Gcm Grosvenor Inc. · NASDAQ:GCMG
Gcm Grosvenor — Q1 2025 Earnings Presentation
34 slides from Gcm Grosvenor's earnings presentation, May 7, 2025
Slide 1: 2025 First Quarter Results Earnings Presentation
2025 First Quarter Results Earnings Presentation
Slide 2: GCM Grosvenor Reports Q1 2025 Results
GCM Grosvenor Reports Q1 2025 Results CHICAGO, May 7, 2025 – GCM Grosvenor (Nasdaq: GCMG), a leading global alternative asset management solutions provider, today reported results for the first fiscal quarter ended March 31, 2025. “We had very strong Dividend results in the first GCM Grosvenor's Boa
Slide 3: Forward Looking Statements
Forward Looking Statements THIS PRESENTATION CONTAINS CERTAIN FORWARD- Form 10-K filed by GCM Grosvenor Inc. on February 20, 2025 LOOKING STATEMENTS within the meaning of the Private and its other filings with the U.S. Securities and Exchange Securities Litigation Reform Act of 1995, including state
Slide 4: First Quarter 2025 Results
Third Quarter 2023 Results First Quarter 2025 Results • Raised $2.9 billion of new capital in the first quarter 2025, an increase of 77% compared to prior year QTD ◦ Raised $8.4 billion over the last twelve months, an increase of 46% compared to the prior year twelve-month period • Announced strateg
Slide 5: Adjusted Earnings
Adjusted Earnings Fee-Related Earnings (mm) Adjusted EBITDA (mm) Adjusted Net Income (mm) 22% 26% $53.4 $46.7 30% $42.4 $38.1 $35.3 $27.2 35.3 27.2 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Longer-Term Trends 53% $224.9 84% $174.9 64% $148.8 $147.0 148.8 $95.1 $91.0 91.0 2020 LTM 2020 LTM 2020
Slide 6: Growth in Key Business Drivers
Growth in Key Business Drivers December 31, 2020 March 31, 2025 Growing Earnings Power $62bn $82bn AUM Private Markets Growing as a Percentage 54% 67% Private Markets % of FPAUM Shifting Towards Direct- Oriented Strategies 39% 53% Direct-Oriented Strategies % of Private Markets AUM Operating Leverag
Slide 7: Key Long-Term Growth Drivers
Key 2023 and Long-Term Growth Drivers Key Long-Term Growth Drivers 1. 2. 3. 9 Scaling Core Capabilities Planting Seeds for Future Growth Growing Earnings Quality and Power Client Retention & Compound Capital Individual Investor Business Shifting Towards Private Markets Approximately Opportunity to 9
Slide 8: 54 Years of Alternative Asset Management Investing
54 Years of Alternative Asset Management Investing 1971 71% 552 186 First year in business of AUM in customized Employees10 Investment professionals10 separate accounts Real Estate Absolute Return $6.3bn $23.4bn DIRECT SEEDING/ PRIMARY STAKES Alternative Credit $82bn Private Equity $14.5bn 12 AUM11
Slide 9: Growing and Diversifying AUM and Earnings Power
Growing and Diversifying AUM and Earnings Power AUM by Strategy (bn) 7% CAGR $82.0 $80.1 $76.9 $73.7 $72.1 $61.9 $30.4 $30.5 7% $29.4 Private Equity $26.2 $29.1 CAGR 12% $22.8 Private Markets 13 CAGR $13.1 $20.0 $20.6 $22.3 23% $16.6 $9.2 Real Assets CAGR $25.2 $26.6 $23.0 $22.4 $23.3 $23.4 (2)% Abs
Slide 10: Diversified Fundraising Drives Stability & Growth
Diversified Fundraising Drives Stability & Growth Diversified by Channel Diversified by Geography 60% Pensions 3% Corporation 11% Government/Sovereign Entity 58% Americas LTM LTM 8% Individual Investor 20% EMEA Fundraising Fundraising 7% Financial Institutions 22% APAC 8% Insurance 3% Other Diversif
