Gcm Grosvenor Inc. · NASDAQ:GCMG
Gcm Grosvenor — CF Finance Acquisition — Q2 2020 Earnings Presentation
16 slides from Gcm Grosvenor's earnings presentation, Sep 18, 2020
Slide 1: 2020 Second Quarter Results
Confidential Illustrative Draft – Not for distribution September 18, 2020 2020 Second Quarter Results
Slide 2: Forward-Looking Statements
Confidential Illustrative Draft – Not for distribution 2 Forward - Looking Statements This presentation contains certain forward - looking statements within the meaning of the federal securities laws, including state ments regarding the expected future performance of GCM Grosvenor’s business. These
Slide 3: Second Fiscal Quarter Summary
Confidential Illustrative Draft – Not for distribution 3 Second Fiscal Quarter Summary GCM Grosvenor reports results for second fiscal quarter ended June 30, 2020: GAAP Net Income of $5.9 million, Adjusted Pre-Tax Income of $19.8 million, Adjusted EBITDA of $26.2 million and Adjusted Fee - Related E
Slide 4: Second Quarter Key Highlights
Confidential Illustrative Draft – Not for distribution 4 GCM Grosvenor Results Second Quarter Key Highlights ▪ Strong second quarter financial performance, led by investment performance and lower expenses ▪ Adjusted Fee - Related Earnings (FRE) increased 43% over Q1 to $25.1 million ▪ Adjusted EBITD
Slide 5: Increased FPAUM and Contracted Not Yet FPAUM
Confidential Illustrative Draft – Not for distribution 21.6 22.5 26.2 27.1 5.4 5.5 $53.2 $55.2 Q1 20 Q2 20 5 Increased FPAUM and Contracted Not Yet FPAUM Absolute return strategies FPAUM 1 Private markets strategies FPAUM 1 3.4% Contracted not yet fee paying 2 ¹ Fee - paying assets under management
Slide 6: Summary Financials Quarter over Quarter
Confidential Illustrative Draft – Not for distribution (3%) 6 Summary Financials Quarter over Quarter Adjusted FRE 17.6 25.1 Q1 20 Q2 20 Adjusted EBITDA Adjusted Pre - Tax Income 43% 19.4 26.2 Q1 20 Q2 20 35 % 12.8 19.8 Q1 20 Q2 20 54 % Management fees 75.7 73.3 Q1 20 Q2 20 Net Incentive fees Attrib
Slide 7: Relative Valuation Overview – Adjusted Net Income and FRE Multiples
Confidential Illustrative Draft – Not for distribution 7 Relative Valuation Overview – Adjusted Net Income and FRE Multiples 20.0x 29.3x 28.2x 26.4x 25.5x 20.8x 19.9x 19.3x 28.1x 2021E P/E 2021E FRE Multiple 18.2x 30.7x 26.0x 18.5x 17.8x 17.6x 16.8x 12.5x U.S. alternative asset managers Solutions pr
Slide 8: Appendix: Value Proposition Overviews
Appendix: Value Proposition Overviews
Slide 9: Illustrative Client Value Proposition: Absolute Return Strategies
Confidential Illustrative Draft – Not for distribution 9 Illustrative Client Value Proposition: Absolute Return Strategies Example: $300M Fee Paying; $300M Non - Fee Paying . Assuming 0% gross return. 1 This hypothetical portfolio has an annual performance fee component of 5 % over a hurdle (capped
Slide 10: Illustrative Client Value Proposition: Private Markets
Confidential Illustrative Draft – Not for distribution 10 Illustrative Client Value Proposition: Private Markets Example: $1.0Bn Program – Direct Primary Program vs. Direct Primary + GCM Grosvenor - Managed Co - Investment Program Direct Primary Only Program $1.0 billion Management fee at the underl
Slide 11: Appendix: Financials
Appendix: Financials
Slide 12: Fee-Paying AUM Roll Forward
Confidential Illustrative Draft – Not for distribution 12 Fee - Paying AUM Roll Forward Quarter Ended June 30, 2020 Private Absolute Contracted Markets Return Not Yet Strategies Strategies Total FPAUM FPAUM Total AUM Fee - Paying AUM Balance, beginning of period 26.2 $ 21.6 $ 47.8 $ 5.4 $ 55.8 $ Con
Slide 13: Reconciliation to Non-GAAP Metrics
Confidential Illustrative Draft – Not for distribution 13 Reconciliation to Non - GAAP Metrics $mm, unless otherwise mentioned Note : Please refer to "Use of Non - GAAP Financial Measures" for additional information regarding the non - GAAP measures included in this presentation . Six Months Ended 3
Slide 14: Reconciliation to Non-GAAP Metrics (cont'd)
Confidential Illustrative Draft – Not for distribution 14 Reconciliation to Non - GAAP Metrics (cont’d) $mm, unless otherwise mentioned Note : Please refer to "Use of Non - GAAP Financial Measures" for additional information regarding the non - GAAP measures included in this presentation . Six Month
Slide 15: Reconciliation to Non-GAAP Metrics (cont'd)
Confidential Illustrative Draft – Not for distribution 15 Reconciliation to Non - GAAP Metrics (cont’d) $mm, unless otherwise mentioned Note : Please refer to "Use of Non - GAAP Financial Measures" for additional information regarding the non - GAAP measures included in this presentation . Six Month
Slide 16: GAAP Income Statement
Confidential Illustrative Draft – Not for distribution 16 GAAP Income Statement $mm, unless otherwise mentioned
CF Finance Acquisition — Q2 2020 Earnings Presentation on 6ix