From its roots as a solutions provider within the alternative asset management space, GCM Grosvenor (NASDAQ: GCMG ) has leveraged its relationships and know-how into managing money themselves. Firstly, in the hedge fund space, via its Analyst's Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensatio ...

Core Viewpoint - GCM Grosvenor Inc. has received a Zacks Rank 2 (Buy) upgrade due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for GCM Grosvenor suggest an improvement in the company's underlying business, likely leading to an increase in stock price [5][10]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7][9]. - GCM Grosvenor's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10]. Earnings Estimate Revisions - For the fiscal year ending December 2025, GCM Grosvenor is expected to earn $0.74 per share, with a 0.7% increase in the Zacks Consensus Estimate over the past three months [8].

Core Points - GCM Grosvenor will host an Investor Day in New York City on October 15, 2025, starting at 8:00 a.m. ET [1] - The event will feature presentations from senior management, including the long-term strategy, key business drivers, investment initiatives, and financial outlook [2] - Attendance will be both virtual and in-person, with in-person attendance by invitation only and advance registration required [3] Company Overview - GCM Grosvenor is a global alternative asset management solutions provider with approximately $86 billion in assets under management across various investment strategies [5] - The firm has over 50 years of experience in alternatives and aims to deliver value for clients through a flexible investment platform [5] - GCM Grosvenor employs around 550 professionals and serves a global client base of institutional and individual investors [5]

Part I [Item 1. Financial Statements (unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) GCM Grosvenor Inc. reported significant net income growth in Q2 and H1 2025, driven by fair value changes and improved financial position [Condensed Consolidated Statements of Financial Condition](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Condition) Total assets increased to **$636.9 million** while total liabilities decreased, significantly improving the total deficit to **$(20.6) million** Condensed Consolidated Statements of Financial Condition (in thousands) | Account | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $136,334 | $89,454 | | Investments | $262,755 | $257,807 | | Total assets | $636,859 | $612,731 | | **Liabilities and Equity** | | | | Accrued compensation | $60,782 | $112,519 | | Debt | $430,235 | $432,039 | | Warrant liabilities | $11,280 | $22,510 | | Total liabilities | $657,498 | $703,070 | | Total deficit | $(20,639) | $(90,339) | | Total liabilities and equity (deficit) | $636,859 | $612,731 | [Condensed Consolidated Statements of Income (Loss)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(Loss)) Net income significantly increased in Q2 and H1 2025, driven by higher operating revenues and a positive change in warrant liabilities fair value Key Income Statement Data (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Management fees | $101,924 | $99,843 | $211,239 | $195,728 | | Incentive fees | $16,258 | $16,037 | $31,326 | $26,155 | | **Total operating revenues** | **$119,657** | **$116,954** | **$245,503** | **$225,820** | | Operating income (loss) | $19,245 | $20,835 | $34,575 | $4,875 | | Change in fair value of warrant liabilities | $19,388 | $(180) | $10,612 | $(2,324) | | **Net income (loss)** | **$39,891** | **$12,961** | **$38,801** | **$(5,946)** | | Net income attributable to GCMG Inc. | $15,437 | $4,800 | $15,900 | $6,924 | | Diluted EPS | $0.05 | $0.04 | $0.07 | $(0.08) | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow significantly increased in H1 2025, while investing cash outflow decreased and financing activities shifted to a net use of cash Cash Flow Summary (in thousands) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $75,241 | $41,682 | | Net cash used in investing activities | $(7,631) | $(16,497) | | Net cash provided by (used in) financing activities | $(22,052) | $5,664 | | **Net increase in cash and cash equivalents** | **$46,880** | **$29,567** | [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes provide detailed insights into revenue, investments, fair value measurements, equity changes, debt structure, and commitments - In Q2 2025, the company entered into a Share Purchase Agreement with Sumitomo Mitsui Trust Bank, selling **3,752,965 shares** of Class A common stock for net proceeds of **$49.8 million**[70](index=70&type=chunk) - The Board of Directors increased the stock repurchase authorization by **$50 million** in February 2025 and another **$30 million** in August 2025, bringing the total to **$220 million**. As of June 30, 2025, **$57.2 million** remained available[75](index=75&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk) - In May 2024, the company amended its Term Loan Facility, increasing the principal amount to **$438.0 million** and extending the maturity to February 2030[111](index=111&type=chunk) - The company has unfunded investment commitments of **$126.6 million** as of June 30, 2025, up from **$90.5 million** at year-end 2024[138](index=138&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, highlighting AUM growth, revenue and expense trends, non-GAAP measures, liquidity, and capital resources [Results of Operations](index=45&type=section&id=Results%20of%20Operations) H1 2025 saw increased operating revenues and decreased expenses, leading to significant improvements in operating and net income Revenue Breakdown (in thousands) | Revenue Type | H1 2025 | H1 2024 | Change % | | :--- | :--- | :--- | :--- | | Management fees | $211,239 | $195,728 | +8% | | Incentive fees | $31,326 | $26,155 | +20% | | **Total operating revenues** | **$245,503** | **$225,820** | **+9%** | Expense Breakdown (in thousands) | Expense Type | H1 2025 | H1 2024 | Change % | | :--- | :--- | :--- | :--- | | Employee compensation and benefits | $157,103 | $167,602 | -6% | | General, administrative and other | $53,825 | $53,343 | +1% | | **Total operating expenses** | **$210,928** | **$220,945** | **-5%** | - The **6% decrease** in H1 2025 employee compensation was primarily driven by a **$13.0 million (31%) reduction** in partnership interest-based compensation, partially offset by a **$5.2 million (55%) increase** in carried interest compensation[224](index=224&type=chunk) [Fee-Paying AUM](index=49&type=section&id=Fee-Paying%20AUM) Fee-Paying AUM (FPAUM) and total AUM significantly increased in H1 2025, driven by contributions and positive market value changes FPAUM Roll-Forward for Six Months Ended June 30, 2025 (in millions) | FPAUM Activity | Private Markets | Absolute Return | Total FPAUM | | :--- | :--- | :--- | :--- | | Balance, beginning of period | $42,717 | $22,048 | $64,765 | | Contributions | $3,707 | $977 | $4,684 | | Withdrawals | $(79) | $(517) | $(596) | | Distributions | $(1,045) | $(78) | $(1,123) | | Change in market value | $53 | $1,065 | $1,118 | | **Balance, end of period** | **$45,461** | **$23,612** | **$69,073** | - Contracted, not yet Fee-Paying AUM (CNYFPAUM) stood at **$8.7 billion** as of June 30, 2025, an increase from **$8.2 billion** at the end of 2024[239](index=239&type=chunk) - Total Assets Under Management (AUM) increased by **$5.9 billion (7%)** to **$85.9 billion** during the first six months of 2025[245](index=245&type=chunk) [Non-GAAP Financial Measures](index=52&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP measures like Fee-Related Earnings (FRE), Adjusted EBITDA, and Adjusted Net Income (ANI) showed significant improvement in H1 2025 Key Non-GAAP Financial Measures (in thousands, except per share data) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Fee-Related Revenue | $206,120 | $192,386 | | Fee-Related Earnings | $88,274 | $77,373 | | Fee-Related Earnings Margin | 43% | 40% | | Adjusted EBITDA | $102,892 | $87,840 | | Adjusted Net Income | $67,364 | $56,598 | | Adjusted Net Income Per Share | $0.34 | $0.30 | [Liquidity and Capital Resources](index=58&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with significant cash and revolver availability, managing capital through investments, debt, and