Fundamentals snapshot
GCMG · NGM · Financial Services · Asset Management
Current price
$12.37
52-week range
$9.30 - $14.87
Market cap
$756.13M
One-glance verdict
We don't put a cash-flow fair value on banks and insurers. For these companies the reported 'cash flow' is really just money moving between loans, deposits and trades — not the leftover profit the owners could actually pocket — so the usual method would print a misleading number.
Balance sheet
Net debt $276.80M. Interest coverage shows how many times profit covers the interest bill.
What stands out
What this company does
GCM Grosvenor Inc. helps big investors manage their money by putting it into special kinds of investments that aren't traded on public stock markets, like private companies or real estate. Their main income comes from fees they charge for managing these investments, and this matters because it shows how much they are trusted with other people's money.
GCM Grosvenor was founded in 1971 by Richard Elden, who was an early investor in hedge funds. [1] The firm initially focused on hedge fund investing and expanded its offerings over time. [1] A significant turning point was the acquisition of the Customized Fund Investment Group (CFIG) from Credit Suisse in 2014, which broadened its business beyond hedge funds and increased its assets under management. [1] In 2020, GCM Grosvenor became a public company through a merger with a special purpose acquisition company (SPAC), and its shares began trading on the Nasdaq. [1] This transition allowed for greater transparency and governance, which are valued by institutional clients. [7]
GCM Grosvenor is a global alternative asset management firm. This means it invests money on behalf of clients in assets that are not typically traded on public stock exchanges, such as private companies, real estate, and infrastructure projects. [6] The firm manages these investments for a variety of clients, including large institutions like pension funds and endowments, as well as individual investors. [2, 7] GCM Grosvenor offers a range of investment strategies and products, including customized accounts, funds that pool money from multiple investors, and advisory services to help clients create their own investment plans. [2, 5, 8]
This part of GCM Grosvenor focuses on investing in private companies, meaning businesses that are not publicly traded on a stock exchange. [2, 6] These investments can include buying entire companies (buyouts), providing capital for companies to grow (growth equity), or investing in companies that are facing financial difficulties (distressed debt). [3] GCM Grosvenor might invest directly in these companies, invest in funds that hold these companies, or buy stakes in existing private equity funds (secondary investments). [2, 7] This segment is a significant area of focus for the firm, with a substantial portion of its assets under management dedicated to it. [8]
This segment involves investing in essential physical assets that support society and the economy, such as transportation networks (like roads and bridges), energy facilities, and digital communication systems. [2, 9] GCM Grosvenor's approach to infrastructure investing often emphasizes collaboration with labor unions and government entities to ensure projects are developed responsibly and benefit local communities. [9, 10] The firm invests in these assets through various means, including direct investments and partnerships, aiming for long-term value creation. [7, 9]
GCM Grosvenor invests in real estate, which includes properties like office buildings, apartment complexes, and industrial facilities. [2, 7] Their strategy may involve developing new properties, redeveloping existing ones, or acquiring properties that are expected to increase in value over time. [2] The firm manages these investments for institutional clients and also offers access to real estate opportunities through its wealth management channels. [7]
In its credit strategies, GCM Grosvenor focuses on opportunities within debt markets, both public and private. [2] This can involve lending money to companies or investing in various types of debt instruments. [3] The goal is to generate returns by managing the risk associated with these credit investments. [2, 7] This segment is a key part of the firm's diversified alternative asset management platform. [5, 8]
This segment aims to generate positive returns regardless of whether the overall market is going up or down. [2, 7] It involves using a variety of investment techniques, often employed by hedge funds, to achieve this goal. [1, 3] GCM Grosvenor manages these strategies for institutional and individual investors seeking consistent performance. [7] This area represents a significant portion of the firm's assets under management. [8]
GCM Grosvenor is focusing on expanding its reach into the private wealth channel, making its alternative investment strategies more accessible to individual investors and financial advisors. [5] The firm is also deepening its commitment to private markets, including private equity, infrastructure, and real estate, as these areas are in high demand for diversification and inflation protection. [5] Management aims to build a more stable and diverse earnings base by emphasizing these private market investments and the wealth channel, rather than relying heavily on performance-based fees that can fluctuate with market conditions. [5] Additionally, GCM Grosvenor is committed to responsible investing, integrating Environmental, Social, and Governance (ESG) factors into its business and investment decisions. [10]
Price history
Earnings history
Click any quarter to read the call summary and what the numbers say.
Is it cheap or expensive?
For a bank or insurer, the "free cash flow" shown on its statements is mostly money flowing through loans, deposits and trades — not the leftover profit the owners could actually keep, which is what this kind of valuation needs. Running that through the usual method would spit out a meaningless number, so we leave the cash-flow fair value out here rather than show you something misleading.
Is it drowning in debt?
Net debt $276.8M. Interest coverage 6.6x.
GCM Grosvenor Inc. is healthier than 0 of 1 peers on balance-sheet leverage.
Total debt $416.40M Interest coverage 6.57x This is the baseline the peer rows are being compared against.
What you should know
The numbers
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Valuation
Profitability
Health
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Cash flow
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Debt comparison
What you should know