GCM Grosvenor (GCMG) UBS Financial Services Conference summary

Business model and market positioning

• Operates as a solutions provider in alternative investments, offering flexible, client-focused solutions across private equity, real estate, credit, infrastructure, and hedge funds.

• Partners with both institutional and individual investors, providing customized separate accounts, commingled funds, evergreen funds, and registered products.

• Acts as a capital partner to traditional GPs, investing in funds, co-investments, secondaries, and direct deals, emphasizing coexistence rather than competition.

• Maintains strong relationships with both GPs and clients, supporting portfolio construction and access to private markets.

Fundraising trends and outlook

• Raised $7 billion in fundraising last year, with expectations for growth in 2024 and 2025 as market conditions improve.

• Sees secular tailwinds in private credit, infrastructure, and growing allocations from individual investors.

• Majority of annual fundraising comes from existing clients, providing strong pipeline visibility and stability.

• Expects 2025 fundraising to surpass 2024, though not reaching 2021 levels.

Growth strategy and risks

• Aims to double fee-related earnings (FRE) over five years, leveraging industry growth, operating leverage, and expanding client allocations.

• Focuses on infrastructure and private credit as key growth areas, with significant potential in individual investor channels.

• Recognizes execution and market risks but remains confident in achieving FRE targets barring major exogenous shocks.