shareholder returns - The company maintains a strong liquidity position with **$136.3 million** in cash and **$50.0 million** available on its revolver as of June 30, 2025[268](index=268&type=chunk) - The stock repurchase plan authorization was increased to **$220 million**. In H1 2025, **$24.9 million** was used to settle employee equity awards[284](index=284&type=chunk)[285](index=285&type=chunk) - The payable under the Tax Receivable Agreement (TRA) was **$60.6 million** as of June 30, 2025, with an increase of approximately **$9.0 million** during the period due to an exchange of partnership units[287](index=287&type=chunk) - A quarterly dividend of **$0.11 per share** of Class A common stock was declared on August 4, 2025[281](index=281&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=63&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's market risk primarily stems from fund investment performance and interest rate sensitivity on its floating-rate debt - The company's main market risk is tied to the performance of its funds' investments, which impacts management fees, incentive fees, and investment income[297](index=297&type=chunk) - A **100 basis point** increase in the SOFR would result in an estimated **$4.3 million** increase in annual interest expense on the company's floating-rate debt, before considering the effect of interest rate hedges[298](index=298&type=chunk) [Controls and Procedures](index=63&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[300](index=300&type=chunk) - No material changes were made to the internal control over financial reporting during the three months ended June 30, 2025[301](index=301&type=chunk) Part II [Legal Proceedings](index=64&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal proceedings, but management does not anticipate a material impact on financial statements - Management does not expect current litigation to have a material impact on the company's financial condition or results of operations[303](index=303&type=chunk) [Risk Factors](index=64&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors were reported since the last annual filing - No material changes to risk factors were reported for the period[305](index=305&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=64&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not make open market purchases of equity securities in Q2 2025, aside from employee equity award settlements - The company did not purchase any shares of Class A common stock or warrants during the three months ended June 30, 2025, apart from shares withheld for employee tax obligations on vested RSUs[306](index=306&type=chunk) [Other Information](index=64&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted or terminated insider trading plans during the second quarter of 2025 - No directors or executive officers adopted or terminated an insider trading plan (Rule 10b5-1 or other) during Q2 2025[313](index=313&type=chunk)

Financial Data and Key Metrics Changes - For the second quarter of 2025, the company reported a 6% increase in fee-related earnings, a 99% increase in adjusted EBITDA, and a 19% increase in adjusted net income compared to 2024 [6][7] - Year-to-date fee-related earnings, adjusted EBITDA, and adjusted net income were up 14%, 17%, and 19% respectively compared to 2024 [6] - The fee-related earnings margin for the quarter was 42%, which is 200 basis points higher than the second quarter of last year [6] Business Line Data and Key Metrics Changes - The infrastructure segment accounted for $1,900,000,000 of fundraising in the first half of the year, contributing significantly to growth [8] - Private credit was the highest contributor to fundraising for the quarter, with expectations of increased diversification in private credit allocations [9] - Absolute return strategies (ARS) had a strong quarter with a multi-strategy composite returning approximately 6% on a gross basis, leading to a 7% increase in fee-paying AUM year-to-date [10][11] Market Data and Key Metrics Changes - Total assets under management (AUM) reached $86,000,000,000, a 5% increase compared to the end of 2024 [7] - Fundraising