GCM Grosvenor (GCMG) Q2 2024 earnings summary

Executive summary

• Achieved strong Q2 2024 results with operating revenues of $117.0 million, up 9% year-over-year, and adjusted net income up 29% to $29.4 million.

• Fee-related earnings increased 20% year-over-year to $39.2 million, with adjusted EBITDA up 26% to $45.5 million.

• Raised $1.8 billion in Q2 and $3.4 billion year-to-date, a 45% increase over prior year-to-date.

• Fee-paying AUM remained stable at $63.2 billion, with total AUM at $78.7 billion as of June 30, 2024.

• Declared a quarterly dividend of $0.11 per share, payable September 17, 2024.

Financial highlights

• Management fees rose 7% year-over-year to $99.8 million, and incentive fees increased 23% to $16.0 million.

• Adjusted EBITDA margin improved to 39% of revenue in Q2 2024.

• Operating income was $20.8 million, reversing a $36.0 million loss in Q2 2023.

• Adjusted net income per diluted share was $0.15, up from $0.12 in Q2 2023.

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

Outlook and guidance

• Management expects continued growth in management fees as $7.3 billion in contracted, not-yet-fee-paying AUM ramps into fees over the next five years.

• The company anticipates stable liquidity and sufficient cash flow to fund operations, capital expenditures, and debt service.

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

• FRE margin for 2024 anticipated to surpass 2023 levels.

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