GreyLion Spins Out from Perella Weinberg

PWP Growth Equity has completed its spin-out from Perella Weinberg. The new firm – now operating as GreyLion Capital – will continue to manage its two existing private equity funds with total capital commitments of $1.35 billion. PWP Growth was founded in 2012 as part of Perella Weinberg’s asset management business.

Chip Baird and David Ferguson will continue to lead GreyLion and will serve as the new firm’s managing partners. Mr. Baird has been a private equity investor for over 20 years. Before co-founding PWP Growth, he was a partner at Weston Presidio and earlier he worked at The Beacon Group and Merrill Lynch.

“Our move to independence represents the natural evolution of our business, which has built a track record for robust value creation in various macroeconomic environments,” said Mr. Baird. “The entire team at Perella Weinberg has been very supportive of our strategic decision to become an independent firm. We appreciate their partnership throughout this process and for all their assistance over the years.”

Mr. Ferguson has been active in private equity for more than 30 years. Before co-founding PWP Growth, he was a partner at Weston Presidio and earlier he was with JP Morgan Partners, Bankers Trust and Prudential Securities.

“With an investment strategy grounded in 80 years of collective experience, our senior team is seasoned at sourcing differentiated, quality equity investment opportunities. We leverage long-standing relationships with partners who value our experience in growing businesses while using conservative capital structures,” said Mr. Ferguson.

GreyLion makes both minority and control investments of $25 million to $125 million in lower middle-market companies that are active in the consumer, industrial, software and services sectors. GreyLion currently manages 14 portfolio companies that were acquired beginning in 2014.

In 2020, GreyLion (then operating as PWP Growth) acquired Metal-Era, a Wisconsin-based manufacturer of roofing and building envelope products – such as gutters, downspouts, fascia, vents, and flashing – for commercial, institutional and industrial buildings. Last year, in August 2019, GreyLion acquired Alloy Die Casting (ADC) from Gladstone Investment Corporation. ADC (now ADC Aerospace) is a California-based provider of sand and investment casting, machining, robotic finishing, and assembly services for short-run, high-complexity components used in the aerospace, defense, medical, automotive, and industrial sectors. ADC has expertise with aluminum, zinc, stainless steel, and Inconel (a nickel-chromium-based alloy).

As part of the spin-out, all investment and certain support staff of PWP Growth will join GreyLion. Going forward, Perella Weinberg will not have any role in GreyLion’s governance however some employees and partners of the firm are limited partners in GreyLion-managed funds.

GreyLion has a professional staff of 22 and is headquartered in New York City.

Contacts in this article:
Write to Chip Baird at chip@GreyLionCapital.com and David Ferguson at david@GreyLionCapital.com. Jody Shechtman, a partner and head of marketing and business development, can be contacted at Jody@GreyLionCapital.com.

Private Equity Professional | June 18, 2020

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