GCM Grosvenor Inc. (NASDAQ:GCMG) Q2 2023 Earnings Conference Call August 9, 2023 10:00 AM ET

Company Participants

Stacie Selinger – Head of Investor Relations

Michael Sacks – Chairman and Chief Executive Officer

Jon Levin – President

Pam Bentley – Chief Financial Officer

Conference Call Participants

Ken Worthington – J.P. Morgan

Michael Cyprys – Morgan Stanley

Chris Kotowski – Oppenheimer and Company

Operator

Good day and welcome to the GCM Grosvenor Second Quarter 2023 Results Webcast. Later we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this call will be recorded.

I would now like to hand the call over to Stacie Selinger, Head of Investor Relations. You may begin.

Stacie Selinger

Thank you. Good morning and welcome to GCM Grosvenor's second quarter 2023 earnings call. Today I am joined by GCM Grosvenor's Chairman and Chief Executive Officer, Michael Sacks; President, Jon Levin; and Chief Financial Officer, Pam Bentley. Before we discuss this quarter's results, a reminder that all statements made on this call that do not relate to matters of historical fact should be considered forward-looking statements. This includes statements regarding our current expectations for the business, our financial performance and projections. These statements are neither promises nor guarantees. They involve known and unknown risks, uncertainties, and other important factors that may cause our actual results to differ materially from those indicated by the forward-looking statements on this call.

Please refer to the factors in the risk factors section of our 10-K, our other filings with the Security and Exchange Commission and our earnings release, all of which are available on the public shareholder section of our website. We'll also refer to non-GAAP measures that we view as important in assessing the performance of our business. A reconciliation of non-GAAP metrics to the nearest GAAP metric can be found in our earnings presentation and earnings supplement, both of which are available on the public shareholder section of our website. Our goal is to continually improve how we communicate with and engage with our shareholders and in that spirit, we look forward to your feedback.

Thank you again for joining us today, and with that, I'll turn the call over to Michael.

Michael Sacks

Thank you, Stacie. GCM Grosvenor again made solid progress in the second quarter. Our Absolute Return Strategies vertical showed signs of stabilization and our private market verticals continued their solid growth trajectory. Our financial performance met our expectations, and our board increased our stock buyback authorization by $25 million. The quarter saw assets under management grow 7% year-over-year, driven by 12% year-over-year growth in Private Markets AUM. Our quarterly Fee-Related Earnings achieved the guidance we provided last quarter. Adjusted EBITDA and adjusted net income increased year-over-year, driven by a modest sequential and year-over-year increase in carried interest.