Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 27, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-39716 | ||
Entity Registrant Name | GCM Grosvenor Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 85-2226287 | ||
Entity Address, Address Line One | 900 North Michigan Avenue, Suite 1100 | ||
Entity Address, City or Town | Chicago | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60611 | ||
City Area Code | 312 | ||
Local Phone Number | 506-6500 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 309.7 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001819796 | ||
Amendment Flag | false | ||
Common Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Class A common stock, $0.0001 par value per share | ||
Trading Symbol | GCMG | ||
Security Exchange Name | NASDAQ | ||
Warrant | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Warrants to purchase shares of Class A common stock | ||
Trading Symbol | GCMGW | ||
Security Exchange Name | NASDAQ | ||
Class A Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 42,996,776 | ||
Class C Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 144,235,246 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Chicago, Illinois |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 44,354 | $ 85,163 |
Management fees receivable | 24,996 | 18,720 |
Incentive fees receivable | 27,371 | 16,478 |
Investments | 240,202 | 223,970 |
Premises and equipment, net | 7,378 | 4,620 |
Lease right-of-use assets | 38,554 | 12,479 |
Intangible assets, net | 2,627 | 3,940 |
Goodwill | 28,959 | 28,959 |
Deferred tax assets, net | 58,298 | 60,320 |
Other assets | 18,623 | 21,165 |
Total assets | 504,943 | 488,933 |
Liabilities and Equity (Deficit) | ||
Accrued compensation and employee related obligations | 98,561 | 89,325 |
Debt | 384,727 | 387,627 |
Payable to related parties pursuant to the tax receivable agreement | 53,759 | 55,366 |
Lease liabilities | 41,481 | 15,520 |
Warrant liabilities | 6,431 | 7,861 |
Accrued expenses and other liabilities | 31,213 | 27,240 |
Total liabilities | 616,172 | 582,939 |
Commitments and contingencies (Note 17) | ||
Preferred stock, $0.0001 par value, 100,000,000 shares authorized; none issued | 0 | 0 |
Additional paid-in capital | 1,936 | 0 |
Accumulated other comprehensive income | 2,630 | 4,096 |
Retained earnings | (32,218) | (23,934) |
Total GCM Grosvenor Inc. deficit | (27,634) | (19,820) |
Noncontrolling interests in subsidiaries | 59,757 | 67,900 |
Noncontrolling interests in GCMH | (143,352) | (142,086) |
Total deficit | (111,229) | (94,006) |
Total liabilities and equity (deficit) | 504,943 | 488,933 |
Related Party | ||
Assets | ||
Due from related parties | 13,581 | 13,119 |
Class A Common Stock | ||
Liabilities and Equity (Deficit) | ||
Common stock | 4 | 4 |
Class B common stock | ||
Liabilities and Equity (Deficit) | ||
Common stock | 0 | 0 |
Class C Common Stock | ||
Liabilities and Equity (Deficit) | ||
Common stock | $ 14 | $ 14 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock issued (in shares) | 0 | 0 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (in shares) | 700,000,000 | 700,000,000 |
Common stock, issued (in shares) | 42,988,563 | 41,806,215 |
Common stock, outstanding (in shares) | 42,988,563 | 41,806,215 |
Class B common stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, issued (in shares) | 0 | 0 |
Common stock, outstanding (in shares) | 0 | 0 |
Class C Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, issued (in shares) | 144,235,246 | 144,235,246 |
Common stock, outstanding (in shares) | 144,235,246 | 144,235,246 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues | |||
Operating revenue | $ 444,999 | $ 446,530 | $ 531,592 |
Expenses | |||
Employee compensation and benefits | 356,044 | 277,311 | 333,837 |
General, administrative and other | 100,801 | 88,907 | 88,351 |
Total operating expenses | 456,845 | 366,218 | 422,188 |
Operating income (loss) | (11,846) | 80,312 | 109,404 |
Investment income | 11,640 | 10,108 | 52,495 |
Interest expense | (23,745) | (23,314) | (20,084) |
Other income | 1,008 | 1,436 | 3,394 |
Change in fair value of warrant liabilities | 1,429 | 20,551 | 7,853 |
Net other income (expense) | (9,668) | 8,781 | 43,658 |
Income (loss) before income taxes | (21,514) | 89,093 | 153,062 |
Provision for income taxes | 7,692 | 9,611 | 10,993 |
Net income | (29,206) | 79,482 | 142,069 |
Less: Net income attributable to redeemable noncontrolling interest | 0 | 0 | 19,827 |
Less: Net income attributable to noncontrolling interests in subsidiaries | 5,033 | 6,823 | 36,912 |
Less: Net income (loss) attributable to noncontrolling interests in GCMH | (47,013) | 52,839 | 63,848 |
Net income attributable to GCM Grosvenor Inc., basic | $ 12,774 | $ 19,820 | $ 21,482 |
Earnings (loss) per share of Class A common stock: | |||
Basic (in dollars per share) | $ 0.30 | $ 0.45 | $ 0.49 |
Diluted (in dollars per share) | $ (0.28) | $ 0.28 | $ 0.28 |
Weighted average shares of Class A common stock outstanding : | |||
Basic (in shares) | 43,198,517 | 43,872,300 | 43,765,651 |
Diluted (in shares) | 187,433,763 | 188,567,992 | 189,059,374 |
Management fees | |||
Revenues | |||
Operating revenue | $ 375,444 | $ 367,242 | $ 351,216 |
Incentive fees | |||
Revenues | |||
Operating revenue | 64,903 | 75,167 | 173,853 |
Other operating income | |||
Revenues | |||
Operating revenue | $ 4,652 | $ 4,121 | $ 6,523 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (29,206) | $ 79,482 | $ 142,069 |
Other comprehensive income (loss), net of tax: | |||
Net change in cash flow hedges | (7,324) | 32,752 | 7,541 |
Foreign currency translation adjustment | (352) | (2,083) | (1,183) |
Total other comprehensive income (loss) | (7,676) | 30,669 | 6,358 |
Comprehensive income (loss) before noncontrolling interests | (36,882) | 110,151 | 148,427 |
Less: Comprehensive income attributable to redeemable noncontrolling interest | 0 | 0 | 19,827 |
Less: Comprehensive income attributable to noncontrolling interests in subsidiaries | 5,033 | 6,823 | 36,912 |
Less: Comprehensive income (loss) attributable to noncontrolling interests in GCMH | (53,223) | 78,405 | 68,720 |
Comprehensive income attributable to GCM Grosvenor Inc. | $ 11,308 | $ 24,923 | $ 22,968 |
Consolidated Statements of Equi
Consolidated Statements of Equity (Deficit) - USD ($) $ in Thousands | Total | Other Noncontrolling Subsidiaries | GCM Holdings | Class A Common Stock | Common Stock Class A Common Stock | Common Stock Class C Common Stock | Additional Paid-in Capital | Additional Paid-in Capital Class A Common Stock | Retained Earnings | Retained Earnings Class A Common Stock | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest in Subsidiaries | Noncontrolling Interest in Subsidiaries Other Noncontrolling Subsidiaries | Noncontrolling Interest in GCMH | Noncontrolling Interest in GCMH GCM Holdings | Noncontrolling Interest in GCMH Class A Common Stock |
Beginning balance at Dec. 31, 2020 | $ (82,190) | $ 4 | $ 14 | $ 2,705 | $ (29,832) | $ (2,233) | $ 94,013 | $ (146,861) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Capital contributions from noncontrolling interests in subsidiaries | 3,461 | 3,461 | ||||||||||||||
Capital distributions paid to noncontrolling interests / Partners’ distributions | $ (37,699) | $ (77,936) | $ (37,699) | $ (77,936) | ||||||||||||
Issuance of Class A common stock due to exercised warrants | 23,318 | 5,252 | 18,066 | |||||||||||||
Repurchase of Class A common stock | $ (887) | $ (207) | $ (680) | |||||||||||||
Exercise of Mosaic Call Right | (61,495) | (14,033) | (47,462) | |||||||||||||
Settlement of equity-based compensation in satisfaction of withholding tax requirements | (6,934) | (2,487) | (499) | (3,948) | ||||||||||||
Deemed contributions | 27,671 | 27,671 | ||||||||||||||
Unrealized gain on cash flow hedges/ Net change in cash flow hedges | 7,541 | 1,757 | 5,784 | |||||||||||||
Translation adjustment | (1,183) | (271) | (912) | |||||||||||||
Equity-based compensation, equity-classified awards | 43,756 | 9,979 | 33,777 | |||||||||||||
Declared dividends | (15,498) | (15,498) | ||||||||||||||
Deferred tax and other tax adjustments | 32 | 292 | (260) | |||||||||||||
Equity reallocation between controlling and non-controlling interests | 0 | (1,875) | 1,875 | |||||||||||||
Net income | 122,242 | 21,482 | 36,912 | 63,848 | ||||||||||||
Ending balance at Dec. 31, 2021 | (55,801) | 4 | 14 | 1,501 | (26,222) | (1,007) | 96,687 | (126,778) | ||||||||
Beginning balance at Dec. 31, 2020 | 115,121 | |||||||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||||||||
Capital contributions from noncontrolling interests in subsidiaries | 11 | |||||||||||||||
Capital distributions paid to redeemable noncontrolling interest | (43,500) | |||||||||||||||
Exercise of Mosaic Call Right | (91,459) | |||||||||||||||
Net income | 19,827 | |||||||||||||||
Ending balance at Dec. 31, 2021 | 0 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Capital contributions from noncontrolling interests in subsidiaries | 1,789 | 1,789 | ||||||||||||||
Capital distributions paid to noncontrolling interests / Partners’ distributions | $ (37,399) | (118,349) | $ (37,399) | (118,349) | ||||||||||||
Repurchase of Class A common stock | (26,391) | (5,906) | $ (132) | (20,353) | ||||||||||||
Settlement of equity-based compensation in satisfaction of withholding tax requirements | (6,445) | (1,464) | (4,981) | |||||||||||||
Deemed contributions | 31,811 | 31,811 | ||||||||||||||
Unrealized gain on cash flow hedges/ Net change in cash flow hedges | 32,752 | 5,589 | 27,163 | |||||||||||||
Translation adjustment | (2,083) | (486) | (1,597) | |||||||||||||
Equity-based compensation, equity-classified awards | 25,424 | 5,841 | 19,583 | |||||||||||||
Declared dividends | (18,824) | (18,824) | ||||||||||||||
Deferred tax and other tax adjustments | 28 | 28 | ||||||||||||||
Equity reallocation between controlling and non-controlling interests | 0 | 1,424 | (1,424) | |||||||||||||
Net income | 79,482 | 19,820 | 6,823 | 52,839 | ||||||||||||
Ending balance at Dec. 31, 2022 | (94,006) | 4 | 14 | 0 | (23,934) | 4,096 | 67,900 | (142,086) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Capital contributions from noncontrolling interests in subsidiaries | 2,255 | 2,255 | ||||||||||||||
Capital distributions paid to noncontrolling interests / Partners’ distributions | (15,431) | $ (58,278) | (15,431) | $ (58,278) | ||||||||||||
Repurchase of Class A common stock | $ (4,478) | $ (1,003) | $ (3,475) | |||||||||||||
Settlement of equity-based compensation in satisfaction of withholding tax requirements | (10,219) | (2,307) | (7,912) | |||||||||||||
Deemed contributions | 103,934 | 103,934 | ||||||||||||||
Unrealized gain on cash flow hedges/ Net change in cash flow hedges | (7,324) | (1,387) | (5,937) | |||||||||||||
Translation adjustment | (352) | (79) | (273) | |||||||||||||
Equity-based compensation, equity-classified awards | 21,606 | 4,862 | 16,744 | |||||||||||||
Declared dividends | (20,114) | (20,114) | ||||||||||||||
Deferred tax and other tax adjustments | 384 | 384 | ||||||||||||||
Equity reallocation between controlling and non-controlling interests | 0 | (944) | 944 | |||||||||||||
Net income | (29,206) | 12,774 | 5,033 | (47,013) | ||||||||||||
Ending balance at Dec. 31, 2023 | $ (111,229) | $ 4 | $ 14 | $ 1,936 | $ (32,218) | $ 2,630 | $ 59,757 | $ (143,352) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | |||
Net income (loss) | $ (29,206) | $ 79,482 | $ 142,069 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization expense | 2,696 | 3,856 | 4,020 |
Equity-based compensation, equity-classified awards | 21,606 | 25,424 | 43,756 |
Deferred income tax expense | 2,826 | 5,843 | 5,692 |
Other non-cash compensation | 1,157 | 1,336 | 3,300 |
Partnership interest-based compensation | 103,934 | 31,811 | 27,671 |
Amortization of debt issuance costs | 1,100 | 1,111 | 1,025 |
Amortization of terminated swap | (6,703) | 4,171 | 4,634 |
Proceeds received (payments made) for terminated interest rate derivatives | 0 | 40,344 | (26,296) |
Loss on extinguishment of debt | 0 | 0 | 675 |
Change in fair value of derivatives | 0 | 0 | 212 |
Change in fair value of warrant liabilities | (1,429) | (20,551) | (7,853) |
Change in payable to related parties pursuant to tax receivable agreement | 1,583 | (729) | 0 |
Amortization of deferred rent | 0 | 0 | (1,593) |
Proceeds received from investments | 10,485 | 21,771 | 21,297 |
Non-cash investment income | (11,640) | (10,108) | (52,495) |
Non-cash lease expense | 6,911 | 3,856 | 0 |
Other | 513 | 87 | 462 |
Change in assets and liabilities: | |||
Management fees receivable | (6,207) | 2,803 | (7,202) |
Incentive fees receivable | (10,893) | 75,123 | (22,177) |
Due from related parties | (462) | (1,342) | (451) |
Other assets | 2,344 | (1,061) | 23,008 |
Accrued compensation and employee related obligations | 8,222 | (40,202) | 24,519 |
Lease liabilities | (7,022) | (5,512) | 0 |
Accrued expenses and other liabilities | 2,250 | (1,000) | (5,470) |
Net cash provided by operating activities | 92,065 | 216,513 | 178,803 |
Cash flows from investing activities | |||
Purchases of premises and equipment | (3,763) | (782) | (577) |
Proceeds from assignment of aircraft share interest | 0 | 0 | 1,337 |
Contributions/subscriptions to investments | (27,635) | (29,436) | (40,332) |
Distributions from investments | 12,558 | 20,145 | 11,458 |
Net cash used in investing activities | (18,840) | (10,073) | (28,114) |
Cash flows from financing activities | |||
Capital contributions received from noncontrolling interest | 2,255 | 1,789 | 3,472 |
Capital distributions paid to partners and member | (58,278) | (118,349) | (77,936) |
Capital distributions paid to the noncontrolling interest | (15,431) | (37,399) | (81,199) |
Exercise of Mosaic call option | 0 | 0 | (150,122) |
Proceeds from senior loan issuance | 0 | 0 | 110,000 |
Principal payments on senior loan | (4,000) | (4,000) | (53,259) |
Debt issuance costs | 0 | 0 | (3,080) |
Payments to repurchase Class A common stock | (4,478) | (26,391) | (887) |
Proceeds from exercise of warrants | 0 | 0 | 24,469 |
Payments to repurchase warrants | 0 | (2,569) | (1,273) |
Settlement of equity-based compensation in satisfaction of withholding tax requirements | (10,219) | (6,445) | (6,934) |
Dividends paid | (20,321) | (18,432) | (14,525) |
Payments to related parties, pursuant to tax receivable agreement | (3,190) | (3,271) | 0 |
Net cash used in investing activities | (113,662) | (215,067) | (251,274) |
Effect of exchange rate changes on cash | (372) | (2,395) | (1,376) |
Net decrease in cash and cash equivalents | (40,809) | (11,022) | (101,961) |
Beginning of year | 85,163 | 96,185 | 198,146 |
End of year | 44,354 | 85,163 | 96,185 |
Supplemental disclosure of cash flow information | |||
Cash paid during the year for interest | 30,025 | 18,411 | 13,779 |
Cash paid during the year for income taxes, net | 3,446 | 8,543 | 4,370 |
Supplemental disclosure of cash flow information from operating activities | |||
Non-cash ROU assets obtained in exchange for new and extended operating leases | 34,116 | 693 | 0 |
Non-cash adjustment to operating lease right-of-use assets from lease modification | (836) | 0 | 0 |
Supplemental disclosure of cash flow information from investing activities | |||
Non-cash premises and equipment additions in accrued expenses and other liabilities | 693 | 0 | 0 |
Supplemental disclosure of non-cash information from financing activities | |||
Deemed contributions from GCMH Equityholders | 103,934 | 31,811 | 27,671 |
Establishment of deferred tax assets, net related to tax receivable agreement and the Transaction | 384 | 28 | 292 |
Dividends declared but not paid | $ 1,667 | $ 1,366 | $ 973 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization GCM Grosvenor Inc. (“GCMG”) and its subsidiaries including Grosvenor Capital Management Holdings, LLLP (the “Partnership” or “GCMH” and collectively, the “Company”), provide comprehensive investment solutions to primarily institutional clients who seek allocations to alternative investments such as hedge fund strategies, private equity, real estate, infrastructure and strategic investments. The Company collaborates with its clients to construct investment portfolios across multiple investment strategies in the private and public markets, customized to meet their specific objectives. The Company also offers specialized commingled funds which span the alternatives investing universe that are developed to meet broad market demands for strategies and risk-return objectives. The Company, through its subsidiaries acts as the investment adviser, general partner or managing member to customized funds and commingled funds (collectively, the “GCM Funds”). GCMG was incorporated on July 27, 2020 under the laws of the State of Delaware for the purpose of consummating the Transaction as described below and merging with CF Finance Acquisition Corp. (“CFAC”), which was incorporated on July 9, 2014 under the laws of the State of Delaware. GCMG owns all of the equity interests of GCM Grosvenor Holdings, LLC (“IntermediateCo”), formerly known as CF Finance Intermediate Acquisition, LLC until November 18, 2020, which is the general partner of GCMH subsequent to the Transaction. GCMG’s ownership (through IntermediateCo) of GCMH as of December 31, 2023 and December 31, 2022 was approximately 23.0% and 22.5%, respectively. GCMH is a holding company operated pursuant to the Fifth Amended and Restated Limited Liability Limited Partnership Agreement (the “Partnership Agreement”) dated November 17, 2020, among the limited partners including, Grosvenor Holdings, L.L.C. (“Holdings”), Grosvenor Holdings II, L.L.C. (“Holdings II”) and GCM Grosvenor Management, LLC (“Management LLC”) (collectively, together with GCM Progress Subsidiary LLC, the “GCMH Equityholders”). On November 17, 2020, the Company consummated a business combination pursuant to the definitive Transaction Agreement dated as of August 2, 2020, by and among CFAC, IntermediateCo, CF Finance Holdings, LLC (the “CF Sponsor”), Holdings, Management LLC, Holdings II, GCMH GP, L.L.C. (“GCMHGP LLC”), GCM V, LLC (“GCM V”) and the Company (the “Transaction”). The Transaction was treated as a transaction between entities under common control. GCMG indirectly holds general partnership and limited partnership interests in GCMH. The structure of the Transaction is an "Up-C” structure with the owners of GCMH retaining their ownership in GCMH. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Consolidated Financial Statements include the accounts of the Company, its wholly-owned or majority-owned subsidiaries and entities in which the Company is deemed to have a direct or indirect controlling financial interest based on either a variable interest model or voting interest model. All intercompany balances and transactions have been eliminated in consolidation. Amounts presented in accrued compensation and benefits and employee related obligations in prior periods were collapsed and presented in accrued compensation and employee related obligations in order to conform to the current period’s presentation. The portion of the consolidated subsidiaries not owned by GCMG and any related activity is eliminated through noncontrolling interests in the Consolidated Statements of Financial Condition and net income (loss) attributable to noncontrolling interests in the Consolidated Statements of Income (Loss). The Company was an “emerging growth company” (“EGC”), as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), following the consummation of the merger of CFAC and the Company. The Company elected to use this extended transition period for complying with new or revised accounting standards pursuant to Section 102(b)(1) of the JOBS Act that have different effective dates for public and private companies, However, as of December 31, 2023, the Company no longer qualifies as an EGC. Therefore, the Company is no longer able to take advantage of the extended transition period for adopting new or revised accounting standards. