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1. Company Snapshot

1.a. Company Description

Grosvenor Capital Management, L.P. is global alternative asset management solutions provider.The firm primarily provides its services to pooled investment vehicles.It also provides its services to investment companies, high net worth individuals, pension and profit sharing plans and state or municipal government entities.


The firm invests in equity and alternative investment markets of the United States and internationally.The firm invests in multi-strategy, credit-focused, equity-focused, macro-focused, commodity-focused, and other specialty portfolios.It focuses in hedge fund asset classes, private equity, real estate, and/or infrastructure, credit and absolute return strategies.


It also focuses in primary fund investments, secondary fund investments, and co-investments with a focus on buyout, distressed debt, mezzanine, venture capital/growth equity investments.The firm seeks to make regionally-focused investments in middle-market buyout.It prefers to invest in aerospace and defense, advanced electronics, information technology, biosciences, and advanced materials.


It focuses on Ohio and the Midwest region.The firm employs fundamental and quantitative analysis.Grosvenor Capital Management, L.P. was founded in 1971 and is based in Chicago, Illinois with additional offices in North America, Asia and Europe.

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1.b. Last Insights on GCMG

GCM Grosvenor's recent performance faced challenges due to Melford Carter, a former Principal, joining Star Mountain Capital as a Senior Advisor, potentially leading to loss of expertise. Moreover, despite Q3 2025 earnings surpassing estimates with $0.19 per share, revenue growth appears stagnant. Additionally, key metrics comparisons to Wall Street estimates and year-ago numbers may have disappointed investors. The company's fundraising increased 49% year-over-year, but rising competition in alternative asset management solutions may pressure growth. (Source: GCM Grosvenor's earnings releases and news articles).

1.c. Company Highlights

2. GCM Grosvenor's Strong Q3 2025 Earnings: A Closer Look

GCM Grosvenor reported a robust third quarter for 2025, with fee-related earnings, adjusted EBITDA, and adjusted net income increasing by 18%, 16%, and 18%, respectively, compared to the third quarter of 2024. The company's fee-related earnings margin was 45%, a 350 basis point increase from the previous year. Earnings per share (EPS) came in at $0.19, beating analyst estimates of $0.17. Assets Under Management (AUM) reached a record $87 billion, a 9% increase from the end of the third quarter of 2024.

Publication Date: Nov -18

📋 Highlights
  • Fee-Related Earnings Growth:: Increased 18% to $X, EBITDA up 16%, and adjusted net income rose 18% YoY in Q3 2025.
  • Record AUM:: Assets Under Management reached $87 billion, a 9% increase from Q3 2024.
  • Fundraising Success:: Raised $7.2 billion in H1 2025, exceeding 2024 totals, and closed a $490 million CLO in private credit secondaries.
  • Dividend and Growth Targets:: Quarterly dividend raised to $0.12/share; aims to double 2023 fee-related earnings by 2028 and exceed $1.20 in adjusted EPS.
  • ARS Performance & Carry:: Absolute Return Strategies delivered 14.2% gross 12m return; gross unrealized carried interest hit $941 million.

Business Performance

The company's Absolute Return Strategies (ARS) performed well, with a 14.2% gross rate of return over the last 12 months. Private market strategies also saw year-over-year portfolio appreciation. GCM Grosvenor raised $7.2 billion in the first nine months of 2025, surpassing the total fundraising for 2024. The company closed a $490 million collateralized fund obligation, which will be invested in private Credit secondaries, generating $2 million in transaction fees. As Jonathan Levin noted, Infrastructure and Credit strategies accounted for nearly two-thirds of the capital raised.

Financial Highlights

Pamela Bentley covered the company's financial results in more detail, highlighting the growth in AUM, fee-paying AUM, and contracted not yet fee-paying AUM. Management fees increased by 7% year-over-year, with ARS management fees growing by 6%. The company's fee-related earnings margin expanded to 45%, and the gross unrealized carried interest balance reached an all-time high of $941 million.

Valuation and Outlook

With a P/E Ratio of 20.65 and an EV/EBITDA of 21.59, the market appears to be pricing in a certain level of growth for GCM Grosvenor. Analysts estimate next year's revenue growth at 9.9%, which is consistent with the company's guidance. The company's ROIC is 52.38%, indicating a strong return on invested capital. The Dividend Yield is 3.93%, providing a relatively attractive income stream. GCM Grosvenor aims to double its 2023 fee-related earnings by 2028 and increase its adjusted net income per share to over $1.20.

Growth Initiatives

The retail business has $4 billion in AUM, with significant growth in the past few years, mostly in separately managed accounts and institutional funds. The company has partnerships with Grove Lane and is marketing interval funds, with plans to launch a private equity interval fund. GCM Grosvenor sees an opportunity to help individual investors build diversified portfolios. In private credit, the company is not seeing a slowdown, despite some high-profile credit issues, and expects the asset class to continue growing.

