GCM Grosvenor Inc. Files 2023 Annual Report (10-K)

TL;DR

<b>GCM Grosvenor Inc. has filed its 2023 10-K annual report detailing financial performance and corporate structure.</b>

AI Summary

GCM Grosvenor Inc. (GCMG) filed a Annual Report (10-K) with the SEC on March 1, 2024. GCM Grosvenor Inc. filed its 2023 10-K report on March 1, 2024. The report covers the fiscal year ending December 31, 2023. The company's principal executive offices are located in Chicago, IL. The filing includes data related to common stock, warrants, and related party transactions. Financial data points for asset management, incentive fees, and service revenue are provided for 2023, 2022, and 2021.

Why It Matters

For investors and stakeholders tracking GCM Grosvenor Inc., this filing contains several important signals. This filing provides a comprehensive overview of GCM Grosvenor's financial health and operational activities for the fiscal year 2023, crucial for investors to assess performance and future outlook. The detailed financial statements and disclosures within the 10-K are essential for understanding the company's revenue streams, capital structure, and any potential risks or changes from the previous year.

Risk Assessment

Risk Level: — GCM Grosvenor Inc. shows moderate risk based on this filing. The filing is a standard 10-K, which is a comprehensive annual report. While it contains detailed financial information, it does not immediately highlight any significant negative trends or events that would elevate the risk beyond a medium level without further in-depth analysis of the financial statements and risk factors.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to identify specific areas of growth, potential challenges, and management's strategies for the upcoming fiscal year.

Revenue Breakdown

Key Numbers

• 2023-12-31 — Fiscal Year End (Period covered by the report)
• 2024-03-01 — Filing Date (Date the 10-K was filed)
• 0001819796-24-000005 — Accession Number (Unique identifier for the filing)

Key Players & Entities

• GCM Grosvenor Inc. (company) — Filer of the 10-K report
• 2023-12-31 (date) — Fiscal year end
• 2024-03-01 (date) — Filing date
• Chicago, IL (location) — Business address

FAQ

Industry Context

GCM Grosvenor Inc. operates in the investment advice industry, providing asset management and related services.

Regulatory Implications

The filing is a standard 10-K report required by the SEC for publicly traded companies, adhering to the Securities Exchange Act of 1934.

What Investors Should Do

1. Analyze the detailed financial statements for revenue trends and profitability.
2. Examine the risk factors section for potential business threats and mitigation strategies.
3. Review executive compensation and shareholding data for insights into management alignment.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-01: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial filing provided, so a comparison to a previous filing is not possible with the given data.

Key Financial Figures

• $0.0001 — which registered Class A common stock, $0.0001 par value per share GCMG The Nasdaq St
• $7.54 — Nasdaq Stock Market on June 30, 2023 of $7.54 per share. As of February 27, 2024 , t
• $76.9 billion — needs. As of December 31, 2023, we had $76.9 billion in AUM. Our central objectives are to
• $375 million — nd 2022, our total management fees were $375 million and $367 million, respectively , total
• $367 m — l management fees were $375 million and $367 million, respectively , total operating r
• $445 million — ctively , total operating revenues were $445 million and $447 million, respectively, our net
• $447 m — perating revenues were $445 million and $447 million, respectively, our net income was
• $13 million — llion, respectively, our net income was $13 million and $20 million, respectively, our fee
• $20 m — ely, our net income was $13 million and $20 million, respectively, our fee related ea
• $140 million — ectively, our fee related earnings were $140 million and $129 million, respectively, and our
• $129 m — related earnings were $140 million and $129 million, respectively, and our adjusted n
• $103 million — tively, and our adjusted net income was $103 million and $94 million, respectively. We beli
• $94 m — djusted net income was $103 million and $94 million, respectively. We believe our hi
• $54.5 billion — ate Markets Private Markets represents $54.5 billion of AUM, or 71% of total AUM. Private Ma
• $29.4 billion — ts. As of December 31, 2023, we managed $29.4 billion of AUM in private equity strategies .

Filing Documents

• gcm-20231231.htm (10-K) — 2946KB
• exhibit211q42023.htm (EX-21.1) — 28KB
• exhibit231q42023.htm (EX-23.1) — 3KB
• exhibit311q42023.htm (EX-31.1) — 10KB
• exhibit312q42023.htm (EX-31.2) — 10KB
• exhibit321q42023.htm (EX-32.1) — 5KB
• exhibit322q42023.htm (EX-32.2) — 5KB
• exhibit971q42023.htm (EX-97.1) — 28KB
• gcm-20231231_g1.jpg (GRAPHIC) — 65KB
• gcm-20231231_g2.jpg (GRAPHIC) — 97KB
• gcm-20231231_g3.jpg (GRAPHIC) — 107KB
• gcm-20231231_g4.jpg (GRAPHIC) — 22KB
• gcm-20231231_g5.jpg (GRAPHIC) — 57KB
• gcm-20231231_g6.jpg (GRAPHIC) — 64KB
• gcm-20231231_g7.jpg (GRAPHIC) — 59KB
• gcm-20231231_g8.jpg (GRAPHIC) — 65KB
• 0001819796-24-000005.txt (&nbsp;) — 13970KB
• gcm-20231231.xsd (EX-101.SCH) — 84KB
• gcm-20231231_cal.xml (EX-101.CAL) — 119KB
• gcm-20231231_def.xml (EX-101.DEF) — 461KB
• gcm-20231231_lab.xml (EX-101.LAB) — 996KB
• gcm-20231231_pre.xml (EX-101.PRE) — 711KB
• gcm-20231231_htm.xml (XML) — 1703KB