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Principles of Consolidation The Company first determines whether it has a variable interest in an entity. Fees paid to a decision maker or service provider are not deemed variable interests in an entity if (i) the fees are compensation for services provided and are commensurate with the level of effort required to provide those services; (ii) the service arrangement includes only terms, conditions, or amounts that are customarily present in arrangements for similar services negotiated at arm’s length; and (iii) the decision maker does not hold other interests in the entity that individually, or in the aggregate, would absorb more than an insignificant amount of the entity’s expected losses or receive more than an insignificant amount of the entity’s expected residual returns. The Company has evaluated its arrangements and determined that management fees, performance fees and carried interest are customary and commensurate with the services being performed and are not variable interests. For those entities in which it has a variable interest, the Company performs an analysis to determine whether the entity is a variable interest entity (“VIE”). The assessment of whether the entity is a VIE requires an evaluation of qualitative factors and, where applicable, quantitative factors. These judgments include: (a) determining whether the equity investment at risk is sufficient to permit the entity to finance its activities without additional subordinated financial support, (b) evaluating whether the equity holders, as a group, can make decisions that have a significant effect on the economic performance of the entity, and (c) determining whether the equity investors have proportionate voting rights to their obligations to absorb losses or rights to receive returns from an entity. The granting of substantive kick-out rights is a key consideration in determining whether a limited partnership or similar entity is a VIE. For entities that are determined to be VIEs, the Company consolidates those entities where it has concluded it is the primary beneficiary. The Company is determined to be the primary beneficiary if it holds a controlling financial interest which is defined as possessing (a) the power to direct the activities that most significantly impact the VIE’s economic performance and (b) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. In evaluating whether the Company is the primary beneficiary, the Company evaluates its economic interests in the entity held either directly or indirectly by the Company. The Company determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a VIE and reconsiders that conclusion continuously. At each reporting date, the Company assesses whether it is the primary beneficiary and will consolidate or deconsolidate accordingly. Refer to Note 10 for additional information on the Company’s VIEs. Entities that do not qualify as VIEs are assessed for consolidation as voting interest entities. Under the voting interest entity model, the Company consolidates those entities it controls through a majority voting interest. Cash and Cash Equivalents Cash and cash equivalents consist of cash and short-term, highly liquid money market funds with original maturities of three months or less. In circumstances when Federal Deposit Insurance Corporation insured limits are exceeded, the risk of default depends on the creditworthiness of the counterparties to each of these transactions. Interest earned on cash and cash equivalents of $2.0 million, $0.8 million and less than $0.1 million during the years ended December 31, 2023, 2022 and 2021, respectively, is recorded within other income (expense) in the Consolidated Statements of Income (Loss). As of December 31, 2023 and 2022, the Company held $20.2 million and $20.7 million, respectively, of foreign cash included within cash and cash equivalents in the Consolidated Statements of Financial Condition. Foreign Currency The Company consolidates certain subsidiaries that have a non-U.S. dollar functional currency. The assets and liabilities of these subsidiaries are translated at the exchange rate prevailing at the reporting date and income and expenses are translated at the average monthly rates of exchange with the resulting translation adjustment included in the Consolidated Statements of Financial Condition as a component of accumulated other comprehensive income (loss). The Company earns fees denominated in several different foreign currencies. Corresponding transaction gains or losses are recognized in other income (expense) in the Consolidated Statements of Income (Loss). Management Fees and Incentive Fees Receivables Management fees and incentive fees receivables are equal to contractual amounts reduced for allowances, including expected credit losses, if applicable. The Company considers fees receivable to be fully collectible; accordingly, minimal to no allowance for credit losses has been established as of December 31, 2023 and 2022. The Company’s management fees and incentive fees receivables are predominantly with its investments funds, which have low risk of credit loss based on the Company’s historical experience. Historical experience may be adjusted for current conditions and forecasts, including the Company’s expectation of near-term realizations. Allowances are charged directly to general, administrative and other in the Consolidated Statements of Income (Loss). Due from Related Parties Due from related parties includes amounts receivable from the Company’s existing partners, employees, and nonconsolidated funds. Refer to Note 18 for further disclosure of transactions with related parties. Fair Value Measurements The Company categorizes its fair value measurements according to a three-level hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are defined as follows: • Level 1 – Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date; • Level 2 – Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active; and • Level 3 – Inputs that are unobservable and require significant management judgment or estimation. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available under the circumstances. The carrying amounts of cash and cash equivalents and fees receivable approximate fair value due to the immediate or short-term maturity of these financial instruments. Investments Investments primarily consist of investments in GCM Funds and other funds the Company does not control, but is deemed to exert significant influence, and are generally accounted for using the equity method of accounting. Under the equity method of accounting, the Company records its share of the underlying income or loss of such entities, which reflects the net asset value of such investments. Management believes the net asset value of the funds is representative of fair value. The resulting gains and losses are included as investment income in the Consolidated Statements of Income (Loss). The Company’s equity method investments in the GCM Funds investing in private equity, real estate and infrastructure (“GCM PEREI Funds”) are valued based on the most recent available information, which typically has a delay of up to three months due to the timing of financial information received from the investments held by the GCM PEREI Funds. The Company records its share of capital contributions to and distributions from the GCM PEREI Funds within investments in the Consolidated Statements of Financial Condition during the three-month lag period. To the extent that management is aware of material events that affect the GCM PEREI Funds during the intervening period, the impact of the events would be disclosed in the notes to the Consolidated Financial Statements. Certain subsidiaries which hold the general partner capital interest in the GCM Funds are not wholly owned, and as such, the portion of the Company’s investments owned by limited partners in those subsidiaries are reflected within noncontrolling interests in the Consolidated Statements of Financial Condition. For certain other debt investments, the Company has elected the fair value option. Such election is irrevocable and is made at the investment level at initial recognition. The debt investments are not publicly traded and are a Level 3 fair value measurement. For investments carried at fair value, the Company records the increase or decrease in fair value as investment income in the Consolidated Statements of Income (Loss). See Note 6 for additional information regarding the Company’s other investments. Premises and Equipment Premises and equipment and aircraft-related assets are recorded at cost less accumulated depreciation and amortization. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets ranging from three Leases The Company’s leases primarily consist of operating lease agreements for office space in various countries around the world, including for its headquarters in Chicago, Illinois. On January 1, 2022, the Company adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) on a prospective basis. As a result, prior periods were not adjusted. The new standard requires lessees to use a right-of-use (“ROU”) model where lease ROU assets and lease liabilities are recorded on the Consolidated Statements of Financial Condition for all operating leases with initial terms exceeding one year. Lease ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s remaining minimum lease obligations. The Company made a permitted accounting policy election not to apply the ROU model to short-term leases, which are defined as leases with initial terms of one year or less. The Company determines whether a contract contains a lease at inception. Lease ROU assets and lease liabilities are initially recognized on the lease commencement date based on the present value of the minimum lease payments over the lease term. When determining the lease term, the Company generally does not include options to renew as it is not reasonably certain at contract inception that the Company will exercise the option(s). As the implicit rate is not generally readily determinable, the Company uses its incremental borrowing rate to determine the present value of future minimum lease payments. Lease ROU assets may include initial direct costs incurred by the Company and are reduced by lease incentives. Operating lease expense is recognized on a straight-line basis over the lease term within general, administrative and other in the Consolidated Statements of Income (Loss). Intangible Assets and Goodwill Finite-lived intangible assets primarily consist of investment management contracts, investor relationships, technology and trade name. These assets are amortized on a straight-line basis over their respective useful lives, ranging from 2 to 12 years. Intangible assets are reviewed for impairment whenever events or changes in circumstances suggest that the asset’s carrying value may not be recoverable. An impairment loss, calculated as the difference between the estimated fair value and the carrying value of the asset, is recognized if the sum of the estimated undiscounted cash flows relating to the asset is less than the corresponding carrying value. The Company has not recognized any impairment in the periods presented. Goodwill is reviewed for impairment at least annually at the reporting unit level utilizing a qualitative or quantitative approach, and more frequently if circumstances indicate impairment may have occurred. The impairment testing for goodwill under the qualitative approach is based first on a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its respective carrying value. If it is determined that it is more likely than not that the reporting unit’s fair value is less than its carrying value or when the quantitative approach is used, the amount of impairment is calculated as the excess of the carrying value of the reporting unit over its fair value. The Company performed an annual assessment of its goodwill on October 1, 2023 and 2022 and did not identify any impairment. Public and Private Warrants The Company evaluated the public and private warrants under Accounting Standards Codification (“ASC”) 815-40, Derivatives and Hedging—Contracts in Entity’s Own Equity , and concluded that they do not meet the criteria to be classified as equity (deficit) in the Consolidated Statements of Financial Condition. Specifically, the exercise of the public and private warrants may be settled in cash upon the occurrence of a tender offer or exchange that involves 50% or more of the Company’s Class A shareholders. Because such a tender offer may not result in a change in control and trigger cash settlement and the Company does not control the occurrence of such event, the Company concluded that the public warrants and private warrants do not meet the conditions to be classified as equity (deficit) in the Consolidated Statements of Financial Condition. Since the public and private warrants meet the definition of a derivative under ASC 815, the Company recorded these warrants as liabilities in the Consolidated Statements of Financial Condition at fair value upon the closing of the Transaction in accordance with ASC 820, Fair Value Measuremen t, with subsequent changes in their respective fair values recorded in the change in fair value of warrant liabilities within the Consolidated Statements of Income (Loss) Noncontrolling Interests For entities that are consolidated, but not 100% owned, a portion of the income or loss and equity is allocated to owners other than the Company. The aggregate of the income or loss and corresponding equity that is not owned by the Company is included within noncontrolling interests in the Consolidated Financial Statements. Noncontrolling interests is presented as a separate component of equity (deficit) in the Consolidated Statements of Financial Condition. Net income includes the net income attributable to the holders of noncontrolling interests in the Consolidated Statements of Income (Loss). Profits and losses, other than profit interest expense, are allocated to noncontrolling interest in proportion to their relative ownership interests regardless of their basis. Revenue Recognition Contracts which earn the Company management fees and incentive fees are evaluated as contracts with customers under ASC 606 for the services further described below. Under ASC 606, the Company is required to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the Company satisfies its performance obligation. Management Fees Management Fees The Company earns management fees from providing investment management services to specialized funds and customized separate account clients. Specialized funds are generally structured as partnerships having multiple investors. Separate account clients may be structured using an affiliate-managed entity or may involve an investment management agreement between the Company and a single client. Certain separate account clients may have the Company manage assets both with full discretion over investments decisions as well as without discretion over investment decisions and may also receive access to various other advisory services the firm may provide as part of a single customized service which the Company has determined is a single performance obligation. The Company determined that for specialized funds, the fund is generally considered to be the customer while the individual investor or limited partner is the customer with respect to customized separate accounts. The Company satisfies its performance obligations over time as the services are rendered and the customer simultaneously receives and consumes the benefits of the services as they are performed, using the same time-based measure of progress towards completion. The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring the promised services to the customer. The Company’s management fees attributable to the GCM Funds investing in public market investments consist primarily of fees based on the net asset value of the assets managed. Fees may be calculated on a monthly or quarterly basis as of each subscription date, either in advance or arrears. Investment management fees calculated on a monthly or quarterly basis are primarily based on the assets under management at the beginning or end of such monthly or quarterly period or on average net assets. The Company’s management fees attributable to the GCM Funds investing in longer-term public market investments and private market investments are typically based on limited partner commitments to those funds during an initial commitment or investment period. Following the expiration or termination of such period, the fees generally become based on invested assets or based on invested capital and unfunded deal commitments less returned capital. Management fees are determined quarterly and are more commonly billed in advance based on the management fee rate applied to the management fee base at the end of the preceding quarterly period as defined in the respective contractual agreements. Management fees are a form of variable consideration as the basis for the management fee fluctuates over the life of the contract, therefore, management fees are constrained and not recognized until it is probable that a significant reversal will not occur. Certain GCM Fund agreements contain a management fee schedule that simulates the pattern of a fee based on invested capital that increases over the investment period and decreases over the life of the fund. In those circumstances, the Company satisfies its performance obligations over time as the services are rendered and records as revenue the amounts it is entitled to invoice for the applicable quarter for which services have been rendered. Certain agreements contain a requirement to return management fees for commitments left unfunded at the termination of the GCM Fund’s life. As of December 31, 2023 and December 31, 2022, deferred revenue of $3.2 million and $2.4 million, respectively, relating to the portion of the fees collected that the Company views as probable of being returned based on the Company’s investing experience, was recorded within accrued expenses and other liabilities in the Consolidated Statements of Financial Condition. Fund Expense Reimbursement Revenue The Company incurs certain costs, primarily related to accounting, client reporting, investment-decision making and treasury-related expenditures, for which it receives reimbursement from the GCM Funds in connection with its performance obligations to provide investment management services. The Company concluded it controls the services provided and resources used before they are transferred to the customer and therefore is a principal. Accordingly, the reimbursement for these costs incurred by the Company are presented on a gross basis within management fees and the related costs within general, administrative and other in the Consolidated Statements of Income (Loss) with any outstanding amounts recorded within due from related parties in the Consolidated Statements of Financial Condition. Expense reimbursements are generally recognized at a point in time, in the periods during which the related expenses are incurred and the reimbursements are contractually earned. The Company may pay on behalf of and seek reimbursement from GCM Funds for certain professional fees and administrative or other fund expenses that the Company arranges for the GCM Funds. The Company concluded that the nature of its promise is to arrange for the services to be provided and it does not control the services provided by third parties before they are transferred to the customer. As a result, the Company is acting in the capacity of an agent to the GCM Funds. Accordingly, outstanding amounts related to these disbursements are recorded within due from related parties in the Consolidated Statements of Financial Condition. Certain operating agreements limit the expenses a fund bears to a percentage of the market value of the assets managed. The Company is required to reimburse the customer for such exceeded amounts (which the Company may be entitled to recoup in subsequent periods if expenses are sufficiently below the limit). The Company records these amounts as adjustments to the transaction price, which are reflected within management fees in the Consolidated Statements of Income (Loss). Incentive Fees Incentive fees consists of performance based incentive fees in the form of performance fees and carried interest. Performance Fees The Company may receive performance fees from certain GCM Funds investing in public market investments. Performance fees are typically a fixed percentage of investment gains, subject to loss carryforward provisions that require the recapture of any previous losses before any performance fees can be earned in the current period. Performance fees may or may not be subject to a hurdle or a preferred return, which requires that clients earn a specified minimum return before a performance fee can be assessed. With the exception of certain GCM Funds, these performance fees are determined based upon investment performance at the end of a specified measurement period, generally the end of the calendar year. Certain GCM Funds have performance measurement periods extending beyond one year. Investment returns are highly susceptible to market factors, judgments and actions of third parties that are outside of the Company’s control. Accordingly, performance fees are considered variable consideration and are therefore constrained and not recognized as revenue until it is probable that a significant reversal will not occur. In the event that a client redeems from one of the GCM Funds prior to the end of a measurement period, any accrued performance fee is ordinarily due and payable by such redeeming client as of the redemption date. Carried Interest Carried interest is a performance-based capital allocation from a fund’s limited partners earned by the Company in certain GCM Funds invested in longer-term public market investments and private market investments. Carried interest is typically calculated as a percentage of the profits calculated in accordance with the terms of fund agreements at rates that range between 2.5%-20% after returning invested capital, certain fees and a preferred return to the fund’s limited partners. Carried interest is ultimately realized when underlying investments distribute proceeds or are sold and therefore carried interest is highly susceptible to market factors, judgments and actions of third parties that are outside of the Company’s control. Accordingly, carried interest is considered variable