Gcm Grosvenor Inc. · NASDAQ:GCMG
Gcm Grosvenor — Investor Presentation (February 2025)
27 slides from Gcm Grosvenor's investor presentation, February 2025
Slide 1: GCM Grosvenor Investor Presentation
GCM Grosvenor Investor Presentation February 2025
Slide 2: 53 Years of Alternative Asset Management Investing
53 Years of Alternative Asset Management Investing 1971 71% 549 181 First year in business of AUM in customized Employees1 Investment professionals1 separate accounts Real Estate Absolute Return $5.9bn $23.3bn DIRECT SEEDING/ PRIMARY STAKES Alternative Credit $80bn Private Equity $14.6bn 3 AUM2 $30.
Slide 3: Long Term Tailwinds for Alternatives Persist
Long Term Tailwinds for Alternatives Persist The Majority of Investors Plan to Maintain or Increase Target Alternative Investments AUM ($T) Allocation to Alternative Investments Over the Longer Term +10% $29.2 99% 96% CAGR 91% 87% 79% $18.2 $12.6 Private Debt Infrastructure Real Private Equity Hedge
Slide 4: We Operate as a Solutions Provider
We Operate as a Solutions Provider Open Architecture Origination Platform We can invest across the full spectrum of alternative strategies and implementation styles ABSOLUTE MULTI-ASSET RETURN PRIVATE EQUITY INFRASTRUCTURE REAL ESTATE CREDIT SUSTAINABILITY/ STRATEGIES CLASS IMPACT Primary Investment
Slide 5: Tenured and Diversified Client Base
Tenured and Diversified Client Base Our client base is Our client base is Our client base is institutional and stable global diversified % of AUM % of AUM % of management fees No single client contributes more than Financial 5% of our management fees Institutions Rest of World Other EMEA 6% Top 6% 1
Slide 6: Customized Separate Accounts are Highly Valuable
Customized Separate Accounts are Highly Valuable Illustrative client relationship assuming $100M initial account size Sticky Relationships 600 500 90% average re-up rate on initial sale6 400 27% FPAUM ($M) 300 average size increase on each re-up7 200 100 15 years average separate account relationshi
Slide 7: Private Markets Specialized Fund Franchises
Private Markets Specialized Fund Franchises Scaling and expanding private market specialized fund franchises Cumulative selected private market specialized fund closings (mm) $11,682 $672 $777 $9,816 $965 $8,758 $1,315 $7,402 CIS $1,734 MAC GSF IAF $5,234 GCF $4,808 $1,858 Advance $3,879 Elevate Pri
Slide 8: Growth in Key Business Drivers
Growth in Key Business Drivers December 31, 2020 December 31, 2024 Growing Earnings Power $62bn $80bn AUM Private Markets Growing as a Percentage 54% 66% Private Markets % of FPAUM Shifting Towards Direct- Oriented Strategies 39% 52% Direct-Oriented Strategies % of Private Markets AUM Operating Leve
Slide 9: Growing and Diversifying AUM and Earnings Power
Growing and Diversifying AUM and Earnings Power AUM by Strategy (bn) 7% CAGR $80.1 $76.9 $73.7 $72.1 $61.9 $30.4 7% $29.4 Private Equity $26.2 $29.1 CAGR 12% $22.8 Private Markets CAGR10 $13.1 $20.0 $20.6 22% $16.6 $9.2 Real Assets CAGR $25.2 $26.6 $23.0 $22.4 $23.3 (2)% Absolute Return Strategies C
Slide 10: Growing Private Markets Business
Growing Private Markets Business $57bn Private Markets Management Fees11 (mm) Private Markets Total AUM $238.5 12% CAGR $214.3 $197.3 66% $175.4 Private Markets % of Total FPAUM $150.0 $31bn Private Markets Fundraising Since 2020 2021 2022 2023 2024 2020 11. See Notes towards the end of the document
Slide 11: Significant Value From Absolute Return Strategies
Significant Value From Absolute Return Strategies Strong Value Proposition for Clients Compounding Capital – Attractive performance on both an absolute basis and Strong Shareholder relative to peers and industry benchmarks – Demonstrated capital protection in down markets and Value Creation potentia
Slide 12: Individual Investor is a Substantial Market Opportunity
Individual Investor is a Substantial Market Opportunity Individuals Represent $150 trillion Significantly Under Allocated, ~50% of Global AUM Relative to Institutions Global AUM by Investor Type (tn) Average Allocation to Alternatives 20-25% 20-25% Represents trillions of under-allocation Institutio
Slide 13: Delivering an Institutional Experience to Individuals
Delivering an Institutional Experience to Individuals Growth of GCMG's Individual Investor Presence Since 2020 GCMG's Individual Investor Cumulative fundraising for individual investor channel (bn) Fundraising Since 2020 $3.3 $2.7 $2.4 58% Absolute Return $1.8 42% Private Markets $0.8 57% Americas 2
Slide 14: Significant Breadth and Depth of Capabilities