for the first half of the year totaled $5,300,000,000, a 52% increase from 2024, marking the highest first half fundraising total on record [7] Company Strategy and Development Direction - The company is focused on building out its individual investor channel and has made progress with its distribution joint venture, Grove Lane [11] - The company is also in the market with a structured alternative investment solution, indicating a strategic move towards innovative investment products [12] - AI is a key strategic focus, with increasing adoption expected to enhance efficiency and profitability [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the macro environment, noting strong demand for alternative investments and improved clarity around tax policy [13] - The company remains cautious due to ongoing volatility around interest rates and tariffs, but is well-positioned with $12,000,000,000 of dry powder for investment opportunities [14] - The firm aims to double its fee-related earnings by 2028, reflecting confidence in long-term growth prospects [30] Other Important Information - The company announced plans for its first Investor Day on October 15 in New York, aiming to showcase its growth profile and value proposition [15] - The firm has a strong financial position with robust cash generation and growing unrealized carried interest, which surpassed $900,000,000 this quarter [14][30] Q&A Session Summary Question: Retail uptake on the Evergreen retail vehicle and status on the private equity vehicle - Management indicated that the infrastructure interval fund is generating modest sales and is optimistic about the future of this channel, emphasizing a multiyear build [33][34] - Regarding private equity, management aims to develop their own product similar to infrastructure, with ongoing efforts to communicate progress [37] Question: Performance of absolute return business and fee rate influences - Management noted that while internal forecasts remain unchanged, improved performance has positively impacted the pipeline for ARS [42] - The fee rate has seen slight fluctuations due to idiosyncratic factors, but overall demand remains stable [44][46] Question: Re-ups in a volatile environment - Management reported strong re-ups and client tenure, with expectations for improved fundraising in 2025 compared to 2024 [51][54] Question: Fee pressures in private markets - Management stated that fee conversations have been constructive, with no significant pressures observed [56] Question: Differentiated origination capabilities in infrastructure - Management highlighted the flexible investment model that allows for diverse capital deployment, enhancing deal flow and client solutions [62][66] Question: AI opportunities and modeling - Management emphasized the integration of AI across various functions to improve efficiency and decision-making, with ongoing discussions on best practices [72][76]

Financial Performance - GCM Grosvenor reported GAAP net income attributable to GCM Grosvenor Inc of $15437 thousand for the three months ended June 30, 2025[50] - GCM Grosvenor reported GAAP net income attributable to GCM Grosvenor Inc of $15900 thousand for the six months ended June 30, 2025[50] - Adjusted EBITDA increased by 9% to $49516 thousand for the three months ended June 30, 2025, compared to the same period in 2024[51] - Adjusted EBITDA increased by 17% to $102892 thousand for the six months ended June 30, 2025, compared to the same period in 2024[51] - Adjusted Net Income increased by 9% to $32090 thousand for the three months ended June 30, 2025, compared to the same period in 2024[51] - Adjusted Net Income increased by 19% to $67364 thousand for the six months ended June 30, 2025, compared to the same period in 2024[51] - The Board of Directors approved a dividend of $011 per share, payable on September 16, 2025[3,46] Assets Under Management (AUM) and Fundraising - Assets Under Management (AUM) reached approximately $86 billion[6,19] - Fee-Paying AUM (FPAUM) increased by 9% to $691 billion as of June 30, 2025, compared to June 30, 2024[12] - Private Markets FPAUM increased by 9% to $455 billion as of June 30, 