GCM Grosvenor reports asset growth as HF strategies gain double-digits

Chicago-based alternative investment powerhouse GCM Grosvenor reported asset growth of 7% in 2020 attributable to $7 billion in fundraising and investment performance.

Of the capital raised in 2020, the majority was in private markets and only $1.5 billion was in absolute return strategies, which make up over $25 billion of the firm’s overall assets. Absolute return strategies returned 12.8% annualized in 2020, while the GCMLP Diversified Multi-strategy Composite was up 14.74% for the year.

The firm hit nearly $62 billion in AUM at yearend 2020 and reported that strong fundraising carried over into 2021.

Officials announced a dividend of $0.08 per share in the company’s first earnings report since going public on NASDAQ in November in a $2 billion merger deal with the Cantor Fitzgerald SPAC CF Finance Acquisition Corp.

Incentive fees grew by 238% from $21.8 million in the third quarter to $73.6 million in the fourth quarter, officials said.

Incentive fee growth was from what the firm characterized as significant upside opportunity from carried interest in six specialized funds and on the management fee side there is incremental revenue expected from approximately $7.5 billion of six specialized funds that planned to be raised from 2021 through 2023. There was also upside opportunity from carried interest re-ups, officials reported to shareholders.

“We are pleased with fourth quarter performance and the positive momentum we bring into 2021,” said Michael Sacks, chairman and chief executive officer of GCM Grosvenor. “We look forward to delivering for our clients and shareholders in 2021 and beyond.”

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