GCM Grosvenor (GCMG) Q4 2023 earnings summary

Executive summary

• 2023 was described as strong despite a difficult backdrop; Private Markets drove growth, with FPAUM and management fees each up 9% YoY.

• FY 2023 GAAP revenue was $445.0m and GAAP net income was $12.8m; adjusted earnings measures increased 9% YoY.

• Total AUM reached $76.9bn, up 4% YoY; fee-paying AUM was $61.7bn, up 5%.

• The alternative investment platform had AUM across private equity, infrastructure, real estate, credit and absolute return strategies, supported by ~540 professionals.

Financial highlights

• Q4 GAAP revenue was $116.6m, up 17% YoY; FY revenue was $445.0m, compared with $446.5m in 2022.

• Q4 FRE was $40.3m, up 23% YoY; FY FRE was $139.9m, up 9%.

• Q4 Adjusted EBITDA was $49.7m, up 40% YoY; FY Adjusted EBITDA was $162.2m, up 9%.

• Q4 Adjusted Net Income was $32.4m, up 48% YoY; FY Adjusted Net Income was $103.2m, up 9%.

• GAAP net income was $3.3m in Q4 and $12.8m for FY 2023, down 26% and 36% YoY, respectively.

Outlook and guidance

• Long-term priorities include scaling core capabilities, deepening client relationships, growing specialized funds, and shifting toward Private Markets and direct-oriented strategies.

• Over the last three years, $11.6bn was raised for real assets and $11.6bn for Private Markets direct-oriented strategies.

• Incentive-fee opportunity included $373m of firm-share unrealized carried interest and $28m in run-rate annual performance fees; run-rate fees are potential, scenario-based amounts.