Gcm Grosvenor Inc. · NASDAQ:GCMG
Gcm Grosvenor — Q4 2024 Earnings Presentation
34 slides from Gcm Grosvenor's earnings presentation, Nov 8, 2024
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 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. "We ended 2024 on a high note, capping a Divi
Slide 3: Forward Looking Statements
Forward Looking Statements THIS PRESENTATION CONTAINS CERTAIN FORWARD- Form 10-K filed by GCM Grosvenor Inc. on February 29, 2024 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: Fourth Quarter and Full Year 2024 Results
Third Quarter 2023 Results Fourth Quarter and Full Year 2024 Results • Raised $2.3 billion of new capital in the fourth quarter 2024, bringing full year 2024 fundraising to $7.1 billion, an increase of 41% compared to prior year. ◦ Fundraising of $3.7 billion in the second half of 2024 exceeded the
Slide 5: Adjusted Earnings
Adjusted Earnings Fee-Related Earnings (mm) Adjusted EBITDA (mm) Adjusted Net Income (mm) 32% $213.8 19% $166.4 36% $162.2 $139.9 $140.8 140.8 $103.2 103.2 2023 2024 2023 2024 2023 2024 Longer-Term Trends 45% $213.8 75% $166.4 55% $147.0 $140.8 140.8 $95.1 $91.0 91.0 2020 2024 2020 2024 2020 2024 GC
Slide 6: 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 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: 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 Employees10 Investment professionals10 separate accounts Real Estate Absolute Return $5.9bn $23.3bn DIRECT SEEDING/ PRIMARY STAKES Alternative Credit $80bn Private Equity $14.6bn 12 AUM11
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 13 CAGR $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
Slide 10: Diversified Fundraising Drives Stability & Growth
Diversified Fundraising Drives Stability & Growth Diversified by Channel Diversified by Geography 56% Pensions 5% Corporation 13% Government/Sovereign Entity 63% Americas 2024 2024 9% Individual Investor 12% EMEA Fundraising Fundraising 8% Financial Institutions 25% APAC 6% Insurance 3% Other Divers
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) $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 12: Growing Private Markets Business
Growing Private Markets Business $57bn Private Markets Management Fees2 (mm) Private Markets Total AUM 12% $238.5 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 2. See Notes towards the end of the document.
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 +$736 value as of Q4 2024 145 programs with unrealized
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 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 15: Other Key Items
Other Key Items • $32 million remained in the approved share and warrant repurchase program as of December 31, 2024. ◦ GCM Grosvenor was deemed to have repurchased $33 million of Class A common stock during the year ended December 31, 2024. • The Board of Directors approved an incremental $50 millio
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 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 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 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 $ 214,338 $ 238,546 Absolute return strat
Slide 19: GAAP Balance Sheets
GAAP Balance Sheets $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 240,202 257,80
Slide 20: Components of GAAP Employee Compensation and Benefits
Components of GAAP Employee Compensation and Benefits $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 Inc
Slide 21: Reconciliation to Non-GAAP Metrics
Reconciliation to Non-GAAP Metrics $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
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 taxes4 11,260 10,311 18,043 33,853 46,919 Depreciat
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 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 $ 14
Slide 25: Change in FPAUM and AUM
Change in FPAUM and AUM Three Months Ended December 31, 2024 PRIVATE MARKET ABSOLUTE RETURN CONTRACTED $mm STRATEGIES STRATEGIES TOTAL FPAUM 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
Slide 26: Management Fee Detail
Management Fee Detail2 $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
Slide 27: Private Markets Strategies Performance Metrics
Private Markets Strategies Performance Metrics Realized and Partially Realized Investments ($mm) CURRENT INVESTMENT INVESTEMNT STRATEGY COMMITMENTS CONTRIBUTIONS DISTRIBUTION PME IRR PME INDEX VALUE NET TVPI NET IRR Private Equity Primary Fund Investments28 $ 14,103 $ 15,377 $ 25,695 $ 2,292 1.82 13
Slide 28: Private Markets Strategies Performance Metrics
Private Markets Strategies Performance Metrics All Investments All Investments ($($mm) million) CURRENT INVESTMENT INVESTEMNT STRATEGY COMMITMENTS CONTRIBUTIONS DISTRIBUTION PME IRR PME INDEX VALUE NET TVPI NET IRR Private Equity Primary Fund Investments28 $ 25,806 $ 24,390 $ 29,036 $ 10,707 1.63 12
Slide 29: Absolute Return Strategies Performance
Absolute Return Strategies Performance AS OF THREE MONTHS ANNUALIZED RETURNS PERIODS ENDED DEC 31, 2024 DEC 31, 2024 ENDED SINCE DEC 31, 2024 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 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 billion of s
Slide 31: Notes (Continued)
Notes (Continued) 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 intere
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