GCM Grosvenor (GCMG, Financial) has collaborated with Wilshire Indexes to unveil the FT Wilshire Private Markets Infrastructure Index. This newly developed benchmark is groundbreaking in the infrastructure asset class, offering investors a clear and dependable benchmark that reflects a wide-ranging collection of leading open-ended infrastructure funds.
Previously, participants in infrastructure investments did not have access to a comprehensive standard that encapsulated the full scope of the market. In response to the increasing demand for passive asset exposure, GCM Grosvenor is in the process of creating investment vehicles intended to track this Index, with these products expected to launch in the near future.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for GCM Grosvenor Inc (GCMG, Financial) is $14.75 with a high estimate of $18.00 and a low estimate of $12.50. The average target implies an upside of 26.72% from the current price of $11.64. More detailed estimate data can be found on the GCM Grosvenor Inc (GCMG) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, GCM Grosvenor Inc's (GCMG, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for GCM Grosvenor Inc (GCMG, Financial) in one year is $10.34, suggesting a downside of 11.17% from the current price of $11.64. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the GCM Grosvenor Inc (GCMG) Summary page.
GCMG Key Business Developments
Release Date: May 07, 2025
- Fundraising: $2.9 billion in Q1, highest in over two years.
- Infrastructure Fundraising: Nearly $500 million final close for IAF II, total fund size $1.3 billion.
- Private Equity Fundraising: Over $720 million raised, GCF III fund size approximately $615 million.
- Management Fees: Private markets management fees increased 20% year over year.
- Fee-Related Revenue: Grew 12% year over year.
- Fee-Related Earnings: Increased 22% year over year.
- Adjusted EBITDA: Grew 26% year over year.
- Adjusted Net Income: Increased 30% year over year.
- Assets Under Management (AUM): Grew to $82 billion.
- Fee-Paying AUM: Increased to $66 billion.
- Contracted Not Yet Fee-Paying AUM: Grew 16% year over year to $8.2 billion.
- Carried Interest Balance: Grew to $865 million, an 11% increase from a year ago.
- Firm's Share of Carry: Grew by 12.5% to $415 million.
- Dividend: Maintained at $0.11 per share.
- Dividend Yield: 3.5% as of the call date.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- GCM Grosvenor Inc (GCMG, Financial) reported strong first-quarter results, exceeding profitability expectations.
- The company achieved its highest quarterly fundraising level in over two years, with a total of $2.9 billion.
- Private markets management fees increased by 20% year over year, driven by significant fundraising success.
- The firm's carried interest balance grew to $865 million, an 11% increase from the previous year.
- GCM Grosvenor Inc (GCMG) announced two strategic initiatives: a joint venture called Grove Lane and a strategic partnership in Japan, both expected to contribute significantly to future revenue and profit.
Negative Points
- Market volatility and uncertainty related to trade and tax policy are expected to keep deployment and transaction levels depressed.
- Incentive fee levels for the industry and GCM Grosvenor Inc (GCMG) are unlikely to reach the levels experienced last year due to challenging equity markets.
- The company anticipates that Absolute Return Strategies (ARS) management fees will remain flat compared to 2024.
- There is limited visibility around investment committee decisions due to policy volatility, affecting short-term deployment.
- The company expects limited additional catch-up fees for the remainder of the year, impacting revenue growth potential.
