Direct Opportunity to the maximum fee terms of a commingled fund managed
by the same Investment Manager that manages such Direct Opportunity that may or may not participate in such Direct Opportunity. The Direct Opportunity materially differs
from a commingled fund in numerous material respects, including investment mandate and guidelines, risk/return profile, concentration, type of investment services
provided, and liquidity.
4. Grosvenor has conducted this analysis using fee rates based on the amount of Grosvenor‐advised assets allocated as of the date above. Because of timing differences
between investments/redemptions in Portfolio Funds, and the date on which the fee rate is reset to reflect such investments/redemptions, this analysis may include rates not
currently being received by Grosvenor‐advised assets.
5. In order to demonstrate potential fee savings relating to incentive compensation, this analysis assumes, for illustrative purposes only, certain gross return rates for the
Portfolio Funds; it is not intended to imply that any Portfolio Fund or portfolio of Portfolio Funds will achieve a specific return over any performance period; there can be
no assurance that a Portfolio Fund or portfolio of Portfolio Funds will achieve its investment objective or avoid significant losses. In presenting potential fee savings for a
portfolio of Portfolio Funds, this analysis assumes that each Portfolio Fund in such portfolio experienced the same gross return, which is unlikely to occur.
In assessing the impact of certain hurdle rates and/or preferred returns, this analysis assumes the following rates of return (“Assumed Benchmark Returns”):
›
1‐month LIBOR (annual return) = 3.20%
›
3‐month LIBOR (annual return) = 3.23%
›
S&P 500 Index (annual return) = 9.27%
The annual returns are based on the actual compound annual return of each figure from January 1, 1993 through January 1, 2015. The actual returns for LIBOR and/or S&P 500
Index likely will differ from the Assumed Benchmark Returns and such difference will affect this analysis (perhaps materially). This analysis does not account for any
correlation between the Assumed Benchmark Returns and those achieved by the Portfolio Funds; it is likely that Portfolio Funds will have some correlation with the LIBOR
and/or S&P 500 Index and such correlation could have a material impact on the fees paid to the Investment Managers and thus on the fee savings realized.
6. The more successful Investment Managers may not agree to potentially favorable fee structures. As of January 1, 2015, approximately 69% of Portfolio Funds in which
Grosvenor Funds invest (representing approximately 72% of the aggregate AUM of such Grosvenor Funds), excluding Portfolio Funds that have been terminated by Grosvenor,
provide potential fee savings. No assurance can be given that Grosvenor‐advised assets will invest in any Portfolio Fund that provides potential fee savings.
7. Additional detail concerning the methodology used and assumptions made to calculate potential fee savings in the foregoing analysis is available upon request. Data is
as of the date above.
32
Target Returns, Forward Looking Estimates, and Risk Parameters
Notes and Disclosures
Target Returns, Forward Looking Estimates, and Risk Parameters: Target returns, forward looking estimates, and risk parameters are hypothetical in nature and are shown
for illustrative, informational purposes only. This material is not intended to forecast, predict or project future performance. It does not reflect the actual or expected returns
or risk profile of any GCM Public Markets Fund or strategy pursued by any Grosvenor Fund, and does not guarantee future results.
Target returns, forward looking estimates, and risk parameters are:
 based solely upon GCM Grosvenor Public Markets’ view of the potential returns and risk parameters for a GCM Public Markets Fund or strategy pursued by a GCM Public
Markets Fund;
 not meant to forecast, predict or project the returns or risk parameters for any GCM Public Markets Fund or any strategy pursued by any GCM Public Market Fund; and
 subject to numerous assumptions including, but not limited to, observed and historical market returns relevant to certain investments, an asset class, projected cash flows,
projected future valuations of target assets and businesses, other relevant market dynamics (including interest rate and currency markets), anticipated contingencies, and
regulatory issues.
Certain of the assumptions have been made for modeling purposes and are unlikely to be realized. No representation or warranty is made as to the reasonableness of the
assumptions made or that all assumptions made have been stated or fully considered. Changes in the assumptions may have a material impact on the target returns, forward
looking estimates, and risk parameters presented. Target returns and forward looking estimates may be shown before fees, transactions costs and taxes and do not account for
the effects of inflation. Management fees, transaction costs, and potential expenses may not be considered and would reduce returns and affect parameters. Actual results
experienced by clients may vary significantly from the target returns, forward looking estimates, and risk parameters shown. Target Returns, Forward Looking Estimates, And
Risk Parameters May Not Materialize.
