Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Insights - GCM Grosvenor reported a record $87 billion in assets under management (AUM), reflecting a 9% increase year-over-year, with strong investment performance across all business verticals [1][18] - The company achieved significant growth in fee-related earnings, adjusted EBITDA, and adjusted net income, all up 18% year-over-year, with a fee-related earnings margin of 45% [2][21] - Fundraising momentum remains strong, with $7.2 billion raised year-to-date, surpassing the total for the entire year of 2024, and $9.5 billion raised over the last twelve months, marking the highest fundraising period on record [5][12] Financial Performance - Fee-related earnings for the quarter increased by 18% year-over-year, with adjusted net income also up 18% [2][21] - The company’s gross unrealized carried interest balance reached an all-time high of $941 million, with $24 million in carried interest realized during the quarter [6][21] - Total management fees for the quarter were $101.4 million, a 7% increase year-over-year, with expectations for continued growth in the fourth quarter [19][21] Investment Strategies - Absolute Return Strategies (ARS) delivered a gross rate of return of 14.2% over the last twelve months, with management fees for ARS growing 6% year-over-year [1][19] - Infrastructure and credit strategies accounted for nearly two-thirds of the capital raised, indicating strong demand in these areas [12][13] - The company plans to launch new funds, including a private equity fund and a diversified infrastructure fund, to expand its market offerings [16][17] Growth Outlook - GCM Grosvenor aims to double its fee-related earnings to over $280 million by 2028 and increase adjusted net income per share to more than $1.20 [10][22] - The company’s client-first culture and scalable investment platform are expected to drive substantial AUM growth across various investment strategies over the next five years [8][11] - The firm is well-positioned strategically and financially, with a strong pipeline and high levels of activity in fundraising and investment [6][12]

Asset Management - As of September 30, 2025, the company managed assets totaling $87.0 billion, up from $80.1 billion as of December 31, 2024, representing an increase of approximately 11.2%[193] - Assets under management subject to carried interest were approximately $47.8 billion as of September 30, 2025[199] - Assets under management subject to performance fees were approximately $14.4 billion as of September 30, 2025[202] - Fee-Paying AUM (FPAUM) increased by $5.4 billion, or 8%, to $70.2 billion during the nine months ended September 30, 2025, primarily due to $6.2 billion of contributions[242] - AUM increased by $6.9 billion, or 9%, to $87.0 billion during the nine months ended September 30, 2025, driven by increases in both FPAUM and Contracted, Not Yet Fee-Paying AUM (CNYFPAUM)[245] - CNYFPAUM increased by $1.0 billion, or 12%, to $9.2 billion during the nine months ended September 30, 2025, due to new commitments[244] Revenue Generation - The company generates revenues from management fees and incentive fees, which include carried interest and performance fees[189] - Total operating revenues increased by $12.0 million, or 10%, to $134.97 million for the three months ended September 30, 2025, compared to $122.93 million for the same period in 2024[215] - Management fees rose by $7.4 million, or 7%, to $105.9 million for the three months ended September 30, 2025, driven by an 8% increase in private markets strategies fees[217] - Incentive fees increased by $2.2 million, or 9%, to $25.47 million for the three months ended September 30, 2025, with carried interest rising by 17% to $24.1 million[218] - For the nine months ended September 30, 2025, total operating revenues increased by $31.72 million, or 9%, to $380.47 million compared to $348.75 million for the same period in 2024[215] - Private markets strategies revenue for Q3 2025 was $62,116,000, up 7.7% from $57,904,000 in Q3 2024[248] - Absolute return strategies revenue increased to $39,235,000 in Q3 2025 from $37,160,000 in Q3 2024, representing a growth of 5.6%[248] - Fee-Related Revenue for the nine months ended September 30, 2025, was $311.051 million, compared to $288.540 million in 2024, reflecting an increase of 8%[268] Expenses and Income - Total operating expenses decreased by $7.1 million, or 7%, to $90.79 million for the three months ended September 30, 2025, compared to $97.93 million for the same period in 2024[215] - Employee compensation and benefits decreased by $7.2 million, or 10%, to $66.09 million for the three months ended September 30, 2025, primarily due to a significant drop in partnership interest-based compensation[222] - Operating