GCM GROSVENOR | 36 Fee-Paying Assets Under Management ("FPAUM" or "Fee-Paying AUM") is a key performance indicator we use to measure the assets from which we earn management fees. Our FPAUM comprises the assets in our customized separate accounts and specialized funds from which we derive management fees. We classify customized separate account revenue as management fees if the client is charged an asset-based fee, which includes the vast majority of our discretionary AUM accounts. The FPAUM for our private ...

[Part I - Financial Information](index=4&type=section&id=Part%20I%20-%20Financial%20Information) This section presents the company's unaudited condensed consolidated financial statements, management's discussion and analysis, market risk disclosures, and internal controls [Item 1. Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) The unaudited financial statements for Q3 2023 detail the company's financial condition, operations, and cash flows, highlighting a Q3 net income increase despite a nine-month net loss driven by non-cash compensation [Condensed Consolidated Statements of Financial Condition](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Condition) Total assets increased to **$504.7 million** as of September 30, 2023, from **$488.9 million**, with liabilities also rising, resulting in a slight increase in the total deficit Condensed Consolidated Statements of Financial Condition (in thousands) | | As of Sep 30, 2023 (Unaudited) | As of Dec 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $55,354 | $85,163 | | Investments | $239,883 | $223,970 | | Total assets | $504,721 | $488,933 | | **Liabilities and Equity (Deficit)** | | | | Debt | $385,451 | $387,627 | | Total liabilities | $598,409 | $582,939 | | Total deficit | $(93,688) | $(94,006) | | Total liabilities and equity (deficit) | $504,721 | $488,933 | [Condensed Consolidated Statements of Income (Loss)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(Loss)) Q3 2023 net income increased to **$17.6 million**, but the nine-month period saw a net loss of **$33.8 million**, primarily due to higher employee compensation expenses Condensed Consolidated Statements of Income (Loss) (in thousands) | | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Total operating revenues | $121,714 | $137,214 | $328,443 | $346,702 | | Total operating expenses | $97,810 | $108,484 | $353,407 | $280,169 | | Operating income (loss) | $23,904 | $28,730 | $(24,964) | $66,533 | | Net income (loss) | $17,620 | $14,165 | $(33,778) | $68,075 | | Net income attributable to GCM Grosvenor Inc. | $5,898 | $3,099 | $9,516 | $15,430 | | Diluted EPS | $0.04 | $0.02 | $(0.28) | $0.23 | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations significantly decreased to **$65.4 million** for the nine months ended September 30, 2023, primarily due to lower net income, leading to an overall cash decrease Net Cash Flow Summary (in thousands) | | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $65,389 | $159,929 | | Net cash used in investing activities | $(13,031) | $(10,338) | | Net cash used in financing activities | $(80,947) | $(140,219) | | Net (decrease) increase in cash | $(29,809) | $5,390 | [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes disclose significant accounting policies, revenue components, fair value, debt, equity compensation, and subsequent events, including incentive fees, stock repurchases, and dividends - **Incentive fees** for Q3 2023 were **$26.1 million**, down from **$45.5 million** in Q3 2022, primarily due to a decrease in carried interest from **$44.5 million** to **$25.4 million**[52](index=52&type=chunk) - On August 8, 2023, the Board of Directors increased the stock repurchase authorization by **$25 million**, from **$90 million** to **$115 million**, with **$40.2 million** remaining available as of September 30, 2023[73](index=73&type=chunk)[74](index=74&type=chunk) - Partnership interest-based compensation for the nine months ended September 30, 2023, significantly increased to **$89.2 million** from **$21.5 million**, representing a non-cash charge offset by a deemed equity contribution[83](index=83&type=chunk) - A new 16.3-year lease for the New York office was executed in June 2023, with total future lease payments projected at **$65.7 million**[124](index=124&type=chunk) - A quarterly dividend of **$0.11 per share** of Class A common stock was declared on November 7, 2023, payable on December 15, 2023[152](index=152&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, noting increased Q3 management fees offset by lower carried interest, a nine-month net loss due to higher non-cash compensation, and growth in Fee-Paying AUM to **$61.0 billion** [Results of Operations](index=40&type=section&id=Results%20of%20Operations) Total operating revenues decreased in Q3 2023 to **$121.7 million** and slightly for the nine-month period, while operating expenses significantly increased to **$353.4 million**, primarily due to higher partnership interest-based compensation Revenue and Expense Comparison (in thousands) | | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Management fees | $94,573 | $90,715 | $280,382 | $275,655 | | Incentive fees | $26,073 | $45,467 | $44,884 | $67,964 | | **Total operating revenues** | **$121,714** | **$137,214** | **$328,443** | **$346,702** | | Employee compensation and benefits | $76,413 | $86,502 | $277,505 | $213,836 | | General, administrative and other | $21,397 | $21,982 | $75,902 | $66,333 | | **Total operating expenses** | **$97,810** | **$108,484** | **$353,407** | **$280,169** | - Employee compensation for the nine months ended September 30, 2023, increased primarily due to a **$67.7 million** rise in partnership interest-based compensation from new awards and amortization[203](index=203&type=chunk) [Fee-Paying AUM (FPAUM)](index=43&type=section&id=Fee-Paying%20AUM) Fee-Paying AUM (FPAUM) increased by **$2.1 billion** to **$61.0 billion** during the first nine months of 2023, driven by contributions and market appreciation, with **$7.1 billion** in Contracted, not yet Fee-Paying AUM (CNYFPAUM) FPAUM Roll-Forward for Nine Months Ended Sep 30, 2023 (in millions) | | Private Markets Strategies | Absolute Return Strategies | Total FPAUM | | :--- | :--- | :--- | :--- | | Balance, beginning of period | $36,876 | $21,980 | $58,856 | | Contributions | $3,614 | $316 | $3,930 | | Withdrawals | $(68) | $(1,714) | $(1,782) | | Distributions | $(752) | $(58) | $(810) | | Change in market value | $163 | $1,048 | $1,211 | | **Balance, end of period** | **$39,554** | **$21,414** | **$60,968** | - As of September 30, 2023, the company held **$7.1 billion** in Contracted, not yet Fee-Paying AUM (CNYFPAUM)[220](index=220&type=chunk) [Non-GAAP Financial Measures](index=45&type=section&id=Non-GAAP%20Financial%20Measures) Key non-GAAP metrics for Q3 2023 include Fee-Related Earnings (FRE) of **$36.4 million**, Adjusted EBITDA of **$43.6 million**, and Adjusted Net Income per Share of **$0.15**, all showing year-over-year increases Key Non-GAAP Financial Measures (in thousands, except per share) | | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Fee-Related Earnings (FRE) | $36,437 | $31,367 | $99,610 | $95,637 | | Adjusted EBITDA | $43,560 | $41,367 | $112,456 | $113,769 | | Adjusted Net Income | $28,427 | $26,567 | $70,769 | $72,420 | | Adjusted Net Income Per Share | $0.15 | $0.14 | $0.38 | $0.38 | [Liquidity and Capital Resources](index=50&type=section&id=Liquidity%20and%20Capital%20Resources) As of September 30, 2023, the company maintained **$55.4 million** in cash and **$50.0 million** in available borrowing capacity, with an increased stock repurchase authorization and a declared quarterly dividend - As of September 30, 2023, the company held **$55.4 million** in cash and cash equivalents and **$50.0 million** in available borrowing capacity[250](index=250&type=chunk) - On August 8, 2023, the Board of Directors increased the share repurchase authorization by **$25 million** to a total of **$115 million**[265](index=265&type=chunk) - A quarterly dividend of **$0.11 per share** of Class A common stock was declared on November 7, 2023[263](index=263&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No material changes occurred in the company's market risk exposures, including price, interest-rate, financing, liquidity, counterparty, and foreign exchange-rate risks, during the nine months ended September 30, 2023 - No material changes in the company's market risks occurred during the nine months ended September 30, 2023[277](index=277&type=chunk) [Item 4. Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2023, with no material changes to internal control over financial reporting during Q3 2023 - The principal executive and financial officers concluded that the company's disclosure controls and procedures were effective as of September 30, 2023[279](index=279&type=chunk) - No material changes to internal control over financial reporting occurred during Q3 2023[280](index=280&type=chunk) [Part II - Other Information](index=47&type=section&id=Part%20II%20-%20Other%20Information) This section provides disclosures on legal proceedings, risk factors, equity security sales, and other relevant information [Item 1. Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various lawsuits but does not anticipate any current litigation will materially affect its financial statements - Management does not believe any current litigation will materially affect the Company's Condensed Consolidated Financial Statements[282](index=282&type=chunk) [Item 1A. Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors have occurred since the Annual Report on Form 10-K for the fiscal year ended December 31, 2022 - No material changes to risk factors have occurred since the fiscal year ended December 31, 2022[284](index=284&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=48&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company did not repurchase shares in the open market during Q3 2023 but is deemed to have repurchased **804,046 shares** for **$6.4 million** for RSU tax liabilities, with the repurchase authorization increased to **$115 million** - On August 8, 2023, the Board of Directors increased the share repurchase authorization by **$25 million**, from **$90 million** to **$115 million**[288](index=288&type=chunk) - The company is deemed to have repurchased **804,046 shares** of Class A common stock equivalents for **$6.4 million** during Q3 2023 for vested RSU tax payments[287](index=287&type=chunk) [Item 5. Other Information](index=48&type=section&id=Item%205.%20Other%20Information) On September 15, 2023, CFO Pamela Bentley adopted a Rule 10b5-1 trading plan for the sale of up to **125,000 shares** of Class A common stock - CFO Pamela Bentley adopted a Rule 10b5-1(c) trading plan on September 15, 2023, for the sale of up to **125,000 shares** of Class A common stock, expiring by March 15, 2024[292](index=292&type=chunk)

