GCM Grosvenor (GCMG)·Q4 2025 Earnings Summary
GCM Grosvenor Posts Record Fundraising Year as AUM Nears $100 Billion
February 10, 2026 · by Fintool AI Agent
GCM Grosvenor delivered a strong fourth quarter capped by a record fundraising year, raising $10.7 billion in 2025—up 49% from the prior year . The alternative asset management firm's AUM climbed to $90.9 billion, putting the $100 billion milestone within reach . CEO Michael Sacks struck an upbeat tone: "We had a very strong 2025 with good investment performance, record fundraising and excellent financial results. We look forward to the momentum continuing in 2026."
What Did Management Say About Market Volatility?
CEO Michael Sacks addressed recent market stress head-on, noting concerns about AI disruption and SaaS valuations:
"While we probably prefer a somewhat less volatile environment, we are pretty sanguine with regard to the recent developments."
Key points on portfolio positioning:
- SaaS exposure is limited: Only 4% of total AUM and less than 6% of credit AUM
- Diversification is core: Typical portfolios include exposures to several hundred companies across markets, industries, and geographies
- ARS performed well: Absolute Return Strategies had positive performance in January despite market volatility
- Net long AI beneficiary: "We have more net long opportunity from AI trends...than we have to exposure to loss from those disrupted"
On the stock's recent weakness, Sacks called it a "good example of a proverbial baby being thrown out with the bathwater" and increased the buyback authorization by $35 million .
Did GCM Grosvenor Beat Earnings?
GCM Grosvenor reported solid Q4 2025 results with revenue up 7% year-over-year and Adjusted Net Income per Share growing 15% to $0.31 .
For full-year 2025, Adjusted Net Income grew 18% to $166.3 million, with Fee-Related Earnings up 11% to $185.1 million .
Ask Fintool AI AgentWhat Drove the Strong Results?
Record Fundraising
The headline number: $10.7 billion raised in 2025—a 49% increase over 2024 and a company record . Q4 alone contributed $3.5 billion .
Fundraising was broad-based across strategies:
The company highlighted its ~90% private markets re-up rate, underscoring strong client retention .
AUM Growth
Assets under management reached $90.9 billion, up 14% year-over-year :
The $10.4 billion in Contracted, Not Yet Fee-Paying AUM represents a significant pipeline of future revenue as capital is deployed .
What Changed From Last Quarter?
Fee-Related Earnings Margin held steady at 44%, up approximately 1,300 basis points since 2020 . This reflects operating leverage as the firm scales.
Private Markets Mix continues to grow—now 71% of AUM, up from 59% in 2020 . Direct-oriented strategies (co-investments, secondaries, direct investments) represent 54% of private markets AUM, up from 39% in 2020 .
Unrealized Carried Interest reached $949 million, up from $395 million at year-end 2020 . The firm's share is $478 million, representing significant embedded earnings potential .
How Did the Stock React?
GCMG shares closed at $9.90 on February 9, the last trading day before the earnings release. The stock is down from its 52-week high of $14.48 .
The stock has traded in a range as investors weigh strong operating performance against broader market conditions for alternative asset managers.
Capital Allocation Update
GCM Grosvenor returned capital to shareholders while strengthening the balance sheet:
Cash and cash equivalents stood at $242 million, with total investments of $235 million . Debt was $431 million with the revolving credit facility undrawn .
Ask Fintool AI AgentWealth Channel Progress
GCM Grosvenor highlighted meaningful progress in the individual investor channel, where AUM increased 18% year-over-year :
President Jon Levin emphasized that "customized solutions will be a meaningful contributor to our growth in this channel going forward" .
Investment Performance
GCM Grosvenor's investment strategies delivered strong returns across the board:
2025 Highlights from CEO Sacks:
- Multi-Strategy Composite: 15% gross rate of return in 2025—"excellent"
- Infrastructure: Approximately 11% return for the year
- Dry Powder: Approximately $12 billion available for deployment
Absolute Return Strategies (As of Dec 31, 2025)
Private Markets (Realized & Partially Realized)
Ownership Structure
Management continues to own a significant stake, aligning interests with public shareholders:
All warrants expired on November 17, 2025 .
Key Risks and Considerations
- Revenue variability: Incentive fees can fluctuate significantly quarter-to-quarter based on fund performance and realizations
- Market sensitivity: ARS performance and AUM are exposed to market conditions
- Fee pressure: Average management fee rates continue a modest downward trend (Private Markets: 0.54% vs 0.56% YoY)
- Deployment risk: $10.4B in CNYFPAUM needs to be deployed into attractive investment opportunities
What Did Management Guide?
CFO Pam Bentley provided specific Q1 2026 guidance:
2028 Medium-Term Targets (reaffirmed):
- Fee-Related Earnings: More than double 2023 FRE to over $280 million
- Adjusted Net Income per Share: More than $1.20
Q&A Highlights
Fundraising Pipeline
Q: Is the fundraising pipeline strong entering 2026?
"Our pipeline today is larger than it was a year ago. And to Jon's point, it's completely diverse on channel, on jurisdiction, on geography." — Michael Sacks
The bottom-up build from business development teams suggests 2026 fundraising could exceed 2025's record $10.7B, though management is not officially guiding above last year .
Absolute Return Strategies Outlook
Q: Can ARS return to organic growth?
President Jon Levin noted that Q1 2026 guidance "does have embedded in it FRR growth from that vertical" reflecting recent success . However, management is maintaining flat flow assumptions in their budget .
Fund Updates
Advance Fund (Emerging/Diverse Managers): Expected to be smaller than predecessor—"one of the few funds we've ever had where a successor is smaller than the predecessor"—due to headwinds around diversity investing .
CIS IV (Infrastructure): Now in market; predecessor CIS III was approximately $1 billion plus sidecar vehicles .
Carried Interest Timing
Q: Was Q4 carry realization disappointing?
"It was lower than expected...but that movement in the carry at NAV is super important because you don't know when you're getting that money, but you are going to get it." — Michael Sacks
The gross unrealized carried interest balance of $949 million ($478 million firm share) represents a "when, not if" collection opportunity .
Operating Leverage
CFO Bentley attributed continued margin expansion to "investments in scalability and technology...including AI" while remaining disciplined on hiring .
What to Watch in 2026
- Continuation of fundraising momentum — Pipeline is larger than a year ago; can the firm sustain record-level capital raises?
- Path to $100B AUM — Current trajectory suggests the milestone is achievable in 2026
- Carried interest realizations — $949M unrealized balance ($478M firm share) represents future earnings potential
- Fee rate stability — Management fee compression remains a headwind to monitor
- New fund launches — CIS IV and Advance now in market; Grove Lane Partners supporting wealth channel growth
Ask Fintool AI AgentThe Bottom Line
GCM Grosvenor delivered a strong finish to 2025 with record fundraising and solid financial performance. The firm's diversified platform across absolute return and private markets continues to resonate with institutional investors, as evidenced by the ~90% re-up rate. With $10.4 billion in contracted capital awaiting deployment and unrealized carried interest of nearly $1 billion, the earnings power runway extends well into future years. CEO Sacks' confidence in 2026 momentum appears well-founded, though fee rate compression and market conditions bear monitoring.