income increased by $19.2 million, or 77%, to $44.17 million for the three months ended September 30, 2025, compared to $24.99 million for the same period in 2024[215] - Net income attributable to GCM Grosvenor Inc. increased by $6.34 million, or 153%, to $10.50 million for the three months ended September 30, 2025, compared to $4.16 million for the same period in 2024[215] - Net income for the nine months ended September 30, 2025, was $126.7 million, up from $98.8 million in 2024, representing a year-over-year increase of approximately 28%[276] - Adjusted Net Income for the nine months ended September 30, 2025, was $104,597,000, compared to $88,032,000 for the same period in 2024, reflecting an increase of 18.9%[248] - Adjusted Net Income for Q3 2025 was $10.495 million, a 152% increase from $4.156 million in Q3 2024[260] Tax and Regulatory Environment - The provision for income taxes for the three months ended September 30, 2025, was $3.62 million, compared to $3.19 million for the same period in 2024[215] - The effective tax rate was 8% for the nine months ended September 30, 2025, significantly lower than 55% for the same period in 2024, primarily due to income allocated to noncontrolling interest holders[233] - The company is subject to evolving regulatory requirements, which may impose additional expenses or capital requirements[180] Cash Flow and Financing - Net cash provided by operating activities for the nine months ended September 30, 2025, was $155.058 million, an increase of 40% from $110.674 million in 2024[273] - Cash and cash equivalents as of September 30, 2025, totaled $182.7 million, with an additional available borrowing capacity of $50.0 million under the Revolving Credit Facility[270] - The company expects its cash flow from operations and current cash reserves to be sufficient to fund operations and capital expenditures for the next twelve months[270] - Net cash used in investing activities was $(14.5) million for the nine months ended September 30, 2025, a decrease from $(25.1) million in 2024, showing reduced investment outflows[275] - Net cash used in financing activities was $(48.3) million for the nine months ended September 30, 2025, compared to $(31.5) million in 2024, indicating increased financing costs[275] - As of September 30, 2025, GCMH had borrowings of $432.5 million outstanding under the Term Loan Facility, with no outstanding balance under the Revolving Credit Facility[280] - The Company amended the Term Loan Facility to increase the principal amount from $388.0 million to $438.0 million and extended the maturity date to February 25, 2030[279] Shareholder Returns - The quarterly dividend was increased from $0.11 to $0.12 per share of Class A common stock, effective for holders as of December 1, 2025[285] - The stock repurchase authorization was increased to $220 million as of August 4, 2025, allowing for further buybacks of Class A common stock and warrants[286] - The total leverage ratio was below stated thresholds as of September 30, 2025, indicating compliance with financial covenants[281]

Core Insights - GCM Grosvenor Inc. is a significant player in the global alternative asset management industry, offering investment solutions across various asset classes such as hedge funds, private equity, real estate, and infrastructure [1] - The current consensus price target for GCMG is $14.00, reflecting a slight decrease from the previous quarter's target of $14.50, despite a strong total return of 73% over the past three years [2][6] - The company's recent earnings report showed a profit of $0.16 per share, exceeding the Zacks Consensus Estimate of $0.15 per share, indicating a strengthening financial position [3][6] Price Target and Analyst Outlook - The consensus price target for GCMG has increased from $13.83 to $14.00 over the past year, suggesting a gradual improvement in the company's outlook [3] - Piper Sandler analyst Crispin Love has set a higher price target of $15.00 for GCMG, supported by the company's upgrade to a Zacks Rank 2 (Buy) [4] - The upcoming earnings report is expected to show growth, although it may not meet all factors for an earnings beat [4] Strategic Initiatives and Market Conditions - Investors are advised to monitor GCMG's strategic initiatives and market conditions, as these could influence analyst opinions and price targets [5] - The recent Q2 2025 earnings call featured key executives and analysts, including Crispin Love, who reiterated the $15 price target, indicating continued confidence in GCMG's growth potential [5]

