GCM Grosvenor(GCMG) - 2024 Q4 - Annual Results

Financial Performance - GCM Grosvenor reported Q4 2024 GAAP revenue of $165.3 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 $77.6 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 $7.6 million in Q4 2024, an increase of 133.5%[51] - Adjusted EBITDA increased from $49.7 million in Q4 2023 to $77.6 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 $31,434,000 in the previous quarter[52] - Adjusted EBITDA for the same period was $77,624,000, up from $48,380,000 in the previous quarter[52] - Total Operating Revenues for the three months ended December 31, 2024, were $165,261,000, compared to $122,931,000 in the previous quarter[52] - Fee-Related Revenue increased to $104,541,000 for the three months ended December 31, 2024, from $96,154,000 in the previous quarter[52] - Adjusted Net Income Per Share - diluted for the three months ended December 31, 2024, was $0.27, up from $0.16 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 $7.1 billion, a significant increase from the previous year[13] - GCM Grosvenor's carried interest earnings potential increased from $133 million in 2020 to $401 million in 2024[16] - The company approved an incremental $50 million share repurchase authorization in February 2025, with $32 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 $140.0 million[87] Assets Under Management - Total assets under management (AUM) reached approximately $80 billion, up from $76.9 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 $66.3 million in Q4 2024[12] - Management fees grew from $95.1 million in Q4 2023 to $107.4 million in Q4 2024, a rise of 12.4%[45] - Incentive fees surged from $20.0 million in Q4 2023 to $56.8 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 $0.11 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 $436 million, with a drawn revolving credit facility of $0 million[41] - Cash and cash equivalents stood at $16 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, 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]