Gcm Grosvenor Inc. · NASDAQ:GCMG
Gcm Grosvenor — Q4 2024 Earnings Presentation
34 slides from Gcm Grosvenor's earnings presentation, Feb 10, 2025
Slide 1: 2024 Fourth Quarter and Full Year Results Earnings Presentation
2024 Fourth Quarter and Full Year Results Earnings Presentation
Slide 2: GCM Grosvenor Reports Q4 and Full Year 2024 Results
GCM GROSVENOR | 2 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 Bo
Slide 3: Forward Looking Statements
GCM GROSVENOR | 3 THIS PRESENTATION CONTAINS CERTAIN FORWARD- LOOKING STATEMENTS within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the expected future performance of GCM Grosvenor’s business. These forward-looking statements generally are iden
Slide 4: Fourth Quarter and Full Year 2024 Results
GCM GROSVENOR | 4 Third Quarter 2023 Results $bn DECEMBER 31, 2023 DECEMBER 31, 2024 % CHANGE VS Q4 23 AUM $ 76.9 $ 80.1 4 % FPAUM 61.7 64.8 5 % Private Markets FPAUM 40.3 42.7 6 % Absolute Return Strategies FPAUM 21.4 22.1 3 % CNYFPAUM1 7.3 8.2 12 % $mm THREE MONTHS ENDED DECEMBER 31, 2024 % CHANGE
Slide 5: Adjusted Earnings Longer-Term Trends
GCM GROSVENOR | 5 Adjusted Earnings Fee-Related Earnings (mm) Adjusted EBITDA (mm) Adjusted Net Income (mm) Longer-Term Trends $91.0 $140.8 91.0 140.8 2020 2024 $95.1 $166.4 2020 2024 $147.0 $213.8 2020 2024 45% 55% 75% $103.2 $140.8 103.2 140.8 2023 2024 $139.9 $166.4 2023 2024 $162.2 $213.8 2023 2
Slide 6: Growth in Key Business Drivers
GCM GROSVENOR | 6 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
Slide 7: Business Shifting Towards Private Markets
GCM GROSVENOR | 7 Business Shifting Towards Private Markets Key 2023 and Long-Term Growth Drivers 5-9. See Notes towards the end of the document. Expand Client Relationships Approximately 50% Of top clients are invested in more than 1 vertical8 ~1,100bps Q4'24 LTM vs. Q4'20 LTM FRE margin expansion
Slide 8: Alternative Asset Management Investing Overview
GCM GROSVENOR | 8 53 Years of Alternative Asset Management Investing Real Estate $5.9bn Absolute Return $23.3bn Private Equity $30.4bn Sustainable / Impact $27.8bn12 Alternative Credit $14.6bn12 Infrastructure $14.6bn 10-12. See Notes towards the end of the document. $80bn AUM11 1971 71% 549 181 Fir
Slide 9: Growing and Diversifying AUM and Earnings Power
GCM GROSVENOR | 9 Growing and Diversifying AUM and Earnings Power $61.9 $72.1 $73.7 $76.9 $80.1 $4.7 $6.2 $5.0 $5.1 $5.8 $25.2 $26.6 $23.0 $22.4 $23.3 $9.2 $13.1 $16.6 $20.0 $20.6 $22.8 $26.2 $29.1 $29.4 $30.4 Private Equity Real Assets Absolute Return Strategies Other Q4 2020 Q4 2021 Q4 2022 Q4 202
Slide 10: Diversified Fundraising Drives Stability & Growth
GCM GROSVENOR | 10 Diversified Fundraising Drives Stability & Growth $7.0 $9.4 $7.8 $5.1 $7.1 $1.4 $1.0 $0.5 $0.2 $1.9 $1.4 $1.9 $0.5 $0.5 $1.3 $0.9 $1.6 $0.9 $0.3$1.2 $3.5 $2.1 $2.7 $1.2 $3.0 $2.1 $3.1 $0.8 $2.4 Private Equity Infrastructure Real Estate Absolute Return Strategies Alternative Credit
Slide 11: Private Markets Specialized Fund Franchises
GCM GROSVENOR | 11 $3,879 $4,808 $5,234 $7,402 $8,758 $9,816 $11,682 $2,232 $2,129 $1,858 $1,734 $1,315 $965 $777 $672 CIS MAC GSF IAF GCF Advance Elevate Private Credit funds 2018 2019 2020 2021 2022 2023 Through 2024 Scaling and expanding private market specialized fund franchises Cumulative selec