2025, compared to June 30, 2024[12] - Absolute Return Strategies FPAUM increased by 10% to $236 billion as of June 30, 2025, compared to June 30, 2024[12] - CNYFPAUM increased by 19% to $87 billion as of June 30, 2025, compared to June 30, 2024[12] - The company raised $24 billion of new capital in the second quarter of 2025[13,27] - The company raised $53 billion year-to-date, an increase of 52% compared to prior year-to-date[8,13] Strategic Shifts and Growth Drivers - Private Markets represented 71% of AUM[16,17,34] - Direct-Oriented Strategies accounted for 53% of Private Markets AUM[16,17,34] - The firm share of unrealized carried interest balance was $451 million[13,16]

[GCM Grosvenor 2025 Second Quarter Results](index=1&type=section&id=GCM%20Grosvenor%202025%20Second%20Quarter%20Results) GCM Grosvenor reported strong Q2 2025 financial performance, marked by significant growth in AUM, FPAUM, and net income, alongside record fundraising and a declared dividend [Q2 2025 Financial Highlights](index=7&type=section&id=Second%20Quarter%202025%20Results) GCM Grosvenor reported strong Q2 2025 results, with AUM and FPAUM up **9%** to **$85.9 billion** and **$69.1 billion** respectively, GAAP Net Income surging **222%**, and record fundraising of **$8.9 billion** LTM Q2 2025 Key Financial Metrics (vs. Q2 2024) | Metric | June 30, 2025 | % Change vs Q2 2024 | | :--- | :--- | :--- | | **AUM** | $85.9 billion | 9% | | **FPAUM** | $69.1 billion | 9% | | **GAAP Revenue (Q2)** | $119.7 million | 2% | | **GAAP Net Income (Q2)** | $15.4 million | 222% | | **Diluted EPS (Q2)** | $0.05 | 25% | | **Fee-Related Earnings (Q2)** | $41.6 million | 6% | | **Adjusted EBITDA (Q2)** | $49.5 million | 9% | | **Adjusted Net Income (Q2)** | $32.1 million | 9% | - The company achieved record fundraising, raising **$8.9 billion** over the last twelve months, a **46%** increase year-over-year. Year-to-date fundraising reached **$5.3 billion**, up **52%** compared to the first half of 2024[8](index=8&type=chunk)[15](index=15&type=chunk) - The firm's share of unrealized carried interest increased by **$36 million** from the first quarter of 2025 to **$451 million**[15](index=15&type=chunk) - The Board of Directors approved a quarterly dividend of **$0.11 per share**[4](index=4&type=chunk) [Business Overview and Growth Drivers](index=9&type=section&id=Business%20Overview%20and%20Growth%20Drivers) This section details GCM Grosvenor's robust adjusted earnings growth, key business drivers, strategic focus on private markets, diversified fundraising, and expanding carried interest potential [Adjusted Earnings Trends](index=9&type=section&id=Adjusted%20Earnings) GCM Grosvenor demonstrated strong year-to-date growth in adjusted earnings metrics, with Fee-Related Earnings up **14%**, Adjusted EBITDA up **17%**, and Adjusted Net Income up **19%**, reflecting significant longer-term expansion since 2020 Year-to-Date Adjusted Earnings Growth (vs. YTD 2024) | Metric | YTD 2024 | YTD 2025 | % Growth | | :--- | :--- | :--- | :--- | | Fee-Related Earnings | $77.4M | $88.3M | 14% | | Adjusted EBITDA | $87.8M | $102.9M | 17% | | Adjusted Net Income | $56.6M | $67.4M | 19% | Longer-Term Adjusted Earnings Growth (LTM) | Metric | 2020 LTM | Q2 2025 LTM | % Growth | | :--- | :--- | :--- | :--- | | Fee-Related Earnings | $95.1M | $177.3M | 86% | | Adjusted EBITDA | $147.0M | $228.9M | 56% | | Adjusted Net Income | $91.0M | $151.5M | 67% | [Key Business and Growth Drivers](index=11&type=section&id=Growth%20in%20Key%20Business%20Drivers) Since December 2020, GCM Grosvenor has achieved substantial growth in AUM to **$86 billion**, driven by a strategic shift to direct-oriented strategies and improved LTM FRE Margin, supported by high client retention and channel expansion Growth of Key Metrics (Dec 2020 vs. June 2025) | Metric | Dec 31, 2020 | June 30, 2025 | | :--- | :--- | :--- | | AUM | $62bn | $86bn | | Private Markets % of AUM | 59% | 71% | | Direct-Oriented Strategies % of Private Markets AUM | 39% | 53% | | LTM FRE Margin | 31% | 44% | | Firm Share of Unrealized Carried Interest | $133mm | $451mm | - Key long-term growth drivers include[23](index=23&type=chunk) - **Client