Slide 11: 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) $12,293 $11,682 $723 $778 $9,816 $965 $8,758 $1,402 CIS (Diversified Infrastructure) MAC (Opportunistic) $7,402 GSF (PE Secon
Slide 12: Growing Private Markets Business
Growing Private Markets Business Private Markets Management Fees2 (mm) $59bn Private Markets Total AUM 13% CAGR $249.9 $238.5 67% $197.3 $214.3 Private Markets % of Total FPAUM $175.4 $150.0 $33bn Private Markets Fundraising since 2020 2021 2022 2023 2024 LTM 2020 2. See Notes towards the end of the
Slide 13: 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 value as of Q1 2025 142 programs with unrealized carri
Slide 14: Significant Embedded Value From Incentive Fees
Significant Embedded Value From Incentive Fees Incentive Fee Revenue has Been Muted ...and Incentive Fee Earnings Power Despite Growth in Unrealized Carry... is Growing with Shift Towards Direct-Oriented Strategies Unrealized Carried Interest vs Gross Incentive Fees (mm) AUM Subject to Incentive Fee
Slide 15: Other Key Items
Other Key Items • $82 million remained in the approved share and warrant repurchase program as of March 31, 2025. GCM Grosvenor was deemed to have repurchased $0.3 million of Class A common stock during the quarter ended March 31, 2025. ◦ In April and May 2025, GCM Grosvenor was deemed to have repur
Slide 16: Supplemental Information
Supplemental Information GCM GROSVENOR | 16
Slide 17: GAAP Statements of Income
GAAP Statements of Income $000, EXCEPT PER SHARE AMOUNTS AND WHERE OTHERWISE NOTED THREE MONTHS ENDED MAR 31, 2024 MAR 31, 2025 Revenues Management fees $ 95,885 $ 109,315 Incentive fees 10,118 15,068 Other operating income 2,863 1,463 Total operating revenues 108,866 125,846 Expenses Employee compe
Slide 18: Summary of Non-GAAP Financial Measures
Summary of Non-GAAP Financial Measures3 $000, except per share amounts and where otherwise noted THREE MONTHS ENDED ADJUSTED EBITDA MAR 31, 2024 MAR 31, 2025 Revenues Private markets strategies2 $ 55,577 $ 66,925 Absolute return strategies2 36,375 37,775 Management fees, net 91,952 104,700 Administr
Slide 19: GAAP Balance Sheets
GAAP Balance Sheets $000, except per share amounts and where otherwise noted DEC 31, 2024 MAR 31, 2025 Assets Cash and cash equivalents $ 89,454 $ 94,499 Management fees receivable 28,387 28,702 Incentive fees receivable 58,346 22,955 Due from related parties 12,681 11,262 Investments 257,807 255,20
Slide 20: Components of GAAP Employee Compensation and Benefits
Components of GAAP Employee Compensation and Benefits $000 THREE MONTHS ENDED MAR 31, 2024 DEC 31, 2024 MAR 31, 2025 Fee-Related Earnings Compensation Cash-based employee compensation and benefits, net20 $ 36,987 $ 34,966 $ 38,097 Incentive Fee Related Compensation Cash-based incentive fee related c
Slide 21: Reconciliation to Non-GAAP Metrics
Reconciliation to Non-GAAP Metrics $000 THREE MONTHS ENDED NET INCENTIVE FEES ATTRIBUTED TO GCM GROSVENOR MAR 31, 2024 DEC 31, 2024 MAR 31, 2025 Incentive fees: Performance fees $ 5,987 $ 42,245 $ 3,818 Carried interest 4,131 14,533 11,250 Total Incentive Fees $ 10,118 $ 56,778 $ 15,068 Less incenti
Slide 22: Reconciliation to Non-GAAP Metrics
Reconciliation to Non-GAAP Metrics $000 THREE MONTHS ENDED ADJUSTED PRE-TAX INCOME & ADJUSTED NET INCOME MAR 31, 2024 DEC 31, 2024 MAR 31, 2025 Net income attributable to GCM Grosvenor Inc. $ 2,124 $ 7,615 $ 463 Plus: Net income (loss) attributable to noncontrolling interests in GCMH (22,333) 21,352
