Core Insights - GCM Grosvenor had a strong performance in 2025, with significant growth in investment results and fundraising, marking it as the best year in the firm's history [1][4][13]. Fundraising and Capital Formation - The firm raised a total of $10.7 billion in 2025, with $3.5 billion raised in the fourth quarter alone, both of which are records for the firm [4][14]. - Fundraising was broad-based across all verticals, with positive flows from all investor channels and geographies [4][14]. - The firm has approximately $12 billion of dry powder available for future investments [1]. Financial Performance - Fee-related earnings, adjusted EBITDA, and adjusted net income increased by 11%, 15%, and 18% respectively compared to 2024 [4][25]. - The fee-related earnings margin for the year was 44%, which is 200 basis points higher than in 2024 [4][25]. - The firm ended 2025 with $91 billion in assets under management (AUM), a 14% increase from 2024, and fee-paying AUM increased by 12% year over year [6][25]. Investment Strategies and Performance - The Absolute Return Strategy generated a 15% gross rate of return in 2025, while the Infrastructure strategy returned approximately 11% [1][4]. - The gross unrealized carried interest balance reached an all-time high of $949 million, up 14% from 2024 [6][25]. - The firm launched new initiatives, including Grove Lane Partners and an infrastructure interval fund, which are expected to contribute to future growth [7][19]. Market Outlook and Strategic Initiatives - The firm remains optimistic about the investment opportunity set and has a strong pipeline of activity entering 2026 [1][4]. - The individual investor channel saw an 18% increase in AUM year over year, indicating growth potential in this segment [7][19]. - The firm is focused on maintaining operational efficiency and margin improvement while investing in technology and scalability [24][49]. Shareholder Returns and Capital Allocation - The firm has increased its share buyback authorization by $35 million, with a total of $91 million available for repurchases [12][26]. - The company is also prepaying $65 million of its term loan, which will reduce leverage and save on interest expenses [12][26]. - The current dividend yield is approximately 5%, and the firm is committed to remaining a capital-light business while providing returns to shareholders [12][29].

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 [4][5] - Fee-Related Earnings, Adjusted EBITDA, and Adjusted Net Income increased by 11%, 15%, and 18% respectively compared to 2024 [5][24] - The Fee-Related Earnings margin for the year was 44%, an increase of 200 basis points from 2024 [5][24] - The company ended 2025 with $91 billion in assets under management, a 14% increase from the end of 2024 [7] 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] - Fee-Paying AUM increased by 12% year-over-year to $72 billion, while Contracted Not Yet Fee-Paying AUM rose by 27% to $10 billion [8] Market Data and Key Metrics Changes - The individual investor channel saw AUM increase by 18% year-over-year, indicating strong growth potential [8] - The company has less exposure to SaaS businesses, with only 4% of total AUM and less than 6% of credit AUM [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 2023 Fee-Related Earnings to over $280 million and grow adjusted net income per share to more than $1.20 by 2028 [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the investment opportunity set and noted that the recent market stress has created potential opportunities [9][10] - The company believes it has more exposure to disruptors and beneficiaries of disruption than to businesses at risk from disruption [11] Other Important Information - The company has increased its share buyback authorization by $35 million, totaling $91 million available for repurchase [12][24] - GCM Grosvenor is prepaying $65 million of its term loan, which will reduce leverage and save over $3 million annually in interest expenses [24] Q&A Session Summary Question: Discussion on capital allocation plans - Management indicated a focus on remaining a capital-light business, with plans for share buybacks and debt paydowns [27][28] Question: Operating leverage and margin expansion - Management believes they can continue to drive margin expansion through 2028 [29][30] Question: Outlook for absolute return business and organic growth - Management is cautious about budgeting for organic growth but acknowledges positive performance trends [34][36] Question: Fundraising dynamics for 2026 - Management has a strong pipeline and expects fundraising in 2026 to potentially exceed 2025, but is not officially budgeting for it yet [57] Question: Performance fees and carried interest - Management noted that carried interest realizations were lower than expected but expressed confidence in future increases [58][59]