consideration and is therefore constrained and not recognized as revenue until it is probable that a significant reversal will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Agreements generally include a clawback provision that, if triggered, would require the Company to return up to the cumulative amount of carried interest distributed, typically net of tax, upon liquidation of those funds, if the aggregate amount paid as carried interest exceeds the amount actually due based upon the aggregate performance of each fund. Accordingly, the amount of carried interest, typically net of tax, that the Company would be required to return if all remaining investments had no value as of the end of each reporting period is deferred at each reporting period. As of December 31, 2023 and December 31, 2022, deferred revenue relating to constrained realized carried interest of $5.6 million and $6.5 million respectively, was recorded within accrued expenses and other liabilities in the Consolidated Statements of Financial Condition. Other Operating Income Other operating income primarily consists of administrative fees from certain private investment vehicles that the Company does not manage or advise. The Company satisfies its performance obligations over time as the services are rendered and the customer simultaneously receives and consumes the benefits of the services as they are performed, using the same time-based measure of progress towards completion. Distribution Relationships The Company has entered into a number of distribution relationships with financial services firms to assist it in developing and servicing its client base. These relationships are non-exclusive and generally enable the Company to have direct contact with major clients. Management and incentive fee revenue in the Consolidated Statements of Income (Loss) is recorded on a gross basis. Expenses pursuant to the revenue sharing arrangements in connection with these distribution agreements of $5.5 million, $5.7 million and $6.9 million for the years ended December 31, 2023, 2022 and 2021, respectively, were recorded within general, administrative and other in the Consolidated Statements of Income (Loss). Employee Compensation and Benefits Cash-based Employee Compensation and Benefits The Company compensates its employees through the cash payment of both a fixed component (“base salary”) and a variable component (“bonus”). Base salary is recorded on an accrual basis over each employee’s period of service. Bonus compensation is determined by the Company’s management and is generally discretionary taking into consideration, among other things, the financial results of the Company, as well as the employee’s performance. Cash-based Incentive Fee Related Compensation Incentive fee compensation consists of discretionary compensation accrued and paid annually based on the Company’s share of incentive fee revenue. Carried Interest Compensation Certain employees and former employees are entitled to a portion of the carried interest realized from certain GCM Funds, which generally vest over a multi-year period and are payable upon a realization of the carried interest. Accordingly, carried interest resulting from a realization event gives rise to the incurrence of an obligation. Amounts payable under these arrangements are recorded within employee compensation and benefits when they become probable and reasonably estimable. For certain GCM Funds, realized carried interest is subject to clawback. Although the Company defers the portion of realized carried interest not meeting the criteria for revenue recognition, accruing an expense for amounts due to employees and former employees is based upon when it becomes probable and reasonably estimable that carried interest has been earned and therefore a liability has been incurred. As a result, the recording of an accrual for amounts due to employees and former employees generally precedes the recognition of the related carried interest revenue. The Company withholds a portion of the amounts due to employees and former employees as a reserve against contingent repayments to the GCM Funds. As of December 31, 2023 and 2022, an accrual of $12.7 million and $13.3 million, respectively, relating to amounts withheld was recorded within accrued compensation and employee related obligations in the Consolidated Statements of Financial Condition. Other Non-cash Compensation The Company has established deferred compensation programs for certain employees and accrues deferred compensation expense ratably over the related vesting schedules, recognizing an increase or decrease in compensation expense based on the performance of certain GCM Funds. In addition, the Company has granted compensation awards to employees that represent investments that will be made in GCM Funds on behalf of the employees and were compensation for past services that were fully vested upon the award date. Compensation expense related to deferred compensation and other awards are included within employee compensation and benefits in the Consolidated Statements of Income (Loss). Partnership Interest-Based Compensation Various individuals, including current and former employees of the Company (“Recipients”), have been awarded partnership interests in Holdings, Holdings II and Management LLC. These partnership interests either (a) grant the Recipients the right to certain cash distributions of profits from Holdings, Holdings II and Management LLC to the extent such distributions are authorized or (b) transfer equity ownership between certain existing employee members of the GCMH Equityholders. A partnership interest award is accounted for based on its substance. A partnership interest award that is in substance a profit-sharing arrangement or performance bonus would generally not be within the scope of the stock-based compensation guidance and would be accounted for under the guidance for deferred compensation plans, similar to a cash bonus. However, if the arrangement has characteristics more akin to the risks and rewards of equity ownership, the arrangement would be accounted for under stock-based compensation guidance. S |
Mosaic Transaction
Mosaic Transaction | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Mosaic Transaction | Mosaic Transaction Prior to Amendment and Exercise of Mosaic Call Right Effective January 1, 2020, the Partnership and several subsidiaries, (collectively, the “Seller”) entered into a Purchase and Sale Agreement (“Agreement”) and issued certain limited partnership interests in several subsidiaries (“Carry Plan Entities”) to Mosaic Acquisitions 2020, L.P. (“Mosaic”). In addition, Mosaic also acquired the rights to receive a percentage of carried interest from certain GCM Funds and agreed to provide additional funding under certain circumstances up to a maximum amount as defined in the Agreement (collectively, the “Mosaic Transaction”). Mosaic issued Class A and Class B equity interests to GCMH, Holdings and Mosaic Feeder, L.P. (“Mosaic Feeder”). The Partnership served as the general partner of Mosaic, which was consolidated as the Partnership holds a controlling financial interest in Mosaic. Mosaic Feeder was beneficially owned by Lakeshore Investments GP, LLC (“Lakeshore”), a related party, and an unaffiliated third-party investor (“Mosaic Counterparty”) and was not consolidated. The consideration transferred by Mosaic Counterparty to the Seller for the interests acquired was $125.4 million. In addition, the Seller received an additional $48.0 million to fund future investment commitments. Additionally, the Seller could be required to pay additional amounts as long as Mosaic Feeder has an ownership interest in the transferred interests (“Potential Payments”) based on cash flow up to the relevant dates as defined in the Agreement that could total up to a maximum of $19.9 million, which was broken down as a maximum of $4.9 million on December 31, 2020, $7.5 million on December 31, 2021 and $7.5 million on December 31, 2022. GCMH made a payment of $4.9 million on December 31, 2020. Such amounts were eligible to be reduced (not below zero) by exceeding certain cumulative distribution thresholds at each relevant date. In addition, any such amounts paid to Mosaic would also reduce, on a dollar-for-dollar basis, the purchase price payable upon exercise of the Put Option. On December 31, 2020, the Company paid $2.6 million to Mosaic Feeder for the right, but not the obligation, to require Mosaic Feeder to sell to GCMH all of the Class A and Class B equity interests held by Mosaic Feeder in Mosaic (the “Mosaic Call Right”) for a purchase price equal to the greater of 1.3x its investment or a 12% internal rate of return on its investment. Further, Mosaic Counterparty had the right, but not the obligation, to require the Partnership to acquire all of the Class A and Class B Interests held by Mosaic Feeder in Mosaic (the “Put Option”) for a purchase price equal to Mosaic Counterparty receiving the greater of 1.3x of its investment or a 12% internal rate of return on its investment (the “Put Price”). The Put Option could only be exercised if a Triggering Event as defined in the Agreement occurred, which management had deemed to be remote. If the Partnership declined to pay the Put Price, Mosaic Counterparty may either step in and act as the general partner of Mosaic and control Mosaic until Mosaic Counterparty recoups the Put Price or effect a transfer of the underlying assets of Mosaic to Mosaic Counterparty. Management determined that the Mosaic Transaction should be evaluated under the guidance in ASC 810 and concluded that Mosaic was accounted for as a VIE. The Partnership was deemed the primary beneficiary and therefore consolidated Mosaic. In addition, the Partnership concluded that the Put Option was embedded in an equity host contract but did not meet the net settlement criterion of an embedded derivative and therefore no separate accounting was required. However, as the Put Option was not solely within the control of the Partnership, the noncontrolling interest related to Mosaic had been classified as mezzanine equity. Amendment and Exercise of Mosaic Call Right The terms of the Mosaic Call Right were amended and the purchase price was reduced to 1.225x the investment for the period through July 15, 2021 in exchange for the Company bearing certain interim funding costs of Mosaic Feeder. On July 2, 2021, GCMH exercised the amended Mosaic Call Right to purchase the interest in Mosaic for a net purchase price of $165.0 million inclusive of distributions through the closing date but net of $19.5 million of consolidated Mosaic cash to fund investments and option premiums. GCMH’s purchase resulted in the interest previously held by Mosaic Counterparty no longer being accounted for as a redeemable noncontrolling interest of the Company following July 2, 2021. As the Company continues to consolidate Mosaic, the transaction was accounted for as an equity transaction without a change in control at the July 2, 2021 net carrying value, including associated tax impacts. As a result, $14.0 million was recorded as a reduction to additional paid-in capital and $47.5 million was recorded as a reduction to noncontrolling interests in GCMH on the Company’s Consolidated Statements of Equity (Deficit) for the year ended December 31, 2021. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues For the years ended December 31, 2023, 2022 and 2021, management fees and incentive fees consisted of the following: Year Ended December 31, Management fees 2023 2022 2021 Management fees, net $ 360,888 $ 356,401 $ 340,844 Fund expense reimbursement revenue 14,556 10,841 10,372 Total management fees $ 375,444 $ 367,242 $ 351,216 Year Ended December 31, Incentive fees 2023 2022 2021 Performance fees $ 15,313 $ 2,623 $ 51,947 Carried interest 49,590 72,544 121,906 Total incentive fees $ 64,903 $ 75,167 $ 173,853 The Company recognized revenues during the years ended December 31, 2023, 2022 and 2021 of $0.5 million, $0.4 million and $2.3 million, respectively, that were previously received and deferred at the beginning of the respective periods. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments Investments consist of the following: As of December 31, 2023 2022 Equity method investments $ 228,822 $ 213,776 Other investments 11,380 10,194 Total investments $ 240,202 $ 223,970 As of December 31, 2023 and 2022, the Company held investments of $240.2 million and $224.0 million, respectively, of which $56.1 million and $64.9 million were owned by noncontrolling interest holders, respectively. Future net income (loss) and cash flow from investments held by noncontrolling interest holders will not be attributable to the Company. Equity Method Investments The summarized financial information of the Company’s equity method investments is as follows: As of December 31, 2023 2022 Total assets $ 42,312,866 $ 40,326,304 Total liabilities $ 1,357,554 $ 1,655,742 Total equity $ 40,955,312 $ 38,670,562 Year Ended December 31, 2023 2022 2021 Investment income $ 187,989 $ 109,180 $ 195,613 Expenses 347,320 304,908 293,729 Net investment loss (159,331) (195,728) (98,116) Net realized and unrealized gain 1,831,634 1,108,471 8,441,314 Net income $ 1,672,303 $ 912,743 $ 8,343,198 The Company evaluates each of its equity method investments to determine if any were significant as defined by the SEC. As of December 31, 2023 and 2022, no individual equity method investment held by the Company met the significance criteria. As such, the Company is not required to present separate financial statements for any of its equity method investments. Other Investments |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis and level of inputs used for such measurements as of December 31, 2023 and 2022: Fair Value as of December 31, 2023 Level 1 Level 2 Level 3 Total Assets Money market funds $ 10,282 $ — $ — $ 10,282 Other investments — — 11,192 11,192 Total assets $ 10,282 $ — $ 11,192 $ 21,474 Liabilities Public warrants $ 6,042 $ — $ — $ 6,042 Private warrants — — 389 389 Interest rate derivatives — 7,469 — 7,469 Total liabilities $ 6,042 $ 7,469 $ 389 $ 13,900 Fair Value as of December 31, 2022 Level 1 Level 2 Level 3 Total Assets Money market funds $ 36,240 $ — $ — $ 36,240 Other investments — — 10,007 10,007 Total assets $ 36,240 $ — $ 10,007 $ 46,247 Liabilities Public warrants $ 7,386 $ — $ — $ 7,386 Private warrants — — 475 475 Interest rate derivatives — 6,473 — 6,473 Total liabilities $ 7,386 $ 6,473 $ 475 $ 14,334 Money Market Funds Money market funds are valued using quoted market prices and are included in cash and cash equivalents in the Consolidated Statements of Financial Condition. Interest Rate Derivatives Management determines the fair value of its interest rate derivative agreement based on the present value of expected future cash flows based on observable future rates applicable to each swap contract using linear interpolation, inclusive of the risk of non-performance, using a discount rate appropriate for the duration. See Note 15 for a dditional information regarding interest rate derivatives . Other Investments Investments in the subordinated notes of a structured alternatives investment solution are not publicly traded and are classified as Level 3. Management determines the fair value of these other investments using a discounted cash flow analysis (“Cash Flow Analysis”), which includes assumptions regarding the expected deployment and realization timing of private investments. The position was classified as Level 3 as of December 31, 2023 and 2022 because of the use of significant unobservable inputs in the Cash Flow Analysis as follows: December 31, 2023 December 31, 2022 Impact to Valuation from an Increase in Input (2) Significant Unobservable Inputs (1) Range Weighted Average Range Weighted Average Discount rate (3) 26.5% - 27.5% 27.0 % 25.5% - 26.5% 26.0 % Decrease Expected remaining term (years) 8 – 12 N/A 9 – 13 N/A Decrease Expected return – liquid assets (4) 2.0% - 5.0% 4.3 % 2.0% - 6.0% 5.0 % 4 Increase Expected total value to paid in capital – private assets (5) 1.55x – 2.05x 1.87x 1.32x – 2.40x 1.85x 5 Increase ____________ (1) In determining these inputs, management considers the following factors including, but not limited to: liquidity, estimated yield, capital deployment, diversified multi-strategy appreciation, expected net multiple of investment capital across Private Assets investments, annual operating expenses, as well as investment guidelines such as concentration limits, position size, and investment periods. (2) Unless otherwise noted, this column represents the directional change in fair value of the Level 3 investments that would result from an increase to the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. (3) The discount rate was based on the relevant benchmark rate, spread, and yield migrations on related securitized assets. (4) Inputs were weighted based on actual and estimated expected return included in the range. (5) Inputs were weighted based on the actual and estimated commitments to the respective private asset investments included in the range. The resulting fair values of $11.2 million and $10.0 million were recorded within investments in the Consolidated Statements of Financial Condition as of December 31, 2023 and 2022, respectively. The following table presents changes in Level 3 assets measured at fair value for the years ended December 31, 2023 and 2022. Year Ended December 31, 2023 2022 Balance at beginning of period $ 10,007 $ 11,010 Change in fair value 1,185 (1,003) Balance at end of period $ 11,192 $ 10,007 Public Warrants The public warrants are valued using quoted market prices on the Nasdaq Stock Market LLC under the ticker GCMGW. Private Warrants The private warrants were classified as Level 3 as of December 31, 2023 and 2022 because of the use of significant unobservable inputs in the valuation, however the overall private warrant valuation and change in fair value are not material to the Consolidated Financial Statements. The valuations for the private warrants were determined to be $0.43 and $0.53 per unit as of December 31, 2023 and 2022, respectively. The resulting fair values of $0.4 million and $0.5 million were recorded within warrant liabilities in the Consolidated Statements of Financial Condition as of December 31, 2023 and 2022, respectively. See Note 9 for additional information regarding the warrant activity. The following table presents changes in Level 3 liabilities measured at fair value for the years ended December 31, 2023 and 2022: Year Ended December 31, 2023 2022 Balance at beginning of period $ 475 $ 1,584 Change in fair value (86) (1,109) Balance at end of period $ 389 $ 475 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets, net consist of the following: As of December 31, 2023 Gross carrying amount Accumulated amortization Net carrying amount Subject to amortization: Investment management contracts $ 36,190 $ (36,190) $ — Customer relationships 23,518 (20,891) 2,627 Technology 2,030 (2,030) — Other 620 (620) — $ 62,358 $ (59,731) $ 2,627 As of December 31, 2022 Gross carrying amount Accumulated amortization Net carrying amount Subject to amortization: Investment management contracts $ 36,190 $ (36,190) $ — Customer relationships 23,518 (19,578) 3,940 Technology 2,030 (2,030) — Other 620 (620) — $ 62,358 $ (58,418) $ 3,940 Amortization expense of $1.3 million, $2.3 million and $2.3 million was recognized for the years ended December 31, 2023 , 2022 and 2021, respectively. The following approximates the future estimated amortization expense relating to intangible assets: Year Ended December 31, 2024 $ 1,313 2025 1,314 2026 — 2027 — 2028 — Thereafter — |
Equity
Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Equity | Equity The Company has one class of preferred stock authorized, three classes of common stock authorized: Class A common stock, Class B common stock and Class C common stock, and warrants. See Note 9 for additional information regarding the warrants. Holders of Class A common stock and Class C common stock vote together as a single class on all matters submitted to the stockholders for their vote or approval, except as required by applicable law. Preferred Stock The Company is authorized to issue 100,000,000 shares of preferred stock with a par value of $0.0001 per share. Voting and other rights and preferences may be determined from time to time by the Company’s Board of Directors. As of December 31, 2023 and 2022 , there were no shares of preferred stock issued or outstanding. Class A Common Stock Holders of Class A common stock are entitled to one vote for each share on all matters submitted to the stockholders for their vote or approval. Additionally, holders of shares of Class A common stock are entitled to receive dividends as and if declared by the Board of Directors out of legally available funds. Class B Common Stock Holders of Class B common stock are not entitled to any votes on any matter that is submitted to a vote by the Company’s stockholders, except as required by Delaware law. Del aware law would permit holders of Class B common stock to vote, with one vote per share, on a matter if it were to (i) change the par value of the Class B common stock or (ii) amend the Charter to alter the powers, preferences, or special rights of the Class B common stock as a whole in a way that would adversely affect the holders of Class B common stock. Holders of shares of Class B common stock are entitled to receive dividends as and if declared by the Board of Directors out of legally available funds. Class C Common Stock Holders of Class C common stock are entitled to carry up to 10 votes per share and represent no more than 75% of the voting power of the total voting stock. Holders of Class C common stock do not have any right to receive dividends other than stock dividends consisting of shares of Class C common stock, paid proportionally with respect to each outstanding share of Class C common stock. Shares of Class C common stock are cancelled upon a sale or transfer of Class A common stock received as a result of any redemption or exchange of GCMH common units outstanding to any person that is not the Chairman of the Board and Chief Executive Officer of the Company or GCMH Equityholders (or affiliate or owner) as of November 17, 2020. Additionally, shares of Class C common stock are cancelled if there happens to be a redemption or exchange of a common unit for cash. The GCMH Equityholders may from time to time cause GCMH to redeem any or all of their GCMH common units in exchange, at the Company’s election, for either cash (based on the market price for a share of the Class A common stock) or shares of Class A common stock. Shares of Class A common stock, Class B common stock and Class C common stock are not subject to any conversion right. Shares of Common Stock Outstanding The following table shows a rollforward of the common stock outstanding for the years ended December 31, 2023, 2022 and 2021: Class A Class B Class C December 31, 2020 40,835,093 — 144,235,246 Exercise of warrants 1,794,003 — — Net shares delivered for vested RSUs 1,413,724 — — Repurchase of Class A shares (78,730) — — December 31, 2021 43,964,090 — 144,235,246 Exercise of warrants 30 — — Net shares delivered for vested RSUs 1,120,432 — — Repurchase of Class A shares (3,278,337) — — December 31, 2022 41,806,215 — 144,235,246 Net shares delivered for vested RSUs 1,746,537 — — Repurchase of Class A shares (564,189) — — December 31, 2023 42,988,563 — 144,235,246 As of December 31, 2023, 268,441 RSUs were vested, but not yet delivered, and are therefore not yet included in outstanding Class A common stock. The delivery of vested RSUs will be reduced by the number of shares withheld to satisfy statutory withholding tax obligations. Dividends Dividends are reflected in the Consolidated Statements of Equity (Deficit) when declared by the Board of Directors. The table below summarizes dividends declared during 2023, 2022 and 2021: Declaration Date Record Date Payment Date Dividend per Common Share January 4, 2021 March 1, 2021 March 15, 2021 $0.06 February 25, 2021 June 1, 2021 June 15, 2021 $0.08 August 6, 2021 September 1, 2021 September 15, 2021 $0.09 November 8, 2021 December 1, 2021 December 15, 2021 $0.10 Total dividends paid per share, year ended December 31, 2021 $0.33 February 10, 2022 March 1, 2022 March 15, 2022 $0.10 May 5, 2022 June 1, 2022 June 15, 2022 $0.10 August 8, 2022 September 1, 2022 September 15, 2022 $0.10 November 7, 2022 December 1, 2022 December 15, 2022 $0.11 Total dividends paid per share, year ended December 31, 2022 $0.41 February 9, 2023 March 1, 2023 March 15, 2023 $0.11 May 9, 2023 June 1, 2023 June 15, 2023 $0.11 August 8, 2023 September 1, 2023 September 15, 2023 $0.11 November 7, 2023 December 1, 2023 December 15, 2023 $0.11 Total dividends paid per share, year ended December 31, 2023 $0.44 Dividend equivalent payments of $1.2 million and $1.4 million were accrued for holders of RSUs as of December 31, 2023 and 2022, respectively. Distributions to partners represent distributions made to GCMH Equityholders. Stock Repurchase Plan On August 6, 2021, GCMG’s Board of Directors authorized a stock repurchase plan, which may be used to repurchase shares of the Company’s outstanding Class A common stock and warrants to purchase shares of Class A common stock. Class A common stock and warrants may be repurchased from time to time in open market transactions, in privately negotiated transactions, including with employees or otherwise, pursuant to the requirements of Rule 10b5-1 and Rule 10b-18 of the Exchange Act, as well as to retire (by cash settlement or the payment of tax withholding amounts upon net settlement) equity-based awards granted under our 2020 Incentive Award Plan, as amended and restated (and any successor plan thereto), with the terms and conditions of these repurchases depending on legal requirements, price, market and economic conditions and other factors. The Company is not obligated under the terms of the plan to repurchase any of its Class A common stock or warrants, the program has no expiration date, and the Company may suspend or terminate the program at any time without prior notice. Any shares of Class A common stock and any warrants repurchased as part of this program will be canceled. GCMG’s Board of Directors has made subsequent increases to its original stock repurchase authorization amount for shares and warrants. As of December 31, 2022, the total authorization was $90.0 million, excluding fees and expenses. On August 8, 2023, GCM Grosvenor’s Board of Directors increased the firm’s existing repurchase authorization by $25 million, from $90 million to $115 million. On February 8, 2024, GCM Grosvenor’s Board of Directors further increased the firm’s existing repurchase authorization by $25 million , from $115 million to $140 million. The table below presents information about deemed repurchases for (1) RSUs that were settled in cash and (2) amounts withheld in connection with the payment of tax liabilities on behalf of employees upon the settlement of vested RSUs. See Note 13 for additional information regarding RSUs. Year Ended December 31, 2023 2022 2021 Deemed repurchases of Class A common stock 3,289,385 740,699 615,285 Average cost per deemed repurchase of Class A common stock $ 7.85 $ 8.70 $ 11.27 Total cost of deemed repurchases $ 25,835 $ 6,445 $ 6,934 The table below presents information about the repurchase of public warrants, which each entitle the holder to purchase one share of Class A common stock. Year Ended December 31, 2023 2022 2021 Public warrants — 2,812,764 681,800 Average cost per warrant $ — $ 0.91 $ 1.87 Total cost of public warrants repurchases $ — $ 2,569 $ 1,273 The table below presents information about Class A common stock repurchased on the open market. Year Ended December 31, 2023 2022 2021 Class A common stock 564,189 3,278,337 78,730 Average cost per share $ 7.94 $ 8.05 $ 11.26 Total cost of Class A common stock repurchases $ 4,478 $ 26,391 $ 887 |
Warrants
Warrants | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Warrants | Warrants Public Warrants Each public warrant entitles the registered holder to purchase one share of Class A common stock at a price of $11.50 per share, subject to adjustment. A warrant holder may exercise its warrants only for a whole number of shares of Class A common stock. This means that only a whole warrant may be exercised at any given time by a warrant holder. The warrants expire 5 years after the consummation of the Transaction, or earlier upon redemption or liquidation. The Company may call the warrants for redemption: • in whole and not in part; • at a price of $0.01 per warrant; • upon not less than 30 days’ prior written notice of redemption to each warrant holder; and • if, the last reported sale price of the Class A common stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending three trading days before the Company sends the notice of redemption to the warrant holders. Warrant holders do not have the rights or privileges of holders of Class A common stock and any voting rights until they exercise their warrants and receive shares of Class A common stock. After the issuance of shares of Class A common stock, upon exercise of the warrants, each holder will be entitled to one vote for each share held of record on all matters to be voted on by stockholders. Private Placement Warrants The private placement warrants (including the Class A common stock issuable upon exercise of the private placement warrants) will not be redeemable by the Company so long as they are held by CF Sponsor, Holdings or their permitted transferees. CF Sponsor, Holdings or their permitted transferees, have the option to exercise the private placement warrants on a cashless basis. If holders of the private placement warrants elect to exercise them on a cashless basis, they would calculate the exercise price by dividing (x) the number of shares of Class A common stock underlying the warrants, multiplied by the difference between the exercise price of the warrants and the “fair market value” (defined below) by (y) the average volume weighted average last reported sale price of the Class A common stock for the 10 trading days ending on the third trading day prior to the date on which the notice of warrant exercise is sent to the warrant agent (the “fair market value”). The following table shows a rollforward of the public and private warrants outstanding for the years ended December 31, 2023, 2022 and 2021: Public Warrants Private Warrants Total December 31, 2020 20,273,567 2,700,000 22,973,567 Exercises of warrants (1,794,003) — (1,794,003) Transfer in (out) 1,800,000 (1,800,000) — Repurchases (681,800) — (681,800) December 31, 2021 19,597,764 900,000 20,497,764 Exercises of warrants (30) — (30) Repurchases (2,812,764) — (2,812,764) December 31, 2022 16,784,970 900,000 17,684,970 Exercises of warrants — — — Repurchases — — — December 31, 2023 16,784,970 900,000 17,684,970 No warrants were exercised or repurchased during the year ended December 31, 2023. During the years ended December 31, 2022 and 2021, 30 and 1,794,003 public warrants were exercised, respectively, resulting in less than $0.1 million and $20.6 million of proceeds, respectively. Pursuant to the stock repurchase plan described in Note 8, during the years ended December 31, 2022 and 2021, the Company repurchased 2,812,764 and 681,800 public warrants, respectively, for $2.6 million and $1.3 million, respectively, or an average of $0.91 and $1.87 per warrant, respectively. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities The Company consolidates certain VIEs in which it is determined that the Company is the primary beneficiary. The Company holds variable interests in certain entities that are VIEs which are not consolidated, as it is determined that the Company is not the primary beneficiary. The Company’s involvement with such entities is generally in the form of direct equity interests in, and fee arrangements with, the entities in which it also serves as the general partner or managing member. The Company evaluated its variable interests in the VIEs and determined it is not considered the primary beneficiary of the entities primarily because it does not have interests in the entities that could potentially be significant. No reconsideration events that caused a change in the Company’s consolidation conclusions occurred during either the year ended December 31, 2023 or 2022. As of December 31, 2023 and 2022, the total unfunded commitments from the special limited partner and general partners to the unconsolidated VIEs were $42.1 million and $41.1 million, respectively. These commitments are the primary source of financing for the unconsolidated VIEs. The following table sets forth certain information regarding the VIEs in which the Company holds a variable interest but does not consolidate. The assets recognized on the Company’s Consolidated Statements of Financial Condition relate to the Company’s interests in and management fees, incentive fees and third party costs receivables from these non-consolidated VIEs. The Company’s maximum exposure to loss relating to non-consolidated VIEs as of December 31, 2023 and 2022 were as follows: As of December 31, 2023 2022 Investments $ 102,109 $ 98,712 Receivables 16,324 11,695 Maximum exposure to loss $ 118,433 $ 110,407 The above table includes investments in VIEs which are owned by noncontrolling interest holders of approximately $30.9 million and $36.7 million as of December 31, 2023 and 2022, respectively. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment A summary of premises and equipment as of December 31, 2023 and 2022 is as follows: As of December 31, Estimated Useful Lives 2023 2022 Furniture, fixtures and leasehold improvements $ 36,457 $ 36,481 3 – 7 years Office equipment 1,063 1,064 5 years Computer equipment and software 19,615 18,806 3 – 5 years Aircraft 1,550 1,550 5 years Assets in progress 3,407 107 Premises and equipment, at cost 62,092 58,008 Accumulated depreciation and amortization (54,714) (53,388) Premises and equipment, net $ 7,378 $ 4,620 In August 2019, the Company acquired a 12.5% interest in an aircraft which is being amortized over five years. In March 2021, the Company assigned 50% of its interest to Holdings for cash consideration of $1.3 million. Total depreciation and amortization expense related to premises and equipment of $1.4 million, $1.5 million and $1.7 million was recognized for the years ended December 31, 2023, 2022 and 2021, respectively. |
Employee Compensation and Benef
Employee Compensation and Benefits | 12 Months Ended |
Dec. 31, 2023 | |
Compensation Related Costs [Abstract] | |
Employee Compensation and Benefits | Employee Compensation and Benefits For the years ended December 31, 2023, 2022 and 2021, employee compensation and benefits consisted of the following: Year Ended December 31, 2023 2022 2021 Cash-based employee compensation and benefits $ 156,153 $ 160,522 $ 162,901 Equity-based compensation 50,667 30,721 44,190 Partnership interest-based compensation 103,934 31,811 27,671 Carried interest compensation 28,505 41,920 67,773 Cash-based incentive fee related compensation 15,628 11,001 28,002 Other non-cash compensation 1,157 1,336 3,300 Total employee compensation and benefits $ 356,044 $ 277,311 $ 333,837 Partnership Interest in Holdings, Holdings II and Management LLC Payments and settlements for partnership interest awards to the employees are made by GCMH Equityholders. As a result, the Company records a non-cash profits interest compensation charge and an offsetting deemed contribution to equity (deficit) to reflect the payments or settlements made or owed by the GCMH Equityholders. Since payments or settlements are made by Holdings, Holdings II and Management LLC, the expense that is pushed down to GCMH and the offsetting deemed contribution are each attributed solely to noncontrolling interests in GCMH. Any liability related to the awards is recognized at Holdings, Holdings II or Management LLC as Holdings, Holdings II or Management LLC is the party responsible for satisfying the obligation, and is not shown in the Company’s Consolidated Financial Statements. The Company has recorded deemed contributions to equity (deficit) from Holdings, Holdings II and Management LLC of $103.9 million, $31.8 million and $27.7 million for the years ended December 31, 2023, 2022 and 2021, respectively, for partnership interest-based compensation expense which was or will ultimately be paid or settled by Holdings, Holdings II or Management LLC. GCMH Equityholders have modified awards to certain individuals upon their voluntary retirement or intention to retire as employees. These awards generally include a stated target amount that, upon payment, terminates the recipient’s rights to future distributions and allows for a lump sum buy-out of the awards, at the discretion of the managing member of Holdings, Holdings II, and Management LLC. The awards are accounted for as partnership interest-based compensation at the fair value of these expected future payments, in the period the employees accepted the offer. No partnership interest-based compensation expense related to award modifications was recognized for the year ended December 31, 2023 (other than as discussed for the Holdings Awards below) and $6.3 million was recognized for each of the years ended December 31, 2022 and 2021. The liability associated with awards that contain a stated target has been retained by Holdings as of December 31, 2023 and 2022 and is re-measured at each reporting date, with any corresponding changes in liability being reflected as employee compensation and benefits expense of the Company. No recipients had unvested stated target payments as of either December 31, 2023 or 2022. Certain recipients had unvested stated target payments of $6.3 million as of December 31, 2021, which was not reflected as employee compensation and benefits expense by the Company as of December 31, 2021. The Company recognized partnership interest-based compensation expense of $21.4 million, $23.1 million and $21.4 million for the years ended December 31, 2023, 2022 and 2021, respectively, related to profits interest awards that are in substance profit-sharing arrangements. GCMH Equityholders Awards In the year ended December 31, 2022, GCMH Equityholders entered into agreements that will transfer equity ownership between certain existing employee members of the GCMH Equityholders (“GCMH Equityholders Awards”). The GCMH Equityholders Awards will entitle recipients to receive Class A common stock upon vesting. The non-cash awards serve to transfer equity ownership from existing GCMH Equityholders to other existing member employees upon vesting. The GCMH Equityholders Awards do not dilute Class A common stockholders and do not impact cash flows of the Company. The GCMH Equityholders Awards are accounted for under ASC 718, Compensation—Stock Compensation . The awards generally will vest in May 2025 and do not entitle the recipients to dividends or distributions made on Class A common stock during the vesting period. As such, the fair value of the GCMH Equityholders Awards is based on the closing price of Class A common stock on the accounting grant date less the present value of dividends expected to be paid during the vesting period. GCMH Equityholders can settle the awards upon vesting by exchanging outstanding GCMH common units or by otherwise acquiring and delivering Class A common stock, and therefore the vesting of such awards will not dilute Class A common stockholders. The GCMH Equityholders Awards therefore have no economic impact on Class A common stockholders. As such, the expense that is pushed down to GCMH and the offsetting deemed contribution are each attributed solely to noncontrolling interests in GCMH, consistent with the accounting for payments to employees described above. The GCMH Equityholders Awards of 7,169,415 units had an aggregate grant date fair value of $53.4 million, or an average grant date fair value of $7.45 per unit. The Company recognized partnership interest-based compensation expense related to the GCMH Equityholders Awards of $21.9 million and $2.4 million for the years ended December 31, 2023 and 2022, respectively. As of December 31, 2023, total unrecognized compensation expense related to unvested GCMH Equityholders Awards was $29.1 million and is expected to be recognized over the remaining weighted average period of 1.3 years. Holdings Awards On May 9, 2023, Holdings entered into amended and restated participation certificates with existing employee members (“Holdings Awards”). The Holdings Awards entitle recipients to a stated percentage, or minimum allocable share, of distributions from Holdings, as well as a profits interest with respect to net sale proceeds from dispositions of Holdings properties after certain threshold distributions to other members. Pursuant to ASC 505, the Holdings Awards will be recognized as compensation expense with a corresponding deemed contribution and are accounted for under ASC 718, Compensation—Stock Compensation as the awards have characteristics that are more akin to the risks and rewards of equity ownership in Holdings. These awards do not dilute Class A common stockholders and therefore have no economic impact on Class A common stockholders. Certain of these existing employee members were previously awarded target amounts that entitled them to a stated percentage, or minimum allocable share, of distributions from Holdings until they received a sum certain. Those target amounts represented by those sums, which were previously recorded as partnership interest-based compensation, were reduced to zero in the amended and restated participation certificates. As a result, target amounts that were previously recorded as partnership interest-based compensation were reversed, while partnership interest-based compensation associated with the amended and restated participation certificates is recorded. The Holdings Awards had an aggregate grant date fair value of $155.5 million. The fair value of the Holdings Awards was determined by a third-party valuation firm utilizing a discounted cash flow analysis for the minimum allocable share and a Monte Carlo simulation valuation model for the profits interest with respect to net sale proceeds from dispositions of Holdings properties after the threshold distributions. Significant valuation inputs and assumptions included Holdings projected financial information and distributions, an estimated 10 year holding period, a 15.4% cost of equity, a 13.0% weighted average cost of capital, a 35% volatility assumption, the likelihood of a defined conversion event, a 40% discount for lack of marketability, and the fair value of reference properties that determine the threshold distributions for the profits interest with respect to net sale proceeds. The resulting fair value of the Holdings Awards is pushed down from Holdings to the Company and recorded as compensation expense. A portion of the Holdings Awards were vested upon grant, resulting in immediate expense recognition. The Company recognized partnership interest-based compensation expense related to the Holdings Awards of $60.6 million for the year ended December 31, 2023, which is net of $80.0 million target amounts reversed during the year ended December 31, 2023. A portion of the Holdings Awards will vest and be expensed over a requisite service period through December 31, 2024. As of December 31, 2023, total unrecognized compensation expense related to unvested Holdings Awards was $14.8 million and is expected to be recognized over the remaining weighted average period of 1.0 year. Other Other consists of employee compensation and benefits expense related to deferred compensation programs and other awards that represent investments made in GCM Funds on behalf of the employees. |
