PERFORMANCE UPDATE 2025 Full Year Highlights We generated $1.6 billion ($0.67/share) of Distributable Earnings ("DE") during the quarter and $6.0 billion ($2.54/share) for the year. Record Deployable Capital $6B 11% $188B Annual Growth in DE Before Realizations Distributable Earnings ("DE") DE before realizations were $1.5 billion ($0.63/share) for the quarter and $5.4 billion ($2.27/share) for the year, representing growth of 11% per share over the prior year. Asset Management Wealth Solutions Operating Bu ...

Financial Data and Key Metrics Changes - In 2025, GCM Grosvenor achieved a record fundraising year, raising $10.7 billion, with $3.5 billion raised in Q4 alone, marking significant growth compared to previous years [4][5] - Fee-Related Earnings, Adjusted EBITDA, and Adjusted Net Income increased by 11%, 15%, and 18% respectively compared to 2024 [5][24] - The company ended 2025 with $91 billion in assets under management (AUM), a 14% increase from the end of 2024 [7] - Fee-Paying AUM grew 12% year-over-year to $72 billion, while Contracted Not Yet Fee-Paying AUM increased by 27% to $10 billion [8] Business Line Data and Key Metrics Changes - Absolute Return Strategies (ARS) performance was strong, with a Multi-Strategy Composite generating a 15% gross rate of return in 2025 [4] - Infrastructure, the fastest-growing strategy, returned approximately 11% for the year [4] - ARS fee-paying AUM and management fees grew 15% and 5% year-over-year respectively [22] Market Data and Key Metrics Changes - The individual investor channel saw AUM increase by 18% year-over-year, indicating strong demand for customized solutions [8] - The company has less exposure to SaaS businesses, with only 4% of total AUM and less than 6% of credit AUM attributed to this sector [10] Company Strategy and Development Direction - GCM Grosvenor is focused on diversifying its investment strategies and enhancing its wealth management distribution through initiatives like Grove Lane Partners [8] - The company aims to double its Fee-Related Earnings to over $280 million by 2028 and grow adjusted net income per share to more than $1.20 [12] - The firm is committed to maintaining a capital-light business model while increasing shareholder returns through share buybacks and debt repayment [27][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the investment opportunity set and the strength of their fundraising pipeline entering 2026 [5][9] - The recent market volatility is viewed as an opportunity, with management emphasizing the importance of diversification in their investment strategy [9][10] - The company anticipates continued operating leverage and margin expansion through 2028 [30] Other Important Information - The gross unrealized carried interest balance reached an all-time high of $949 million, up 14% from the end of 2024 [7] - The company repurchased 2.8 million shares in Q4 at an average price of $11.11 per share, totaling $31 million [24] Q&A Session Summary Question: Capital allocation plans post-warrant exercise - Management indicated a focus on maintaining a capital-light business model, with plans for share buybacks and debt repayment [27] Question: Operating leverage and margin expansion - Management believes they can continue to drive margin expansion through 2028 [30] Question: Future of the absolute return business - Management remains cautious about budgeting for organic growth in the absolute return business but acknowledges recent successes [34] Question: Fundraising outlook for 2026 - Management has a strong pipeline and expects fundraising in 2026 to potentially exceed 2025, but they are not officially budgeting for that yet [58] Question: Performance fees and carried interest - Management noted that carried interest realizations were lower than expected but expressed confidence in future increases [60]

Core Insights - BlackRock has introduced the Executive Carry Program (ECP) to align executive compensation with the performance of its private markets investment funds [1][2] - The ECP is designed for selected senior executives, excluding the CEO, and links their pay to carried interest distributions from key private funds [1][2] Financial Performance - As of the end of December, BlackRock's total assets under management reached $14 trillion, with net inflows of $698 billion for the full year, including $342 billion in the fourth quarter [3] - Despite significant inflows, BlackRock's net income attributable to shareholders fell to $1.12 billion in Q4 2025, down from $1.67 billion in Q4 2024 [4] Strategic Moves - Since the start of 2024, BlackRock has overseen transactions totaling approximately $28 billion, including acquisitions of Global Infrastructure Partners, HPS Investment Partners, and Preqin [3] - The company plans to reduce its workforce by around 250 jobs, which is about 1% of its total workforce, as part of an annual review aimed at improving operational efficiency [4]