33
Grosvenor Institutional Partners, L.P.
Notes and Disclosures
In reviewing this presentation, you should consider the following:
The Fund commenced operations on January 1, 2000.
Unless otherwise indicated in this presentation, returns are calculated net of all fees, expenses and profit participations borne by all investors in the Fund. Certain investors in
the Fund are not subject to advisory fees, and the inclusion of such investors’ accounts in the returns presented will result in such returns being higher than if such accounts
were not included. Furthermore, since the fee rates applicable to investors vary, inclusion of investor accounts that are subject to lower effective fees in the returns presented
will result in such returns being higher than the returns that would be achieved by particular fee paying investors subject to higher effective fees over the same time period.
Additional details relating to the methodology used in calculating returns and returns calculated net of specific fee rates are available upon request.
To the extent that this presentation sets forth returns achieved by a particular investor in the Fund, such returns are calculated net of the actual fees and expenses borne by
such investor.
To the extent returns are presented net of a particular investment level, such returns are pro forma returns based on the gross returns of the Fund, adjusted to reflect the
deduction of: (i) actual expenses of the Fund; and (ii) the fee rate, calculated based on the fee scale below, that would apply to the assumed investment size set forth in the
presentation. Actual fee rates and actual fees will vary depending on the size of the account. However, the fee rate applied to calculate the pro forma returns presented does
not account for any change in investment size, and the resulting change in fee rates and fees, that would occur due to the performance of the Fund during the period
presented. Grosvenor will, upon request, provide you with pro forma returns reflecting different fee rates. Returns prior to July 2011 are based on the following sliding fee
scale: first $10 million USD: 1.40%; next $15 million USD: 1.20%; next $25 million USD: 1.00%; next $50 million USD: 0.80%; over $100 million USD: 0.60%. Fee is subject to a
0.75% minimum. Returns from August 2011 through March 2013 are based on the following sliding fee scale: first $25 million USD: 1.25%; next $25 million USD: 1.00%; next
$50 million USD: 0.80%; over $100 million USD: 0.60%. Fee is subject to a 0.75% minimum. Returns from April 2013 through the present are based on the following sliding fee
scale: first $25 million USD: 1.15%; next $25 million USD: 1.00%; next $50 million USD: 0.80%; over $100 million USD: 0.60%. Fee is subject to a 0.75% minimum.
Figures for 2000‐2013 are derived from books and records of the Fund that have been audited by the Fund’s independent public accountants. Figures for 2014 and 2015 are
estimated based on unaudited books and records of the Fund.
34
Performance Relative to Peers
Notes and Disclosures (Grosvenor Institutional Partners)
Grosvenor Capital Management, L.P. (“GCMLP”) has used the following methodology to construct a universe of comparable products (the “Peer Group”) presented in this peer
performance report:
1. On an annual basis, GCMLP provides a list of the “top 25 fund of hedge fund firms” as published by Institutional Investor’s Alpha (the “Peer Firms”) to Mercer. The current
list was prepared in March 2014 for a ranking as of December 31, 2013.
2. GCMLP then instructs Mercer to prepare the Peer Group, which consists of all funds categorized by Mercer as “multi‐strategy” managed by all Peer Firms that report to
the Mercer Global Investment Manager Database. 22 out of 25 Peer Firms currently report data relating to one or more multi‐strategy funds to Mercer.
3. In response the instructions provided by GCMLP in #2 above, Mercer has prepared a universe of multi‐strategy funds managed by the Peer Firms (together, the “Peer
Funds”). Any Peer Fund that has not reported for the performance period presented in this peer performance report is excluded. This exclusion has resulted in a final
Peer Group for this peer performance report of 30 Peer Funds.
The universe is not an official or “standard” Mercer Universe, but a customized universe created by GCMLP. GCMLP has compared a specific fund or composite managed by
Grosvenor (the “GCMLP Fund”) to the Peer Group in order to effectively provide a “ranking” of the GCMLP Fund compared to the Peer Group. All products in the Peer Group
are reported net of fees and expenses but Mercer does not require a consistent methodology be used to calculate “net” returns. As such, the returns of each Peer Fund may be
computed using different methodologies (e.g., net of all fees paid by all investors, using an assumed “pro forma” fee, or the returns of an “initial” investor in such fund). The
methodology GCMLP has used to calculate its net returns are included in the fund‐specific notes and disclosures that accompany this piece.