Equity-Based Compensation
Equity-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Equity-Based Compensation | Equity-Based Compensation 2020 Incentive Award Plan During February 2021, the Company adopted the 2020 Incentive Award Plan. The 2020 Incentive Award Plan, as amended and restated, allows for the granting of stock options, stock appreciation rights, restricted stock awards, restricted stock units, and other stock or cash based awards or dividend equivalent awards to employees, directors and consultants. Restricted Stock Units In March 2021, the Company granted 4.8 million RSUs to certain employees and directors in connection with the Transaction. The RSUs had an aggregate grant date fair value of $62.1 million. In addition to the March 2021 grant, an additional 0.4 million RSUs with an aggregate grant date fair value o f $4.1 million were granted to certain employees during the year ended December 31, 2021. In the year ended December 31, 2022, the Company granted 1.3 million equity-classified RSUs and 3.2 million liability-classified RSUs with aggregate grant date fair values of $12.3 million and $27.2 million, respectively, to certain employees. In the year ended December 31, 2023, the Company granted 1.9 million equity-classified RSUs and 4.0 million liability-classified RSUs with aggregate grant date fair values o f $15.8 million and $31.0 million, respectively, to certain employees . Liability-classified RSUs are either classified as liabilities because they are required to be settled in cash or because the Company has the right to and intends to, as of each respective period end, settle the RSUs partially or wholly in cash. During the year ended December 31, 2023, the Company reclassified 1.3 million RSUs from liability-classified to equity-classified based on management’s intent to settle (or actual settlement of) the awards in shares of Class A common stock. The majority of liability-classified awards outstanding at December 31, 2023 were granted in October 2023 and vest on March 1, 2024. Other than RSUs granted in October 2023, outstanding awards generally vest either (a) one-third at the grant date with the remainder over two years in equal annual installments or (b) over a one See Note 12 for additional information regarding GCMH Equityholders Awards and Holdings Awards. A summary of non-vested equity-classified RSU activity for the year ended December 31, 2023 is as follows: Number of RSUs Weighted-Average Grant-Date Fair Value Per RSU Balance as of December 31, 2022 2,240,797 $ 11.71 Granted 1,919,857 8.23 Reclassified from liability-classified RSUs 1,272,839 8.36 Vested (3,127,735) 10.52 Forfeited (141,595) 9.52 Balance as of December 31, 2023 2,164,163 $ 8.51 A summary of non-vested liability-classified RSU activity for the year ended December 31, 2023 is as follows: Number of RSUs Weighted-Average Grant-Date Fair Value Per RSU Balance as of December 31, 2022 3,155,161 $ 8.41 Granted 4,002,901 7.76 Reclassified to liability-classified RSUs (1,272,839) 8.36 Vested (2,153,025) 8.40 Forfeited (182,012) 7.89 Balance as of December 31, 2023 3,550,186 $ 7.73 The total grant-date fair value of RSUs that vested during the years ended December 31, 2023, 2022 and 2021 was $51.0 million, $24.2 million and $27.4 million, respectively. For the years ended December 31, 2023, 2022 and 2021, $50.7 million, $30.7 million and $44.2 million, respectively, of compensation expense related to RSUs was recorded within employee compensation and benefits in the Consolidated Statements of Income (Loss). As of December 31, 2023, total unrecognized compensation expense related to non-vested RSUs was $27.3 million and is expected to be recognized over the remaining weighted average period of 1.7 years. The total tax benefit recognized related to the delivered RSUs for the years ended December 31, 2023, 2022 and 2021, was $2.2 million, $0.9 million and $1.3 million, respectively. On January 15, 2024, the Company granted 1.4 million liability-classified RSUs that vest on April 15, 2024. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt The table below summarizes the outstanding debt balance as of December 31, 2023 and 2022: As of December 31, 2023 2022 Senior loan $ 389,000 $ 393,000 Less: debt issuance costs (4,273) (5,373) Total debt $ 384,727 $ 387,627 Maturities of debt for the next five years and thereafter are as follows: Year Ended December 31, 2024 4,000 2025 4,000 2026 4,000 2027 4,000 2028 373,000 Thereafter — Total $ 389,000 Senior Loan On January 2, 2014, the Company entered into a senior secured term loan facility (“Senior Loan”) which was subsequently amended through several debt modifications. On February 24, 2021, the Company completed an amendment and extension of its Senior Loan to further extend the maturity (“Amended Credit Agreement”). Approximately $290.0 million of the aggregate principal amount of the Senior Loan was extended from a maturity date of March 29, 2025 to a maturity date of February 24, 2028 . Concurrently with the effectiveness of the Amended Credit Agreement, the Company made a voluntary prepayment on the Senior Loan in an aggregate principal amount of $50.3 million. On June 23, 2021, the Company further amended its Senior Loan to increase the aggregate principal amount from $290.0 million to $400.0 million (as extended and increased, the “2028 Term Loans”). The Company capitalized $0.9 million and $2.2 million of debt issuances costs related to payments to lenders in connection with the amendments and extension of its Senior Loan in February and June 2021, respectively, which were recorded within debt in the Consolidated Statements of Financial Condition. As a result of the prepayment in February 2021, the Company recorded an expense of $0.7 million related to the acceleration of deferred debt issuance costs, which was recorded within other income (expense) in the Consolidated Statements of Income (Loss) for the year ended December 31, 2021. The Company also expensed $2.6 million of third-party costs related to the amendment, which was recorded within general, administrative and other in the Consolidated Statements of Income (Loss) for the year ended December 31, 2021. Since and beginning on June 30, 2021, quarterly principal payments of $1.0 million are required to be made toward the 2028 Term Loans (less any reduction for prior or future voluntary or mandatory prepayments of principal). Through June 30, 2023, the 2028 Term Loans had an interest rate of 2.50% over the LIBOR, subject to a 0.50% LIBOR floor. On June 29, 2023 the Company entered into Amendment No. 7 to the Credit Agreement to incorporate changes for the contemplated transition to the Term Secured Overnight Financing Rate (“Term SOFR”), and on July 1, 2023, in conjunction with a Benchmark Transition Event, the interest rate defaulted to the Term SOFR plus a Benchmark Replacement Adjustment of 0.11% as recommended by the Relevant Governmental Body (all terms as defined in the Amended Credit Agreement). In addition to the scheduled principal repayments, the Company is required to offer to make prepayments of Consolidated Excess Cash Flow (“Cash Flow Payments”) no later than five days following the date the quarterly financial statements are due if the leverage ratio exceeds certain thresholds in the Amended Credit Agreement. The Cash Flow Payments were calculated as defined in the Senior Loan agreement based on a percentage of calculated excess cash. During the years ended December 31, 2023, 2022 and 2021, the Company was not required to offer to make any Cash Flow Payments. As of December 31, 2023 and 2022, $389.0 million and $393.0 million of 2028 Term Loans were outstanding, respectively, with weighted average interest rates of 7.59% and 4.27% for the years ended December 31, 2023 and 2022, respectively. Under the credit and guaranty agreement governing the terms of the Senior Loan, the Company must maintain certain leverage and interest coverage ratios. The credit and guaranty agreement also contains other covenants that, among other things, restrict the ability of the Company and its subsidiaries to incur debt and restrict the Company and its subsidiaries ability to merge or consolidate, or sell or convey all or substantially all of the Company’s assets. As of December 31, 2023 and 2022, the Company was in compliance with all covenants. GCMH Equityholders and IntermediateCo have executed a pledge agreement (“Pledge Agreement”) and security agreement (“Security Agreement”) with the lenders of the Senior Loan. Under the Pledge Agreement, GCMH Equityholders and IntermediateCo have agreed to secure the obligations under the Senior Loan by pledging its interests in GCMH as collateral against the repayment of the senior secured notes, and GCMH has agreed to secure the obligations under the Senior Loan by granting a security interest in and continuing lien on the collateral described in the Security Agreement. The Pledge Agreement and Security Agreement will remain in effect until such time as all obligations relating to the Senior Loan have been fulfilled. Credit Facility Concurrent with the issuance of the Senior Loan, the Company entered into a $50.0 million revolving credit facility (“Credit Facility”). The Credit Facility matures on February 24, 2026 and carries an unused commitment fee that is paid quarterly. There were no outstanding borrowings related to the Credit Facility as of each of December 31, 2023 and 2022. Other Certain subsidiaries of the Comp any agree to jointly and severally guarantee, as primary obligors and not merely as surety guarantees the obligations of their parent entity, GCMH. Amortization of deferred debt issuance costs was $1.1 million, $1.1 million and $1.0 million for the years ended December 31, 2023, 2022 and 2021, respectively. These amounts are recorded within interest expense in the Consolidated Statements of Income (Loss). The carrying value of the Senior Loan, excluding the unamortized debt issuance costs presented as a reduction to the principal balance approximated the fair value as of December 31, 2023 and December 31, 2022 . As the Senior Loan was not accounted for at fair value, it was not included in the Company’s fair value hierarchy in Note 6, however had it been included, it would have been classified in Level 2. |
Interest Rate Derivatives
Interest Rate Derivatives | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Interest Rate Derivatives | Interest Rate Derivatives The Company has entered into various derivative agreements with financial institutions to hedge interest rate risk related to its outstanding debt. The Company had the following interest rate derivative recorded within accrued expenses and other liabilities as of December 31, 2023 and 2022 in the Consolidated Statements of Financial Condition. Derivative Notional Amount Fair Value as of December 31, 2023 Fair Value as of December 31, 2022 Fixed Rate Paid Floating Rate Received Effective Date (2) Maturity Date Interest rate swap $ 300,000 $ (7,469) $ (6,473) 4.37 % 1 month Term SOFR (1) November 2022 February 2028 ____________ (1) Floating rate received subject to a 0.50% Floor. Refer to Note 14 regarding the interest rate on the outstanding debt for the July 1, 2023 Benchmark Transition Event. The floating rate received under the interest rate swap also defaulted to Term SOFR plus a Benchmark Replacement Adjustment concurrent with the Benchmark Transition Event. (2) Represents the date at which the derivative is in effect and the Company is contractually required to begin payment of interest under the terms of the agreement. A rollforward of the amounts in accumulated other comprehensive income (loss) (“AOCI”) related to interest rate derivatives designated as cash flow hedges is as follows: Year Ended December 31, 2023 2022 2021 Derivative gain (loss) at beginning of period $ 29,130 $ (3,622) $ (11,163) Amount recognized in other comprehensive income 1 1,536 27,285 540 Amount reclassified from accumulated other comprehensive income (loss) to interest expense (8,860) 5,467 7,001 Derivative gain (loss) at end of period 21,806 29,130 (3,622) Less: gain (loss) attributable to noncontrolling interests in GCMH 18,267 24,204 (2,959) Derivative gain (loss) at end of period, net $ 3,539 $ 4,926 $ (663) _____________ (1) Net of tax provision (benefit) of $(0.4) million, $2.6 million for the years ended December 31, 2023, and 2022, respectively, and an immaterial tax impact for the year ended December 31, 2021. In February 2021, the Company terminated derivative instruments which were entered into in 2017 and 2018. Prior to termination, certain derivative instruments did not qualify for hedge accounting due to floor rate mismatches and as a result, all changes in fair value for those derivative instruments were reflected within other income (expense) in the Consolidated Statements of Income (Loss) . The amounts previously recorded as hedges in AOCI will remain in AOCI and are recorded in interest expense within the Consolidated Statements of Comprehensive Income (Loss) over the original life of the swaps. Prior to terminating the instruments in February 2021, the Company recognized a gain of $1.9 million related to interest rate contracts not designated as hedging instruments, which was recorded within other income (expense) in the Consolidated Statements of Income (Loss) for the year ended December 31, 2021. Effective on March 1, 2021 , the Company entered into a swap agreement (“2028 Swap Agreement”) to hedge interest rate risk related to payments made during the extended maturity of the 2028 Term Loans that had a notional amount of $232.0 million . Effective on July 1, 2021, the Company entered into a swap agreement (“2028 Incremental Swap Agreement”) to hedge interest rate risk related to payments made for the increase in aggregate principal amount of the Incremental 2028 Term Loans that had a notional amount of $68.0 million. The 2028 Swap Agreement, the 2028 Incremental Swap Agreement and Incremental 2028 Term Loans had a 0.50% LIBOR floor. The 2028 Swap Agreement and 2028 Incremental Swap Agreement were determined to be effective cash flow hedges at inception based on a comparison of critical terms. In October 2022, the Company terminated the 2028 Swap Agreement and 2028 Incremental Swap Agreement effective on November 1, 2022. The Company received $40.3 million of cash for the fair market value of the interest rate swaps at termination. The amount previously recorded as a hedge in AOCI will remain in AOCI and will be recorded in interest expense within the Consolidated Statements of Comprehensive Income (Loss) over the original life of the swaps. The Company reclassified $6.7 million, $4.2 million and $4.6 million for the years ended December 31, 2023, 2022 and 2021, respectively, from AOCI to interest expense relating to the derivative instruments terminated that initially qualified for hedge accounting. The net impact of these reclassifications decreased interest expense for the year ended December 31, 2023 and increased interest expense for each of the years ended December 31, 2022 and 2021. Effective on November 1, 2022 , the Company entered into a swap agreement to hedge interest rate risk related to payments made for the 2028 Term Loans that has a notional amount of $300 million and a fixed rate of 4.37%. The swap agreement and the 2028 Term Loans had a 0.50% LIBOR floor through June 30, 2023 and defaulted to Term SOFR plus a Benchmark Replacement Adjustment on July 1, 2023 at the Benchmark Transition Event as discussed in Note 14. The swap was determined to be an effective cash flow hedge at inception based on a comparison of critical terms and remained an effective cash flow hedge at and following the Benchmark Transition Event. The fair va lues of the interest rate swaps are based on observable market inputs and represent the net amount required to terminate the positions, taking into consideration market rates and non-performance risk. Refer to Note 6 for additional information. |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Liabilities | Accrued Expenses and Other Liabilities A summary of accrued expenses and other liabilities as of December 31, 2023 and 2022 is as follows: As of December 31, 2023 2022 Carried interest payable $ 332 $ 250 Deferred revenue 8,795 8,972 Clawback obligation 200 200 Derivative liability 7,469 6,473 Other liabilities 14,417 11,345 Total accrued expenses and other liabilities $ 31,213 $ 27,240 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases The Company has entered into operating lease agreements for office space. The Company leases office space in various countries around the world and maintains its headquarters in Chicago, Illinois, where it leases primary office space under a lease agreement expiring September 2026. The leases contain rent escalation clauses based on increases in base rent, real estate taxes and operating expenses. In June 2023, the Company executed an agreement to lease office space for its New York office. The new space will replace the Company’s existing New York office space. The Company gained access to this space in August 2023 and established the ROU asset and lease liability. Total future lease payments are expected to be $65.7 million over 16.3 years. The landlord is providing a tenant improvement allowance of up to $7.0 million for improvements as specified in the lease. The lease contains rent escalation clauses based on increases in base rent, real estate taxes and operating expenses and a 16 month rent concession. The components of operating lease expense recorded within general, administrative and other in the Consolidated Statements of Income (Loss) were as follows: Years Ended December 31, 2023 2022 Operating lease cost (1) $ 8,874 $ 7,514 Variable lease cost (2) 4,458 4,112 Less: sublease income 179 193 Total lease cost $ 13,153 $ 11,433 ____________ (1) Includes $0.3 million of short term lease expense for each of the years ended December 31, 2023 and 2022 . (2) Includes common area maintenance charges and other variable costs not included in the measurement of ROU assets and lease liabilities. The following table summarizes cash flows and other supplemental information related to our operating leases: Years Ended December 31, 2023 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 8,613 $ 8,813 Non-cash ROU assets obtained in exchange for new and extended operating leases $ 34,116 $ 693 Weighted average remaining lease term in years 13.1 years 2.9 years Weighted average discount rate 6.1 % 4.1 % As of December 31, 2023 the maturities of operating lease liabilities were as follows: Year Ended December 31, 2024 $ 4,349 2025 7,456 2026 5,785 2027 4,001 2028 4,001 Thereafter 49,667 Total lease payments $ 75,259 Less: tenant improvement allowance (7,049) Less: imputed interest (26,729) Total operating lease liabilities $ 41,481 Commitment s The Company was required to pay a fixed management fee of $0.5 million per year for a five year period that commenced in 2019 pursuant to its 12.5% interest in an aircraft. On March 11, 2021, GCMH entered into an agreement to assign 50% of its 12.5% share interest in an aircraft to Holdings, for cash consideration of approximately $1.3 million. The Company is now required to pay a fixed management fee of $0.3 million per year. The Company had $85.6 million and $88.9 million of unfunded investment commitments as of December 31, 2023 and 2022, respectively, representing general partner capital funding commitments to several of the GCM Funds. Litigation In the normal course of business, the Company may enter into contracts that contain a number of representations and warranties, which may provide for general or specific indemnifications. The Company’s exposure under these contracts is not currently known, as any such exposure would be based on future claims, which could be made against the Company. The Company’s management is not currently aware of any such pending claims and based on its experience, the Company believes the risk of loss related to these arrangements to be remote. From time to time, the