GCM Grosvenor raised $10.7 billion in total capital in 2025, with $3.5 billion in the fourth quarter, setting new records. Financial results saw an 11% increase in fee-related earnings, 15% in adjusted EBITDA, and 18% in adjusted net income compared to 2024. The fee-related earnings margin was 44%, up 200 basis points from the previous year.
Adjusted EBITDA and adjusted net income were boosted by $68 million in performance fees from the ARS business in 2025. At $949 million, the gross unrealized carried interest balance is at an all-time high, up 14% from 2024. Assets under management reached $91 billion, a 14% increase from the previous year, with fee-paying AUM up 12% and not-yet-fee-paying AUM up 27%.
Despite recent market volatility, GCM Grosvenor remains optimistic. Diversification is a core tenet of their investment strategy, with exposures across markets, industries, asset classes, and geographies. With minimal exposure to SaaS businesses, they believe in the long-term benefits of AI and disruption. The recent market pullback is seen as an opportunity for their absolute strategies portfolio.
The company plans to increase its buyback authorization by $35 million, with $91 million remaining to repurchase shares. Strong cash flow generation and proceeds from warrants exercised in November allow for stock repurchases, minimizing dilution from stock-based compensation. Additionally, $65 million of the term loan will be repaid without penalty this week.
GCM Grosvenor reported strong fundraising results for 2025, with $10.7 billion raised, showcasing diversification across strategies. The fundraising pipeline for 2026 is robust, suggesting continued momentum. The company’s success is attributed to cross-selling strategies, creating tailored solutions for clients, and expanding relationships over time, resulting in significant AUM growth.
Expenses have been managed effectively, with a focus on investment in scalability and technology. The company’s performance fees have been strong, with an optimistic outlook for realization opportunities on the carried interest side. While fourth-quarter carry was softer than expected, the asset is appreciating rapidly, indicating future revenue potential.
Read more at Yahoo Finance: GCM Grosvenor (GCMG) Q4 2025 Earnings Transcript