GCM Grosvenor (GCMG) Q4 2024 earnings summary

Executive summary

• Reported strong fourth quarter and full year 2024 results, with a 41% increase in fundraising, significant profitability growth, and AUM reaching $80.1 billion.

• Achieved robust growth in fee-related earnings, adjusted net income, and client results, supported by a strong late-stage pipeline.

• Progressed on key business initiatives, including expanding credit investment talent and launching new products for individual investors.

• Board approved a $0.11 per share dividend and increased share repurchase authorization by $50 million in February 2025.

Financial highlights

• Fee-related earnings (FRE) increased 22% in Q4 and 19% for the full year, reaching $166.4 million in 2024.

• Adjusted net income rose 63% in Q4 and 36% for the full year to $140.8 million.

• AUM ended 2024 at $80.1 billion, up 4% year-over-year, with fee-paying AUM at $65 billion.

• Total fundraising reached $7.1 billion in 2024, a 41% increase over 2023.

• Annual performance fees totaled $55 million, exceeding $50 million for the third time in five years.

Outlook and guidance

• Targeting to double 2023 fee-related earnings by 2028, with continued margin expansion expected.

• 2025 fundraising expected to exceed 2024's $7.1 billion, supported by a strong pipeline and re-up calendar.

• Management will focus on scaling core capabilities, expanding client relationships, and growing private markets and individual investor channels.

• Private markets management fee growth (excluding catch-up fees) projected at around 10% year-over-year for Q1 2025.

• Minimal catch-up fees expected in Q2–Q4 2025 as funds move earlier in fundraising cycles.