Business

Business 6 Item 1A

Risk Factors

Risk Factors 33 Item 1B Unresolved Staff Comments 75

Cybersecurity

Item 1C Cybersecurity 75 Item 2

Properties

Properties 76 Item 3

Legal Proceedings

Legal Proceedings 76 Item 4 Mine Safety Disclosures 76 Part II Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 77 Item 6 Reserved 78 Item 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 79 Item 7A

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 101 Item 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 103 Item 9 Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 150 Item 9A

Controls and Procedures

Controls and Procedures 150 Item 9B Other Information 150

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 151 Part III Item 10 Directors, Executive Officers and Corporate Governance 152 Item 11

Executive Compensation

Executive Compensation 152 Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 152 Item 13 Certain Relationships and Related Transactions, and Director Independence 152 Item 14 Principal Accountant Fees and Services 152 Part IV Item 15 Exhibits and Financial Statement Schedules 153 Item 16 Form 10-K Summary 157

Signatures

Signatures 158 1 BASIS OF PRESENTATION As used in this Annual Report on Form 10-K, unless as the context requires otherwise, as used herein, references to "GCM," the "Company," "we," "us," and "our," and similar references refer collectively to GCM Grosvenor Inc. and its consolidated subsidiaries. Unless the context otherwise requires, references in this Annual Report on Form 10-K to: "A&R LLLPA" are to the Fifth Amended and Restated Limited Liability Limited Partnership Agreement of GCMH; "AUM" are to assets under management; "Business Combination" or "Transaction" are to the transactions contemplated by the Transaction Agreement; "Bylaws" are to our Amended and Restated Bylaws; "CAGR" are to compound annual growth rate; "CFAC" are to CF Finance Acquisition Corp., a Delaware corporation; "CF Investor" are to CF GCM Investor, LLC, a Delaware limited liability c ompany; "CF Sponsor" are to CF Finance Holdings, LLC, a Delaware limited liability company; "Charter" are to our Amended and Restated Certificate of Incorporation; "Class C Share Voting Amount" are to the "Class C Share Voting Amount," as such term is defined in our Charter, which is generally a number of votes per share equal to (1) (x) an amount of votes equal to 75% of the aggregate voting power of our outstanding capital stock (including for this purpose any Includible Shares), minus (y) the total voting power of our outstanding capital stock (other than the Class C common stock) owned or controlled, directly or indirectly, by the Key Holders (including any Includible Shares), divided by (2) the number of shares of Class C common stock then outstanding; "clients" are to persons who invest in our funds, even if such persons are not deemed clients of our registered investment adviser subsidiaries for purposes of the Investment Advisers Act 1940, as amended; "Closing Date" are to November 17, 2020; "Code" are to the U.S. Internal Revenue Code of 1986, as amended; "Class A common stock

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical facts contained in this Annual Report on Form 10-K, including, but not limited to, statements regarding our future results of operations or financial condition; business strategy and plans; and market opportunity may be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "contemplates," "believes," "estimates," "forecasts," "predicts," "potential" or "continue" or the negative of these terms or other similar expressions. Forward-looking statements contained in this Annual Report on Form 10-K include, but are not limited to statements regarding our future results of operations and financial position, industry and business trends, equity compensation, business strategy, plans, market growth and our objectives for future operations. The forward-looking statements in this Annual Report on Form 10-K are only current expectations and predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not

BUSINESS

ITEM 1. BUSINESS Our Company Over our 52-year history we have been a leading global alternative asset management solutions provider. We invest across all major alternative investment strategies and are highly flexible in how we structure our solutions to meet each client's specific needs. As of December 31, 2023, we had $76.9 billion in AUM. Our central objectives are to provide our clients with choice, deliver innovative alternative investment offerings and generate competitive risk-adjusted returns. We partner with our institutional and individual clients to invest on their behalf across the private and public markets, either through portfolios customized to meet a client's specific objectives or through specialized funds that are developed to meet broad market demands for strategies and risk-return objectives. Our clients include large, sophisticated, global institutional investors and a growing individual investor client base. In both cases, our clients rely on our investment expertise and differentiated investment access to navigate the alternatives market. As one of the pioneers of customized separate account solutions, we are equipped to provide investment services to clients with a wide variety of needs, internal resources and investment objectives, and our client relationships are deep and frequently span decades. As of December 31, 2023, we had 538 employees, including 177 investment professionals, operating in nine offices throughout the United States and in Frankfurt, Hong Kong, London, Seoul, Sydney, Tokyo, and Toronto. For the years ended December 31, 2023 and 2022, our total management fees were $375 million and $367 million, respectively , total operating revenues were $445 million and $447 million, respectively, our net income was $13 million and $20 million, respectively, our fee related earnings were $140 million and $129 million, respectively, and our adjusted net income was $103 million and $94 million, respectively. We believe our history

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View this 10-K filing on SEC EDGAR