Financial Performance - DigitalBridge reported fee revenues of $94 million for Q3 2025, representing a 22% year-over-year increase [4][26] - Fee-related earnings (FRE) grew by 43% to $37 million, indicating continued margin improvement as revenue growth outpaced expenses [4][29] - The company raised $1.6 billion in new capital during the quarter, bringing the year-to-date total to $4.1 billion [4][34] Business Line Performance - The company achieved a record 2.6 gigawatts of data center leasing in Q3, which accounted for one-third of total U.S. hyperscale leasing for the quarter [17][18] - DigitalBridge's fee-earning equity under management (FEEUM) increased to $40.7 billion, a 19% increase from the previous year [33] Market Data - The APAC data center market is projected to grow at double-digit rates, expected to reach $77 billion by 2030, driven by AI initiatives [47] - The company is positioned to capture significant market share in Asia Pacific, with strategic investments in key markets like Johor, Kuala Lumpur, and Sydney [50][56] Company Strategy and Industry Competition - DigitalBridge's strategy focuses on leveraging its power bank, which consists of over 20 gigawatts of secured power across its data center portfolio, to gain a competitive advantage in the AI infrastructure market [17][19] - The partnership with Franklin Templeton aims to democratize access to institutional-quality digital and energy infrastructure investments, targeting a $94 trillion global infrastructure need by 2040 [11][12] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in meeting or exceeding full-year objectives, highlighting the strong demand for digital infrastructure and the execution capabilities of the DigitalBridge platform [4][5] - The company anticipates continued robust leasing activity and capital formation, with a focus on expanding margins in co-investment programs [9][10] Other Important Information - DigitalBridge is launching new investment strategies, including a programmatic private wealth distribution channel in partnership with Franklin Templeton [10][11] - The company maintains a strong balance sheet with $173 million in available corporate cash, providing liquidity for future investments [32][34] Q&A Session Summary Question: Can you help us understand when unrealized carried interest is recognized? - Management indicated that carried interest is recognized at various stages, including when leases are signed and when data halls are delivered, with full realization taking three to five years [71][77] Question: What is your view on how new data center projects achieve stabilized capitalization? - Management noted that there is significant interest from real estate allocators in stabilized data centers, which are seen as low-risk investments with predictable cash flows [85][86] Question: Is the Franklin Templeton partnership a one-time initiative? - Management clarified that while the partnership is currently focused on a specific product, there are plans for additional partnerships in the future [108][109]

Compensation Structure - Carried interest is a compensation form rewarding employees based on investment returns, typically seen in private equity firms [1] - Abu Dhabi entities are increasingly adopting carry to attract top global talent [4] - Mubadala Capital, Lunate, and Mubadala Investment Company offer compensation tied to investment performance [3] Sovereign Wealth Fund Trends - Implementing carry in sovereign wealth funds has been challenging due to the lack of third-party capital raising [2] - Newer sovereign-linked entities in Abu Dhabi and some sovereign wealth funds are starting to incorporate carry-like compensation [2][3] - Compensation tied to investment performance is becoming more important for sovereign wealth funds [3]

Today in Bloomberg Deals: Carried interest arrives in the Middle East, it's a sizzling summer for US IPOs and Citigroup makes another big hire from JPMorgan https://t.co/a9WtxHjDGg ...

Talent Acquisition Trends - Job candidates increasingly desire carried interest awards from Middle Eastern sovereign wealth funds before accepting job offers [1]