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]

Core Insights - GCM Grosvenor Inc. reported quarterly earnings of $0.27 per share, exceeding the Zacks Consensus Estimate of $0.24 per share, and showing an increase from $0.17 per share a year ago, resulting in an earnings surprise of 12.50% [1] - The company achieved revenues of $165.26 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.41% and up from $116.56 million year-over-year [2] - GCM Grosvenor shares have increased approximately 10.5% since the beginning of the year, outperforming the S&P 500's gain of 2.5% [3] Earnings Outlook - The company's future stock performance will largely depend on management's commentary during the earnings call and the revisions of earnings estimates [3][4] - Current consensus EPS estimate for the upcoming quarter is $0.18 on revenues of $136.49 million, and for the current fiscal year, it is $0.81 on revenues of $580.52 million [7] Industry Context - The Financial - Investment Management industry, to which GCM Grosvenor belongs, is currently ranked in the bottom 26% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact GCM Grosvenor's stock performance [5][6]

Financial Performance - GCM Grosvenor reported GAAP Revenue of $165.3 million for the fourth quarter of 2024, a 42% increase compared to Q4 2023, and $514.0 million for the full year 2024, a 16% increase compared to the prior year[12] - GAAP net income attributable to GCM Grosvenor Inc was $7.6 million for Q4 2024, a 134% increase compared to Q4 2023, and $18.7 million for the full year 2024, a 46% increase compared to the prior year[12] - Adjusted EBITDA was $77.6 million for Q4 2024, a 56% increase compared to Q4 2023, and $213.8 million for the full year 2024, a 32% increase compared to the prior year[12] - Adjusted Net Income was $52.7 million for Q4 2024, a 63% increase compared to Q4 2023, and $140.8 million for the full year 2024, a 36% increase compared to the prior year[12] - Adjusted Net Income Per Share - Diluted was $0.27 for Q4 2024, a 59% increase compared to Q4 2023, and $0.74 for the full year 2024, a 35% increase compared to the prior year[12] Assets Under Management (AUM) - GCM Grosvenor's Assets Under Management (AUM) increased to $80.1 billion as of December 31, 2024, a 4% increase compared to $76.9 billion as of December 31, 2023[12] - Fee-Paying AUM (FPAUM) increased to $64.8 billion as of December 31, 2024, a 5% increase compared to $61.7 billion as of December 31, 2023[12] - Private Markets FPAUM increased to $42.7 billion as of December 31, 2024, a 6% increase compared to $40.3 billion as of December 31, 2023[12] - Absolute Return Strategies FPAUM increased to $22.1 billion as of December 31, 2024, a 3% increase compared to $21.4 billion as of December 31, 2023[12] Capital and Fundraising - GCM Grosvenor raised $2.3 billion of new capital in the fourth quarter of 2024, bringing full year 2024 fundraising to $7.1 billion, a 41% increase compared to the prior year[12] Shareholder Returns - 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[3, 45] - The Board of Directors approved an incremental $50 million share repurchase authorization in February 2025[12, 45]

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]

Core Insights - GCM Grosvenor reported its financial results for the fourth quarter and full year ending December 31, 2024, highlighting its performance as a global alternative asset management solutions provider [1] - The company has approximately $80 billion in assets under management across various investment strategies, including private equity, infrastructure, real estate, credit, and absolute return [5][6] Financial Performance - The Board of Directors approved a dividend of $0.11 per share, payable on March 17, 2025, to shareholders on record as of March 3, 2025 [2] - The existing share repurchase authorization was increased by $50 million, raising the total from $140 million to $190 million [2][8] Shareholder Engagement - A conference call to discuss the financial results was scheduled for February 10, 2025, at 10:00 a.m. ET, accessible via public webcast [3][4] - The company has a dedicated team of approximately 550 professionals serving a global client base of institutional and individual investors [6]

Core Insights - GCM Grosvenor has appointed Joe Metzger as Managing Director in its Insurance Solutions Group to enhance its investment capabilities for the insurance industry [1][3] Company Overview - GCM Grosvenor is a global alternative asset management provider with approximately $80 billion in assets under management across various investment strategies including private equity, infrastructure, real estate, credit, and absolute return [5] - The firm has over 50 years of experience in alternative investments and employs around 550 professionals serving a global client base [5] New Appointment - Joe Metzger brings nearly 20 years of experience in financial services and the insurance industry, having previously worked at Guardian Life and TIAA-CREF [2] - His expertise lies in the intersection of insurance and alternative investments, focusing on transactions between insurance carriers and alternative asset managers [2] Strategic Goals - The addition of Metzger is expected to advance GCM Grosvenor's capabilities and create partnership opportunities tailored to the unique needs of insurance clients [3] - The Insurance Solutions Group offers customized alternative investment solutions designed specifically for global insurance companies, utilizing innovative strategies for capital-efficient products [3]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for GCM Grosvenor Inc. due to higher revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - GCM Grosvenor is expected to report quarterly earnings of $0.24 per share, reflecting a year-over-year increase of +41.2% [3]. - Revenues are projected to reach $164.59 million, also up 41.2% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. - The Most Accurate Estimate for GCM Grosvenor is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.54%, suggesting a bearish sentiment among analysts [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, but its predictive power is stronger for positive readings [7][8]. - GCM Grosvenor's current Zacks Rank is 3, making it challenging to predict an earnings beat conclusively [11]. Historical Performance - In the last reported quarter, GCM Grosvenor exceeded the consensus EPS estimate by +6.67%, with actual earnings of $0.16 per share compared to an expected $0.15 [12]. - Over the past four quarters, the company has beaten consensus EPS estimates two times [13]. Industry Comparison - Victory Capital Holdings, another player in the investment management industry, is expected to report earnings of $1.37 per share, a year-over-year increase of +19.1%, with revenues projected at $231.17 million, up 12.3% [17]. - Victory Capital's consensus EPS estimate has been revised 2.7% lower in the last 30 days, resulting in an Earnings ESP of -0.37% and a Zacks Rank of 4, indicating difficulty in predicting an earnings beat [18].