Core Insights - GCM Grosvenor Inc. reported a revenue of $134.97 million for Q3 2025, marking a year-over-year increase of 9.8% and exceeding the Zacks Consensus Estimate by 2.38% [1] - The company's EPS for the same quarter was $0.19, up from $0.16 a year ago, representing an EPS surprise of 11.76% compared to the consensus estimate of $0.17 [1] Financial Performance Metrics - Fee-paying AUM for Private Markets Strategies was reported at $46.25 billion, slightly below the estimated $46.3 billion [4] - Total Fee-paying AUM reached $70.19 billion, surpassing the average estimate of $69.9 billion [4] - Fee-paying AUM for Absolute Return Strategies was $23.94 billion, exceeding the average estimate of $23.6 billion [4] - Total Assets Under Management stood at $87 billion, compared to the average estimate of $87.47 billion [4] - Other operating income was $3.58 million, significantly higher than the estimated $1.39 million, reflecting a 228.4% year-over-year increase [4] - Incentive fees amounted to $25.47 million, above the estimated $22.67 million, with a year-over-year increase of 9.3% [4] - Management fees totaled $105.92 million, slightly above the estimated $104.57 million, representing a 7.5% year-over-year increase [4] Stock Performance - GCM Grosvenor's shares have returned -2.3% over the past month, contrasting with a +1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported fee-related earnings, adjusted EBITDA, and adjusted net income increased by 18%, 16%, and 18% respectively compared to Q3 2024 [4] - The fee-related earnings margin for the quarter was 45%, approximately 350 basis points higher than Q3 2024 [4] - The company ended the quarter with a record $87 billion in assets under management, a 9% increase from Q3 2024 [4][18] Business Line Data and Key Metrics Changes - Absolute Return Strategies (ARS) generated a gross rate of return of 14.2% over the last 12 months, with ARS management fees growing 6% year-over-year [5][18] - Private markets management fees increased by 10% year-to-date and 7% year-over-year, driven by solid fundraising and conversion of contracted AUM [18] - The gross unrealized carried interest balance reached an all-time high of $941 million, up 4% from Q2 2025 [6][20] Market Data and Key Metrics Changes - Year-to-date fundraising reached $7.2 billion, surpassing the total for the full year of 2024, with infrastructure and credit leading the growth [5][12] - Insurance clients accounted for approximately 14% of capital raised over the last 12 months and 40% of Q3 capital raised [13] Company Strategy and Development Direction - The company aims to double its 2023 fee-related earnings to over $280 million by 2028 and increase adjusted net income per share to over $1.20 by 2028 [10][22] - The company is focused on expanding its investment strategies across private equity, infrastructure, credit, real estate, and absolute return, with a scalable investment platform [9][10] - The company is actively managing its share buyback program, with $86 million remaining in authorization [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to compound value for shareholders over the long term, citing strong fundraising momentum and investment performance [11][22] - The outlook for ARS is increasingly encouraging, with a strong pipeline and improved investor interest [13][31] Other Important Information - The company announced an increase in its quarterly dividend to $0.12 per share, reflecting confidence in its growth trajectory [10][21] - The company hosted its 2025 Investor Day, highlighting its central role in the alternatives ecosystem and its client-first culture [8][10] Q&A Session Summary Question: Are there ongoing fees for the CFO product? - The CFO is a regular recurring management fee with some carry building over time, and the company will start to enjoy management fees from that pool of capital next quarter [24][26] Question: Why isn't the improvement in ARS reflected in net flows? - Management noted that while interest levels are higher, they are maintaining their flat net flows budgeting assumption for Q4, which is typically a seasonally weaker quarter [27][31] Question: What drives the strong realization outlook in Q3? - The seasonality of Q3 is related to when tax carry is paid in the industry, and the company has a diversified carry across many lines, making it difficult to predict timing [34][37] Question: How is the company managing stock-based compensation and share count? - The company expects stock-based compensation to remain stable, with less than 3% dilution over the last five years, actively managing dilution through buybacks [39][41] Question: What is the current status of the retail business and AUM? - The individual investor channel currently has about $4 billion in AUM, with significant growth in partnerships and separately managed accounts [44][46] Question: Are there concerns in the private credit landscape? - Management indicated that they are not seeing a slowdown in private credit and believe the asset class will continue to grow despite some high-profile credit issues [52][56]

