EL SEGUNDO, Calif.--(BUSINESS WIRE)--Griffin Capital Company, LLC (“Griffin Capital”), a leading private asset manager and one of the nation’s premier alternative investment advisors, today announced the achievement of several significant milestones in 2019. During the year, the company raised a total of approximately $2.43 billion (including $.25 billion in Distribution Reinvestment Programs), a record for the firm, and a 49.7 percent increase over 2018. Since January 2012, the company has raised $14 billion of investor equity, and deployed that capital across a platform of investment solutions including interval funds, private placements, REITs and tax-advantaged strategies. Griffin Capital attributes the firm’s success in 2019 to the consistent and strong performance of its investment products and the ability to execute on a long-term strategic vision of bringing best-in-class solutions to market.
Particularly noteworthy, the firm’s Institutional Access® platform of interval funds, conceived and managed by Griffin Capital Asset Management Company, led in capital raising. In 2019, that platform raised more than $1.7 billion, bringing the total equity under management to $4.5 billion. The 2019 year-to-date performance of these actively-managed interval fund solutions was as follows:1
- Griffin Institutional Access Real Estate Fund (Class I): 8.38%, resulting in 12 out of 12 quarters of positive performance since the fund’s inception in June 2014.
- Griffin Institutional Access Credit Fund (Class I): 11.00%
- Past performance is not a guarantee of future results. Data source: Morningstar Direct. Performance reported is as of inception date. Griffin Institutional Access Real Estate Fund’s inception date is June 30, 2014. Griffin Institutional Access Credit Fund inception date is April 3, 2017. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. The most recent performance is available at www.griffincapital.com.
In late 2018 and 2019, to expand upon its line-up of tax-advantaged solutions, Griffin Capital, through its subsidiary, Griffin Capital Private Equity, LLC, launched two 1031 DSTs and a Qualified Opportunity Zone Fund (“QOF”). The two 1031 DST offerings were fully subscribed in November 2019 with a combined equity raise of $64.1 million. The firm’s QOF is a geographically diversified, multifamily-focused fund with three well-known institutional development partners.
“We are pleased with our record capital raising in 2019, made possible by the confidence that financial advisors and investors have placed in our firm and our investment solutions,” said Kevin Shields, Chairman and CEO of Griffin Capital Company. “Their trust enables our portfolio management teams to take advantage of market opportunities and grow and further diversify our Funds. 2020 marks our 25th year in business, and we continue to be driven by the same philosophy we put in place when I founded the firm: protect and grow our investors’ capital through compelling and timely investment solutions, deliver strong risk-adjusted returns and always provide a superior customer experience.
Griffin Capital’s record 2019 results were facilitated by the execution on multiple key initiatives that are part of the company’s strategic vision and long-term plan. Many of these initiatives were implemented within Griffin Capital Securities (“GCS”), Griffin Capital’s wholly-owned broker-dealer subsidiary, including:
- Expansion of its footprint within the Registered Investment Advisor (RIA) segment via the launch of the Institutional Consulting Group. This team is dedicated to building relationships and serving the specific and unique needs of RIAs with a market capitalization of $1 billion and above. In so doing, GCS significantly broadened its spectrum of distribution partners, and now has four distinct channels of intermediary distribution: Institutional, RIA, Wirehouse and Independent Broker-Dealers;
- Installation of a state-of-the art CRM and customer engagement platform and the integration of innovative data systems. This focus on technology has enabled GCS to better understand the behaviors and specific needs of its client base and deliver a more personalized service experience; and,
- Augmented educational and thought leadership events, similar to those the company has delivered for thousands of advisors over more than a decade, with more advanced and sophisticated financial planning and financial model-oriented content. In 2019 these events included executive roundtables, due diligence meetings, national roadshows and interactive webinars.
"Our results are led by the strong and consistent performance of our investment solutions and our team’s thoughtful execution of our long-term strategy,” said Mark Goldberg, CEO of GCS. “At GCS in 2019, we focused on expanded distribution, education, integrated technology and superior service to meet the everchanging needs of our clients. Team members from across all functions came together to help us accomplish our mission; that is a solid foundation upon which we will continue to build in 2020.”
