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GCM Grosvenor(GCMG) - 2024 Q4 - Annual Report
GCMGGCM Grosvenor(GCMG)2025-02-21 01:53
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Financial Performance - For the year ended December 31, 2024, total management fees were 402million,upfrom402 million, up from 375 million in 2023, representing a 7.2% increase [29]. - Total operating revenues for 2024 were 514million,comparedto514 million, compared to 445 million in 2023, reflecting a 15.5% growth [29]. - Net income for 2024 was 19million,anincreasefrom19 million, an increase from 13 million in 2023, marking a 46.2% rise [29]. - Fee-related earnings for 2024 were 166million,upfrom166 million, up from 140 million in 2023, indicating an 18.6% increase [29]. - Adjusted net income for 2024 was 141million,comparedto141 million, compared to 103 million in 2023, representing a 36.8% growth [29]. - Management fees for the year ended December 31, 2024, were 387.0million,upfrom387.0 million, up from 360.9 million in 2023 [47]. - As of December 31, 2024, the Fee-Paying Assets Under Management (FPAUM) was 64.8billion,agrowthfrom64.8 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 8.2billion,upfrom8.2 billion, up from 2.3 billion at the end of 2018, with management fees expected to be charged on approximately 1.0billionin2025[152].AssetsUnderManagement(AUM)−AsofDecember31,2024,thecompanyhad1.0 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 80.1billion,withPrivateMarketsaccountingfor80.1 billion, with Private Markets accounting for 56.8 billion (71%) and Absolute Return Strategies for 23.3billion(2923.3 billion (29%) of total AUM [34][35]. - The firm managed 30.4 billion in Private Equity strategies, 14.6billioninInfrastructurestrategies,and14.6 billion in Infrastructure strategies, and 5.9 billion in Real Estate strategies as of December 31, 2024 [37]. - Customized separate accounts comprised 56.7billion(7156.7 billion (71%) of AUM, while specialized funds accounted for 23.4 billion (29%) as of December 31, 2024 [41]. - The company has 19.9billioninAUMwithsmallandemergingmanagersasofDecember31,2024,highlightingitscommitmenttoinnovativeinvestmentstrategies[85].−TotalSustainableInvestmentsAUMreached19.9 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 14.6billionasofDecember31,2024,comparedtoDecember31,2020[93].−RealestateAUMreached14.6 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 23.3billionasofDecember31,2024[98].−AlternativecreditstrategiesAUMstoodat23.3 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 56.7billioninAUMacross158clientsand265customizedportfolios[64].−Overthelastthreeyears,7256.7 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 800millionincapital[85].−Thecompanyisfocusingonexpandingitsmarketpresence,withplanstoenternewgeographicregionsbyQX202X[15].−NewproductofferingsareexpectedtolaunchinQX202X,aimedatenhancingclientengagementandsatisfaction[15].−Thecompanyhasoutlinedastrategicplanforpotentialacquisitionstobolsteritsservicecapabilitiesandmarketshare[15].−FutureearningsguidancesuggestsaprojectedrevenueincreaseofX800 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 6.7billionanddistributionsof6.7 billion and distributions of 4.4 billion [143]. - The secondary investments in private equity had commitments of 2.2billion,contributionsof2.2 billion, contributions of 2.0 billion, and distributions of 1.1billion,yieldinganetTVPIof1.45andanIRRof14.81.1 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 3.870billion,anddistributionsof3.870 billion, and distributions of 1.848 billion, resulting in a net TVPI of 1.15 and an IRR of 7.0% [143].