GCMLP has selected the periods shown. Grosvenor Institutional Partners, L.P. places in the second quartile for 1‐year, and top quartile for 2‐year, 3‐year, 4‐year and 5‐year
performance periods ending December 31, 2014. Utilizing a different peer group or different period may produce different results. Additional information about the
methodology used and performance information for different time periods is available upon request. Past performance is not necessarily indicative of future results and
the returns of any GCMLP Fund could be volatile.
35
Grosvenor Capital Management, L.P.
Notes and Disclosures
This presentation is being provided by Grosvenor Capital Management, L.P. (“GCM Grosvenor Public Markets”) and/or GCM Customized Fund Investment Group, L.P. (“GCM Grosvenor Private
Markets,” and together with GCM Grosvenor Public Markets and their affiliates, “GCM Grosvenor”). GCM Grosvenor Public Markets and its predecessors have been managing hedge fund
investment portfolios on behalf of clients since 1971. GCM Grosvenor Private Markets, whose predecessors have been managing private equity, real estate, and infrastructure investment portfolios
since 1999, 2002, and 2003, respectively, is the successor entity to the Customized Fund Investment Group that was previously a business unit within the asset management division of Credit Suisse
Group AG (“Credit Suisse”). On January 2, 2014, GCM Grosvenor Private Markets acquired certain clients and assets, and hired certain employees previously associated with the Customized Fund
Investment Group from affiliates of Credit Suisse. Data and other information related to GCM Grosvenor Private Markets for periods prior to January 2, 2014 relate to predecessors of GCM
Grosvenor Private Markets. While GCM Grosvenor Public Markets and GCM Grosvenor Private Markets share certain operational infrastructure, each has its own investment team and investment
process. GCM Grosvenor has implemented information barriers between the investment teams of GCM Grosvenor Public Markets and GCM Grosvenor Private Markets that prevent the sharing of
certain investment information between the two business units. Additionally, neither GCM Grosvenor Public Markets nor GCM Grosvenor Private Markets is under any obligation to share with the
other business unit (or the clients of the other business unit) any investment opportunities it identifies.
The information contained in this presentation (“GCM Information”) relates to GCM Grosvenor Public Markets to one or more investment vehicles/accounts managed or advised by GCM Grosvenor
Public Markets (the “GCM Public Market Funds”) and/or to one or more investment vehicles/accounts (“Underlying Funds”) managed or advised by third‐party investment management firms
(“Investment Managers”).
GCM Information is general in nature and does not take into account any investor’s particular circumstances. GCM Information is neither an offer to sell, nor a solicitation of an offer to buy, an
interest in any GCM Public Markets Fund. Any offer to sell or solicitation of an offer to buy an interest in a GCM Public Markets Fund must be accompanied by such GCM Public Markets Fund’s
current confidential offering or risk disclosure document (“Fund Document”). All GCM Information is subject in its entirety to information in the applicable Fund Document. Please read the
applicable Fund Document carefully before investing. A summary of certain risks and special considerations relating to an investment in a GCM Public Markets Fund is set forth below. A more
detailed summary of these risks is included in Part 2A of Grosvenor Capital Management, L.P.’s SEC Form ADV (available at: http://www.adviserinfo.sec.gov). Except as specifically agreed, neither
GCM Grosvenor nor any of its affiliates act as agent/broker for prospective investors. An investor must rely on its own examination in identifying and assessing the merits and risks of investing
in a GCM Public Markets Fund or Underlying Fund (together, “Investment Products”). Each GCM Public Markets Fund invests, directly or indirectly, substantially all of its assets in Underlying
Funds.
Regulatory Status – neither the GCM Public Markets Funds nor interests in the GCM Public Markets Funds have been registered under any federal or state securities laws, including the Investment
Company Act of 1940, and interests in GCM Public Markets Funds are sold in reliance on exemptions from the registration requirements of such laws. Investors will not receive the protections of
such laws. Market Risks‐ generally, the risks that economic and market conditions and factors may materially adversely affect the value of a GCM Public Markets Fund’s investments. Strategy Risks‐
generally, the risks associated with the possible failure of the asset allocation methodology, investment strategies, or techniques used by GCM Grosvenor Public Markets or an Investment Manager.
