Grove Street is structurally and culturally a performance-driven investment firm focused on our clients’ end returns. We are not an asset gathering company driven by AUM fees. The compensation and incentives of Grove Street’s Partners are driven by building a long-term sustainable business that delivers strong performance for the firm’s clients.
Investing Alongside Clients
Grove Street’s long-term performance orientation is underpinned by a significant personal investment by the Partners alongside every client program. Because compensation includes a profit sharing component, Grove Street defines success by the actual end-returns that it generates, while being sensitive to interim IRRs.
Grove Street’s separate account model allows for a complete customization of the charter and flexible adjustments to the strategy over the life of the program. This is a differentiating factor from managers with large numbers of clients and/or competing fund of funds that offer separate accounts that are largely identical to one another. The flexibility of our separate account structure was particularly evident when the 2008 financial crisis unfolded. We were able to decrease the investment pace for some clients, moderate investments in certain private equity sub-strategies for others, and increase the pace for a client to take advantage of opportunities in the secondary market and venture capital.
Involvement and Hand Off of Relationships
Grove Street establishes the level of visibility and interaction with the private equity market that the client desires. Clients who wish to have a high profile and interact with fund managers extensively are supported by the Grove Street staff through organized introductions, arranged trips to visit managers, and transfer of relationships directly to the client on subsequent fundraisings if desired by both the client and the manager. Clients who wish to be invisible and have no interaction with fund managers may do so, and only Grove Street will be visible on their behalf.
Grove Street offers training programs to clients’ staff professionals, as needed, to share insights on due diligence and monitoring or other aspects of private equity investing. We tailor training to meet our clients’ specific needs and among others have in the past hosted clients for due diligence training or organized site visits with managers for a direct view into the underlying funds.
Grove Street is organized to provide a high degree of service to a small number of large clients. We manage a distinctly transparent portfolio construction and investment decision making process which is designed to support a high degree of client interaction. We strongly encourage prospects to contact our clients to fully understand the degree of customized service that we offer.
Grove Street provides each client with a customized reporting that fits into the client’s overall reporting infrastructure. We aim for the highest standards in accuracy and timeliness.