Summary of GCM Grosvenor 2025 Investor Day Company Overview - **Company**: GCM Grosvenor (NasdaqGM:GCMG) - **Date**: October 15, 2025 - **AUM**: $86 billion across five core alternative strategies: absolute return, private equity, infrastructure, credit, and real estate [15][22][24] - **Headquarters**: Chicago, with nine global offices and 546 employees [15] Industry Insights - **Alternatives Industry Growth**: Alternatives AUM is projected to grow at double-digit rates over the next five years, driven by compounding returns and a greater share of investors' wallets [43] - **Middle Market Focus**: The middle market is seen as fragmented and less efficient, providing opportunities for outperformance. GCM Grosvenor is positioned as a leader in this space [22][24] Core Business Strategies - **Client-Centric Approach**: The firm emphasizes a client-first mindset, focusing on delivering long-term value for clients, which in turn drives shareholder value [4][12][42] - **Customized Separate Accounts**: Over 70% of AUM is delivered through customized separate accounts, allowing for tailored investment strategies based on client specifications [16][47] - **Direct-Oriented Strategies**: The firm is shifting towards direct-oriented strategies, such as co-investments and secondaries, which provide better economics for clients and the firm [10][15] Financial Performance - **Growth Metrics**: The firm has achieved a 35% compound annual growth rate in specialized funds since 2014 and has seen mid-teens earnings growth over the past five years [10][25] - **Future Projections**: GCM Grosvenor expects to double its fee-related earnings by the end of 2028, with a target of $1.20 in adjusted net income per share by 2028 [30][31] Capital Deployment and Shareholder Returns - **Dividend Increase**: The quarterly dividend has been increased from $0.11 to $0.12 per share, effective December 1, 2025 [32] - **Capital-Light Business Model**: The firm operates a capital-light business with expanding margins and strong cash flow, allowing for significant operating leverage [24][31] Client Relationships and Retention - **High Client Satisfaction**: 92% of top clients have added capital since 2020, indicating strong loyalty and satisfaction [17] - **Long-Term Relationships**: The average length of relationship with top customized separate account clients is 13 years, showcasing the firm's ability to build trust and deliver value [51] Inorganic Growth Strategy - **M&A Approach**: GCM Grosvenor maintains a disciplined approach to inorganic growth, focusing on opportunities that align with client needs and accelerate growth [29][30] Individual Investor Channel - **Emerging Opportunities**: The firm is investing in capturing the individual investor market, which holds roughly half of global wealth but is under-allocated to alternatives [61][62] - **Recent Fundraising Success**: In Q3 2025, GCM Grosvenor raised $1.9 billion, bringing year-to-date fundraising to $7.2 billion, indicating strong momentum [66] Conclusion - **Future Outlook**: GCM Grosvenor is well-positioned to capitalize on growth opportunities in the alternatives space, with a strong focus on client relationships, innovative investment strategies, and a commitment to delivering value [68]

Company Overview and Strategy - GCM Grosvenor has $86 billion in Assets Under Management (AUM) [24] and a diversified open architecture investment platform [27] - The company is focused on growing its core business, scaling investment strategies, and extending into new areas [40, 41] - GCM Grosvenor aims to compound Fee-Related Earnings (FRE) and achieve Adjusted Net Income (ANI) exceeding $120 per share by 2028 [52] Client Base and Value Proposition - 92% of top clients have increased their capital investment since 2020 [30], and 56% invest in more than one strategy [30] - The company manages capital for over 675 institutional clients and thousands of individual investors [29] - GCM Grosvenor offers customized separate accounts (CSAs), which constitute 71% of its AUM [18, 73] Financial Performance and Growth - Private Markets Management Fees reached $251 million [38], with a CAGR of 12% since 2020 [38] - Fee-Related Earnings (FRE) were $177 million [38], with a margin of 44% [38], representing a 1,300 bps increase since 2020 [38] - The firm's share of unrealized carried interest is $451 million [38], reflecting a 31% CAGR since 2020 [38] Investment Platform Performance - Private Equity Primary Investments achieved a 134% IRR [122] and a TVPI of 18x [122], outperforming the S&P 500 Index by +310 bps [122] - Private Equity Co-Investments generated a 208% IRR [122] and a TVPI of 21x [122], outperforming the S&P 500 Index by +550 bps [122] - Infrastructure Primary Investments had an 114% IRR [122] and a TVPI of 17x [122], outperforming the MSCI Infrastructure Index by +510 bps [122]

Core Points - GCM Grosvenor has announced an Investor Day scheduled for October 15, 2025, at 8:00 a.m. ET, with a presentation available on their website [1] - The senior management team, including the CEO, President, and CFO, will discuss the firm's long-term strategy, key business drivers, investment initiatives, and financial outlook [2] - The event will be held both virtually and in person, with in-person attendance being invitation-only and requiring advance registration [3] - GCM Grosvenor will increase its quarterly cash dividend from $0.11 to $0.12 per share, amounting to an annualized dividend of $0.48, starting in the fourth quarter of 2025 [4] - GCM Grosvenor manages approximately $86 billion in assets across various investment strategies, including private equity, infrastructure, real estate, credit, and absolute return [5]

Core Viewpoint - Zenzic Capital has launched the Zenzic Real Estate Credit Opportunities Fund, a new European opportunistic credit evergreen fund, supported by GCM Grosvenor, which manages $86 billion in assets [1] Group 1: Company Overview - Zenzic Capital is an expert real estate credit and special situations investment firm founded in 2014 [1] - The firm specializes in targeting niche investment opportunities within the real estate sector [1] Group 2: Fund Details - The Zenzic Real Estate Credit Opportunities Fund is designed to capitalize on opportunistic credit investments in the European market [1] - The fund is anchored by funds managed by GCM Grosvenor, a global alternative asset management solutions provider [1]

Group 1 - GCM Grosvenor has evolved from a solutions provider in the alternative asset management space to managing its own funds, particularly in the hedge fund sector [1] - The company has leveraged its relationships and expertise to enhance its investment management capabilities [1] Group 2 - The article does not provide specific financial performance metrics or future projections for GCM Grosvenor [2] - There are no recommendations or investment advice given regarding the suitability of investments in GCM Grosvenor [2]

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]