GCM Grosvenor Inc. (NASDAQ:GCMG) Q2 2024 Earnings Conference Call August 8, 2024 11:00 AM ET

Company Participants

Stacie Selinger - Head-Investor Relations
Michael Sacks - Chairman & Chief Executive Officer
Jon Levin - President
Pam Bentley - Chief Financial Officer

Conference Call Participants

Bill Katz - TD Cowen
Ken Worthington - JPMorgan
Crispin Love - Piper Sandler
Stephanie Ma - Morgan Stanley

Operator

Good day, and welcome to the GCM Grosvenor Second Quarter 2024 Results Webcast. [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. Presenter Speech

Stacie Selinger

Thank you. Good morning and welcome to GCM Grosvenor’s Second Quarter 2024 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 Securities and Exchange Commission and our earnings release, all of which are available on the Public Shareholders 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 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, and with that, I'll turn the call over to Michael.

Michael Sacks

Thanks, Stacie. We had a strong second quarter, building on our recent momentum. During the quarter, fee-related Earnings increased 20% and adjusted net income increased 29% over the prior year. Our private markets strategies continued to grow, with second-quarter management fees growing 11% year-over-year. Private markets now comprises 71% of our total assets under management. Our fee-related Earnings margin was 40% for the quarter compared to 31% at the end of 2020. We continue to believe that we have opportunity for further FRE margin expansion in the future.