GCM Grosvenor(GCMG) - 2025 Q3 - Quarterly Results

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]