GCM Grosvenor Inc. · NASDAQ:GCMG
GCM Grosvenor — Investor Presentation (June 2022)
19 slides from GCM Grosvenor's investor presentation, June 2022
Slide 1: GCM Grosvenor Investor Presentation June 2022
GCM Grosvenor Investor Presentation June 2022
Slide 2: 50+ Years of Alternative Asset Management Investing
50+ Years of Alternative Asset Management Investing 1971 74% ~520 ~170 First year of of AUM in customized separate accounts Employees Investment Investing professionals Real Estate Absolute Return ($4.1bn) ($25.0bn) Primary Alternative Private Credit Direct $71 bn Co- Invest Equity ($12.3bn) Assets
Slide 3: Our Alternative Investments Platform is Highly Flexible
Our Alternative Investments Platform is Highly Flexible One Platform That Spans the Alternatives Investing Universe 5,600+ tracked managers across the platform Private Real Absolute Return Infrastructure Credit ESG Equity Estate Strategies 650+ manager relationships Private Markets Across All Strate
Slide 4: The GCM Grosvenor Advantage
The GCM Grosvenor Advantage • Our Expertise Spans Alternative Investing: We have expertise and experience investing across all types of liquidity, risk profiles and investment types Investment • Sourcing Engine: Our breadth enables selectivity and fuels activities such as secondaries, co-investments
Slide 5: Flexible Delivery Formats Fuel Client Extension Opportunities
Flexible Delivery Formats Fuel Client Extension Opportunities • 74% of AUM • Specifically tailored program to client objectives and constraints • Extension of staff • Provide value-add ancillary services, including administering capital on behalf of certain of our clients • Open-ended and closed end
Slide 6: Strong Value Proposition Drives Diversified, Long-Tenured Client Base
Strong Value Proposition Drives Diversified, Long-Tenured Client Base6 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 High Net Worth/ Family Endowments 5% of our manage
Slide 7: Our Team and Culture Are Key to Our Success
Our Team and Culture Are Key to Our Success Years relevant experience Executive Management 34 31 19 29 24 23 22 18 16 Michael Sacks Paul Meister Jonathan Levin Pamela Bentley Sandra Hurse Eric Levin Burke Montgomery Frederick Pollock Stacie Selinger Chairman & CEO Vice Chairman President CFO CHRO CT
Slide 8: ESG and Impact Are Longstanding Cornerstones of Our Business
ESG and Impact Are Longstanding Cornerstones of Our Business We Help Our Clients Invest with an ESG Lens We Uphold the Highest Standards of Governance ESG and impact investments are implemented through sustainably themed, socially ESG Committee develops and regularly reviews our ESG Policy and suppo
Slide 9: GCM Grosvenor is a Growing Firm in a Growing Industry
GCM Grosvenor is a Growing Firm in a Growing Industry % CAGR Drivers of Growth Global Alternative AUM GCM Grosvenor AUM ($tn) ($bn) + Persistent growth in global institutional wealth 17% 10% 10% + Increasing investor $72 demand for alternative 4% $17 investment strategies $58 $27 12% + Consistent st
Slide 10: Strong Revenue Characteristics Drive Growing Earnings Potential
Strong Revenue Characteristics Drive Growing Earnings Potential $ million % CAGR Fee-Related Revenue Fee-Related Earnings Incentive Fee Earnings Power Adjusted Net Income $31 $39 9% $91 $415 $24 $32 33% $77 55% 86% $18 $10 $120 1Q 20 1Q 22 1Q 20 1Q 22 1Q 20 1Q 22 1Q 20 1Q 22 $ Run-rate annual Net un
Slide 11: Forecasted Double-Digit Fee-Related Earnings Growth in 2022 and 2023
Forecasted Double-Digit Fee-Related Earnings Growth in 2022 and 2023 – Key Drivers New Channel Expansion11 Grow High-Margin Strategies Scale Core Capabilities Non-institutional / Retail ESG / Impact8 Grow with Existing Clients AUM ($bn) LTM Flows AUM 35% 12% > 5% 17.9 88%+ 45%+ 13.3 Of clients
Slide 12: Appendix
Appendix
Slide 13: GAAP Statements of Income
GAAP Statements of Income Three Months Ended $000, except per share amounts and where otherwise noted Mar 31, 2020 Mar 31, 2022 Revenues Management fees $ 77,701 $ 92,110 Incentive fees 3,233 11,992 Other operating income 1,683 1,026 Total operating revenues 82,617 105,128 Expenses Employee compensa
Slide 14: Summary of Non-GAAP Financial Measures
Summary of Non-GAAP Financial Measures Three Months Ended $000, except per share amounts and where otherwise noted Mar 31, 2020 Mar 31, 2022 Adjusted EBITDA Revenues Private markets strategies $ 36,464 $ 46,841 Absolute return strategies 39,263 42,711 Management fees, net12 75,727 89,552 Administrat
Slide 15: Reconciliation to Non-GAAP Metrics
Reconciliation to Non-GAAP Metrics Three Months Ended $000 Mar 31, 2020 Mar 31, 2022 Adjusted Pre-Tax Income & Adjusted Net Income Net income attributable to GCM Grosvenor Inc. $ — $ 4,726 Plus: Net income attributable to noncontrolling interests in GCMH (14,955) 13,669 Provision (benefit) for incom
Slide 16: Reconciliation to Non-GAAP Metrics
Reconciliation to Non-GAAP Metrics Three Months Ended $000 Mar 31, 2020 Mar 31, 2022 Adjusted EBITDA Adjusted Net Income $ 9,605 $ 23,770 Plus: Adjusted income taxes17 3,202 7,714 Depreciation expense 696 399 Interest expense 5,867 5,284 Adjusted EBITDA $ 19,370 $ 37,167 Fee-Related Earnings Adjuste
Slide 17: Notes
Notes 1. AUM data as of March 31, 2022; ESG / Impact and Alternative Credit investments overlap with investments in other strategies. 2. Defined by improved fee structures and capacity constrained funds. 3. For Private Markets customized separate accounts from January 1, 2017, through March 31, 2022
Slide 18: 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 19: Disclaimer
Disclaimer Forward-Looking Statements 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, including anticipated incrementa