GCM Grosvenor raises nearly $900m for impact fund

One week after Labor Day, GCM Grosvenor announced the final close for its Labor Impact Fund with $893 million in capital, which is at the high end of its targeted range. The new Labor Impact fund is focused on originating and executing on infrastructure projects that leverage the inclusion of union labor as a contributing factor to earning investment returns. The investors are completed via close cooperation across labor, government and private capital, according to officials. The $57 billion firm boasts a network of manager relationships, industry partners as well as those in government and organized labor. “Our robust investment activity to date demonstrates the effectiveness of our differentiated approach to infrastructure investing,” said Fred Pollock, GCM Grosvenor’s chief investment officer. “We believe that our strategy will generate positive outcomes for labor, improve infrastructure assets and communicates, and generate an attractive risk-adjusted return.” To-date three investments have been made by the fund. In early 2019, the fund partnered for the development of a cold storage platform across the U.S. and Canada. Then in December 2019, the fund bought a 49.9% equity interest in the Long Ridge Energy Terminal from Fortress Transportation and Infrastructure Investors for $150 million in cash. Then this past May, the fund agreed to provide $85 million in debt financing to Bakersfield Renewable Fuels for the retooling of the former Alon oil refinery in Bakersfield, California. "We view the Fund's responsible contractor policy and overall labor and government due diligence processes as strategic advantages in pursuing infrastructure investments," GCM Grosvenor President Jon Levin.

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