GCM Grosvenor (NASDAQ:GCMG) Announces Quarterly Earnings Results, Beats Expectations By $0.01 EPS

GCM Grosvenor (NASDAQ:GCMG) issued its earnings results on Monday. The company reported $0.19 earnings per share for the quarter, topping analysts’ consensus estimates of $0.18 by $0.01, FiscalAI reports. The business had revenue of $134.34 million during the quarter, compared to analyst estimates of $131.21 million. GCM Grosvenor had a return on equity of 158.74% and a net margin of 7.79%.

Here are the key takeaways from GCM Grosvenor’s conference call:

• Assets under management grew 13% year over year to $97 billion, while fee-paying AUM reached $78 billion. Fee-related revenue increased 11%, fee-related earnings rose 21%, and adjusted net income grew 22% from the prior-year quarter.
• Fundraising accelerated to $2.3 billion in the second quarter from $1.5 billion in the first quarter, bringing first-half fundraising to approximately $3.9 billion. Management expects second-half fundraising to exceed first-half levels, supported by a broad pipeline across credit, infrastructure, private markets, wealth, insurance, and international channels.
• The firm’s approximately $150 million investment in SpaceX was valued at about $3.5 billion as of the latest market close, although gains remain unrealized and subject to lockups. The investment is expected to support future incentive-fee earnings and increase private-markets carried-interest marks, but its valuation remains volatile and timing of monetization is largely controlled by underlying managers.
• Credit is a major growth area, with nearly $18 billion in AUM and more than $900 million raised in the quarter, including the firm’s $1.2 billion inaugural credit secondaries fund. Executives highlighted diversification and limited exposure to challenged direct-lending segments, while acknowledging ongoing scrutiny of private-credit valuations, leverage, software exposure, and liquidity.
• Management reported $35 million to $40 million of unrealized annual performance fees, based partly on a $110 SpaceX share price, and $965 million of gross unrealized carried interest. The firm maintained its $0.12 quarterly dividend and repurchased 1.6 million shares for approximately $17 million, with $55 million remaining under its buyback authorization.

GCM Grosvenor Stock Up 1.2%

Shares of GCMG stock opened at $13.98 on Wednesday. The company has a current ratio of 4.05, a quick ratio of 4.05 and a debt-to-equity ratio of 2.97. GCM Grosvenor has a 12 month low of $9.30 and a 12 month high of $14.87. The stock has a market cap of $2.82 billion, a P/E ratio of 26.89 and a beta of 0.84. The company has a 50 day simple moving average of $12.49 and a two-hundred day simple moving average of $11.39.

GCM Grosvenor Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st will be given a dividend of $0.12 per share. This represents a $0.48 annualized dividend and a yield of 3.4%. The ex-dividend date is Tuesday, September 1st. GCM Grosvenor’s payout ratio is 92.31%.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on GCMG. TD Cowen lifted their price target on shares of GCM Grosvenor from $13.50 to $14.00 and gave the stock a “buy” rating in a research note on Tuesday, May 26th. Piper Sandler increased their price objective on shares of GCM Grosvenor from $15.00 to $16.00 and gave the company an “overweight” rating in a research report on Tuesday. Oppenheimer dropped their target price on shares of GCM Grosvenor from $18.00 to $17.00 and set an “outperform” rating on the stock in a report on Friday, July 17th. Weiss Ratings upgraded shares of GCM Grosvenor from a “hold (c+)” rating to a “buy (b-)” rating in a report on Tuesday, July 21st. Finally, JPMorgan Chase & Co. lifted their target price on shares of GCM Grosvenor from $12.00 to $13.00 and gave the stock a “neutral” rating in a research report on Tuesday. Four equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $15.00.

Institutional Investors Weigh In On GCM Grosvenor

Hedge funds have recently modified their holdings of the business. CANADA LIFE ASSURANCE Co increased its position in GCM Grosvenor by 44.9% in the fourth quarter. CANADA LIFE ASSURANCE Co now owns 4,570 shares of the company’s stock worth $52,000 after buying an additional 1,417 shares in the last quarter. National Bank of Canada FI lifted its position in shares of GCM Grosvenor by 65.5% during the 3rd quarter. National Bank of Canada FI now owns 4,405 shares of the company’s stock valued at $53,000 after buying an additional 1,743 shares in the last quarter. Tower Research Capital LLC TRC lifted its position in shares of GCM Grosvenor by 308.5% during the 2nd quarter. Tower Research Capital LLC TRC now owns 5,776 shares of the company’s stock valued at $67,000 after buying an additional 4,362 shares in the last quarter. Quarry LP bought a new position in shares of GCM Grosvenor during the 3rd quarter valued at approximately $71,000. Finally, Legal & General Group Plc grew its stake in shares of GCM Grosvenor by 96.8% during the 2nd quarter. Legal & General Group Plc now owns 8,638 shares of the company’s stock valued at $100,000 after acquiring an additional 4,249 shares during the period. Institutional investors own 99.95% of the company’s stock.

About GCM Grosvenor

GCM Grosvenor is a global alternative asset management firm that specializes in customized investment solutions across a range of private markets and hedge fund strategies. The firm partners with institutional clients—including pension funds, endowments, insurers and sovereign wealth funds—to design and implement portfolios that span private equity, infrastructure, real estate, credit and multi‐strategy hedge fund products. Through its multi‐manager platforms and direct co‐investment vehicles, GCM Grosvenor provides diversified access to opportunities that can enhance returns and manage risk in client portfolios.

Founded in 1971 as Grosvenor Capital Management, the firm has built a track record of sourcing, structuring and monitoring alternative investments on behalf of its clients.