GCM Grosvenor (GCMG) Q3 2024 earnings summary

Executive summary

• Fee-related earnings increased 18% year-to-date, and adjusted net income rose 24% over the same period in 2023.

• Assets under management reached approximately $80 billion, up 5% year-over-year, with fee-paying AUM at $63.7 billion.

• Year-to-date fundraising rose 34%, with $4.8 billion raised YTD and $1.4 billion in Q3 2024.

• GAAP Net Income YTD increased 16% to $11.1 million.

• Growth in private markets, infrastructure, and private credit continues to drive business performance.

Financial highlights

• Fee-related earnings margin was 41% for the quarter, up from 37% prior year.

• Adjusted EBITDA grew 21% year-to-date compared to 2023, reaching $136.2 million YTD.

• Management fees increased 4% year-over-year to $98.5 million for Q3 2024 and 5% to $294.3 million for the nine months.

• Realized $23 million in incentive fees in Q3, including $3 million in ARS performance fees and $20 million in carried interest.

• Gross unrealized carried interest increased 5% year-over-year to $816 million.

Outlook and guidance

• Expect fundraising in the second half of 2024 to exceed the $3.4 billion raised in the first half.

• Anticipate total private markets management fee growth of 9%-11% for full year 2024.

• Maintain confidence in the five-year target to double 2023 fee-related earnings by 2028.

• Expect adjusted EBITDA and adjusted net income to grow faster than fee-related earnings over the next four years.

• Management expects cash flow from operations, current cash, and available borrowing capacity to be sufficient to fund operations, capital expenditures, and debt service for the next twelve months and foreseeable future.