GCM Grosvenor(US:GCMG)2026-02-10 13:01Financial Performance - GCM Grosvenor reported a 14% increase in assets under management (AUM), reaching $90.9 billion as of December 31, 2025, compared to $80.1 billion in the previous year[16]. - GAAP net income attributable to GCM Grosvenor Inc. for the full year 2025 was $45.4 million, reflecting a 143% increase compared to the prior year[17]. - Fee-related earnings for the full year 2025 increased by 11% to $185.1 million, while adjusted net income rose by 18% to $166.3 million[18]. - The firm reported total operating revenues of $557.6 million for the twelve months ended December 31, 2025, up from $514.0 million in the previous year[75]. - The company reported a net income before income taxes of $36.44 million for the three months ended December 31, 2024, compared to $64.04 million in 2025, indicating a substantial increase of about 75.8%[78]. - Adjusted Net Income for the three months ended December 31, 2025, was $61,743, an increase from $37,233 for the same period in 2024, representing a growth of 65.9%[86]. - The company reported a significant increase in non-GAAP financial measures, indicating strong financial performance[144]. Fundraising and Capital Management - The company raised $3.5 billion in new capital during Q4 2025, contributing to a total fundraising of $10.7 billion for the full year, a 49% increase year-over-year[17]. - The firm is currently fundraising for Q4 2025, targeting $3.5 billion[42]. - Contributions from new capital raised amounted to $1,023 million in the three months ended December 31, 2025[93]. - The firm reported a management fee-driven earnings of $505 million in 2023[52]. - The firm has $56 million remaining in its approved share and warrant repurchase program as of December 31, 2025[70]. - The total share repurchase plan authorization as of December 31, 2025, was $220.0 million[143]. - In February 2026, the Board of Directors increased the repurchase authorization by $35 million, raising it to $255 million[143]. Asset Management and Investment Strategy - The firm’s private markets assets under management grew to 71% of total AUM, up from 59% in 2020, indicating a strategic shift towards private market investments[24]. - GCM Grosvenor's unrealized carried interest balance increased significantly to $478 million, up from $133 million in 2020, indicating growth potential in incentive earnings[24]. - Private Markets Assets Under Management (AUM) reached $39 billion, with a 12% CAGR since 2020[48]. - The firm has diversified its strategies across various asset classes, including private equity and infrastructure[46]. - The firm aims to scale and expand its private market specialized fund franchises, enhancing its market presence[43]. - The firm has approximately 90% client retention in private markets, highlighting strong relationships with institutional investors[26]. Revenue and Earnings Metrics - GCM Grosvenor's fee-related earnings margin improved to 44% in 2025, up from 31% in 2020, showcasing operational leverage[24]. - Total fee-related revenue for the year ended December 31, 2025, was $104.779 million, an increase from $104.296 million for the year ended December 31, 2024[24]. - Incentive fees increased to $123.5 million for the twelve months ended December 31, 2025, compared to $106.2 million in 2024, reflecting a growth of approximately 16%[75]. - The firm reported total operating revenues for the three months ended December 31, 2025, were $177,095, compared to $134,967 for the same period in 2024, reflecting a growth of 31.0%[89]. - Performance fees surged from $55.323 million in December 2024 to $68.245 million in December 2025, an increase of about 23.2%[84]. Operational Efficiency - The firm reported a management fee-centricity of 82% in 2023, indicating a stable revenue model[52]. - Adjusted EBITDA for the twelve months ended December 31, 2025, reached $245,631, up from $213,844 in 2024, indicating a year-over-year increase of 14.9%[89]. - Adjusted EBITDA Margin improved from 48% in the three months ended December 31, 2024, to 50% in 2025, demonstrating enhanced operational efficiency[77]. - Cash-based employee compensation and benefits remained consistent at approximately $34.97 million for both periods[77]. - The company has identified key areas for operational efficiency improvements, targeting a 10% reduction in costs over the next fiscal year[144]. Future Outlook - The company anticipates continued momentum into 2026, driven by strong investment performance and client retention[9]. - The company expects continued growth in adjusted net income and revenue for the upcoming fiscal year, driven by strategic market expansions and new product developments[90]. - Future guidance suggests continued growth, with expectations for revenue to increase by approximately 15% year-over-year[144]. - The company is focusing on market expansion strategies, particularly in emerging markets, to drive user growth[144]. - New product development initiatives are underway, aiming to launch innovative solutions that cater to evolving customer needs[144].