Financial Data and Key Metrics Changes - Assets under management (AUM) grew 7% year-over-year, driven by a 12% year-over-year growth in Private Markets AUM [9] - Fee-Related Earnings achieved guidance, with adjusted EBITDA and adjusted net income increasing year-over-year due to a modest increase in carried interest [9][10] - The company expects mid-teens year-over-year Fee-Related Earnings growth in Q3 2023, with strong growth anticipated in 2024 [10][30] Business Line Data and Key Metrics Changes - The Absolute Return Strategies vertical showed signs of stabilization, while private market verticals continued solid growth [9] - Real estate AUM reached $5.5 billion, a 60% increase from two years ago, with $3.8 billion already invested [15] - Private markets now represent 70% of total AUM and 64% of fee-paying AUM [28] Market Data and Key Metrics Changes - Fundraising in Q2 2023 was $1.5 billion, up about 50% from Q1, with 73% of capital raised coming from outside the U.S. [21] - The company is seeing strong demand for its products globally, particularly in infrastructure and private markets [21][64] Company Strategy and Development Direction - The company emphasizes a client-first philosophy and a collaborative culture, which has led to a stable firm structure [22] - The focus on separately managed accounts has resulted in high client longevity and re-up rates of 90% [23] - The company is optimistic about the growth trajectory in real estate and expects it to be a meaningful contributor to fundraising in the coming quarters [33] Management's Comments on Operating Environment and Future Outlook - Management noted that the fundraising environment is beginning to loosen, with positive signs for the second half of the year [21][64] - Despite challenges in the Absolute Return business, management believes it is stabilizing and expects growth next year [55][60] - The company is optimistic about the demand for alternative investments and sees green shoots in fundraising and realizations [64] Other Important Information - The company has $782 million in gross unrealized carry across 135 programs, with significant growth potential from newer funds [36] - The quarterly dividend is maintained at $0.11 per share, with room for future growth [43] - The board approved an increase in share buyback authorization by $25 million [44] Q&A Session Summary Question: Are you seeing industry challenges in fundraising leading to more pressure on fees? - Management stated that fees have remained stable and have not seen pressure from clients regarding fees [48][51] Question: How is the Absolute Return business performing? - Management acknowledged that while the Absolute Return business has stabilized, they are focused on driving inflows and have seen a positive pipeline recently [55][60] Question: What is the outlook for the Secondaries market? - Management expressed optimism about the Secondaries market, noting that it is expected to grow, although discounts are currently wider [67][70]

1-3. See Notes towards the end of the document. 14% CAGR $30.1 $34.8 $39.1 $40.1 Q2 21 Q2 22 Q2 23 Q2 21 Q2 22 Q2 23 $ million 35.2 36.0 2% $35.2 $36.0 President Chief Financial Officer Head of Investor Relations • 2023 Private Markets FPAUM increased 12% and Private Markets YTD management fees increased 8% over prior year | --- | --- | --- | --- | |---------------------------------------------------------------|-------|--------------------------------------------------|-------------------| | $ million \nGA ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________ FORM 10-Q __________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-39716 __________________________________ GCM Grosvenor Inc. ...