Slide 23: Reconciliation to Non-GAAP Metrics
Reconciliation to Non-GAAP Metrics $000 THREE MONTHS ENDED ADJUSTED EBITDA MAR 31, 2024 DEC 31, 2024 MAR 31, 2025 Adjusted Net Income $ 27,212 $ 52,726 $ 35,274 Plus: Adjusted income taxes4 8,926 18,043 11,758 Depreciation expense 305 670 681 Interest expense 5,923 6,185 5,663 Adjusted EBITDA $ 42,3
Slide 24: Reconciliation to Adjusted Net Income Per Share
Reconciliation to Adjusted Net Income Per Share $000, except per share amounts and where otherwise noted THREE MONTHS ENDED ADJUSTED NET INCOME PER SHARE MAR 31, 2024 DEC 31, 2024 MAR 31, 2025 Adjusted Net Income $ 27,212 $ 52,726 $ 35,274 Weighted-average shares of Class A common stock outstanding
Slide 25: Change in FPAUM and AUM
Change in FPAUM and AUM Three Months Ended March 31, 2025 CONTRACTED PRIVATE MARKET ABSOLUTE RETURN NOT YET $mm STRATEGIES STRATEGIES TOTAL FPAUM FPAUM TOTAL AUM Fee-Paying AUM Beginning of Period (January 1, 2025) $ 42,717 $ 22,048 $ 64,765 $ 8,202 $ 80,077 Contributions from CNYFPAUM 1,134 7 1,141
Slide 26: Management Fee Detail
Management Fee Detail2 $000 THREE MONTHS ENDED MANAGEMENT FEES MAR 31, 2024 DEC 31, 2024 MAR 31, 2025 Private Markets Specialized Funds $ 21,001 $ 31,175 $ 32,078 Average Fee Rate27 0.77 % 0.83 % 0.82 % Customized Separate Accounts 34,576 35,083 34,847 Average Fee Rate 0.46 % 0.45 % 0.45 % Private M
Slide 27: Private Markets Strategies Performance Metrics
Private Markets Strategies Performance Metrics Realized and Partially Realized Investments ($mm) CURRENT INVESTMENT INVESTMENT STRATEGY COMMITMENTS CONTRIBUTIONS DISTRIBUTION PME IRR PME INDEX VALUE NET TVPI NET IRR Private Equity Primary Fund Investments29 $ 14,354 $ 15,706 $ 26,309 $ 2,208 1.82 13
Slide 28: Private Markets Strategies Performance Metrics
Private Markets Strategies Performance Metrics All Investments All Investments ($($mm) million) CURRENT INVESTMENT INVESTMENT STRATEGY COMMITMENTS CONTRIBUTIONS DISTRIBUTION PME IRR PME INDEX VALUE NET TVPI NET IRR Private Equity Primary Fund Investments29 $ 26,050 $ 24,716 $ 29,663 $ 10,520 1.63 12
Slide 29: Absolute Return Strategies Performance
Absolute Return Strategies Performance AS OF THREE MONTHS ANNUALIZED RETURNS PERIODS ENDED MAR 31, 2025 MAR 31, 2025 ENDED SINCE MAR 31, 2025 YEAR TO DATE ONE YEAR THREE YEAR FIVE YEAR INCEPTION Assets Under Management (bn) Gross Net Gross Net Gross Net Gross Net Gross Net Gross Net Absolute Return
Slide 30: Notes
Notes Data in the presentation is as of March 31, 2025 unless otherwise noted. 1. Of the $8.2 billion CNYFPAUM as of March 31, 2025, approximately $2.7 billion is subject to an agreed upon fee ramp in schedule that will result in management fees being charged on approximately $0.7 billion of such am
Slide 31: Notes (Continued)
Notes (Continued) 22. Excludes the impact of non-cash carried interest compensation and other of $1.1 million and $0.7 million for the three months ended December 31, 2024 and March 31, 2025, respectively. The net non-cash carried interest compensation and other for the three months ended March 31,
Slide 32: 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 33: 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 34: 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