About Griffin Capital Company, LLC
Griffin Capital is a leading alternative investment asset manager headquartered in El Segundo, California with offices in Irvine, California, Phoenix, Arizona, and Greenwich, Connecticut. Founded in 1995, Griffin Capital has owned, managed, sponsored or co-sponsored investment programs encompassing over $17.5 billion in assets. Griffin Capital’s senior executives and employees have co-invested over $300 million in its sponsored investment verticals. The privately held firm is led by a seasoned team of senior executives each with more than two decades of investment and real estate experience and who collectively have executed transactions valued in excess of $21 billion.
Griffin Capital’s alternative investment solutions include three groups of complementary products: actively managed interval funds in the company’s Institutional Access® fund family, non-listed real estate investment trusts (REITs) and tax-advantaged private real estate strategies. The firm’s investment strategies include diversified core real estate and global corporate credit securities, as well as direct real estate ownership in sector-specific portfolios focused on net leased essential office and industrial assets, clinical healthcare properties, and multifamily real estate.
These solutions include: Griffin Institutional Access® Credit Fund, Griffin Institutional Access® Real Estate Fund, Griffin Capital Essential Asset® REIT featuring NextNAV™, Griffin Institutional Property Exchange DSTs, and a Qualified Opportunity Zone fund. Griffin Capital Securities, LLC, Member FINRA/SIPC, is the dealer manager, master placement agent and/or exclusive wholesale marketing agent for its REITs, Interval Funds and private offerings sponsored and/or co-sponsored by Griffin Capital Company, LLC. Additional information is available at: www.griffincapital.com.
IMPORTANT DISCLOSURES: Investors should carefully consider the investment objectives, risks, charges and expenses of Griffin Institutional Access Real Estate Fund (the “Real Estate Fund”) and Griffin Institutional Access Credit Fund (the “Credit Fund”). This and other important information about the Real Estate Fund and Credit Fund is contained in each respective prospectus, which can be obtained by visiting www.griffincapital.com. The prospectus should be read carefully before investing.
Past performance is not a guarantee of future results. Investing in the Funds involves risks, including the risk that you may receive little or no return on your investment or that you may lose part or all of your investment. The ability of each Fund to achieve its investment objective depends, in part, on the ability of the investment advisers to allocate effectively the assets of each Fund among the various securities and investments in which each respective Fund invests. There can be no assurance that the actual allocations will be effective in achieving each Fund’s investment objective or delivering positive returns.
Investors in the Funds should understand that the net asset value (“NAV”) of the Funds will fluctuate, which may result in a loss of the principal amount invested. The Funds’ investments may be negatively affected by the broad investment environment and capital markets in which the Funds invest, including the real estate market, the debt market and/or the equity securities market. The value of the Funds’ investments will increase or decrease based on changes in the prices of the underlying investments. This will cause the value of the Funds’ shares to increase or decrease.
There is no assurance that the Funds’ distribution rates will be sustainable in the future nor are distributions guaranteed. The Funds’ distributions may be affected by numerous factors, including but not limited to changes in expenses, investment performance, realized and projected market returns, fluctuations in market interest rates, and other factors. The Credit Fund’s distributions would have been lower had expenses, such as management fees, not been waived during the period and the Adviser is under no obligation to continue its voluntary expense support for any specified period of time.
The Funds intend to distribute as of the last business day of each quarter. Shareholders should not assume that the source of a distribution from the Real Estate Fund or Credit Fund is net profit. All or a portion of a distribution may consist of a return of capital (i.e. from your original investment) and not a return of net profit. The sources of distributions may vary periodically. Please refer to each Fund’s most recent Section 19(a) notice, if applicable, at www.griffincapital.com or each Fund’s semi-annual or annual reports filed with the U.S. Securities and Exchange Commission (the “SEC”) for the sources of distributions.
This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product or be relied upon for any other purpose. Information contained herein has been obtained from sources deemed to be reliable, but not guaranteed. This material represents views as of the date of this publication and is subject to change without notice of any kind.
Griffin Capital Securities, LLC, Member FINRA/SIPC, is the exclusive wholesale marketing agent for Griffin Institutional Access Real Estate Fund and Griffin Institutional Access Credit Fund. ALPS Distributors, Inc. (1290 Broadway, Suite 1000, Denver, CO 80203, Member FINRA) is the distributor of the Griffin Institutional Access Real Estate Fund and the Griffin Institutional Access Credit Fund. Griffin Capital, ALPS Distributors, Inc., Aon Hewitt Investment Consulting, Inc., Bain Capital Credit, LP, and CenterSquare Investment Management LLC are not affiliated.
