Banner Capital partners with GCM Grosvenor for Fund II
Banner Capital has partnered with GCM Grosvenor to secure anchor capital for Banner Capital Fund II, marking the fifth partnership under GCM Grosvenor's Elevate strategy. Banner manages $630 million in assets and focuses on founder-owned businesses in the Intermountain West with EBITDA between $4 million and $15 million. GCM Grosvenor's Elevate Fund, which raised nearly $800 million in December 2024, aims to support emerging managers in transitioning to institutional-grade platforms.
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Banner Capital has entered a strategic partnership with GCM Grosvenor (NASDAQ: GCMG), a global alternative asset management solutions provider, to support the growth of its lower middle market private equity platform. This collaboration provides Banner with catalytic anchor capital for Banner Capital Fund II through GCM Grosvenor’s Sponsor Solutions platform. The partnership marks the fifth initiative under GCM Grosvenor’s Elevate strategy, which is designed to provide emerging managers with the resources to scale into institutional-grade fund managers.
Banner is led by Tanner Ainge and Tyler Price, who have worked together since 2021 to build the firm and assemble a portfolio of operating companies in the Intermountain West. The firm currently manages approximately $630 million in assets for a diversified group of institutional investors. With offices in Utah and Arizona, Banner has developed a regional footprint and a proprietary sourcing network across the Intermountain West.
Investment Strategy and Portfolio
Banner’s investment strategy targets companies that service the fundamental needs of American businesses and households, with a specific focus on the Intermountain West region. The firm invests in founder-owned businesses generating between $4 million and $15 million in EBITDA. This approach is highlighted by Fund II’s first investment, Western Pavement Services, Inc., an asphalt maintenance platform that has scaled by acquiring operations in Arizona, Utah, and Nevada.
| Metric | Details |
|---|---|
| Assets Under Management | $630 million |
| Target EBITDA Range | $4 million to $15 million |
| Geographic Focus | Intermountain West |
| Key Portfolio Company | Western Pavement Services, Inc. |
Market Position and Growth
The firm’s growth occurs alongside the expansion of the independent sponsor market in the United States, which now encompasses more than 1,500 firms. Banner aims to transition from an independent sponsor to an institutional-grade fund manager. The firm utilizes a partnership approach, deep local relationships, and a network of operational executives to attract founder-owned businesses at pivotal transition points.
GCM Grosvenor manages approximately $91 billion in assets under management. The inaugural Elevate Fund completed fundraising in December 2024 with nearly $800 million in committed capital. Approximately $21 billion of GCM Grosvenor’s total assets under management is allocated to emerging managers.
How will the transition from an independent sponsor to an institutional-grade fund manager impact Banner's deal sourcing speed and operational flexibility?
What specific sectors within the Intermountain West are Banner and GCM Grosvenor targeting for future acquisitions beyond infrastructure?
How might the success of Fund II influence GCM Grosvenor’s capital allocation strategy for other emerging managers under the Elevate initiative?
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