Group 1 - David A. Johnson is the founder and principal of Endurance Capital Management, a New Jersey Limited Liability Company, with over 30 years of investment experience [1] - David invests in a diverse range of assets including stocks, bonds, options, ETFs, REITs, real estate, closed-end funds, hedge funds, and private credit [1] - He holds a Master of Science (MS) Degree in Finance with a concentration in Investment Analysis from Boston University, a Certificate in Financial Planning, and an MBA from Fordham University [1]

Core Insights - GCM Grosvenor announced the final close of its GCM Grosvenor Co-Investment Opportunities Fund III (GCF III), securing approximately $615 million in commitments, significantly higher than its predecessor, GCF II [1] - The firm's total private equity co-investment commitments now stand at $9 billion, reinforcing its leadership in co-investment strategies within a broader $30 billion private equity platform [1] Company Overview - GCM Grosvenor is a global alternative asset management solutions provider with approximately $80 billion in assets under management across various investment strategies including private equity, infrastructure, real estate, credit, and absolute return [4] - The firm has over 50 years of experience in alternatives and aims to deliver value for clients through a cross-asset class and flexible investment platform [4] Investment Strategy - Co-investments are increasingly recognized as essential for a diversified private markets program, with GCM Grosvenor offering differentiated access through robust sourcing capabilities, flexible structuring, and established partnerships [2] - GCF III attracted a diverse range of investors, including public, corporate, and Taft-Hartley pension plans, financial institutions, and family offices from North America, Europe, the Middle East, and Asia, focusing on middle-market growth and buyout transactions [3]

