GCM Grosvenor (GCMG) Q2 2024 earnings summary

Executive summary

• Achieved strong Q2 2024 results with 20% growth in fee-related earnings, 29% increase in adjusted net income, and $1.8B in new capital raised, with AUM reaching $78.7B–$79B, up 4% year-over-year.

• Private markets management fees grew 11% year-over-year, now representing 66%–71% of FPAUM, with infrastructure and private equity as key fundraising drivers.

• Multi-Strategy Composite delivered a 2.4% gross return in Q2, with 7.4% YTD and 12.3% over 12 months.

• Operating income was $20.8M for Q2 2024, reversing a prior year loss, with net income attributable to the company at $4.8M and diluted EPS of $0.04.

• Board declared a $0.11 per share quarterly dividend, payable September 17, 2024.

Financial highlights

• Q2 2024 revenues rose 9% year-over-year to $117.0M, with management fees up 7% to $99.8M and incentive fees up 23% to $16M.

• Adjusted EBITDA was $45.5M, up 26% year-over-year, with margin improving to 39%–40%.

• Adjusted net income rose 29% to $29.4M; adjusted net income per diluted share was $0.15, up 25%.

• Fee-paying AUM was $63.2B, with total AUM at $78.7B as of June 30, 2024.

• Cash and cash equivalents totaled $73.9M at quarter-end.

Outlook and guidance

• Management expects second-half fundraising to exceed the first half, with a strong pipeline and higher specialized fundraising.

• $7.3B in contracted, not-yet-fee-paying AUM expected to ramp into fees over the next five years.

• Reaffirmed double-digit private markets management fee growth for 2024, excluding catch-up fees.

• FRE margin for 2024 expected to exceed last year, with continued operating leverage.

• No material changes to risk factors or guidance since the last annual report.