Significant Breadth and Depth of Capabilities Institutional-Quality Product Suite Tailored for Individual Investors > Single Investor Funds > Single Advisor Funds > Specialized Funds Closed-end private market funds Absolute Return Strategies registered funds Private Markets registered funds • Privat
Slide 15: Growing Carried Interest Earnings Power
Growing Carried Interest Earnings Power $ million Total carried interest continues to experience strong growth, and the firm is keeping a larger share of that carry Unrealized carried interest bridge (mm) Unrealized carried interest at net asset +$736 value as of Q4 2024 145 programs with unrealized
Slide 16: Significant Embedded Value From Incentive Fees
Significant Embedded Value From Incentive Fees Incentive Fee Revenue has Been Muted ...and Incentive Fee Earnings Power is Despite Growth in Unrealized Carry... Growing with Shift Towards Direct- Oriented Strategies Unrealized Carried Interest vs Gross Incentive Fees (mm) AUM Subject to Incentive Fe
Slide 17: Financial Performance Highlights
Financial Performance Highlights Fee-Paying AUM (bn) Fee-Related Earnings (mm) Adjusted EBITDA (mm) Adjusted Net Income (mm) 5% 32% $213.8 19% $64.8 36% $61.7 $166.4 $162.2 $140.8 $139.9 $21.4 $22.1 140.8 $103.2 103.2 $40.3 $42.7 2023 2024 2023 2024 2023 2024 2023 2024 Private Markets Absolute Retur
Slide 18: Key Long-Term Growth Drivers
Key 2023 and Long-Term Growth Drivers Key Long-Term Growth Drivers 1. 2. 3. 14 Scaling Core Capabilities Planting Seeds for Future Growth Improving Earnings Quality and Power Client Retention & Compound Capital Individual Investor Business Shifting Towards Private Markets Approximately Opportunity t
Slide 19: Supplemental Information
Supplemental Information GCM GROSVENOR | 19
Slide 20: GAAP Statements of Income
GAAP Statements of Income $000, EXCEPT PER SHARE AMOUNTS AND WHERE OTHERWISE NOTED THREE MONTHS ENDED TWELVE MONTHS ENDED DEC 31, 2023 DEC 31, 2024 DEC 31, 2023 DEC 31, 2024 Revenues Management fees $ 95,062 $ 107,383 $ 375,444 $ 401,648 Incentive fees 20,019 56,778 64,903 106,237 Other operating in
Slide 21: Summary of Non-GAAP Financial Measures
Summary of Non-GAAP Financial Measures15 $000, except per share amounts and where otherwise noted THREE MONTHS ENDED TWELVE MONTHS ENDED ADJUSTED EBITDA DEC 31, 2023 DEC 31, 2024 DEC 31, 2023 DEC 31, 2024 Revenues Private markets strategies11 $ 55,061 $ 66,258 $ 214,338 $ 238,546 Absolute return str
Slide 22: Reconciliation to Non-GAAP Metrics
Reconciliation to Non-GAAP Metrics $000 THREE MONTHS ENDED TWELVE MONTHS ENDED ADJUSTED PRE-TAX INCOME & ADJUSTED NET INCOME DEC 31, 2023 SEP 30, 2024 DEC 31, 2024 DEC 31, 2023 DEC 31, 2024 Net income attributable to GCM Grosvenor Inc. $ 3,258 $ 4,156 $ 7,615 $ 12,774 $ 18,695 Plus: Net income (loss
Slide 23: Reconciliation to Non-GAAP Metrics
Reconciliation to Non-GAAP Metrics $000 THREE MONTHS ENDED TWELVE MONTHS ENDED ADJUSTED EBITDA DEC 31, 2023 SEP 30, 2024 DEC 31, 2024 DEC 31, 2023 DEC 31, 2024 Adjusted Net Income $ 32,435 $ 31,434 $ 52,726 $ 103,204 $ 140,758 Plus: Adjusted income taxes20 11,260 10,311 18,043 33,853 46,919 Deprecia
Slide 24: Notes
Notes Data in the presentation is as of December 31, 2024 unless otherwise noted. 1. Employee data as of January 1, 2025. Individuals with dual responsibilities are counted only once. 2. AUM as of December 31, 2024. 3. Sustainable / Impact and Alternative Credit Investments overlap with investments
Slide 25: Certain Definitions and Use of Non-GAAP Financials and Key Performance Indicators
Certain Definitions and Use of Non-GAAP Financials and Key Performance Indicators Adjusted Net Income is a non-GAAP measure that we present on a pre-tax and after-tax basis to evaluate our profitability. Adjusted Pre-Tax Income represents net income attributable to GCM Grosvenor Inc. including (a) n
Slide 26: Certain Definitions and Use of Non-GAAP Financials and Key Performance Indicators (continued)
Certain Definitions and Use of Non-GAAP Financials and Key Performance Indicators (continued) Fee-Paying Assets Under Management (“FPAUM” or “Fee-Paying AUM") is a key performance indicator we use to measure the assets from which we earn management fees. Our FPAUM comprises the assets in our customi
Slide 27: Disclosures
Disclosures Non-GAAP Financial Measures The non-GAAP financial measures contained in this presentation are not GAAP measures of GCM Grosvenor’s financial performance or liquidity and should not be considered as alternatives to net income (loss) as a measure of financial performance or cash flows fro
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