[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)

Core Viewpoint - GCM Grosvenor reported its second quarter 2025 financial results and announced an increase in its share repurchase authorization and a dividend payment to shareholders [1][2]. Financial Results - GCM Grosvenor has approximately $86 billion in assets under management across various investment strategies including private equity, infrastructure, real estate, credit, and absolute return [5]. - The firm has specialized in alternative asset management for over 50 years, focusing on delivering value through a flexible investment platform [5]. Share Repurchase and Dividend - The Board of Directors increased the share repurchase authorization by $30 million, raising it from $190 million to $220 million [2][8]. - A dividend of $0.11 per share is scheduled to be paid on September 16, 2025, to shareholders on record as of September 2, 2025 [2]. Conference Call - A conference call to discuss the financial results was scheduled for August 7, 2025, at 11:00 a.m. ET, accessible via public webcast [3][4].

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]

Summary of GCM Grosvenor (GCMG) Conference Call Company Overview - **Company**: GCM Grosvenor (GCMG) - **Industry**: Alternative Asset Management - **Assets Under Management**: Approximately $82 billion across various strategies including private equity, infrastructure, real estate, credit, and absolute return [2][4] Key Points and Arguments Business Model and Competitive Advantage - GCM Grosvenor operates as a solutions provider, distinct from traditional General Partners (GPs) like Blackstone and KKR, by allocating capital on behalf of clients [4][5] - The firm offers a flexible investment approach, allowing clients to engage through customized separate accounts (75% of AUM) or commingled funds, enhancing its competitive edge [6][30] - The ability to invest across the alternative spectrum (liquid to private, credit to equity) is a core strength, enabling GCM to remain relevant in various investment discussions [6][7] Macro Environment and Business Impact - The current macroeconomic environment, characterized by trade policy concerns, interest rates, and economic growth, has led to public market volatility, impacting capital markets activity [8][10] - Despite these challenges, GCM anticipates improved fundraising in 2024 and 2025, driven by business diversification and customized account offerings [11][12] Fundraising Expectations - GCM has a predictable pipeline due to its customized account business, allowing for better forecasting of fundraising activities [14] - Key areas of investor activity include infrastructure and private credit, which are still developing allocations compared to private equity [15][16] Private Market Allocations - The pace of realizations in private equity has slowed, but GCM believes this is a healthy adjustment rather than a return to previous unsustainable cycles [18][19] - Clients are generally satisfied with their alternative portfolios, indicating a desire to maintain or grow allocations despite liquidity challenges [21][22] Individual Investor Market - GCM is focusing on the individual investor channel, aiming to provide a diversified alternative portfolio similar to institutional investors [39][40] - The firm has launched an infrastructure interval fund and formed a joint venture with Grove Lane to enhance its offerings in this space [38][45] Infrastructure and Private Credit - GCM's infrastructure business has grown significantly, with a focus on direct-oriented strategies, which are more prevalent than in private equity [50] - The firm offers a range of investment capabilities in both infrastructure and private credit, positioning itself to capitalize on market growth [48][52] Secondary Market Activity - The secondary market is expected to grow significantly, with GCM focusing on small and mid-cap opportunities where it has a relationship and information advantage [55][56] Long-term Goals - GCM aims to double its FRE (Fee-Related Earnings) in five years, supported by a positive mix shift towards private markets and direct-oriented strategies [57][59] Additional Important Insights - The firm emphasizes the importance of client relationships and transparency, which contribute to a high re-up rate of 90% for customized accounts [30][37] - GCM's approach to individual investors includes creating customized solutions that aggregate smaller investments into separate accounts, enhancing accessibility [47][48] This summary encapsulates the key insights from the GCM Grosvenor conference call, highlighting the company's strategic positioning, market outlook, and growth initiatives.