Company is a defendant in various lawsuits related to its business. The Company’s management does not believe that the outcome of any current litigation will have a material effect on the Company’s Consolidated Financial Statements. Off-Balance Sheet Risks The Company may be exposed to a risk of loss by virtue of certain subsidiaries serving as the general partner of GCM Funds organized as limited partnerships. As general partner of a GCM Fund organized as a limited partnership, the Company’s subsidiaries that serve as the general partner have exposure to risk of loss that is not limited to the amount of its investment in such GCM Fund. The Company cannot predict the amount of loss, if any, which may occur as a result of this exposure; however, historically, the Company has not incurred any significant losses and management believes the likelihood is remote that a material loss will occur. |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Parties | Related Parties In regard to the following related party disclosures, the Company’s management cannot be sure that such transactions or arrangements would be the same to the Company if the parties involved were unrelated and such differences could be material. The Company provides certain employees partnership interest awards which are paid or settled by Holdings, Holdings II and Management LLC. Refer to Note 12 for further details. The Company has a sublease agreement with Holdings. Because the terms of the sublease are identical to the terms of the original lease, there is no impact to net income in the Consolidated Statements of Income (Loss) or Consolidated Statements of Cash Flows. The Company incurs certain costs, primarily related to accounting, client reporting, investment-decision making and treasury-related expenditures, for which it receives reimbursement from the GCM Funds in connection with its performance obligations to provide investment management services. The Company also incurs certain costs, primarily related to employee benefits and travel, for which it receives reimbursement from Holdings. Due from related parties in the Consolidated Statements of Financial Condition includes net receivables from GCM Funds of $13.5 million and $13.1 million as of December 31, 2023 and 2022, respectively, and from Holdings of less than $0.1 million as of December 31, 2023 and 2022, paid on behalf of affiliated entities that are reimbursable to the Company. Our executive officers, senior professionals, and certain current and former employees and their families invest on a discretionary basis in GCM Funds, and such investments are generally not subject to management fees and performance fees. As of December 31, 2023 and 2022, such investments and future commitments were $377.5 million and $366.2 million in aggregate, respectively. Certain employees of the Company have an economic interest in an entity that is the owner and landlord of the building in which the principal headquarters of the Company are located. The Company utilizes the services of an insurance broker to procure insurance coverage, including its general commercial package policy, workers’ compensation and professional and management liability coverage for its directors and officers. Certain members of Holdings have an economic interest in, and relatives are employed by, the Company’s insurance broker. From time to time, certain of the Company’s executive officers utilize a private business aircraft, including an aircraft wholly owned or controlled by members of Holdings. Additionally, the Company arranges for the use of the private business aircraft through a number of charter services, including entities predominantly or wholly owned or controlled by members of Holdings. The Company paid, net of reimbursements, approximately $3.4 million, $2.4 million and $1.0 million for the years ended December 31, 2023, 2022 and 2021, respectively, to utilize aircraft and charter services wholly owned or controlled by members of Holdings, which is recorded within general, administrative and other in the Consolidated Statements of Income (Loss). |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes for the years ended December 31, 2023, 2022 and 2021 consist of the following: Year Ended December 31, 2023 2022 2021 Current: Federal $ (282) $ (206) $ 1,970 State and local 3,309 2,137 2,155 Foreign 1,839 1,837 1,176 Total current provision for income taxes $ 4,866 $ 3,768 $ 5,301 Deferred: Federal $ 3,730 $ 4,208 $ 4,428 State and local (886) 1,838 1,364 Foreign (18) (203) (100) Total deferred income taxes expense 2,826 5,843 5,692 Total provision for income taxes $ 7,692 $ 9,611 $ 10,993 A reconciliation of the U.S. statutory income tax rate to the Company’s effective tax rate is as follows: Year Ended December 31, 2023 2022 2021 Statutory U.S. federal income tax rate 21 % 21 % 21 % State and local income taxes (17) % 3 % 2 % Impact of noncontrolling interests (37) % (15) % (17) % Foreign income taxes (8) % 2 % 1 % Change in tax rates 6 % 1 % — % Provision-to-return adjustments 2 % — % — % Change in fair value of warrant liabilities 1 % (2) % — % Change in valuation allowance (4) % 2 % — % Tax receivable agreement liability expense (2) % — % — % Other 2 % (1) % — % Effective income tax rate (36) % 11 % 7 % Deferred tax assets and liabilities are recorded net within deferred tax assets, net in the Company’s Consolidated Statements of Financial Condition. Details of the Company’s deferred tax assets and liabilities are as follows: As of December 31, 2023 2022 Investment in GCMH $ 92,656 $ 92,695 Unrealized gains and losses 2,437 2,041 Intangibles and other 2,423 934 Total deferred tax assets (before valuation allowance) 97,516 95,670 Valuation allowance (38,122) (35,229) Total deferred tax assets $ 59,394 $ 60,441 Right-of-use asset $ (1,096) $ (121) Total deferred tax liabilities $ (1,096) $ (121) Deferred tax assets, net $ 58,298 $ 60,320 GCMG’s sole material asset is its investment in GCMH, which is treated as a partnership for U.S. federal income tax purposes and for purposes of certain jurisdictional income taxes. GCMH’s net taxable income and any related tax credits are passed through to its partners and are included in the partners’ tax returns, even though such net taxable income or tax credits may not have actually been distributed. While GCMG consolidates GCMH for financial reporting purposes, GCMG will be taxed on its share of earnings of GCMH not attributed to the noncontrolling interest holders, which will continue to bear their share of income tax on allocable earnings of GCMH. The income tax burden on the earnings taxed to the noncontrolling interest holders is not reported by the Company in its consolidated financial statements under GAAP. As a result, the Company’s effective tax rate differs materially from the statutory rate. The primary factors impacting the effective tax rate are the allocation of income (loss) to noncontrolling interest as well as state and foreign income taxes paid at the partnership level that are included in income tax expenses. GCMG has recorded a valuation allowance of approximately $38.1 million and $35.2 million as of December 31, 2023 and 2022, respectively, which is primarily related to its outside partnership basis of its investment in GCMH for the amount of the deferred tax asset that is not expected to be realized. The Company analyzes its tax filing positions in all U.S. federal, state, local and foreign tax jurisdictions where it is required to file income tax returns, as well for all open tax years in these jurisdictions. As of December 31, 2023, the Company has examined all open tax years and major jurisdictions and determined there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken or expected to be taken in future tax returns. The Company is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Company’s policy is to recognize interest and penalties related to unrecognized tax benefits, if any, within income taxes in the Consolidated Statements of Income (Loss) . Accrued interest and penalties, if any, would be included within accrued expenses and other liabilities in the Consolidated Statements of Financial Condition. The Company is subject to taxation in the U.S. and various states and foreign jurisdictions. As of December 31, 2023, tax years for 2023, 2022, 2021 and 2020 are subject to examination by the tax authorities. With few exceptions, as of December 31, 2023, the Company is no longer subject to U.S. federal, state, local, or foreign examinations by tax authorities for years before 2020. In December 2021, the Organization for Economic Co-operation and Development (“OECD”) introduced a new global minimum tax of 15% on multi-national entities with global revenues in excess of €750 million, several foreign jurisdictions being effective on January 1, 2024. As of December 31, 2023, the Company’s global revenues were below the threshold, and as such, these rules currently do not have an impact on the Company’s Consolidated Financial Statements. The Company will continue to monitor the legislation for potential impacts. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share The following is a reconciliation of basic and diluted earnings (loss) per share for the years ended December 31, 2023, 2022 and 2021: Year Ended December 31, 2023 2022 2021 Numerator for earnings (loss) per share calculation: Net income attributable to GCM Grosvenor Inc., basic $ 12,774 $ 19,820 $ 21,482 Exercise of private warrants — — (382) Exercise of public warrants — — (1,126) Exchange of Partnership units (65,812) 33,209 33,252 Net income (loss) attributable to common stockholders, diluted (53,038) 53,029 53,226 Denominator for earnings (loss) per share calculation: Weighted-average shares, basic 43,198,517 43,872,300 43,765,651 Exercise of private warrants - incremental shares under the treasury stock method — — 90,062 Exercise of public warrants - incremental shares under the treasury stock method — — 691,396 Exchange of Partnership units 144,235,246 144,235,246 144,235,246 Assumed vesting of RSUs - incremental shares under the treasury stock method — 460,446 277,019 Weighted-average shares, diluted 187,433,763 188,567,992 189,059,374 Basic EPS Net income attributable to common stockholders, basic $ 12,774 $ 19,820 $ 21,482 Weighted-average shares, basic 43,198,517 43,872,300 43,765,651 Net income per share attributable to common stockholders, basic $ 0.30 $ 0.45 $ 0.49 Diluted EPS Net income (loss) attributable to common stockholders, diluted $ (53,038) $ 53,029 $ 53,226 Weighted-average shares, diluted 187,433,763 188,567,992 189,059,374 Net income (loss) per share attributable to common stockholders, diluted $ (0.28) $ 0.28 $ 0.28 When applying the if-converted method to calculate the potential dilutive impact of the exchangeable common units of the Partnership, the earnings (loss) per share numerator adjustment reflects the net income (loss) attributable to noncontrolling interests in GCMH, as reported, adjusted for the hypothetical incremental provision (benefit) for income taxes that would have been recorded by the Company if the units had been converted. Shares of the Company’s Class C common stock do not participate in the earnings or losses of the Company and are therefore not participating securities. As such, a separate presentation of basic and diluted earnings (loss) per share of Class C common stock under the two-class method has not been presented. The following outstanding potentially dilutive securities were excluded from the calculations of diluted earnings (loss) per share attributable to common stockholders because their impact would have been antidilutive for the periods presented: Year Ended December 31, 2023 2022 2021 Public warrants 16,784,970 16,784,970 — Private warrants 900,000 900,000 — Unvested RSUs under the treasury stock method 808,716 — — |
Regulatory and Net Capital Requ
Regulatory and Net Capital Requirements | 12 Months Ended |
Dec. 31, 2023 | |
Broker-Dealer [Abstract] | |
Regulatory and Net Capital Requirements | Regulatory and Net Capital Requirements We are required to maintain minimum net capital balances for regulatory purposes for certain of our foreign subsidiaries as well as for our U.S. broker-dealer subsidiary . These net capital requirements are met by retaining cash. The Company's U.S. registered broker-dealer is subject to the SEC’s Uniform Net Capital Rule (“Rule 15c3-1”), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, as defined, shall not exceed 15 to 1. As of December 31, 2023, the Company's U.S. registered broker-dealer had net capital, as defined under Rule 15c3-1, of $0.6 million and excess net capital of $0.6 million. The ratio of aggregate indebtedness to net capital was 0.23 to 1. As of December 31, 2023, all regulated entities and the broker-dealer subsidiary are in compliance with regulatory requirements. Although the Company's U.S. registered broker-dealer does not claim exemption from the Rule 15c3‐3 of the Securities and Exchange Commission, it does not transact a business in securities with, or for, any person defined as a “customer” pursuant to Rule 17a‐5(c)(4) and does not carry margin accounts, credit balances, or securities for any person defined as a “customer” pursuant to Rule 17a‐5(c)(4). |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Event On February 8, 2024, GCM Grosvenor’s Board of Directors declared a quarterly dividend of $0.11 per share of Class A common stock to record holders as of the close of business on March 1, 2024. The payment date will be March 15, 2024. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | ||||
Net income attributable to GCM Grosvenor Inc., basic | $ 21,482 | $ 12,774 | $ 19,820 | $ 21,482 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Consolidated Financial Statements include the accounts of the Company, its wholly-owned or majority-owned subsidiaries and entities in which the Company is deemed to have a direct or indirect controlling financial interest based on either a variable interest model or voting interest model. All intercompany balances and transactions have been eliminated in consolidation. Amounts presented in accrued compensation and benefits and employee related obligations in prior periods were collapsed and presented in accrued compensation and employee related obligations in order to conform to the current period’s presentation. The portion of the consolidated subsidiaries not owned by GCMG and any related activity is eliminated through noncontrolling interests in the Consolidated Statements of Financial Condition and net income (loss) attributable to noncontrolling interests in the Consolidated Statements of Income (Loss). The Company was an “emerging growth company” (“EGC”), as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), following the consummation of the merger of CFAC and the Company. The Company elected to use this extended transition period for complying with new or revised accounting standards pursuant to Section 102(b)(1) of the JOBS Act that have different effective dates for public and private companies, However, as of December 31, 2023, the Company no longer qualifies as an EGC. Therefore, the Company is no longer able to take advantage of the extended transition period for adopting new or revised accounting standards. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Principles of Consolidation | Principles of Consolidation The Company first determines whether it has a variable interest in an entity. Fees paid to a decision maker or service provider are not deemed variable interests in an entity if (i) the fees are compensation for services provided and are commensurate with the level of effort required to provide those services; (ii) the service arrangement includes only terms, conditions, or amounts that are customarily present in arrangements for similar services negotiated at arm’s length; and (iii) the decision maker does not hold other interests in the entity that individually, or in the aggregate, would absorb more than an insignificant amount of the entity’s expected losses or receive more than an insignificant amount of the entity’s expected residual returns. The Company has evaluated its arrangements and determined that management fees, performance fees and carried interest are customary and commensurate with the services being performed and are not variable interests. For those entities in which it has a variable interest, the Company performs an analysis to determine whether the entity is a variable interest entity (“VIE”). The assessment of whether the entity is a VIE requires an evaluation of qualitative factors and, where applicable, quantitative factors. These judgments include: (a) determining whether the equity investment at risk is sufficient to permit the entity to finance its activities without additional subordinated financial support, (b) evaluating whether the equity holders, as a group, can make decisions that have a significant effect on the economic performance of the entity, and (c) determining whether the equity investors have proportionate voting rights to their obligations to absorb losses or rights to receive returns from an entity. The granting of substantive kick-out rights is a key consideration in determining whether a limited partnership or similar entity is a VIE. For entities that are determined to be VIEs, the Company consolidates those entities where it has concluded it is the primary beneficiary. The Company is determined to be the primary beneficiary if it holds a controlling financial interest which is defined as possessing (a) the power to direct the activities that most significantly impact the VIE’s economic performance and (b) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. In evaluating whether the Company is the primary beneficiary, the Company evaluates its economic interests in the entity held either directly or indirectly by the Company. The Company determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a VIE and reconsiders that conclusion continuously. At each reporting date, the Company assesses whether it is the primary beneficiary and will consolidate or deconsolidate accordingly. Refer to Note 10 for additional information on the Company’s VIEs. Entities that do not qualify as VIEs are assessed for consolidation as voting interest entities. Under the voting interest entity model, the Company consolidates those entities it controls through a majority voting interest. |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Foreign Currency | Foreign Currency The Company consolidates certain subsidiaries that have a non-U.S. dollar functional currency. The assets and liabilities of these subsidiaries are translated at the exchange rate prevailing at the reporting date and income and expenses are translated at the average monthly rates of exchange with the resulting translation adjustment included in the Consolidated Statements of Financial Condition as a component of accumulated other comprehensive income (loss). The Company earns fees denominated in several different foreign currencies. Corresponding transaction gains or losses are recognized in other income (expense) in the Consolidated Statements of Income (Loss). |