GCM Public Markets Funds and Underlying Funds may use leverage, and while the use of leverage increases the opportunities for gain, it also increases the risks of volatility and loss. The fees and
expenses charged by GCM Public Markets Funds and Underlying Funds may offset the trading profits of such funds. Manager Risks‐ generally, the risks associated with investments with Investment
Managers. Structural and Operational Risks‐ generally, the risks arising from the organizational structure and operative terms of the relevant GCM Public Markets Fund and the Underlying Funds.
Valuation Risks‐ generally, the risks relating to GCM Grosvenor Public Markets’ reliance on Investment Managers to value the financial instruments in the Underlying Funds they manage.
Institutional Risks‐ generally, the risks that a GCM Public Markets Fund could incur losses due to failures of counterparties and other financial institutions. Tax Risks‐ generally, the tax risks and
special tax considerations arising from the operation of and investment in pooled investment vehicles. GCM Public Markets Funds will not be able to prepare their returns in time for investors to file
their returns without requesting an extension of time to file. An Underlying Fund may, in an effort to minimize taxation, take certain tax positions and/or use certain tax structures that may in the
future be disallowed or reversed, which could result in material tax expenses to such Underlying Fund. In addition, GCM Grosvenor Public Markets, its related persons, and the Investment
Managers are subject to certain actual and potential conflicts of interest in making investment decisions for the GCM Public Markets Funds and Underlying Funds, as the case may be. An investment
in an Underlying Fund may be subject to similar and/or substantial additional risks and an investor should carefully review an Underlying Fund’s risk disclosure document prior to investing.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS, AND THE PERFORMANCE OF EACH INVESTMENT PRODUCT COULD BE VOLATILE. AN INVESTMENT IN AN INVESTMENT
PRODUCT IS SPECULATIVE AND INVOLVES SUBSTANTIAL RISK (INCLUDING THE POSSIBLE LOSS OF THE ENTIRE INVESTMENT). NO ASSURANCE CAN BE GIVEN THAT ANY INVESTMENT PRODUCT
WILL ACHIEVE ITS OBJECTIVES OR AVOID SIGNIFICANT LOSSES.
36
Grosvenor Capital Management, L.P.
Notes and Disclosures (continued)
By your acceptance of GCM Information, you understand, acknowledge, and agree that GCM Information is confidential and proprietary, and you may not copy, transmit or distribute GCM
Information, or any data or other information contained therein, or authorize such actions by others, without GCM Grosvenor’s express prior written consent, except that you may share GCM
Information with your professional advisors. If you are a professional financial adviser, you may share GCM Information with those of your clients that you reasonably determine to be eligible to
invest in the relevant Investment Product (GCM Grosvenor assumes no responsibility with respect to GCM Information shared that is presented in a format different from this presentation). Any
violation of the above may constitute a breach of contract and applicable copyright laws. In addition, you (i) acknowledge that you may receive material nonpublic information relating to
particular securities or other financial instruments and/or the issuers thereof; (ii) acknowledge that you are aware that applicable securities laws prohibit any person who has received material,
nonpublic information regarding particular securities and/or an the issuer thereof from (a) purchasing or selling such securities or other securities of such issuer or (b) communicating such
information to any other person under circumstances in which it is reasonably foreseeable that such person is likely to purchase or sell such securities or other securities of such issuer; and (iii)
agree to comply in all material respects with such securities laws. You also agree that GCM Information may have specific restrictions attached to it (e.g. standstill, non‐circumvent or non‐
solicitation restrictions) and agrees to abide by any such restrictions of which it is informed. GCM Grosvenor and its affiliates have not independently verified third‐party information included in
GCM Information and makes no representation or warranty as to its accuracy or completeness. The information and opinions expressed are as of the date set forth therein.
GCM Information may not include the most recent month of performance data of Investment Products; such performance, if omitted, is available upon request. Interpretation of the performance
statistics (including statistical methods), if used, is subject to certain inherent limitations. GCM Grosvenor Public Markets does not believe that an appropriate absolute return benchmark currently
exists and provides index data for illustrative purposes only. Except as expressly otherwise provided, the figures for each index are presented in U.S. dollars. The figures for any index include the
reinvestment of dividends or interest income and may include “estimated” figures in circumstances where “final” figures are not yet available. Indices shown are unmanaged and are not subject to
fees and expenses typically associated with investment vehicles/accounts. Certain indices may not be “investable.”
