The $57 billion alternative investment firm GCM Grosvenor will become a public company through a merger with CF Finance Acquisition Corp., a SPAC sponsored by Cantor Fitzgerald, in a deal valued at $2 billion.
According the company announcement, the combined company will operate as GCM Grosvenor Inc. and expects its Class A common stock to be listed on the NASDAQ stock exchange. GCM Grosvenor’s existing senior management team, led by Chairman and CEO Michael J. Sacks, will continue to lead the business.
Upon the completion of the transaction, GCM Grosvenor management will own in excess of 70% of the equity interests of the combined company. Entities affiliated with Hellman & Friedman (“H&F”), a minority investor in GCM Grosvenor since 2007, will sell their equity interest in connection with the completion of the transaction.
“We believe that becoming a publicly listed company will benefit our clients, our team members and all of our stakeholders,” said Sacks. “We have long valued having external shareholders and we wanted to preserve the accountability and focus that comes with that. We thank the H&F team for their partnership and support over the years and look forward to welcoming our public shareholders in this next chapter of our 50-year corporate history.”
Subject to the closing of the transaction between GCM Grosvenor and CFAC, the SPAC’s institutional investors have committed to participate in the transaction through a $195 million private investment in public equity (“PIPE”) at $10.00 per share. Cantor Fitzgerald will also invest an additional $30 million at closing of the transaction.
The Chicago-based firm is well known for its fund of hedge fund business, private equity, infrastructure, real estate and credit investment offerings.
The transaction is expected to be completed as soon as practicable, subject to approval by the stockholders of the Cantor Fitzgerald SPAC.