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Introduction & Market Context
GCM Grosvenor (NASDAQ:GCMG) released its second quarter 2025 earnings presentation on August 7, 2025, revealing continued strong performance following its robust first quarter results. The alternative asset management firm saw its stock rise 1.78% to $11.98 in morning trading, building on positive momentum as investors responded to the company’s record fundraising and improved financial metrics.
The company, which manages $85.9 billion in assets, demonstrated significant progress in its strategic shift toward private markets and direct-oriented strategies, while maintaining strong fundraising momentum across its diversified platform.
Quarterly Performance Highlights
GCM Grosvenor reported impressive fundraising results for Q2 2025, raising $2.4 billion during the quarter and bringing the year-to-date total to $5.3 billion, a 52% increase compared to the first half of 2024. Over the trailing twelve months, the firm raised $8.9 billion, representing a 46% increase from the prior year period.
As shown in the following comprehensive financial results table, the company achieved solid growth across key metrics:
Fee-Related Earnings for Q2 2025 reached $41.6 million, a 6% increase compared to Q2 2024, while year-to-date Fee-Related Earnings grew 14% to $88.3 million. Adjusted Net Income for the quarter was $32.1 million, up 9% year-over-year, with year-to-date Adjusted Net Income increasing 19% to $67.4 million.
The company’s GAAP net income attributable to GCM Grosvenor Inc. showed significant improvement, reaching $15.4 million for Q2 2025, a 222% increase compared to the same period in 2024. Year-to-date GAAP net income attributable to GCM Grosvenor Inc. was $15.9 million, up 130% from the prior year.
CEO Michael Sacks highlighted the company’s performance in the earnings presentation: "We’re pleased to report another strong quarter for GCM Grosvenor, driven by investment performance, robust fundraising, solid financial results, and positive business developments that position us well for long-term success... We raised a record $5.3 billion in the first half of the year, an increase of more than 50% over the first half of 2024, and we anticipate continued momentum entering the back half of the year."
Strategic Shift to Private Markets
A key driver of GCM Grosvenor’s growth has been its strategic shift toward private markets and direct-oriented strategies. The company has transformed its business mix significantly since 2020, with private markets now representing 71% of total AUM, up from 59% in 2020.
The following chart illustrates this strategic evolution in the company’s business model:
Within private markets, the company has increased its focus on direct-oriented strategies, which now account for 53% of private markets AUM, up from 39% in 2020. This shift has contributed to improved operating leverage, with margins expanding from 31% to 44% over the same period.
The growth in direct-oriented strategies is clearly demonstrated in the following chart, showing the consistent upward trend since 2020:
This strategic shift has been supported by strong fundraising across the company’s specialized fund franchises. GCM Grosvenor currently has several funds in market, including private credit funds, Advance Fund II, and Secondary Opportunities Fund IV, focusing on co-investments, secondaries, and primaries across private equity and private credit.
Long-Term Growth Drivers
GCM Grosvenor outlined three key long-term growth drivers in its presentation: scaling core capabilities, planting seeds for future growth, and growing earnings quality and power.
The company’s approach to these growth drivers is detailed in the following slide:
A significant component of the company’s earnings power comes from its growing carried interest balance. The unrealized carried interest has increased from $395 million in Q4 2020 to $909 million in Q2 2025, with the firm’s share at $451 million as of the end of Q2 2025.
The company’s AUM has shown consistent growth across strategies, with an 8% CAGR overall and a 12% CAGR in private markets, as illustrated in the following chart:
GCM Grosvenor’s investment performance has been strong across its private markets strategies. The following table shows performance metrics for realized and partially realized investments across private equity, infrastructure, and real estate:
The company’s performance extends across its broader investment portfolio, as shown in the comprehensive performance metrics for all investments:
Financial Position and Outlook
GCM Grosvenor maintains a strong financial position with $136 million in cash and cash equivalents and $219 million in investments as of June 30, 2025. Including unrealized carried interest of $451 million, the company’s total cash, investments, and unrealized carried interest reached $806 million, against debt of $434 million.
The Board of Directors approved a quarterly dividend of $0.11 per share, payable on September 16, 2025, reflecting confidence in the company’s financial stability and cash flow generation.
Looking ahead, GCM Grosvenor appears well-positioned to continue its growth trajectory, building on the momentum from the first half of 2025. The company’s strategic focus on private markets, direct-oriented strategies, and expanding its carried interest earnings potential provides multiple avenues for future growth.
This strong Q2 performance follows the company’s robust Q1 2025 results, where it achieved its highest fundraising total in over two years at $2.9 billion. The continued execution of the company’s strategy suggests GCM Grosvenor remains on track to meet its long-term goals, including doubling fee-related earnings from 2023 levels by the end of 2028.
With its diversified fundraising approach across channels and geographies, 90% private markets re-up rate, and growing carried interest balance, GCM Grosvenor appears well-positioned to navigate market uncertainties while continuing to deliver strong financial results.
Full presentation:
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