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Adviser Profile

As of Date 03/26/2024
Adviser Type - Large advisory firm
- An investment adviser (or subadviser) to an investment company
Number of Employees 20 5.26%
of those in investment advisory functions 8 14.29%
Registration SEC, Approved, 03/18/1985
AUM* 3,098,868,810 -6.85%
of that, discretionary 3,098,868,810 -6.85%
Private Fund GAV* 2,991,784 -47.22%
Avg Account Size 31,621,110 -6.85%
% High Net Worth 40.82% 5.26%
SMA’s Yes
Private Funds 1
Contact Info 781 xxxxxxx
Websites

Client Types

- High net worth individuals
- Investment companies
- Pooled investment vehicles
- Pension and profit sharing plans
- Charitable organizations
- State or municipal government entities
- Corporations or other businesses not listed above

Advisory Activities

- Portfolio management for individuals and/or small businesses
- Portfolio management for investment companies
- Portfolio management for pooled investment vehicles
- Portfolio management for businesses

Compensation Arrangments

- A percentage of assets under your management
- Performance-based fees

Recent News

Reported AUM

Discretionary
Non-discretionary
5B 4B 4B 3B 2B 1B 710M
2015 2016 2017 2018 2019 2020 2021 2022 2023

Private Funds



Employees

Private Funds Structure

Fund Type Count GAV
Fund TypeOther Private Fund Count1 GAV$2,991,784

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Brochure Summary

Overview

Granahan Investment Management (“GIM”) is an independent, employee-owned firm that was founded in 1985 by investment professionals with a passion for small capitalization equity investing. GIM is principally owned by GIM Holdings, Inc. Since its founding, GIM has remained committed to the smaller cap area of the market and has dedicated its investment expertise to serving institutions and family offices. As of December 31, 2023, GIM managed $3,098,868,810in total assets on a discretionary basis. GIM currently does not manage non-discretionary assets. Typically, GIM’s products are not tailored to the individual needs of clients. In certain circumstances, GIM allows clients in certain circumstances to restrict and/or limit certain investments in their portfolio. GIM currently offers these investment management products: Small Cap Core Growth ($1 billion AUM): Our Small Cap Core Growth product was started in 1993 and has a focus on stocks with market capitalizations between $200 million and $2 billion at the time of purchase. The client portfolio generally carries 140-160 stocks, and focuses on companies with strong and/or accelerating earnings growth. This product is offered on a sub-advised and separate account basis. Granahan Focused Growth ($1.07 billion AUM): Our Focused Growth product was first offered by GIM in January of 2012. The portfolio consists of 30-40 stocks with market capitalizations up to $2 billion at purchase, generally in the consumer and technology sectors, which have the potential for strong earnings growth in the portfolio manager’s opinion, and offer favorable return potential according to a proprietary risk/reward calculation. The Focused Growth product’s portfolio manager managed this product at another investment adviser prior to his joining GIM in December of 2011. This product is offered on a sub-advised and separate account basis. It is also offered to non-US clients through Granahan Funds plc, established in Ireland during 2014. Small Cap Advantage ($362 million AUM): Our Small Cap Advantage product was created in 2015 as a small cap product. The product is a distinct combination of two long standing individual strategies: Small Cap Discoveries, inception July 2004 and Small Cap Focused Growth, inception July 2007. The product focuses on companies with market capitalizations between $50 million and $2 billion. The portfolio typically holds 90-100 stocks. This product is offered on a separate account and sub-advised basis. Small Cap Discoveries ($17 million AUM): Our Small Cap Discoveries product was created in 2004. The product focuses on companies with market capitalizations up to $700 million that exhibit a critical combination of superior growth prospects and attractive risk reward profile. The portfolio generally carries 70 to 90 stocks. This product is offered on a separate account and sub-advised basis, as well as available to accredited investors through the private fund, GIM Small Cap Discoveries LLC. It is available to non-US investors through the Ireland-based Granahan Funds UCITS platform. Small Cap Select ($229 million AUM): Our Small Cap Select product was created in March 2015. The Small Cap Select product invests in stocks of companies with market capitalizations typically between $200mm and $3 billion at purchase. The Small Cap Select product seeks to invest in the stocks of companies in the small cap sector of the market that have the ability to sustain growth through market disruption. The Small Cap Select product is a high conviction portfolio containing +/-50 stocks with the top 15 holdings typically representing >60% of the portfolio. SMID Cap Select ($166 million AUM): Our SMID Cap Select product was created in March 2015. The SMID Cap Select product invests in stocks of companies with market capitalizations typically between $500mm and $20 billion at purchase. The SMID Cap Select product seeks to invest
in the stocks of companies in the SMID cap sector of the market that have the ability to sustain growth through market disruption. The SMID Cap Select product is a high conviction portfolio containing +/-50 stocks with the top 15 holdings typically representing >60% of the portfolio. Global Small Cap ($48 million AUM): Our Global Small Cap product was created in May 2016. The Global Small Cap product invests in stocks of companies with market capitalizations typically between $300mm and $5 billion at purchase, primarily representing companies in developed markets around the world. The Global Small Cap product seeks to invest in the stocks of well- positioned companies that have strong growth prospects when the underlying stock has an attractive risk/reward profile. The Global Small Cap product is a high conviction portfolio containing +/-60 holdings with a minimum of 50% of the portfolio representing US companies. Granahan Funds plc, Dublin, Ireland: On April 11, 2014, the US Focused Growth Fund was launched in Ireland. The US Focused Growth Fund is a fund of the umbrella company Granahan Funds plc, an Irish investment company established under the laws of Ireland, regulated by the Central Bank of Ireland under the European Communities UCITS regulations (Undertakings for Collective Investment in Transferable Securities). The fund’s investment strategy is to mimic, in so far as regulations allow, the Granahan Focused Growth strategy mentioned above. This fund is only available to non-US clients. On June 30, 2017, the Granahan Funds plc launched the US Small Cap Discoveries Fund under the umbrella. This fund mimics the strategy of the Granahan Small Cap Discoveries product. As with the Focused fund, the Discoveries UCITS is only available to non- US investors. On January 22, 2020, the umbrella launched its third fund, Granahan SMID Select Fund designed to mimic the SMID select strategy. Small Cap Explorer: Our Small Cap Explorer product was started at the founding of the firm in 1985. This product is invested in stocks of companies with market capitalizations between $500 million and $10 billion at the time of purchase. The portfolio generally carries between 155 and 175 stocks. This product focuses on companies exhibiting the potential for increased earnings growth. This product is offered on a sub-advised and separate account basis. International Small Cap: Our International Small Cap product was created in 2015. The International Small Cap product invests primarily in small cap stocks of companies in EAFE-based countries, with up to 10% exposure to emerging markets. The universe of investable countries is screened for stocks between $100million and $5billion in market cap, within our liquidity requirements. This strategy deploys a critical combination of extensive bottom-up, fundamental company research with a forward-looking expected-return tool for portfolio construction. The portfolio typically holds +/- 65 stocks. This product is offered on a separate account and sub- advised basis. Non-discretionary “Model” clients: In limited cases, we provide our investment management services on a non-discretionary basis through a “Model”. GIM does not have discretion over the model client’s assets and therefore the client is responsible for selecting the broker and executing trades in the market. The client, however, is not obligated to use our recommendations and therefore we do not know if or how much of the recommended trades were completed. This is a conflict of interest because we could be competing with the model client for the same trade. GIM communicates model changes to the model client at the end of the day. For securities held in both discretionary and model accounts, the discretionary clients will trade before model clients are made aware of the recommendation. This could result in model clients and discretionary clients receiving different prices.