GCM Grosvenor (GCMG) investor relations material

Strategic vision, direction, and growth drivers

• Focus on long-term value creation for clients and shareholders, leveraging a client-first culture, continuous innovation, and expansion into new markets including Europe and the Middle East.

• Business has evolved from hedge funds to a diversified $86B global alternatives platform, with direct-oriented strategies now comprising the majority of fundraising.

• Significant growth opportunities exist in international, insurance, and individual investor channels, with a multi-decade tailwind from individuals increasing allocations to alternatives.

• Infrastructure, credit, and real estate are expected to compound at high- to mid-teens rates, while private equity direct-oriented and absolute return strategies are projected to grow at approximately 10% and high single digits, respectively.

• Strong free cash flow supports both organic and disciplined inorganic growth, with M&A broadening capabilities and global reach.

Financial guidance, capital allocation, and performance

• Clear path to more than doubling 2023 fee-related earnings and adjusted net income per share by 2028, targeting $1.20+ ANI/share and a projected 50%+ FRE margin.

• Board approved a quarterly dividend increase from $0.11 to $0.12 per share, effective December 2025, with a projected $1.56 in dividends by end of 2028.

• Management fee-centric, capital-light model drives predictable, recurring revenue, with 80-90% of revenues from management fees and expanding margins.

• $8.7B of capital raised but not yet generating fees, representing future embedded revenue; 72% of AUM is incentive fee eligible, with $909M+ in unrealized carry.

• Adjusted net income and EBITDA have grown 67% and 56% since 2020, reflecting strong operating leverage and disciplined capital return through dividends and buybacks.

Business model, investment platform, and performance

• Highly scalable platform with origination capacity far exceeding current capital deployment, sourcing 3,000+ investments annually.

• Strong risk-adjusted returns: private equity (13.4%-20.8% IRR), infrastructure (11.4%-14.9% IRR), real estate (14.4% IRR), credit (11.4%-24.3% IRR), and absolute return (8.9% 5-year annualized gross ROR).

• Direct-oriented investments and specialized funds have driven growth and outperformance, with specialized funds growing at a 35% CAGR since 2014.

• Technology and data analytics, including AI, are leveraged for investment decision-making, risk management, and client service, supporting further scalability.

• Scalable, repeatable investment process and cross-team collaboration enable efficient portfolio construction and risk management.