GCM Grosvenor Inc. Q1 FY2026 earnings call

GCM Grosvenor had a good first quarter of 2026 with solid investment performance, growing fundraising pipeline. AUM and fee-paying AUM grew Y/Y. Adjusting for catch-up fees, fee-related metrics grew. Unrealized carried interest at record high. Raised $1.5 billion in quarter, $9.3 billion last year. Infrastructure was fastest growing strategy with $2.6 billion fundraising in 12 months. Absolute return strategies raised $2 billion. Wealth channel progress with $500 million raised from individual investor channel. AI is an important focus, used in operations to drive efficiency. Absolute return strategies manage $26 billion of fee-paying assets, grew 16% Y/Y, multi-strategy composite has good returns and low correlation.

During the first quarter, AUM and fee-paying AUM grew by 12% and 11% year-over-year. First quarter 2026 fee-related revenue and fee-related earnings were essentially flat year-over-year, but adjusting for catch-up management fees, fee-related revenue and fee-related earnings grew by 8% and 20% year-over-year. Unrealized carried interest now exceeds a billion dollars, a record high, with the firm's share of that exceeding $500 million at quarter end, a 23% increase year over year. Absolute return strategies management fees were $42 million in the quarter, a 10% increase over the prior year.

Remains positive on business. Expect second quarter private market management fees to increase ~2% sequentially. Expect ARS management fees to be up ~1% sequentially in second quarter. Confident goals laid out at investor day for FRE and ANI growth are achievable. Fee-related revenue expected to increase in second quarter by high single-digit percentage growth rate Y/Y.

Q: Bill Katz of TD Cowan asked about confidence in gross sales and growth breakdown.

A: First quarter fundraising in line with expectations, pipeline full, growth from separate accounts, specialized funds, individual investor channel.

Q: Bill Katz followed up on 2028 guidance and management fee acceleration.

A: Confident in growth objectives, combination of top line growth and margin expansion will deliver profitability growth.

Q: Ken Worthington of JP Morgan asked about wealth business and $500 million raised.

A: $500 million raised in wealth channel, registered funds not majority of capital, raise capital across verticals.

Q: Ben Graham in for Crispin Love asked about Grove Lane.

A: Grove Lane doing well, adding to team, insulated from alts issues in wealth channel.

Q: Bill Katz took follow-up on realizations.

A: Net accrued carry is significant, not working on specific transaction like peer, carried NAV and work is valuable but hard to value and unlock.