Financial Performance - For the year ended December 31, 2024, total management fees were $402 million, up from $375 million in 2023, representing a 7.2% increase [29]. - Total operating revenues for 2024 were $514 million, compared to $445 million in 2023, reflecting a 15.5% growth [29]. - Net income for 2024 was $19 million, an increase from $13 million in 2023, marking a 46.2% rise [29]. - Fee-related earnings for 2024 were $166 million, up from $140 million in 2023, indicating an 18.6% increase [29]. - Adjusted net income for 2024 was $141 million, compared to $103 million in 2023, representing a 36.8% growth [29]. - Management fees for the year ended December 31, 2024, were $387.0 million, up from $360.9 million in 2023 [47]. - As of December 31, 2024, the Fee-Paying Assets Under Management (FPAUM) was $64.8 billion, a growth from $48.9 billion at the end of 2018, representing a CAGR of 5% [151]. - The Contracted Not Yet Fee-Paying AUM (CNYFPAUM) reached an all-time high of $8.2 billion, up from $2.3 billion at the end of 2018, with management fees expected to be charged on approximately $1.0 billion in 2025 [152]. Assets Under Management (AUM) - As of December 31, 2024, the company had $80.1 billion in assets under management (AUM) [26]. - As of December 31, 2024, total Assets Under Management (AUM) reached $80.1 billion, with Private Markets accounting for $56.8 billion (71%) and Absolute Return Strategies for $23.3 billion (29%) of total AUM [34][35]. - The firm managed $30.4 billion in Private Equity strategies, $14.6 billion in Infrastructure strategies, and $5.9 billion in Real Estate strategies as of December 31, 2024 [37]. - Customized separate accounts comprised $56.7 billion (71%) of AUM, while specialized funds accounted for $23.4 billion (29%) as of December 31, 2024 [41]. - The company has $19.9 billion in AUM with small and emerging managers as of December 31, 2024, highlighting its commitment to innovative investment strategies [85]. - Total Sustainable Investments AUM reached $27.8 billion as of December 31, 2024 [37]. - Direct-oriented strategies AUM represented 52% of total firm AUM as of December 31, 2024, up from 39% as of December 31, 2020 [106]. - Infrastructure AUM increased by 144% to $14.6 billion as of December 31, 2024, compared to December 31, 2020 [93]. - Real estate AUM reached $5.9 billion, an 86% increase from December 31, 2020 [96]. - Absolute return strategies AUM was approximately $23.3 billion as of December 31, 2024 [98]. - Alternative credit strategies AUM stood at $14.6 billion as of December 31, 2024 [102]. Client Engagement and Retention - Existing clients contributed over 91% of total capital raised in 2024, with 50% of the top 50 clients by AUM engaging in multiple investment strategies [39]. - The company has a 90% re-up rate for customized separate accounts from January 1, 2018, to December 31, 2024, with $56.7 billion in AUM across 158 clients and 265 customized portfolios [64]. - Over the last three years, 72% of the top 25 clients expanded their investment relationship with the company, with 91% of gross capital inflows in 2024 coming from existing clients [78]. - Individual investors accounted for about 4% of AUM as of December 31, 2024, with $1.5 billion raised from individuals over the past three years [156]. - Client retention rates improved to Y%, reflecting the effectiveness of recent customer engagement strategies [15]. Strategic Initiatives and Future Outlook - The company aims to expand its product offerings and grow its international investor base as part of its future strategy [18]. - The company launched the Elevate strategy in 2022, closing its first fund in 2024 with approximately $800 million in capital [85]. - The company is focusing on expanding its market presence, with plans to enter new geographic regions by QX 202X [15]. - New product offerings are expected to launch in QX 202X, aimed at enhancing client engagement and satisfaction [15]. - The company has outlined a strategic plan for potential acquisitions to bolster its service capabilities and market share [15]. - Future earnings guidance suggests a projected revenue increase of X% for the upcoming fiscal year [15]. - The company anticipates a continued positive trend in market conditions, supporting its growth objectives for the next fiscal year [15]. Operational and Compliance Aspects - The company employed 549 individuals, including 181 investment professionals, as of December 31, 2024 [28]. - The operations team consisted of 299 professionals, ensuring a robust internal control environment [164]. - The compliance team is responsible for ensuring adherence to federal, state, and international regulations applicable to the business [184]. - The company is subject to various privacy and cybersecurity regulations, including the California Consumer Privacy Act and the EU General Data Protection Regulation [202]. - The exit of the U.K. from the EU has resulted in greater complexity and operational costs for maintaining regulatory compliance [194]. - The company’s funds are generally subject to significant regulation designed to protect investors, including limitations on borrowing and leveraged capital structures [198]. Investment Performance - The company achieved an annualized return of 20.8% for co-investments/direct investments since inception in 2009, outperforming the S&P 500 by 5.9% [69]. - The absolute return strategies had assets under management of $23.3 billion as of December 31, 2024, with a one-year net return of 11.4% and a five-year net return of 6.1% [144]. - The infrastructure investments showed a net IRR of 12.1% and a net TVPI of 1.46, with total contributions of $6.7 billion and distributions of $4.4 billion [143]. - The secondary investments in private equity had commitments of $2.2 billion, contributions of $2.0 billion, and distributions of $1.1 billion, yielding a net TVPI of 1.45 and an IRR of 14.8% [143]. - GCM Grosvenor's real estate investments had total commitments of $4.965 billion, contributions of $3.870 billion, and distributions of $1.848 billion, resulting in a net TVPI of 1.15 and an IRR of 7.0% [143].

Financial Data and Key Metrics Changes - In Q4 2024, fee-related earnings increased by 22% and adjusted net income rose by 63% compared to Q4 2023 [8] - For the full year 2024, fee-related earnings grew by 19% and adjusted net income increased by 36% over the prior year [8][9] - The fee-related earnings margin was 42% for the year, up from 38% in 2023 and 31% at the end of 2020 [10] Business Line Data and Key Metrics Changes - Total fundraising reached $7.1 billion in 2024, a 40% increase compared to 2023, with Q4 fundraising of $2.3 billion being the highest in over two years [10][11] - Fundraising for specialized funds amounted to $1.9 billion, marking the second highest year on record [12] - The credit investment platform raised $1.8 billion, accounting for over 25% of total funds raised in 2024 [15] Market Data and Key Metrics Changes - Assets under management (AUM) ended the year at $80 billion, with fee-paying AUM at $65 billion [30] - Contracted not yet fee-paying AUM increased by 12% year-over-year, reaching a record level of $8.2 billion [31] Company Strategy and Development Direction - The company aims to double its 2023 fee-related earnings by 2028, with confidence in achieving this target despite non-linear growth [9][19] - Expansion of product offerings and distribution in the individual investor channel is a priority, with a new infrastructure interval fund launched [18][87] - The company is focusing on enhancing its credit strategies and absolute return strategies, which have shown improved performance and demand [15][16][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth targets, citing strong fundraising and a robust late-stage pipeline for 2025 [11][19] - The macro environment is seen as favorable for continued growth, particularly in private credit and infrastructure [26][63] Other Important Information - The company reported $55 million in annual performance fee revenue, marking the third time in five years that performance fees exceeded $50 million [16][38] - The balance sheet remains strong, with a quarterly dividend of $0.11 per share and a recent increase in the share repurchase program by $50 million [40][42] Q&A Session Summary Question: FRE margins outlook - Management indicated that they expect continued operating leverage and margin expansion, potentially reaching the mid-forty percent range [46][48] Question: Fundraising cadence for 2025 - Management noted that 2025 is expected to be better than 2024, with a strong pipeline and re-up calendar [50][56] Question: Conversion from pipeline to fee-paying AUM - Management discussed the importance of the macro environment and the types of funds raised in determining the conversion rate [60][64] Question: Changes in absolute return business dialogue - Management acknowledged that good performance has led to a more positive dialogue with clients regarding absolute return strategies [70][72] Question: Retail vehicles and distribution channels - Management clarified that significant revenue contribution from the new infrastructure fund is not expected in 2025, but they are optimistic about its long-term potential [84][86]

