Grove Street has been entrusted with $7.2 billion of commitments from its 11 clients since inception of the firm in 1998. Investments are managed through separate account programs to best address the individual investment needs of our clients. Our expertise lies in accessing the most promising lower middle-market buyout and venture capital funds. We currently manage $5.1 billion in 28 customized mandates.

Client Philosophy

While most larger institutional investors recognize the opportunity for alpha and diversification provided by  smaller buyout and venture capital funds, the effort and resources required to source, access, evaluate and monitor these smaller commitments can create implementation challenges. However, we believe that this segment of the market can enhance overall private equity portfolios by providing better net returns with lower correlation to public markets.  Executing an investment program in these attractive but more difficult segments is where we add value for our clients.

We also believe that each client’s investment needs are different and we have built all aspects of Grove Street to focus exclusively on providing truly customized separate accounts to a small number of clients. The inherent flexibility of this approach allows us to address changing investment needs of one client without compromising the goals of another. As an investment organization we are closely aligned with our clients’ interests and many consider us simply as an extension of their investment staff. We understand that our services have to integrate seamlessly into our client’s operations. To maximize levels of service and maintain a high bar for investments, we only work with a limited number of clients.

Lastly, alignment of interest is the central principle of the company.  We invest our own capital alongside every client program and further align interests through deferred, end-of-program compensation.  Separate account programs are our only investment structure and sole business, minimizing potential conflicts and distractions.  Further benefits »

Investment Philosophy

Building successful private equity portfolios requires a disciplined approach to diversification; balancing risk across strategies, sectors, time and geographies throughout cycles, as market timers rarely outperform over the long term. We apply this principle to all our client portfolios irrespective of the charter, and then adjust the scope of these parameters based on the client’s objectives. However, we will also selectively take educated, contrarian positions based on market conditions and trends.

We further believe that our deep expertise and large network of relationships are instrumental in selecting the most promising managers of the next cycle. This is particularly relevant for independent reference checks and the judgment to invest confidently in a newer team as well as to stop investing with a well established team that we do not believe will outperform going forward. Experience also guides our understanding of the interpersonal dynamics within a team, our assessment of their recent unrealized performance and the fit of the strategy within the market environment.

We also believe that our strong relationships with General Partners increase our ability to position our clients and our firm as an attractive “investor of choice” for even the most selective fund management teams.  More investment considerations »

History

1998

Grove Street Advisors, LLC was launched in May by Catherine Crockett and Clint Harris as a private equity investment firm dedicated to managing separate accounts for institutional investors.  Grove Street won its first client, a U.S. public pension fund, in October with a $350m separate account primarily targeting venture capital globally and Dave Mazza moved from an advisor to a Partner.

1999

In April, Ann St. Germain joined from E&Y as General Partner and CFO as the build out of Grove Street continued.

2000

Grove Street was awarded a second program from its existing client in June.  The focus of the mandate was again primarily on global venture capital.

2001

Grove Street’s second client, another U.S. public pension fund, joined in March with a separate account targeting smaller venture and buyout funds globally.  Grove Street also received a third mandate from its first client which extended the mandate to include smaller buyouts.  In June, Grove Street registered with the SEC as an investment advisor under the 1940 Act.  In August, Grove Street expanded its investment team by adding Barry Gonder as a Partner and Chris Yang and Frank Angella as Principals.

2002

In August, Grove Street added its first international client, a Dutch pension fund, committing to a separate account targeting high quality newer U.S. venture teams.

2003

By the end of 2003, Grove Street had grown to manage 5 programs for 3 clients with $3.1 billion of committed capital.

2004

Another meaningful growth year for Grove Street with three new clients starting separate account programs.  In January, Grove Street attracted a family office client to manage a program targeting all segments of private equity globally.  A second international client, a Finnish pension fund, also nominated Grove Street in January to manage a program of U.S. venture funds.  In April, the third U.S. public pension fund engaged Grove Street to manage a venture program.

2005

GSA’s expansion continued with a new program from an existing client in May to focus on smaller funds across venture and buyout globally.  A third international client, an Australian pension fund manager, awarded Grove Street a program targeting U.S. venture and buyout funds.  Grove Street also added a fourth U.S. public pension fund client in July with a global venture and buyout program.  Frank Angella and Chris Yang were promoted to Partner in July resulting in a six person leadership team.

2006

In September, Grove Street added a new program from an existing client to focus on smaller and hard to access mid-sized buyout funds and a program for another existing client to include both venture and buyout investments.  At the end of 2006, Grove Street had 9 clients with 14 programs and $4.9 billion of committed capital.

2007

2007 was another meaningful growth year for Grove Street with five new programs launched.  In January, an Israeli insurance company awarded Grove Street a new program focused on a diversified private equity program.  An existing client added a new venture program in February.  In May, the family office added a second program targeting all private equity segments.  Another client added a program targeting U.S. venture and smaller buyouts in December.

2008

February brought Grove Street a new program from an existing client targeting small funds across venture and buyout.  Another client followed also in February with a venture capital program and in April a diversified program was added by an existing client.

2009

In June, Dr. Josh Lerner, Jacob H. Schiff Professor of Investment Banking at Harvard Business School, joined Grove Street as a Senior External Advisor.

2010

In May, Grove Street further expanded its senior team with the addition of Philippe Schenk as a Principal, joining from Credit Suisse.  In October, Grove Street added another program focused on smaller and hard to access mid-sized buyout funds from an existing client.  At the end of 2010, Grove Street had 10 clients with 23 programs and $6.5 billion of committed capital.

2011

One of the existing clients committed additional capital to their program in June targeting venture capital funds.  In September, Grove Street continued to expand its senior team by adding Bruce Ou as a Principal.

2012

In June, a Middle Eastern Sovereign Wealth Fund entrusted Grove Street with a new program focused on technology investments.  In August, an existing client added a new venture program.

2013

Grove Street further built on its successful separate account strategy by adding three new programs from existing clients.  The programs started in January, May and July, respectively, and were diversified among small buyout, growth equity and venture capital.

Today

5 partners, 37 employees total

$5.1 billion in assets under management

$7.2 billion in commitments since inception

28 separate accounts

11 clients

Investing about $400 million per year in small and mid-sized buyout and venture capital funds