Ill. Drops Grosvenor In Fee Dispute

Oct 3 2012 | 10:59am ET

The Illinois State Board of Investment parted ways with Grosvenor Capital Management after the hedge fund refused to cut its fees enough.

Grosvenor had accepted a one basis-point cut, from 76 to 75. But that wasn't good enough for the $11.4 billion ISBI, which gave the $237 million Grosvenor managed in a long/short fund of hedge funds, to two firms who were willing to cut their fees, and then cut them again.

ISBI negotiated an 8 bps cut with EnTrust Capital Management, Mesirow Advanced Strategies and Rock Creek Group, to 70 bps. Then, Entrust and Rock Creek agreed to shave a further 3 bps to get Grosvenor's share.

Rock Creek now manages $400 million for ISBI, and EnTrust $385 million, Pensions & Investments reports.

Separately, ISBI decided to stick with the THL Credit fund for a bank-loan mandate. Former manager McDonnell Investment Management Alternative Credit Strategies recently sold the fund to THL.


In Depth

The Benefits Of Private Debt Investing

May 7 2015 | 10:43am ET

Jeffrey Haas is chief operating officer of Old Hill Partners Inc., an SEC-registered...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

How To Generate 6% Yield In A Volatile World

May 22 2015 | 6:41am ET

Private credit comes in many different flavors, all with the common themes of over...

 

Editor's Note