Core Insights - GCM Grosvenor Inc. reported a revenue of $165.26 million for Q4 2024, marking a year-over-year increase of 41.8% and an EPS of $0.27 compared to $0.17 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $164.59 million by 0.41%, while the EPS surpassed the consensus estimate of $0.24 by 12.50% [1] Financial Performance Metrics - Fee-paying AUM for Private Markets Strategies was $42.72 billion, below the average estimate of $43.88 billion [4] - Total Fee-paying AUM reached $64.77 billion, slightly lower than the average estimate of $65.32 billion [4] - Fee-paying AUM for Absolute Return Strategies was $22.05 billion, exceeding the average estimate of $21.44 billion [4] - Total Assets Under Management stood at $80.08 billion, compared to the average estimate of $81.33 billion [4] - Other operating income was reported at $1.10 million, slightly above the average estimate of $1.09 million [4] - Incentive fees amounted to $56.78 million, below the average estimate of $58 million [4] - Management fees were reported at $107.38 million, exceeding the average estimate of $101.98 million [4] Stock Performance - GCM Grosvenor's shares returned +6.3% over the past month, outperforming the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

GCM Grosvenor Inc. (GCMG) came out with quarterly earnings of $0.27 per share, beating the Zacks Consensus Estimate of $0.24 per share. This compares to earnings of $0.17 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 12.50%. A quarter ago, it was expected that this company would post earnings of $0.15 per share when it actually produced earnings of $0.16, delivering a surprise of 6.67%.Over the last four quarters, the compan ...

2024 Fourth Quarter and Full Year Results Earnings Presentation GCM Grosvenor Reports Q4 and Full Year 2024 Results CHICAGO, February 10, 2025 – GCM Grosvenor (Nasdaq: GCMG), a leading global alternative asset management solutions provider, today reported results for the fourth fiscal quarter ended December 31, 2024. Dividend GCM Grosvenor's Board of Directors approved a $0.11 per share dividend payable on March 17, 2025 to shareholders on record March 3, 2025. Conference Call Management will host a webcast ...

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]

CHICAGO, Feb. 10, 2025 (GLOBE NEWSWIRE) -- GCM Grosvenor (Nasdaq: GCMG), a global alternative asset management solutions provider, today reported its results for the fourth quarter and full year December 31, 2024. GCM Grosvenor issued a detailed presentation of its results to the Public Shareholders section of GCM Grosvenor’s website at https://www.gcmgrosvenor.com/shareholder-events. GCM Grosvenor's Board of Directors approved a $0.11 per share dividend payable on March 17, 2025 to shareholders on record M ...

CHICAGO, Feb. 05, 2025 (GLOBE NEWSWIRE) -- GCM Grosvenor (NASDAQ:GCMG), a leading global alternative asset management solutions provider, is pleased to announce that Joe Metzger has joined the firm as a Managing Director in its Insurance Solutions Group, as the firm continues to expand its capabilities to meet the insurance industry's unique investment needs. Mr. Metzger brings nearly two decades of financial services and insurance industry experience, including prior roles at Guardian Life and TIAA-CREF. H ...