Core Insights - GCM Grosvenor Inc. reported quarterly earnings of $0.19 per share, exceeding the Zacks Consensus Estimate of $0.17 per share, and showing an increase from $0.16 per share a year ago, resulting in an earnings surprise of +11.76% [1] - The company achieved revenues of $134.97 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.38% and up from $122.93 million year-over-year [2] - GCM Grosvenor has outperformed consensus EPS estimates three times in the last four quarters and has also topped revenue estimates three times during the same period [2] Earnings Outlook - The sustainability of GCM Grosvenor's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.24 on revenues of $162.28 million, and for the current fiscal year, it is $0.76 on revenues of $539.62 million [7] Industry Context - The Financial - Investment Management industry, to which GCM Grosvenor belongs, is currently ranked in the top 32% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] Competitor Insights - Franklin Resources, another company in the same industry, is expected to report quarterly earnings of $0.57 per share, reflecting a year-over-year decline of -3.4%, with revenues anticipated to be $2.12 billion, down 4% from the previous year [9][10]

Financial Performance - GCM Grosvenor reported $87 billion in Assets Under Management (AUM) as of September 30, 2025, a 9% increase compared to Q3 2024[6] - Fee-Paying AUM (FPAUM) reached $702 billion, up 10% from the same period last year[12] - GAAP Revenue for the third quarter was $135 million, a 10% increase year-over-year, and $3805 million for the nine months ended, a 9% increase year-over-year[12] - GAAP net income attributable to GCM Grosvenor Inc increased 153% to $105 million for the quarter and 138% to $264 million year-to-date[12] - Adjusted Net Income increased 18% to $372 million for the quarter and 19% to $1046 million year-to-date[12] Fundraising and Capital Deployment - The company raised $95 billion over the last twelve months, a 52% increase compared to the prior year twelve-month period[13] - $19 billion of new capital was raised in Q3 2025, and $72 billion year-to-date, a 49% increase compared to prior year-to-date[13] Dividend - GCM Grosvenor's Board of Directors approved a $012 per share dividend payable on December 15, 2025 to shareholders on record December 1, 2025[3] Asset Allocation - Private Markets accounted for 71% of total AUM[16] - Direct-Oriented Strategies represented 53% of Private Markets AUM[16]

Financial Performance - GCM Grosvenor reported Q3 2025 GAAP revenue of $135 million, a 10% increase compared to Q3 2024[14] - GAAP net income attributable to GCM Grosvenor Inc. for Q3 2025 was $10.5 million, reflecting a 153% increase year-over-year[14] - Earnings per share (diluted) for Q3 2025 was $0.16, representing a 433% increase compared to the same quarter last year[14] - Total GAAP revenue for Q3 2025 was $135.0 million, representing a 10% increase compared to Q3 2024[16] - Adjusted Net Income for the three months ended September 30, 2025, was $37,233, an increase from $31,434 for the same period in 2024, representing a growth of 18%[83] - Adjusted EBITDA for the three months ended September 30, 2025, reached $56,044, up from $48,380 in the same period of 2024, indicating a growth of 16%[86] - Total Operating Revenues for the three months ended September 30, 2025, were $134,967, compared to $122,931 for the same period in 2024, reflecting an increase of 10%[86] - Adjusted Pre-Tax Income for the three months ended September 30, 2025, was $49,644, compared to $41,745 for the same period in 2024, marking a growth of 19%[83] - Net income attributable to GCM Grosvenor Inc. for the nine months ended September 30, 2025, was $26,395, compared to $11,080 for the same period in 2024, showing a significant increase of 138%[83] Assets Under Management (AUM) - Assets under management (AUM) increased to $87 billion, a 9% growth from $79.6 billion in Q3 2024[14] - Total Assets Under Management (AUM) reached $87.0 billion, with a 7% CAGR over the past years[32] - Private Markets Assets Under Management (AUM) reached $37 billion, with a 12% CAGR since 2020[48] - The total Fee-Paying AUM as of September 30, 2025, was $70,187 million, reflecting a 2% increase from the previous quarter[90] - Total Fee-Paying AUM increased to $46,245 million, representing a 9% growth from the previous period[92] - The company reported a total of $9.5 billion in fundraising for Q3 2025[41] - The firm raised $9.5 billion over the last twelve months, a 52% increase compared to the prior year[15] - Contributions from New Capital Raised during the three months ended September 30, 2025, amounted to $404 