Slide 12: Growing Private Markets Business
GCM GROSVENOR | 12 $150.0 $175.4 $197.3 $214.3 $238.5 2020 2021 2022 2023 2024 2. See Notes towards the end of the document. 12% CAGR Growing Private Markets Business Private Markets Management Fees2 (mm) 66% Private Markets % of Total FPAUM $57bn Private Markets Total AUM $31bn Private Markets Fund
Slide 13: Growing Carried Interest Earnings Power
GCM GROSVENOR | 13 133 355 401 262 381 435 Firm Share of Carried Interest Non-Firm Share of Carried Interest 5. See Notes towards the end of the document. Unrealized carried interest at net asset value as of Q4 2024 145 programs with unrealized carried interest Unrealized Carried Interest by Vintage
Slide 14: Significant Embedded Value From Incentive Fees
GCM GROSVENOR | 14 $395 $788 $789 $776 $836 Gross Unrealized Carried Interest $111.7 $173.9 $75.2 $64.9 $106.2 $52.8 $52.0 $2.6 $15.3 $55.3 $58.9 $121.9 $72.6 $49.6 $50.9 Performance Fees Carried Interest 2020 2021 2022 2023 2024 Significant Embedded Value From Incentive Fees Unrealized Carried Inte
Slide 15: Capital and Ownership Summary
GCM GROSVENOR | 15 16. Reflects GAAP cash including $12 million of cash held at consolidated carry plan entities. 17. Represents firm share of Net Asset Value as of December 31, 2024. 18. Debt principal at pricing of Term SOFR + 225bps as of December 31, 2024, subject to a Term SOFR floor of 50bps.
Slide 16: Supplemental Information
GCM GROSVENOR | 16 Supplemental Information
Slide 17: Consolidated Statements of Operations
GCM GROSVENOR | 17 $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 income 1,
Slide 18: Adjusted EBITDA and Fee-Related Earnings Reconciliation
GCM GROSVENOR | 18 2-4, 20-23. See Notes towards the end of the document. $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 strategies2 $ 55,061 $ 66,258 $ 214,3
Slide 19: Consolidated Balance Sheets
GCM GROSVENOR | 19 $000, except per share amounts and where otherwise noted DEC 31, 2023 DEC 31, 2024 Assets Cash and cash equivalents $ 44,354 $ 89,454 Management fees receivable 24,996 28,387 Incentive fees receivable 27,371 58,346 Due from related parties 13,581 12,681 Investments 240,202 257,807
Slide 20: Employee Compensation Reconciliation
GCM GROSVENOR | 20 $000 THREE MONTHS ENDED TWELVE MONTHS ENDED DEC 31, 2023 SEP 30, 2024 DEC 31, 2024 DEC 31, 2023 DEC 31, 2024 Fee-Related Earnings Compensation Cash-based employee compensation and benefits, net20 $ 32,918 $ 36,989 $ 34,966 $ 149,327 $ 147,045 Incentive Fee Related Compensation Cas
Slide 21: Net Incentive Fees Attributed to GCM Grosvenor
GCM GROSVENOR | 21 $000 THREE MONTHS ENDED TWELVE MONTHS ENDED NET INCENTIVE FEES ATTRIBUTED TO GCM GROSVENOR DEC 31, 2023 SEP 30, 2024 DEC 31, 2024 DEC 31, 2023 DEC 31, 2024 Incentive fees: Performance fees $ 14,139 $ 2,745 $ 42,245 $ 15,313 $ 55,323 Carried interest 5,880 20,559 14,533 49,590 50,9
Slide 22: Adjusted Pre-Tax Income and Adjusted Net Income
GCM GROSVENOR | 22 $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) attributable t
Slide 23: Adjusted EBITDA and Fee-Related Earnings
GCM GROSVENOR | 23 $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 taxes4 11,260 10,311 18,043 33,853 46,919 Depreciation expense 314