3. NewsRoom

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GCM Grosvenor: Private Markets Seem To Be Thawing

Dec -01

Source: seekingalpha.com

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GCM Grosvenor Inc. (GCMG) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

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GCM Grosvenor (GCMG) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates

Nov -05

Source: zacks.com

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GCM Grosvenor Inc. (GCMG) Q3 Earnings and Revenues Surpass Estimates

Nov -05

Source: zacks.com

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GCM Grosvenor Reports Third Quarter 2025 Earnings Results, with Year-To-Date Fundraising Increasing 49% Year-Over-Year, Year-to-Date GAAP Net Income, Fee-Related Earnings and Adjusted Net Income Increasing 138%, 15% and 19%, Respectively, Year-Over-Year

Nov -05

Source: globenewswire.com

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Melford Carter, Former GCM Grosvenor Principal and Denali Co-Founder, Joins Star Mountain Capital as Senior Advisor

Nov -04

Source: businesswire.com

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GCM Grosvenor to Announce Third Quarter 2025 Financial Results and Host Investor Conference Call on November 5, 2025

Oct -22

Source: globenewswire.com

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GCM Grosvenor Inc. (GCMG) Analyst/Investor Day Transcript

Oct -16

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.00%)

6. Segments

Alternative Asset Management Solutions

Expected Growth: 7.0%

Grosvenor Capital Management's 7.0% growth in Alternative Asset Management Solutions is driven by increasing institutional demand for diversification, rising popularity of alternative investments, and the firm's expertise in customized portfolio construction. Additionally, the growing need for yield enhancement, risk management, and ESG integration also contribute to the segment's growth.

7. Detailed Products

Customized Investment Solutions

Grosvenor Capital Management offers customized investment solutions tailored to meet the unique needs of institutional investors, including pension funds, endowments, and foundations.

Hedge Fund Investments

Grosvenor Capital Management provides access to a diversified range of hedge funds, offering investors the potential for absolute returns and risk management.

Private Equity Investments

Grosvenor Capital Management offers private equity investments, providing investors with access to a range of private companies and funds.

Real Assets Investments

Grosvenor Capital Management provides investments in real assets, including real estate, infrastructure, and natural resources.

Multi-Asset Class Solutions

Grosvenor Capital Management offers multi-asset class solutions, combining different asset classes to create diversified portfolios.

8. Grosvenor Capital Management, L.P.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Grosvenor Capital Management, L.P. has a low threat of substitutes due to its unique investment strategies and diversified portfolio.

Bargaining Power Of Customers

The bargaining power of customers is moderate as Grosvenor Capital Management, L.P. has a diverse client base, but some clients may have significant negotiating power.

Bargaining Power Of Suppliers

Grosvenor Capital Management, L.P. has a low bargaining power of suppliers due to its strong relationships with its suppliers and limited dependence on a single supplier.

Threat Of New Entrants

The threat of new entrants is high in the asset management industry, as new firms can easily enter the market and compete with established players like Grosvenor Capital Management, L.P.

Intensity Of Rivalry

The intensity of rivalry is high in the asset management industry, with many established players competing for market share and clients.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 107.65%
Debt Cost 3.95%
Equity Weight -7.65%
Equity Cost 6.50%
WACC 3.75%
Leverage -1407.96%

11. Quality Control: Grosvenor Capital Management, L.P. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Gladstone Capital

A-Score: 7.2/10

Value: 6.9

Growth: 6.1

Quality: 8.0

Yield: 10.0

Momentum: 3.0

Volatility: 9.3

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Horizon Technology Finance

A-Score: 7.0/10

Value: 8.2

Growth: 3.7

Quality: 6.1

Yield: 9.0

Momentum: 5.0

Volatility: 10.0

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TriplePoint Venture Growth BDC

A-Score: 6.7/10

Value: 7.8

Growth: 4.0

Quality: 8.1

Yield: 10.0

Momentum: 3.0

Volatility: 7.0

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Grosvenor Capital Management

A-Score: 6.5/10

Value: 4.9

Growth: 4.3

Quality: 6.0

Yield: 8.0

Momentum: 6.0

Volatility: 10.0

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Hennessy Advisors

A-Score: 6.5/10

Value: 7.8

Growth: 2.7

Quality: 8.0

Yield: 9.0

Momentum: 6.0

Volatility: 5.3

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Portman Ridge Finance

A-Score: 5.7/10

Value: 6.0

Growth: 4.7

Quality: 3.2

Yield: 10.0

Momentum: 0.5

Volatility: 10.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

10.78$

Current Price

10.78$

Potential

-0.00%

Expected Cash-Flows