Retention:** Approximately **90%** private markets re-up rate - **Individual Investor Channel:** Raised **$3.6 billion** since 2020 - **Real Assets:** Raised **$17 billion** for real assets since 2020 - **Margin Expansion:** LTM FRE margin has expanded by approximately **1,300 basis points** since Q4 2020 [Company Profile and Strategy](index=15&type=section&id=GCM%20Grosvenor%3A%20Central%20to%20the%20Alternatives%20Ecosystem) GCM Grosvenor, a global alternative asset manager with **$86 billion** in AUM, leverages its open architecture across diverse strategies, achieving an **8% CAGR** in AUM since Q4 2020, primarily from Private Markets and Real Assets growth - The firm has **$86 billion** in AUM, with **71%** in customized separate accounts, and operates across **five main alternative strategies**[26](index=26&type=chunk)[29](index=29&type=chunk) AUM by Strategy (June 30, 2025) | Strategy | AUM (bn) | | :--- | :--- | | Private Equity | $31.7 | | Absolute Return | $25.0 | | Infrastructure | $16.9 | | Alternative Credit | $16.1 | | Real Estate | $6.6 | AUM Growth (CAGR since Q4 2020) | Strategy | CAGR | | :--- | :--- | | Total AUM | 8% | | Private Markets | 12% | | Real Assets | 23% | | Absolute Return Strategies | 0% | [Fundraising Analysis](index=19&type=section&id=Diversified%20Fundraising%20Drives%20Stability%20%26%20Growth) GCM Grosvenor's diversified fundraising, totaling **$8.9 billion** LTM and **$2.4 billion** in Q2 2025, is primarily driven by Americas and Pension channels, ensuring stability and growth - Total fundraising for Q2 2025 was **$2.4 billion**, and LTM fundraising was **$8.9 billion**[37](index=37&type=chunk)[38](index=38&type=chunk) LTM Fundraising Diversification | Category | Breakdown | | :--- | :--- | | **By Geography** | Americas: **62%**, EMEA: **20%**, APAC: **18%** | | **By Channel** | Pensions: **60%**, Government/Sovereign: **11%**, Individual Investor: **7%**, Financial Institutions: **7%**, Insurance: **6%** | [Private Markets Focus](index=21&type=section&id=Private%20Markets%20Growth) Private Markets AUM grew to **$61.0 billion** (**12% CAGR** since Q4 2020), driven by **$12.3 billion** in specialized fund closings and a strategic shift to direct-oriented strategies, enhancing the firm's earnings power - Cumulative closings for selected private market specialized funds reached **$12.3 billion** through Q2 2025[42](index=42&type=chunk) - Private Markets AUM has grown from **$36.8 billion** in Q4 2020 to **$61.0 billion** in Q2 2025, a **12% CAGR**[46](index=46&type=chunk) - There has been a significant shift to direct-oriented strategies, which now constitute **53%** of Private Markets AUM, up from **39%** at the end of 2020[21](index=21&type=chunk)[46](index=46&type=chunk)[48](index=48&type=chunk) Funds Currently in Market | Name | Asset Class | Investment Implementation | | :--- | :--- | :--- | | Private Credit funds | Private credit | Co-investments, Secondaries, Primaries | | Advance Fund II (Advance II) | Private equity | Co-investments, Secondaries, Primaries | | Secondary Opportunities Fund IV (GSF IV) | Private equity | Secondaries | [Carried Interest and Incentive Fees](index=25&type=section&id=Growing%20Carried%20Interest%20Earnings%20Power) GCM Grosvenor's incentive-based earnings potential expanded significantly, with total unrealized carried interest reaching **$909 million** and the firm's share growing to **$451 million**, supported by a **10% CAGR** in incentive-fee AUM Growth in Firm Share of Unrealized Carried Interest | Date | Total Unrealized Carry | Firm Share | Firm % of Total | | :--- | :--- | :--- | :--- | | Q4 2020 | $395M | $133M | 34% | | Q2 2025 | $909M | $451M | 50% | - The growth in unrealized carry is supported by an increase in AUM subject to incentive fees, which has grown at a **10% CAGR** since 2020 to **$61.7 billion**[57](index=57&type=chunk) - Despite the growth in unrealized carry, realized gross incentive fees have been relatively muted, indicating **significant embedded value**[53](index=53&type=chunk)[54](index=54&type=chunk) [Other Key Items & Financial Position](index=29&type=section&id=Other%20Key%20Items%20%26%20Financial%20Position) This