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GCM Grosvenor(GCMG) - 2024 Q4 - Annual Results
GCMGGCM Grosvenor(GCMG)2025-02-10 13:02

Financial Performance - GCM Grosvenor reported Q4 2024 GAAP revenue of 165.3million,a42165.3 million, a 42% increase compared to Q4 2023[12] - Full year 2024 GAAP net income attributable to GCM Grosvenor Inc. was 18.7 million, with fee-related earnings increasing by 19% year-over-year[13] - Adjusted EBITDA for Q4 2024 was 77.6million,reflectinga5677.6 million, reflecting a 56% increase compared to the same quarter last year[12] - The firm’s adjusted net income for the full year 2024 increased by 36% compared to the prior year[13] - Net income attributable to GCM Grosvenor Inc. rose significantly from 3.3 million in Q4 2023 to 7.6millioninQ42024,anincreaseof133.57.6 million in Q4 2024, an increase of 133.5%[51] - Adjusted EBITDA increased from 49.7 million in Q4 2023 to 77.6millioninQ42024,reflectingagrowthof56.277.6 million in Q4 2024, reflecting a growth of 56.2%[46] - Adjusted Net Income for the three months ended December 31, 2024, was 52,726,000, an increase from 31,434,000inthepreviousquarter[52]−AdjustedEBITDAforthesameperiodwas31,434,000 in the previous quarter[52] - Adjusted EBITDA for the same period was 77,624,000, up from 48,380,000inthepreviousquarter[52]−TotalOperatingRevenuesforthethreemonthsendedDecember31,2024,were48,380,000 in the previous quarter[52] - Total Operating Revenues for the three months ended December 31, 2024, were 165,261,000, compared to 122,931,000inthepreviousquarter[52]−Fee−RelatedRevenueincreasedto122,931,000 in the previous quarter[52] - Fee-Related Revenue increased to 104,541,000 for the three months ended December 31, 2024, from 96,154,000inthepreviousquarter[52]−AdjustedNetIncomePerShare−dilutedforthethreemonthsendedDecember31,2024,was96,154,000 in the previous quarter[52] - Adjusted Net Income Per Share - diluted for the three months ended December 31, 2024, was 0.27, up from 0.16inthepreviousquarter[53]FundraisingandCapitalManagement−Thecompanyraised0.16 in the previous quarter[53] Fundraising and Capital Management - The company raised 2.3 billion in new capital during Q4 2024, bringing total fundraising for the year to 7.1billion,asignificantincreasefromthepreviousyear[13]−GCMGrosvenor′scarriedinterestearningspotentialincreasedfrom7.1 billion, a significant increase from the previous year[13] - GCM Grosvenor's carried interest earnings potential increased from 133 million in 2020 to 401millionin2024[16]−Thecompanyapprovedanincremental401 million in 2024[16] - The company approved an incremental 50 million share repurchase authorization in February 2025, with 32millionremainingintherepurchaseprogramasofDecember3,2024[43]−Thesharerepurchaseplanauthorizationtotals32 million remaining in the repurchase program as of December 3, 2024[43] - The share repurchase plan authorization totals 190.0 million as of February 2025, increased from 140.0million[87]AssetsUnderManagement−Totalassetsundermanagement(AUM)reachedapproximately140.0 million[87] Assets Under Management - Total assets under management (AUM) reached approximately 80 billion, up from 76.9billionattheendof2023[12]−Thecompanyreporteda276.9 billion at the end of 2023[12] - The company reported a 2% increase in Total Fee-Paying AUM, reaching 64,765 million as of December 31, 2024[55] - Fee-Paying Assets Under Management (FPAUM) includes assets from customized separate accounts and specialized funds, reflecting the company's management fee base[82] Revenue Streams - Private markets management fees increased by 20% year-over-year to 66.3millioninQ42024[12]−Managementfeesgrewfrom66.3 million in Q4 2024[12] - Management fees grew from 95.1 million in Q4 2023 to 107.4millioninQ42024,ariseof12.4107.4 million in Q4 2024, a rise of 12.4%[45] - Incentive fees surged from 20.0 million in Q4 2023 to 56.8millioninQ42024,markingasubstantialincreaseof184.056.8 million in Q4 2024, marking a substantial increase of 184.0%[50] - The Average Fee Rate for Private Markets Management Fees increased to 0.56% for the three months ended December 31, 2024, from 0.54% in the previous quarter[57] - The company anticipates approximately 1.0 billion in management fees from CNYFPAUM in 2025, as part of a fee ramp schedule[66] Client Relationships and Retention - The company has a client retention rate of approximately 90%, indicating strong client relationships and potential for future growth[17] Dividends - GCM Grosvenor's board approved a 0.11persharedividend,payableonMarch17,2025[3]−Thecompanydeclaredadividendof0.11 per share dividend, payable on March 17, 2025[3] - The company declared a dividend of 0.11 per share, payable on March 17, 2025[43] Debt and Cash Management - Total debt as of December 31, 2024, was 436million,withadrawnrevolvingcreditfacilityof436 million, with a drawn revolving credit facility of 0 million[41] - Cash and cash equivalents stood at 16million,withtotalcashandinvestmentsamountingto16 million, with total cash and investments amounting to 298 million as of December 31, 2024[41] Tax and Expenses - The corporate blended statutory tax rate is projected to be 25.0% for the year ended December 31, 2024, adjusted from 24.2% to 24.7% in Q4 2023[68] - Total general, administrative and other net expenses for the three months ended December 31, 2024, are projected to be (20,425)thousand,comparedto(20,425) thousand, compared to (19,530) thousand for the same period in 2023[71] Investment Strategies - The company has established a dedicated private equity secondaries vertical since September 2014, reflecting its commitment to specialized investment strategies[74] - Cumulative selected private market specialized fund closings from 2009 to 2018 are included in the company's investment strategy[75] - The company aims to enhance its operating profitability through various non-GAAP financial measures, including Adjusted EBITDA and Fee-Related Earnings[80] - Run-Rate Annual Performance Fees are expected to generate a 10% gross return for specialized opportunity strategies[69]