Management Fees and Incentive Fees Receivables | Management Fees and Incentive Fees Receivables Management fees and incentive fees receivables are equal to contractual amounts reduced for allowances, including expected credit losses, if applicable. The Company considers fees receivable to be fully collectible; accordingly, minimal to no allowance for credit losses has been established as of December 31, 2023 and 2022. The Company’s management fees and incentive fees receivables are predominantly with its investments funds, which have low risk of credit loss based on the Company’s historical experience. Historical experience may be adjusted for current conditions and forecasts, including the Company’s expectation of near-term realizations. Allowances are charged directly to general, administrative and other in the Consolidated Statements of Income (Loss). Management Fees Management Fees The Company earns management fees from providing investment management services to specialized funds and customized separate account clients. Specialized funds are generally structured as partnerships having multiple investors. Separate account clients may be structured using an affiliate-managed entity or may involve an investment management agreement between the Company and a single client. Certain separate account clients may have the Company manage assets both with full discretion over investments decisions as well as without discretion over investment decisions and may also receive access to various other advisory services the firm may provide as part of a single customized service which the Company has determined is a single performance obligation. The Company determined that for specialized funds, the fund is generally considered to be the customer while the individual investor or limited partner is the customer with respect to customized separate accounts. The Company satisfies its performance obligations over time as the services are rendered and the customer simultaneously receives and consumes the benefits of the services as they are performed, using the same time-based measure of progress towards completion. The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring the promised services to the customer. The Company’s management fees attributable to the GCM Funds investing in public market investments consist primarily of fees based on the net asset value of the assets managed. Fees may be calculated on a monthly or quarterly basis as of each subscription date, either in advance or arrears. Investment management fees calculated on a monthly or quarterly basis are primarily based on the assets under management at the beginning or end of such monthly or quarterly period or on average net assets. The Company’s management fees attributable to the GCM Funds investing in longer-term public market investments and private market investments are typically based on limited partner commitments to those funds during an initial commitment or investment period. Following the expiration or termination of such period, the fees generally become based on invested assets or based on invested capital and unfunded deal commitments less returned capital. Management fees are determined quarterly and are more commonly billed in advance based on the management fee rate applied to the management fee base at the end of the preceding quarterly period as defined in the respective contractual agreements. Management fees are a form of variable consideration as the basis for the management fee fluctuates over the life of the contract, therefore, management fees are constrained and not recognized until it is probable that a significant reversal will not occur. Certain GCM Fund agreements contain a management fee schedule that simulates the pattern of a fee based on invested capital that increases over the investment period and decreases over the life of the fund. In those circumstances, the Company satisfies its performance obligations over time as the services are rendered and records as revenue the amounts it is entitled to invoice for the applicable quarter for which services have been rendered. Certain agreements contain a requirement to return management fees for commitments left unfunded at the termination of the GCM Fund’s life. As of December 31, 2023 and December 31, 2022, deferred revenue of $3.2 million and $2.4 million, respectively, relating to the portion of the fees collected that the Company views as probable of being returned based on the Company’s investing experience, was recorded within accrued expenses and other liabilities in the Consolidated Statements of Financial Condition. Fund Expense Reimbursement Revenue The Company incurs certain costs, primarily related to accounting, client reporting, investment-decision making and treasury-related expenditures, for which it receives reimbursement from the GCM Funds in connection with its performance obligations to provide investment management services. The Company concluded it controls the services provided and resources used before they are transferred to the customer and therefore is a principal. Accordingly, the reimbursement for these costs incurred by the Company are presented on a gross basis within management fees and the related costs within general, administrative and other in the Consolidated Statements of Income (Loss) with any outstanding amounts recorded within due from related parties in the Consolidated Statements of Financial Condition. Expense reimbursements are generally recognized at a point in time, in the periods during which the related expenses are incurred and the reimbursements are contractually earned. The Company may pay on behalf of and seek reimbursement from GCM Funds for certain professional fees and administrative or other fund expenses that the Company arranges for the GCM Funds. The Company concluded that the nature of its promise is to arrange for the services to be provided and it does not control the services provided by third parties before they are transferred to the customer. As a result, the Company is acting in the capacity of an agent to the GCM Funds. Accordingly, outstanding amounts related to these disbursements are recorded within due from related parties in the Consolidated Statements of Financial Condition. Certain operating agreements limit the expenses a fund bears to a percentage of the market value of the assets managed. The Company is required to reimburse the customer for such exceeded amounts (which the Company may be entitled to recoup in subsequent periods if expenses are sufficiently below the limit). The Company records these amounts as adjustments to the transaction price, which are reflected within management fees in the Consolidated Statements of Income (Loss). Incentive Fees Incentive fees consists of performance based incentive fees in the form of performance fees and carried interest. Performance Fees The Company may receive performance fees from certain GCM Funds investing in public market investments. Performance fees are typically a fixed percentage of investment gains, subject to loss carryforward provisions that require the recapture of any previous losses before any performance fees can be earned in the current period. Performance fees may or may not be subject to a hurdle or a preferred return, which requires that clients earn a specified minimum return before a performance fee can be assessed. With the exception of certain GCM Funds, these performance fees are determined based upon investment performance at the end of a specified measurement period, generally the end of the calendar year. Certain GCM Funds have performance measurement periods extending beyond one year. Investment returns are highly susceptible to market factors, judgments and actions of third parties that are outside of the Company’s control. Accordingly, performance fees are considered variable consideration and are therefore constrained and not recognized as revenue until it is probable that a significant reversal will not occur. In the event that a client redeems from one of the GCM Funds prior to the end of a measurement period, any accrued performance fee is ordinarily due and payable by such redeeming client as of the redemption date. Carried Interest Carried interest is a performance-based capital allocation from a fund’s limited partners earned by the Company in certain GCM Funds invested in longer-term public market investments and private market investments. Carried interest is typically calculated as a percentage of the profits calculated in accordance with the terms of fund agreements at rates that range between 2.5%-20% after returning invested capital, certain fees and a preferred return to the fund’s limited partners. Carried interest is ultimately realized when underlying investments distribute proceeds or are sold and therefore carried interest is highly susceptible to market factors, judgments and actions of third parties that are outside of the Company’s control. Accordingly, carried interest is considered variable consideration and is therefore constrained and not recognized as revenue until it is probable that a significant reversal will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Agreements generally include a clawback provision that, if triggered, would require the Company to return up to the cumulative amount of carried interest distributed, typically net of tax, upon liquidation of those funds, if the aggregate amount paid as carried interest exceeds the amount actually due based upon the aggregate performance of each fund. Accordingly, the amount of carried interest, typically net of tax, that the Company would be required to return if all remaining investments had no value as of the end of each reporting period is deferred at each reporting period. As of December 31, 2023 and December 31, 2022, deferred revenue relating to constrained realized carried interest of $5.6 million and $6.5 million respectively, was recorded within accrued expenses and other liabilities in the Consolidated Statements of Financial Condition. |
Due from Related Parties | Due from Related Parties Due from related parties includes amounts receivable from the Company’s existing partners, employees, and nonconsolidated funds. Refer to Note 18 for further disclosure of transactions with related parties. |
Fair Value Measurements | Fair Value Measurements The Company categorizes its fair value measurements according to a three-level hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are defined as follows: • Level 1 – Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date; • Level 2 – Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active; and • Level 3 – Inputs that are unobservable and require significant management judgment or estimation. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available under the circumstances. The carrying amounts of cash and cash equivalents and fees receivable approximate fair value due to the immediate or short-term maturity of these financial instruments. |
Investments | Investments Investments primarily consist of investments in GCM Funds and other funds the Company does not control, but is deemed to exert significant influence, and are generally accounted for using the equity method of accounting. Under the equity method of accounting, the Company records its share of the underlying income or loss of such entities, which reflects the net asset value of such investments. Management believes the net asset value of the funds is representative of fair value. The resulting gains and losses are included as investment income in the Consolidated Statements of Income (Loss). The Company’s equity method investments in the GCM Funds investing in private equity, real estate and infrastructure (“GCM PEREI Funds”) are valued based on the most recent available information, which typically has a delay of up to three months due to the timing of financial information received from the investments held by the GCM PEREI Funds. The Company records its share of capital contributions to and distributions from the GCM PEREI Funds within investments in the Consolidated Statements of Financial Condition during the three-month lag period. To the extent that management is aware of material events that affect the GCM PEREI Funds during the intervening period, the impact of the events would be disclosed in the notes to the Consolidated Financial Statements. Certain subsidiaries which hold the general partner capital interest in the GCM Funds are not wholly owned, and as such, the portion of the Company’s investments owned by limited partners in those subsidiaries are reflected within noncontrolling interests in the Consolidated Statements of Financial Condition. For certain other debt investments, the Company has elected the fair value option. Such election is irrevocable and is made at the investment level at initial recognition. The debt investments are not publicly traded and are a Level 3 fair value measurement. For investments carried at fair value, the Company records the increase or decrease in fair value as investment income in the Consolidated Statements of Income (Loss). See Note 6 for additional information regarding the Company’s other investments. |
Premises and Equipment | Premises and Equipment Premises and equipment and aircraft-related assets are recorded at cost less accumulated depreciation and amortization. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets ranging from three |
Leases | Leases The Company’s leases primarily consist of operating lease agreements for office space in various countries around the world, including for its headquarters in Chicago, Illinois. On January 1, 2022, the Company adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) on a prospective basis. As a result, prior periods were not adjusted. The new standard requires lessees to use a right-of-use (“ROU”) model where lease ROU assets and lease liabilities are recorded on the Consolidated Statements of Financial Condition for all operating leases with initial terms exceeding one year. Lease ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s remaining minimum lease obligations. The Company made a permitted accounting policy election not to apply the ROU model to short-term leases, which are defined as leases with initial terms of one year or less. |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Finite-lived intangible assets primarily consist of investment management contracts, investor relationships, technology and trade name. These assets are amortized on a straight-line basis over their respective useful lives, ranging from 2 to 12 years. Intangible assets are reviewed for impairment whenever events or changes in circumstances suggest that the asset’s carrying value may not be recoverable. An impairment loss, calculated as the difference between the estimated fair value and the carrying value of the asset, is recognized if the sum of the estimated undiscounted cash flows relating to the asset is less than the corresponding carrying value. The Company has not recognized any impairment in the periods presented. Goodwill is reviewed for impairment at least annually at the reporting unit level utilizing a qualitative or quantitative approach, and more frequently if circumstances indicate impairment may have occurred. The impairment testing for goodwill under the qualitative approach is based first on a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its respective carrying value. If it is determined that it is more likely than not that the reporting unit’s fair value is less than its carrying value or when the quantitative approach is used, the amount of impairment is calculated as the excess of the carrying value of the reporting unit over its fair value. |
Public and Private Warrants | Public and Private Warrants The Company evaluated the public and private warrants under Accounting Standards Codification (“ASC”) 815-40, Derivatives and Hedging—Contracts in Entity’s Own Equity , and concluded that they do not meet the criteria to be classified as equity (deficit) in the Consolidated Statements of Financial Condition. Specifically, the exercise of the public and private warrants may be settled in cash upon the occurrence of a tender offer or exchange that involves 50% or more of the Company’s Class A shareholders. Because such a tender offer may not result in a change in control and trigger cash settlement and the Company does not control the occurrence of such event, the Company concluded that the public warrants and private warrants do not meet the conditions to be classified as equity (deficit) in the Consolidated Statements of Financial Condition. Since the public and private warrants meet the definition of a derivative under ASC 815, the Company recorded these warrants as liabilities in the Consolidated Statements of Financial Condition at fair value upon the closing of the Transaction in accordance with ASC 820, Fair Value Measuremen t, with subsequent changes in their respective fair values recorded in the change in fair value of warrant liabilities within the Consolidated Statements of Income (Loss) |
Noncontrolling Interests | Noncontrolling Interests For entities that are consolidated, but not 100% owned, a portion of the income or loss and equity is allocated to owners other than the Company. The aggregate of the income or loss and corresponding equity that is not owned by the Company is included within noncontrolling interests in the Consolidated Financial Statements. Noncontrolling interests is presented as a separate component of equity (deficit) in the Consolidated Statements of Financial Condition. Net income includes the net income attributable to the holders of noncontrolling interests in the Consolidated Statements of Income (Loss). Profits and losses, other than profit interest expense, are allocated to noncontrolling interest in proportion to their relative ownership interests regardless of their basis. |
Revenue Recognition | Revenue Recognition Contracts which earn the Company management fees and incentive fees are evaluated as contracts with customers under ASC 606 for the services further described below. Under ASC 606, the Company is required to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the Company satisfies its performance obligation. |
Other Operating Income | Other Operating Income Other operating income primarily consists of administrative fees from certain private investment vehicles that the Company does not manage or advise. The Company satisfies its performance obligations over time as the services are rendered and the customer simultaneously receives and consumes the benefits of the services as they are performed, using the same time-based measure of progress towards completion. |
Distribution Relationships | Distribution Relationships The Company has entered into a number of distribution relationships with financial services firms to assist it in developing and servicing its client base. These relationships are non-exclusive and generally enable the Company to have direct contact with major clients. |
Employee Compensation and Benefits | Employee Compensation and Benefits Cash-based Employee Compensation and Benefits The Company compensates its employees through the cash payment of both a fixed component (“base salary”) and a variable component (“bonus”). Base salary is recorded on an accrual basis over each employee’s period of service. Bonus compensation is determined by the Company’s management and is generally discretionary taking into consideration, among other things, the financial results of the Company, as well as the employee’s performance. Cash-based Incentive Fee Related Compensation Incentive fee compensation consists of discretionary compensation accrued and paid annually based on the Company’s share of incentive fee revenue. Carried Interest Compensation Certain employees and former employees are entitled to a portion of the carried interest realized from certain GCM Funds, which generally vest over a multi-year period and are payable upon a realization of the carried interest. Accordingly, carried interest resulting from a realization event gives rise to the incurrence of an obligation. Amounts payable under these arrangements are recorded within employee compensation and benefits when they become probable and reasonably estimable. For certain GCM Funds, realized carried interest is subject to clawback. Although the Company defers the portion of realized carried interest not meeting the criteria for revenue recognition, accruing an expense for amounts due to employees and former employees is based upon when it becomes probable and reasonably estimable that carried interest has been earned and therefore a liability has been incurred. As a result, the recording of an accrual for amounts due to employees and former employees generally precedes the recognition of the related carried interest revenue. The Company withholds a portion of the amounts due to employees and former employees as a reserve against contingent repayments to the GCM Funds. As of December 31, 2023 and 2022, an accrual of $12.7 million and $13.3 million, respectively, relating to amounts withheld was recorded within accrued compensation and employee related obligations in the Consolidated Statements of Financial Condition. Other Non-cash Compensation The Company has established deferred compensation programs for certain employees and accrues deferred compensation expense ratably over the related vesting schedules, recognizing an increase or decrease in compensation expense based on the performance of certain GCM Funds. In addition, the Company has granted compensation awards to employees that represent investments that will be made in GCM Funds on behalf of the employees and were compensation for past services that were fully vested upon the award date. Compensation expense related to deferred compensation and other awards are included within employee compensation and benefits in the Consolidated Statements of Income (Loss). Partnership Interest-Based Compensation Various individuals, including current and former employees of the Company (“Recipients”), have been awarded partnership interests in Holdings, Holdings II and Management LLC. These partnership interests either (a) grant the Recipients the right to certain cash distributions of profits from Holdings, Holdings II and Management LLC to the extent such distributions are authorized or (b) transfer equity ownership between certain existing employee members of the GCMH Equityholders. A partnership interest award is accounted for based on its substance. A partnership interest award that is in substance a profit-sharing arrangement or performance bonus would generally not be within the scope of the stock-based compensation guidance and would be accounted for under the guidance for deferred compensation plans, similar to a cash bonus. However, if the arrangement has characteristics more akin to the risks and rewards of equity ownership, the arrangement would be accounted for under stock-based compensation guidance. Since payments or settlements of partnership interest awards are made by GCMH Equityholders, the Company records a non-cash profits interest compensation charge and an offsetting deemed contribution to equity (deficit). The Company analyzes awards granted to Recipients at the time they are granted or modified. Awards that are in substance a profit-sharing arrangement in which rights to distributions of profits are based fully on the discretion of the managing member of Holdings, Holdings II and Management LLC, are recorded within employee compensation and benefits in the Consolidated Statements of Income when Holdings, Holdings II or Management LLC makes distributions to the Recipients. Awards that are in substance stock-based compensation are recorded within employee compensation and benefits on a straight-line basis over the service period based on the grant date fair value of the equity awards. Profit-sharing arrangements that contain a stated target payment are recognized as partnership interest-based compensation expense equal to the present value of expected future payments on a straight-line basis over the service period. Any such expense previously recorded is reversed if the target amount is canceled or forfeited or if the required service period is not provided. Equity-Based Compensation The Company accounts for grants of equity-based awards, including restricted stock units (“RSUs”), at fair value as of the grant date. Each RSU represents the right to receive payment in the form of one share of Class A common stock or an amount equal to the market value of one share of Class A common stock. Holders of unvested RSUs do not have the right to vote with the underlying shares of Class A common stock, but are generally entitled to accrue dividend equivalents, which are generally paid in cash when such RSUs are delivered. The Company recognizes compensation expense attributable to these grants on a straight-line basis over the requisite service period, which is generally the vesting period. Expenses related to grants of equity-based awards are recorded within employee compensation and benefits in the Consolidated Statements of Income (Loss) and within additional paid-in capital and noncontrolling interests in GCMH in the Consolidated Statements of Financial Condition . The grant-date fair value of RSUs is determined by the closing stock price on the grant date. Awards the Company intends to settle in cash as of the balance sheet date are classified as liabilities within accrued compensation and employee related obligations in the Consolidated Statements of Financial Condition and are subsequently remeasured to the closing stock price as of each reporting date through either the payment date or the date that the Company no longer intends to settle in cash, with the changes in fair value recorded within employee compensation and benefits in the Consolidated Statements of Income (Loss) . Forfeitures of equity-based awards are recognized as they occur. See Note 13 for additional information regarding the Company’s equity-based compensation. |