million, contributing positively to the AUM growth[90] Fundraising and Capital Raising - New capital raised in Q3 2025 was $1.9 billion, with year-to-date capital raised at $7.2 billion, up 49% year-over-year[15] - The firm raised $9.5 billion over the last twelve months, a 52% increase compared to the prior year[16] - Contributions from new capital raised amounted to $3,017 million, with $2,019 million from Private Markets and $998 million from Absolute Return Strategies[91] - Withdrawals during the same period totaled $422 million, indicating a need for monitoring outflows[90] - Withdrawals totaled $1,018 million, with $133 million from Private Markets and $885 million from Absolute Return Strategies[91] Fee-Related Earnings and Margins - Fee-related earnings for year-to-date 2025 increased by 15% compared to the prior year[15] - Adjusted net income for year-to-date 2025 rose by 19% compared to the previous year[15] - Private markets management fees for Q3 2025 were $62.1 million, a 7% increase year-over-year[14] - Fee-Related Earnings for the nine months ended September 30, 2025, increased by 15% to $135.3 million compared to the same period in 2024[18] - Fee-Related Earnings Margin improved from 41% in Q3 2024 to 45% in Q3 2025[74] Market Performance and Investment Strategies - The investment net IRR for Co-Investments/Direct Investments in Private Equity was 19.0%, outperforming the PME index of 14.7%[97] - The current value of Primary Fund Investments in Private Equity was $27,143 million, with a net TVPI of 1.81[97] - The change in market value for the total AUM was $1,912 million, driven by positive market performance[91] - The company is focusing on direct investments and co-investments in private markets to enhance growth[47] - The company is scaling and expanding its private market specialized fund franchises, indicating growth potential[47] Share Repurchase Plan - The total share repurchase plan authorization as of September 30, 2025, is $220.0 million[137] - The share repurchase plan allows for the repurchase of outstanding Class A common stock and warrants in open market transactions and privately negotiated transactions[137] - The plan has no expiration date and may be suspended or terminated by the company at any time without prior notice[137] - Any repurchased shares of Class A common stock and warrants will be cancelled[137] Non-GAAP Financial Measures - GCM Grosvenor's Adjusted Net Income is a non-GAAP measure that evaluates profitability, excluding certain items such as taxes and non-cash compensation[122] - Adjusted EBITDA is calculated by excluding adjusted income taxes, depreciation, and interest expense, providing insights into operating profitability[124] - The adjusted EBITDA reflects a corporate tax rate of 24.7% for the three months ended September 30, 2024, and 25.0% for the same period in 2025[109] - The company emphasizes that its non-GAAP financial measures should not be considered alternatives to GAAP measures of financial performance or liquidity[135] Future Outlook and Growth Strategies - Future guidance suggests continued growth, with expectations for revenue to increase by approximately 15% year-over-year[138] - The company is focusing on market expansion strategies, particularly in emerging markets, to drive user growth[138] - New product development initiatives are underway, aiming to launch innovative solutions that cater to evolving customer needs[138] - The company is exploring potential acquisitions to enhance its market position and expand its product offerings[138]

Core Insights - GCM Grosvenor reported its financial results for Q3 2025, highlighting its performance and strategic initiatives [1] - The firm declared a dividend of $0.12 per share, payable on December 15, 2025, to shareholders on record as of December 1, 2025 [1] Financial Overview - GCM Grosvenor manages approximately $87 billion in assets across various investment strategies, including private equity, infrastructure, real estate, credit, and absolute return [4] - The firm has been specializing in alternative asset management for over 50 years, focusing on delivering value through a flexible investment platform [4] Shareholder Engagement - A conference call to discuss the financial results was scheduled for November 5, 2025, at 10:00 a.m. ET, accessible via public webcast [2] - The call can also be accessed through a toll-free number, providing additional avenues for shareholder engagement [3] Share Repurchase Plan - The Board of Directors authorized a share repurchase plan with a total authorization of $220 million as of September 30, 2025, allowing for the repurchase of Class A common stock and warrants [7] - The plan is flexible, with no expiration date, and can be suspended or terminated at the company's discretion [7]