Summary of GCM Grosvenor (GCMG) FY Conference Call Company Overview - GCM Grosvenor is a 54-year-old firm headquartered in Chicago with offices in New York, London, Hong Kong, Tokyo, and Seoul [6] - The company manages $82 billion across a broad range of alternative investment strategies, primarily serving institutional clients [7] Core Business Insights - GCM Grosvenor has evolved significantly since its inception, adapting to changes in the alternative investment universe [11] - The firm has a proven track record of growth, managing over 20% of endowments and having multiple strategies on the efficient frontier [12] - The company emphasizes high-touch relationships with clients, which leads to long-term partnerships and a high average tenure of 15 years with top clients [30][31] Growth Strategies - The specialized fund business has grown to 30% of AUM and is experiencing a high growth rate, likely due to higher average fees and margins [16] - GCM Grosvenor employs an open architecture approach across various alternative strategies, including real assets, infrastructure, real estate, private equity, private credit, and hedge funds [18] - The firm is focused on expanding its presence in the individual investor market, which is currently under-allocated to private markets compared to institutional portfolios [54][55] Financial Performance - Since going public through a SPAC merger in Q4 2020, GCM Grosvenor has shown consistent growth in AUM, which drives earnings power [22] - The firm has a significant carry asset valued at approximately $415 million, which has yielded about 5% in revenue over the past few years due to muted transaction activity [24][26] - GCM Grosvenor aims to double its 2023 fee-related earnings by 2028, indicating strong growth expectations [58] Market Trends and Opportunities - There is a growing trend among institutional investors to increase their allocation to alternative investments, with over 70% indicating plans to do so [38][49] - The individual investor market presents a substantial opportunity for growth, as high-net-worth clients are significantly under-allocated to alternatives [54][55] - The firm is actively working to deliver an institutional experience to individual investors, which is expected to drive future growth [57] Client Relationships and Retention - GCM Grosvenor boasts a high re-up rate of over 90% for initial sales, with clients often increasing their investment upon reallocation [39][40] - The firm has established a culture of shared responsibility among its team members, fostering long-term relationships with clients [45][46] Conclusion - GCM Grosvenor is well-positioned for future growth, leveraging its strong client relationships, evolving market strategies, and a focus on both institutional and individual investors [59]

Core Insights - Proteus MHP has secured a $60 million equity commitment from GCM Grosvenor to enhance its operations in manufactured housing communities [1][2] - The partnership aims to create a programmatic joint venture that will provide over $150 million in buying power for acquiring and operating manufactured housing communities across the U.S. [2] - Proteus MHP, founded in 2022, currently owns and operates 21 communities and has three additional assets under contract, focusing on quality, attainable housing [3][4] Company Overview - Proteus MHP is a private real estate investment and operating firm dedicated to acquiring and improving manufactured housing communities [6] - The firm is led by co-founders Bowen Hsu and Marcus Consunji, who have over 30 years of combined real estate experience and have executed transactions exceeding $5 billion [3][6] - The operational platform of Proteus MHP integrates acquisitions, asset management, and property operations to enhance long-term value and resident satisfaction [4] Investment Strategy - GCM Grosvenor's Real Estate platform, managing over $6 billion in assets, focuses on middle-market opportunities through joint ventures and strategic partnerships [5] - The investment in Proteus MHP reflects GCM Grosvenor's strategy to partner with niche operators and scalable platforms to outperform in evolving market conditions [5] - The collaboration is expected to leverage strategic capital improvements and hands-on management to generate attractive, risk-adjusted returns [4][5]

Group 1 - GCM Grosvenor (NASDAQ: GCMG) has shown strong performance with a total return of 73% over the past three years, primarily driven by growth in its private markets business [1] - The company is compared to the S&P 500 Blue Chip Portfolios, which focuses on delivering investment insights on single stocks, ETFs, and CEFs [1]

CHICAGO, May 27, 2025 (GLOBE NEWSWIRE) -- GCM Grosvenor (Nasdaq: GCMG), a global alternative asset management solutions provider, announced today that Jon Levin, President of GCM Grosvenor, will present at the Morgan Stanley 2025 U.S. Financials, Payments & Commercial Real Estate Conference on Tuesday, June 10, 2025, at 3:15 PM EDT. A link to the live audio webcast of the presentation will be available on GCM Grosvenor’s public shareholders website and the event website. For those unable to listen to the li ...

Core Points - GCM Grosvenor will have a presentation at the William Blair 45 Annual Growth Stock Conference on June 4, 2025, at 8:40 a.m. CDT, led by Chairman and CEO Michael Sacks [1] - A live audio webcast of the presentation will be accessible on GCM Grosvenor's public shareholders website, with a replay available for 90 days post-presentation [2] - GCM Grosvenor manages approximately $82 billion in assets across various investment strategies, including private equity, infrastructure, real estate, credit, and absolute return [3] - The firm has over 50 years of experience in alternative asset management and aims to deliver value through a flexible investment platform [3] - GCM Grosvenor employs around 550 professionals and serves a global client base, with offices in major cities worldwide [4]