CION and GCM Grosvenor launch $322 million infrastructure fund

Published 28/01/2025, 15:22
CION and GCM Grosvenor launch $322 million infrastructure fund

NEW YORK - CION Investments, a notable alternative investment solutions platform with an impressive InvestingPro Financial Health score of "GREAT," in collaboration with GCM Grosvenor (NASDAQ: GCMG), a seasoned global alternative asset management firm, has announced the introduction of the CION Grosvenor Infrastructure Fund (CGIF). The fund debuts with a $240 million portfolio across 43 infrastructure assets and an additional $82 million in committed capital. CION's strong financial position is evidenced by its healthy current ratio of 5.09 and attractive P/E ratio of 8.04.Want deeper insights? InvestingPro subscribers have access to over 30 additional premium metrics and exclusive analysis for CION Investments.

CGIF is structured as an evergreen interval fund, designed to give individual investors, through their financial advisors, a window into GCM Grosvenor’s institutional private infrastructure investments. The fund prices daily and permits liquidity of up to 5% of its net asset value quarterly.

The fund's portfolio spans traditional infrastructure sectors such as transportation, digital, and energy, including the evolving energy transition space, as well as emerging areas like supply chain and infrastructure adjacencies. CGIF aims to offer a diversified investment pool with a focus on fee efficiency, combining CION's product management and distribution expertise with GCM Grosvenor's infrastructure platform.

GCM Grosvenor, with a history of 20 years in private infrastructure investment and $14.8 billion in infrastructure assets under management, is recognized for its strong sourcing network and strategic asset acquisition, which they believe offers a competitive edge.

Michael A. Reisner and Mark Gatto, co-CEOs of CION, expressed that the fund aligns with their mission to democratize access to private markets for individual investors, emphasizing the importance of a suitable manager and fund structure for success. They highlighted CGIF’s interval fund structure as a match for individual investors' needs, offering a practical investment route with low entry thresholds.

Michael Sacks, Chairman and CEO of GCM Grosvenor, shared insights into their strategic approach to infrastructure investing, which includes building a diversified portfolio with an emphasis on flexibility and alpha generation.

The launch of CGIF reflects the ongoing trend of providing individual investors with opportunities traditionally reserved for institutional investors. This information is based on a press release statement. No assurance can be given that any investment will achieve its objectives or avoid losses.

In other recent news, CION Investment Corp reported substantial developments in its business operations. The company reported a strong third quarter in 2024, with a net investment income of $0.40 per share, surpassing the dividend set at $0.36. However, it witnessed a slight decrease in its net asset value, dropping from $16.08 to $15.73, primarily due to valuation adjustments in its equity portfolio.

CION Investment also extended its repurchase agreement with UBS AG, providing a brief respite for its financing subsidiary, Murray Hill Funding, LLC. The agreement, originally set to expire in January 2025, has been extended to February 2025, indicating ongoing negotiations and a continued relationship between CION and UBS.

Moreover, the company had a successful public baby bond offering, which was over three times oversubscribed, setting a record in the Business Development Company space. Despite an increase in non-accruals from 1.36% to 1.85%, the company remains optimistic about leveraging its flexible balance sheet for future investment opportunities, with 85% of its portfolio in first-lien investments and 98% rated 3 or better. These are recent developments in the company's operations, reflecting its strategic financial management practices.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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