Financial Performance - GCM Grosvenor's Q1 2023 fundraising reached $940 million[4] - Private Markets FPAUM increased by 12% compared to Q1 2022[4] - Private Markets management fees increased by 11% year-over-year[16] - GCM Grosvenor repurchased $22.7 million of Class A common stock during Q1 2023[16] - GAAP Revenue decreased by 6% from $105.1 million to $99.1 million[17] - Absolute Return Strategies Management Fees decreased by 13%[17] - Adjusted EBITDA decreased by 12% from $37.2 million to $32.9 million[17] - Adjusted Net Income decreased by 17% from $23.8 million to $19.6 million[17] Assets Under Management (AUM) - Total AUM increased by 5% from $71.3 billion to $75.3 billion compared to Q1 2022[4] - Private Markets FPAUM increased by 12% from $33.8 billion to $38.0 billion[4] - Absolute Return Strategies FPAUM decreased by 9% from $24.0 billion to $21.8 billion[4]

Washington, D.C. 20549 __________________________________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION FORM 10-Q __________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-39716 __________________________________ GCM Grosvenor Inc ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________ FORM 10-K __________________________________ (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-39716 __________________________________ GCM Grosvenor Inc. (Exact Name of Registrant as Specifie ...

Financial Data and Key Metrics Changes - Private markets management fees, excluding catch-up fees, rose by 10% in Q4 2022 compared to Q4 2021 and increased by 12% for the full year 2022 [28][73] - Fee-related earnings for the full year increased by 7%, with the fee-related earnings margin improving by 100 basis points to 36% [28][31] - The company raised $7.8 billion in total funds for 2022, with $1.5 billion raised in Q4 alone [33][40] Business Line Data and Key Metrics Changes - Private markets now represent 69% of total AUM, with 93% of fundraising in 2022 coming from private markets [40] - The Elevate strategy, focusing on seeding small, emerging, and diverse private equity managers, launched with a $500 million anchor investment [61][69] - The company expects continued strong private market management fee growth of 11% to 13% in Q1 2023 compared to Q1 2022 [35][73] Market Data and Key Metrics Changes - The fundraising environment for private markets is expected to be stronger in 2023, with a focus on back-end weighted fundraising [62][112] - Demand for alternatives remains strong, with existing clients contributing 85% of new commitments in 2022 [66][68] - The company anticipates modest redemptions in 2023, but overall demand for hedge funds is expected to remain stable [100][101] Company Strategy and Development Direction - The company aims to leverage its expertise in partnering with successful firm founders to make catalytic seed investments through the Elevate strategy [43][106] - There is a focus on expanding the Sponsor Solutions category, which includes investing in small, emerging, and diverse managers [42][69] - The company plans to continue growing its specialized fund franchises and expects successor funds to achieve larger sizes than their predecessors [37][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid-teens growth in fee-related earnings for 2023, even with lower fundraising levels than in 2022 [29][111] - The company believes that as transaction levels increase, commitments to new funds and programs will also rise [8][57] - Management noted that the current macro environment has led to a slowdown in transaction levels, but they expect this to improve [4][86] Other Important Information - The company has returned $0.74 in cumulative dividends per share since going public, with an annualized quarterly dividend of 4.7% [65] - The firm has $789 million in gross unrealized carried interest across 131 programs, which is 11% higher than the previous year [46] Q&A Session Summary Question: What is the outlook for the Elevate program? - Management is excited about the Elevate program, noting that it has a strong anchor investment and will be raising funds for the next 18 to 24 months [81][82] Question: How does the company view the fundraising environment for private markets? - Management believes that fundraising will be higher in 2023 than in 2022, with a solid pipeline across all verticals [112] Question: What is the expectation for redemptions in 2023? - The company is budgeting for modest redemptions in 2023, which are expected to be less than in the previous year [100][101]

2022 Third Quarter Results Earnings Presentation GCM GROSVENOR Presenters | --- | --- | --- | --- | --- | --- | --- | --- | |---------------|-------|----------------|-------|----------------|-------|-------|-----------------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Michael Sacks | | Jonathan Levin | | Pamela Bentley | | | Stacie Selinger | Chairman and Chief Executive Officer President Chief Financial Officer Head of Investor Relations 2 Third Quarter 2022 Results • Third q ...