ZAST Private Equity Co-Investments II

• Focus on co-investments (80-100%)
• The focus on middle market buyouts and the cooperation with a specialist in this area and lower fees favor higher returns
• The portfolio is appropriately diversified across various dimensions
• The aim is to make 20-30 co-investments (max. 5 percent exposure per company) across at least three vintages, at least five sectors and a maximum of 15 percent exposure per sponsor

• Fees are only charged on the capital actually invested
• The fee layer at primary fund level is largely eliminated
• This results in a significantly lower total expense ratio (TER) of approx. 1.25-2.50 percent per year
• This means significantly lower fees compared to a fund-of-funds solution – diversification is nevertheless ensured

• GCM Grosvenor's size and presence enable selectivity with negotiating power
• Our focus is on buyouts of middle market companies in the USA with a turnover of up to 1.5 billion US dollars
• A strong team of 18 dedicated specialists manages the separate co-investment platform
• GCM Grosvenor has a strong ESG awareness and integrates ESG criteria into its investment decisions

• Our investment philosophy and our service are customised for Swiss pension funds
• Local presence: We have local experts and contact persons in Switzerland
• We represent your interests and monitor the mandate thanks to our right of veto
• We offer three levels of diligence (GP, GCM and Zurich) at no extra cost and with full transparency

Zurich Investment Foundation has been successfully applying such a co-investment approach to infrastructure since 2013 and has committed a total of more than USD 2 billion in capital in three similarly structured vehicles. Private Equity Co-Investments I, the predecessor vehicle, has a volume of USD 245 million and comprises 29 co-investments.

• Main focus on buyout co-investments in the US and EU Middle Market
• Well diversified across regions, sectors, sponsors and managers
• Faster portfolio build-up and capital calls than a traditional fund-of-funds solution
• Reduced j-curve effect thanks to lower costs and faster set-up compared to a fund-of-funds solution
• Thanks to veto rights, the interests of our Swiss pension funds and investors are represented in the best possible way

• GCM Grosvenor is an independent specialist for private equity investments with many years of experience and a focus on the middle market
• More than 50 private equity specialists take care of the selection and evaluation of the best deals
• Since its launch in 1999, GCM Grosvenor's global private equity platform has allocated more than USD 37 billion in capital commitments to over 1200 investments
• GCM Grosvenor has committed over USD 15bn of capital in more than 225 co-investments through its co-investment platform since 2003
• Consideration of ESG criteria in the investment process and exclusion of undesirable investment types