GCM Grosvenor Public Markets considers numerous factors in evaluating and selecting Investment Managers, and GCM Grosvenor Public Markets may use some or all of the processes described
herein when conducting due diligence on an Underlying Fund or Investment Manager. Investors in an Investment Product ordinarily have very limited rights to redeem or transfer interests in such
Investment Product. Interests in an Investment Product will not be listed on an exchange and it is not expected that there will be a secondary market for interests. In addition, the liquidity of a GCM
Public Markets Fund depends on its ability to withdraw/redeem capital from the Underlying Funds in which it invests, which is often limited due to withdrawal/redemption restrictions. Assets under
management include all subscriptions to, and are reduced by all redemptions from, a GCM Public Markets Fund effected in conjunction with the close of business as of the date indicated. GCM
Grosvenor’s employee count includes employees of its affiliates. GCM Grosvenor Public Markets may classify Underlying Funds as pursuing particular “strategies” or “sub‐strategies” (collectively,
“strategies”) using its reasonable discretion; GCM Grosvenor Public Markets may classify an Underlying Fund in a certain strategy even though it may not invest all of its assets in such strategy. If
returns of a particular strategy or Underlying Fund are presented, such returns are presented net of any fees and expenses charged by the relevant Underlying Fund(s), but do not reflect the fees
and expenses charged by the relevant GCM Public Markets Fund to its investors/participants.
GCM Information may contain exposure information that GCM Grosvenor Public Markets has estimated on a “look through” basis based upon: (i) the most recent, but not necessarily current,
exposure information provided by Investment Managers, or (ii) a GCM Grosvenor Public Markets estimate, which is inherently imprecise. GCM Grosvenor employs certain conventions and
methodologies in providing GCM Information that may differ from those used by other investment managers. GCM Information does not make any recommendations regarding specific securities,
investment strategies, industries or sectors. Risk management, diversification and due diligence processes seek to mitigate, but cannot eliminate risk, nor do they imply low risk. To the extent GCM
Information contains “forward‐looking” statements, such statements represent GCM Grosvenor Public Market’s good‐faith expectations concerning future actions, events or conditions, and can
never be viewed as indications of whether particular actions, events or conditions will occur. Additional information is available upon request.
This presentation may include information included in certain reports that are designed for the sole purpose of assisting GCM Grosvenor personnel in (i) monitoring the performance, risk
characteristics, and other matters relating to the GCM Public Market Funds and (ii) evaluating, selecting and monitoring Investment Managers and the Underlying Funds (“Portfolio Management
Reports”). Portfolio Management Reports are designed for GCM Grosvenor's internal use as analytical tools and are not intended to be promotional in nature. Portfolio Management Reports are
not necessarily prepared in accordance with regulatory requirements or standards applicable to communications with investors or prospective investors in GCM Public Market Funds because, in
many cases, compliance with such requirements or standards would compromise the usefulness of such reports as analytical tools. In certain cases, GCM Grosvenor provides Portfolio Management
Reports to parties outside the GCM Grosvenor organization who wish to gain additional insight into GCM Grosvenor’s investment process by examining the types of analytical tools GCM Grosvenor
utilizes in implementing that process. Recipients of Portfolio Management Reports (or of information included therein) should understand that the sole purpose of providing these reports to them
is to enable them to gain a better understanding of GCM Grosvenor’s investment process.
Grosvenor® and Grosvenor Capital Management® are proprietary trademarks of GCM Grosvenor and its affiliated entities. ©2015 Grosvenor Capital Management, L.P. All rights reserved.
Grosvenor Securities LLC (“GSLLC”), an affiliate of GCM Grosvenor and a member of the U.S. Financial Industry Regulatory Authority, Inc., acts as a placement agent on behalf of certain GCM
Public Markets Funds. GSLLC does not offer any investment products other than interests in certain funds managed by GCM Grosvenor and/or its affiliates. Neither GCM Grosvenor nor any of its
affiliates acts as agent/broker for any Underlying Fund.
37