Slide 24: Adjusted Net Income Per Share
GCM GROSVENOR | 24 $000, except per share amounts and where otherwise noted THREE MONTHS ENDED TWELVE MONTHS ENDED ADJUSTED NET INCOME PER SHARE 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 Weighted-average shares
Slide 25: Change in FPAUM and AUM
GCM GROSVENOR | 25 $mm PRIVATE MARKET STRATEGIES ABSOLUTE RETURN STRATEGIES TOTAL FPAUM CONTRACTED NOT YET FPAUM TOTAL AUM Fee-Paying AUM Beginning of Period (October 1, 2024) $ 42,267 $ 21,455 $ 63,722 $ 7,858 $ 79,563 Contributions from CNYFPAUM 887 3 890 Contributions from New Capital Raised 508
Slide 26: Management Fees and Average Fee Rates
GCM GROSVENOR | 26 $000 THREE MONTHS ENDED TWELVE MONTHS ENDED MANAGEMENT FEES DEC 31, 2023 SEP 30, 2024 DEC 31, 2024 DEC 31, 2023 DEC 31, 2024 Private Markets Specialized Funds $ 20,971 $ 22,913 $ 31,175 $ 81,460 $ 99,413 Average Fee Rate26 0.77 % 0.78 % 0.83 % 0.80 % 0.83 % Customized Separate Acc
Slide 27: Investment Performance by Strategy
GCM GROSVENOR | 27 STRATEGY COMMITMENTS CONTRIBUTIONS DISTRIBUTION CURRENT VALUE INVESTMENT NET TVPI INVESTEMNT NET IRR PME IRR PME INDEX Private Equity Primary Fund Investments28 $ 14,103 $ 15,377 $ 25,695 $ 2,292 1.82 13.5 % 9.9 % S&P 500 Secondary Investments29 585 518 717 190 1.75 18.4 % 12.0 %
Slide 28: Investment Performance by Strategy (Cumulative)
GCM GROSVENOR | 28 STRATEGY COMMITMENTS CONTRIBUTIONS DISTRIBUTION CURRENT VALUE INVESTMENT NET TVPI INVESTEMNT NET IRR PME IRR PME INDEX Private Equity Primary Fund Investments28 $ 25,806 $ 24,390 $ 29,036 $ 10,707 1.63 12.5 % 11.1 % S&P 500 Secondary Investments29 2,212 2,009 1,087 1,830 1.45 14.8
Slide 29: Absolute Return Strategies Performance
GCM GROSVENOR | 29 AS OF DEC 31, 2024 THREE MONTHS ENDED ANNUALIZED RETURNS PERIODS ENDED DEC 31, 2024 Assets Under Management (bn) DEC 31, 2024 YEAR TO DATE ONE YEAR THREE YEAR FIVE YEAR SINCE INCEPTION Gross Net Gross Net Gross Net Gross Net Gross Net Gross Net Absolute Return Strategies (Overall)
Slide 30: Footnotes and Notes to Presentation
GCM GROSVENOR | 30 Data in the presentation is as of December 31, 2024 unless otherwise noted. 1. Of the $8.2 billion CNYFPAUM as of December 31, 2024, approximately $3.0 billion is subject to an agreed upon fee ramp in schedule that will result in management fees being charged on approximately $1.0
Slide 31: Footnotes (continued)
GCM GROSVENOR | 31 22. Excludes the impact of non-cash carried interest compensation and other of $(1.5) million and $1.1 million for the three months ended September 30, 2024 and December 31, 2024, respectively, and $(0.5) million for the year ended December 31, 2024. The net non-cash carried inter
Slide 32: Adjusted Net Income Definitions
GCM GROSVENOR | 32 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) net income (loss) attributable to GCMH, excluding (b) provision
Slide 33: Fee-Paying Assets Under Management Definition
GCM GROSVENOR | 33 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 customized separate accounts and specialized funds from which we derive management
Slide 34: Non-GAAP Financial Measures
GCM GROSVENOR | 34 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 fl