section outlines GCM Grosvenor's strong capital position, including cash, investments, and unrealized carried interest, alongside its share repurchase program and management ownership [Capital Management and Ownership](index=29&type=section&id=Other%20Key%20Items) As of June 30, 2025, GCM Grosvenor held **$355 million** in cash and investments, with total potential value of **$806 million**, supported by an increased share repurchase authorization and **73%** management ownership Key Financial Metrics as of June 30, 2025 ($mm) | Metric | Amount | | :--- | :--- | | Cash and Cash Equivalents | $136 | | Investments | $219 | | **Cash and Investments** | **$355** | | Unrealized Carried Interest (Firm Share) | $451 | | **Total Cash, Investments & Unrealized Carry** | **$806** | - The Board increased the share repurchase authorization by **$30 million** to **$220 million** in August 2025. As of June 30, 2025, **$57 million** remained available under the prior authorization[60](index=60&type=chunk)[62](index=62&type=chunk) - Management holds **73%** of total shares outstanding, indicating strong insider alignment[61](index=61&type=chunk) [Supplemental Information](index=31&type=section&id=Supplemental%20Information) This section provides detailed GAAP financial statements, non-GAAP reconciliations, AUM and fee specifics, investment performance metrics, and comprehensive definitions for key financial terms [GAAP Financial Statements](index=33&type=section&id=GAAP%20Financial%20Statements) GAAP Statements of Income for Q2 2025 show **$119.7 million** in revenues and **$15.4 million** net income, with the balance sheet reporting **$636.9 million** in total assets and **$657.5 million** in liabilities GAAP Statement of Income Highlights (Three Months Ended June 30) | ($000) | 2024 | 2025 | | :--- | :--- | :--- | | Total operating revenues | $116,954 | $119,657 | | Operating income | $20,835 | $19,245 | | Net income attributable to GCM Grosvenor Inc. | $4,800 | $15,437 | GAAP Balance Sheet Highlights | ($000) | Dec 31, 2024 | Jun 30, 2025 | | :--- | :--- | :--- | | Total assets | $612,731 | $636,859 | | Total liabilities | $703,070 | $657,498 | | Total deficit | ($90,339) | ($20,639) | [Non-GAAP Financial Measures & Reconciliations](index=39&type=section&id=Summary%20of%20Non-GAAP%20Financial%20Measures) This section details GCM Grosvenor's non-GAAP financial performance, with YTD 2025 Fee-Related Earnings at **$88.3 million**, Adjusted EBITDA at **$102.9 million**, and Adjusted Net Income at **$67.4 million**, along with reconciliations to GAAP figures Non-GAAP Performance (Six Months Ended June 30) | ($000) | 2024 | 2025 | % Change | | :--- | :--- | :--- | :--- | | Fee-Related Revenue | $192,386 | $206,120 | 7% | | Fee-Related Earnings | $77,373 | $88,274 | 14% | | Adjusted EBITDA | $87,840 | $102,892 | 17% | | Adjusted Net Income | $56,598 | $67,364 | 19% | | Adjusted Net Income per Share | $0.30 | $0.34 | 13% | - The reconciliation tables show adjustments for items such as **non-cash compensation**, **amortization**, **transaction expenses**, and **changes in the fair value of warrant liabilities** to bridge from GAAP Net Income to Adjusted Net Income and Adjusted EBITDA[78](index=78&type=chunk)[81](index=81&type=chunk) [AUM and Fee Details](index=49&type=section&id=Change%20in%20FPAUM%20and%20AUM) In Q2 2025, AUM increased **5%** to **$85.9 billion** and FPAUM grew **4%** to **$69.1 billion**, driven by new capital and market value changes, with consistent average management fee rates across strategies FPAUM Rollforward - Q2 2025 ($mm) | Description | Amount | | :--- | :--- | | Beginning Balance (April 1, 2025) | $66,399 | | Contributions (New Capital & CNYFPAUM) | $1,992 | | Withdrawals & Distributions | ($792) | | Change in Market Value & FX | $1,474 | | **End of Period Balance (June 30, 2025)** | **$69,073** | Average Management Fee Rates (Q2 2025) | Strategy | Average Fee Rate | | :--- | :--- | | Private Markets | 0.54% | | Absolute Return Strategies (Mgmt Fee Only) | 0.67% | [Investment Performance Metrics](index=53&type=section&id=Private%20Markets%20Strategies%20Performance%20Metrics) This section presents investment performance metrics, highlighting Private Equity Co-Investments/Direct Investments with a net TVPI of **1.76x** and net IRR of **17.0%**, and Absolute Return Strategies achieving a **7.3%** five-year annualized net return Performance of All Private Equity Investments (as of 3/31/25) | Strategy | Investment Net TVPI | Investment Net IRR | | :--- | :--- | :--- | | Primary Fund Investments | 1.63x | 12.5% | | Secondary Investments | 1.42x | 13.4% | | Co-Investments/Direct Investments | 1.76x | 17.0% | Annualized Net Returns of Absolute Return Strategies (as of 6/30/25) | Period | Overall Net Return | | :--- | :--- | | One Year | 10.8% | | Three Year | 8.9% | | Five Year | 7.3% | | Since Inception (1996) | 6.0% | [Notes and Definitions](index=59&type=section&id=Notes%20and%20Definitions) This section provides detailed notes and definitions for financial metrics, including non-GAAP measures like **Adjusted EBITDA** and operational KPIs such as **AUM** and **FPAUM**, along with context for performance data and the share repurchase plan - Defines key non-GAAP measures used for evaluating profitability, including **Adjusted Net Income**, **Adjusted EBITDA**, and **Fee-Related Earnings (FRE)**[114](index=114&type=chunk)[116](index=116&type=chunk)[119](index=119&type=chunk) - Defines key performance indicators used to measure assets, including **Fee-Paying AUM (FPAUM)**, **Contracted, Not Yet Fee-Paying AUM (CNYFPAUM)**, and **Assets Under Management (AUM)**[122](index=122&type=chunk)[124](index=124&type=chunk) - Details the share repurchase plan, which was increased by **$30.0 million** in August 2025 to a total authorization of **$220.0 million** for repurchasing Class A common stock and warrants[129](index=129&type=chunk)

CHICAGO, Aug. 07, 2025 (GLOBE NEWSWIRE) -- GCM Grosvenor (Nasdaq: GCMG), a global alternative asset management solutions provider, today reported its results for the second quarter 2025. GCM Grosvenor issued a detailed presentation of its results to the Public Shareholders section of GCM Grosvenor's website at https://www.gcmgrosvenor.com/shareholder-events. GCM Grosvenor's Board of Director's increased the firm's existing share repurchase authorization by $30 million, from $190 million to $220 million. The ...

Core Points - GCM Grosvenor will release its second quarter 2025 results on August 7, 2025 [1] - A webcast and conference call will be held on the same day at 11:00 a.m. ET to discuss the results and provide a business update [2] - GCM Grosvenor manages approximately $82 billion in assets across various investment strategies [3] Company Overview - GCM Grosvenor is a global alternative asset management solutions provider with over 50 years of experience in the industry [3] - The firm employs around 550 professionals and serves a diverse client base of institutional and individual investors [4] - GCM Grosvenor has a global presence with offices in major cities including Chicago, New York, Toronto, London, Frankfurt, Tokyo, Hong Kong, Seoul, and Sydney [4]

Core Insights - The launch of the FT Wilshire Private Markets Infrastructure Index aims to provide a transparent and reliable benchmark for infrastructure investors, addressing the lack of comprehensive benchmarks in this asset class [1][2] - GCM Grosvenor plans to develop investable vehicles to track the Index, responding to the growing demand for passive exposure to infrastructure assets [1][2] Company Collaboration - The Index was developed through collaboration between Wilshire Indexes and GCM Grosvenor, utilizing their global scale and expertise in private markets [2][3] - Wilshire Indexes will govern the Index using its established index methodologies and data analytics technology, while GCM Grosvenor will provide insights and risk management expertise [2][3] Future Developments - Following the Index launch, both companies plan to collaborate on additional alternative investment indices and products, leveraging advanced data analytics and technology [4] - Initial Index results are expected to be published in Q3 2025, with GCM Grosvenor anticipating the launch of tracking vehicles later in the year [5]