Derivative Instruments | Derivative Instruments Derivative instruments enable the Company to manage its exposure to interest rate risk. The Company generally does not engage in derivative or hedging activities, except to hedge interest rate risk on floating rate debt, as described in Note 15. Derivatives are recognized in the Consolidated Statements of Financial Condition at fair value. In order to qualify for hedge accounting, a derivative must be considered highly effective at reducing the risk associated with the exposure being hedged. At inception, the Company documents all relationships between derivatives designated as hedging instruments and hedged items, the risk management objectives and strategies for undertaking various hedge transactions, the method of assessing hedge effectiveness, and, if applicable, why forecasted transactions are considered probable. This process includes linking all derivatives that are designated as hedges of the variability of cash flows that are to be received or paid in connection with either a recognized asset or liability, firm commitment or forecasted transaction (“cash flow hedges”) to assets or liabilities in the Consolidated Statements of Financial Condition, firm commitments or forecasted transactions. The Company generally uses the change in variable cash flows method to assess hedge effectiveness on a quarterly basis. The Company assesses effectiveness on a quarterly basis by evaluating whether the critical terms of the hedging instrument and the forecasted transaction have changed during the period and by evaluating the continued ability of the counterparty to honor its obligations under the contractual terms of the derivative. When the critical terms of the hedging instrument and the forecasted transaction do not match at inception, the Company may use regression or other statistical analyses to assess effectiveness. |
Provision for Income Taxes/Tax Receivable Agreement | Provision for Income Taxes Income taxes are accounted for using the asset and liability method of accounting. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences on differences between the carrying amounts of assets and liabilities and their respective tax basis, using tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred assets and liabilities of a change in tax rates is recognized in income in the period when the change is enacted. Deferred tax assets are reduced by a valuation allowance when it is “more-likely-than not” that some portion or all of the deferred tax assets will not be realized. The realization of the deferred tax assets is dependent on the amount of the Company’s future taxable income. The Company recognizes interest and penalties related to the underpayment of income taxes, including those resulting from the late filing of tax returns within the provision for income taxes in the Consolidated Statements of Income (Loss). The Company has not incurred a significant amount of interest or penalties in any of the periods presented. GCMH is treated as a partnership for U.S. federal income tax purposes, and is subject to various state and local taxes. GCMH Equityholders, as applicable, are taxed individually on their share of the earnings; therefore, the Company does not record a provision for federal income taxes on the GCMH Equityholders’ share of the earnings. The Company is subject to U.S. federal, applicable state corporate and foreign income taxes, including with respect to its allocable share of any taxable income of GCMH. Tax Receivable Agreement In connection with the Transaction as described in Note 1, GCMG entered into a Tax Receivable Agreement with the G CMH Equityholders that will provide for payment by GCMG to the GCMH Equityholders o f 85% of the amount of the tax savings, if any, that GCMG realizes (or, under certain circumstances, is deemed to realize) as a result of, or attributable to, (i) increases in the tax basis of assets owned directly or indirectly by GCMH or its subsidiaries from, among other things, any redemptions or exchanges of GCMH common shares (ii) existing tax basis (including amortization deductions arising from such tax basis) in intangible assets owned directly or indirectly by GCMH and its subsidiaries, and (iii) certain other tax benefits (including deductions in respect of imputed interest) related to GCMG making payments under the Tax Receivable Agreement. |
Earnings (Loss) Per Share | Earnings (Loss) Per Share The Company determines earnings (loss) per share in accordance with ASC 260, Earnings Per Share . The two-class method of computing earnings (loss) per share is required for entities that have participating securities. The Company’s Class C Common Stock has no economic interest in the earnings of the Company and the Company’s outstanding RSUs do not receive non-forfeitable dividends. As a result, the two-class method is not applicable. The Company computes basic earnings (loss) per share by dividing net income (loss) attributable to GCMG by the weighted average number of shares outstanding for the applicable period. When calculating diluted earnings (loss) per share, the Company applies the treasury stock method and if-converted method, as applicable, to the warrants, the exchangeable common units of the Partnership and the RSUs to determine the diluted net income (loss) attributable to GCMG and the dilutive weighted-average common units outstanding. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income (loss) and other comprehensive income (loss). The Company’s other comprehensive income (loss) is comprised of unrealized gains and losses on cash flow hedges and foreign currency translation adjustments. |
Segments | Segments Management has determined the Company consists of a single operating and reportable segment, consistent with how the chief operating decision maker allocates resources and assesses performance. Revenues and long-lived assets attributed to locations outside of the United States (“U.S.”) are immaterial. |
Concentration | Concentration The Company has a client base that is diversified across a range of different types of institutional clients and individual investors. The institutional client base consists primarily of public, corporate and Taft-Hartley pension funds as well as banks, insurance companies, sovereign entities, foundations and endowments. The client base is also geographically diversified with concentrations in North America, Asia, the Middle East and Europe. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Recently Issued Accounting Standards - Adopted in Current Reporting Period In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments . ASU 2016-13 requires an entity to utilize a new impairment model known as the current expected credit loss (“CECL”) model to estimate its lifetime “expected credit loss” and record an allowance that presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in more timely recognition of credit losses. ASU 2016-13 also requires new disclosures for financial assets measured at amortized cost, loans and available-for-sale debt securities. The Company adopted this standard on January 1, 2023 on a prospective basis. Adoption did not have a material impact on the Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which amends current guidance to provide optional practical expedients and exceptions, if certain criteria are met, for applying GAAP to contracts, hedging relationships and other transactions that are affected by the reference rate reform. Initially the update did not apply to contract modifications or hedging relationships entered into after December 31, 2022, but in December 2022, the FASB issued ASU 2022-06, which defers the sunset date for applying reference rate reform relief in ASC 848 to December 31, 2024. The Company concluded that the amendments to our credit agreement and interest rate swap, as further discussed in Note 14 and Note 15, met the criteria to apply optional practical expedients. The Company elected the practical expedients that allow companies to account for a modification of a contract as not substantial and to update hedge documentation without having to de-designate the hedging relationship. This guidance must be adopted prior to December 31, 2024. The Company’s adoption of these ASUs in the year ended December 31, 2023 did not have a material impact on the Consolidated Financial Statements. Recently Issued Accounting Standards – To be Adopted in Future Periods In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . ASU 2023-07 scopes in entities with a single reportable segment and requires those entities to provide all disclosures required in Topic 280, requires that current annual disclosures about a reportable segment’s profit or loss and assets also be provided in interim periods and requires other various new disclosures. Enhanced reporting requirements for all entities includes disclosure of (1) significant segment expenses, (2) the title and position of the chief operating decision maker (the “CODM”) and (3) how the CODM uses disclosed measure(s) of a segment’s profit or loss in assessing segment performance and allocating resources. This guidance is effective for public entities for fiscal years beginning after December 15, 2023 and for interim periods within fiscal years beginning after December 15, 2024. Companies are required to apply the amendments retrospectively to all prior periods presented in the financial statements and early adoption is permitted. The Company is evaluating this guidance and currently expects that adoption will result in new disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . ASU 2023-09 requires enhanced income tax disclosure including disclosures of specific categories in the rate reconciliation and additional information for reconciling items that meet a quantitative threshold, additional disclosures about income taxes paid, and disclosure of pre-tax income or loss from continuing operations disaggregated between domestic and foreign income or loss. This guidance is effective for public business entities for fiscal years beginning after December 15, 2024. Companies should provide the enhanced disclosures on a prospective basis, however retrospective application is permitted. Early adoption is permitted for annual financial statements that have not yet been issued. The Company is evaluating this guidance and currently expects that adoption will result in enhanced income tax disclosures. |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | For the years ended December 31, 2023, 2022 and 2021, management fees and incentive fees consisted of the following: Year Ended December 31, Management fees 2023 2022 2021 Management fees, net $ 360,888 $ 356,401 $ 340,844 Fund expense reimbursement revenue 14,556 10,841 10,372 Total management fees $ 375,444 $ 367,242 $ 351,216 Year Ended December 31, Incentive fees 2023 2022 2021 Performance fees $ 15,313 $ 2,623 $ 51,947 Carried interest 49,590 72,544 121,906 Total incentive fees $ 64,903 $ 75,167 $ 173,853 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Components of Investments | Investments consist of the following: As of December 31, 2023 2022 Equity method investments $ 228,822 $ 213,776 Other investments 11,380 10,194 Total investments $ 240,202 $ 223,970 |
Schedule of Summarized Information of Equity Method Investments | The summarized financial information of the Company’s equity method investments is as follows: As of December 31, 2023 2022 Total assets $ 42,312,866 $ 40,326,304 Total liabilities $ 1,357,554 $ 1,655,742 Total equity $ 40,955,312 $ 38,670,562 Year Ended December 31, 2023 2022 2021 Investment income $ 187,989 $ 109,180 $ 195,613 Expenses 347,320 304,908 293,729 Net investment loss (159,331) (195,728) (98,116) Net realized and unrealized gain 1,831,634 1,108,471 8,441,314 Net income $ 1,672,303 $ 912,743 $ 8,343,198 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities, Measured at Fair Value | The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis and level of inputs used for such measurements as of December 31, 2023 and 2022: Fair Value as of December 31, 2023 Level 1 Level 2 Level 3 Total Assets Money market funds $ 10,282 $ — $ — $ 10,282 Other investments — — 11,192 11,192 Total assets $ 10,282 $ — $ 11,192 $ 21,474 Liabilities Public warrants $ 6,042 $ — $ — $ 6,042 Private warrants — — 389 389 Interest rate derivatives — 7,469 — 7,469 Total liabilities $ 6,042 $ 7,469 $ 389 $ 13,900 Fair Value as of December 31, 2022 Level 1 Level 2 Level 3 Total Assets Money market funds $ 36,240 $ — $ — $ 36,240 Other investments — — 10,007 10,007 Total assets $ 36,240 $ — $ 10,007 $ 46,247 Liabilities Public warrants $ 7,386 $ — $ — $ 7,386 Private warrants — — 475 475 Interest rate derivatives — 6,473 — 6,473 Total liabilities $ 7,386 $ 6,473 $ 475 $ 14,334 |
Schedule of Fair Value Measurement Inputs and Valuation Techniques | The position was classified as Level 3 as of December 31, 2023 and 2022 because of the use of significant unobservable inputs in the Cash Flow Analysis as follows: December 31, 2023 December 31, 2022 Impact to Valuation from an Increase in Input (2) Significant Unobservable Inputs (1) Range Weighted Average Range Weighted Average Discount rate (3) 26.5% - 27.5% 27.0 % 25.5% - 26.5% 26.0 % Decrease Expected remaining term (years) 8 – 12 N/A 9 – 13 N/A Decrease Expected return – liquid assets (4) 2.0% - 5.0% 4.3 % 2.0% - 6.0% 5.0 % 4 Increase Expected total value to paid in capital – private assets (5) 1.55x – 2.05x 1.87x 1.32x – 2.40x 1.85x 5 Increase ____________ (1) In determining these inputs, management considers the following factors including, but not limited to: liquidity, estimated yield, capital deployment, diversified multi-strategy appreciation, expected net multiple of investment capital across Private Assets investments, annual operating expenses, as well as investment guidelines such as concentration limits, position size, and investment periods. (2) Unless otherwise noted, this column represents the directional change in fair value of the Level 3 investments that would result from an increase to the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. (3) The discount rate was based on the relevant benchmark rate, spread, and yield migrations on related securitized assets. (4) Inputs were weighted based on actual and estimated expected return included in the range. (5) Inputs were weighted based on the actual and estimated commitments to the respective private asset investments included in the range. |
Schedule of Assets Measured on Recurring Basis | The following table presents changes in Level 3 assets measured at fair value for the years ended December 31, 2023 and 2022. Year Ended December 31, 2023 2022 Balance at beginning of period $ 10,007 $ 11,010 Change in fair value 1,185 (1,003) Balance at end of period $ 11,192 $ 10,007 |
Schedule of Fair Value, Liabilities Measured on Recurring Basis | The following table presents changes in Level 3 liabilities measured at fair value for the years ended December 31, 2023 and 2022: Year Ended December 31, 2023 2022 Balance at beginning of period $ 475 $ 1,584 Change in fair value (86) (1,109) Balance at end of period $ 389 $ 475 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets, net consist of the following: As of December 31, 2023 Gross carrying amount Accumulated amortization Net carrying amount Subject to amortization: Investment management contracts $ 36,190 $ (36,190) $ — Customer relationships 23,518 (20,891) 2,627 Technology 2,030 (2,030) — Other 620 (620) — $ 62,358 $ (59,731) $ 2,627 As of December 31, 2022 Gross carrying amount Accumulated amortization Net carrying amount Subject to amortization: Investment management contracts $ 36,190 $ (36,190) $ — Customer relationships 23,518 (19,578) 3,940 Technology 2,030 (2,030) — Other 620 (620) — $ 62,358 $ (58,418) $ 3,940 |
Schedule of Estimated Amortization Expense | The following approximates the future estimated amortization expense relating to intangible assets: Year Ended December 31, 2024 $ 1,313 2025 1,314 2026 — 2027 — 2028 — Thereafter — |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Stock by Class | The following table shows a rollforward of the common stock outstanding for the years ended December 31, 2023, 2022 and 2021: Class A Class B Class C December 31, 2020 40,835,093 — 144,235,246 Exercise of warrants 1,794,003 — — Net shares delivered for vested RSUs 1,413,724 — — Repurchase of Class A shares (78,730) — — December 31, 2021 43,964,090 — 144,235,246 Exercise of warrants 30 — — Net shares delivered for vested RSUs 1,120,432 — — Repurchase of Class A shares (3,278,337) — — December 31, 2022 41,806,215 — 144,235,246 Net shares delivered for vested RSUs 1,746,537 — — Repurchase of Class A shares (564,189) — — December 31, 2023 42,988,563 — 144,235,246 |
Schedule of Dividends Declared | The table below summarizes dividends declared during 2023, 2022 and 2021: Declaration Date Record Date Payment Date Dividend per Common Share January 4, 2021 March 1, 2021 March 15, 2021 $0.06 February 25, 2021 June 1, 2021 June 15, 2021 $0.08 August 6, 2021 September 1, 2021 September 15, 2021 $0.09 November 8, 2021 December 1, 2021 December 15, 2021 $0.10 Total dividends paid per share, year ended December 31, 2021 $0.33 February 10, 2022 March 1, 2022 March 15, 2022 $0.10 May 5, 2022 June 1, 2022 June 15, 2022 $0.10 August 8, 2022 September 1, 2022 September 15, 2022 $0.10 November 7, 2022 December 1, 2022 December 15, 2022 $0.11 Total dividends paid per share, year ended December 31, 2022 $0.41 February 9, 2023 March 1, 2023 March 15, 2023 $0.11 May 9, 2023 June 1, 2023 June 15, 2023 $0.11 August 8, 2023 September 1, 2023 September 15, 2023 $0.11 November 7, 2023 December 1, 2023 December 15, 2023 $0.11 Total dividends paid per share, year ended December 31, 2023 $0.44 |
Schedule Of Deemed Repurchase Of Class A Common Stock | The table below presents information about deemed repurchases for (1) RSUs that were settled in cash and (2) amounts withheld in connection with the payment of tax liabilities on behalf of employees upon the settlement of vested RSUs. See Note 13 for additional information regarding RSUs. Year Ended December 31, 2023 2022 2021 Deemed repurchases of Class A common stock 3,289,385 740,699 615,285 Average cost per deemed repurchase of Class A common stock $ 7.85 $ 8.70 $ 11.27 Total cost of deemed repurchases $ 25,835 $ 6,445 $ 6,934 |
Schedule of Repurchase of Warrants | The table below presents information about the repurchase of public warrants, which each entitle the holder to purchase one share of Class A common stock. Year Ended December 31, 2023 2022 2021 Public warrants — 2,812,764 681,800 Average cost per warrant $ — $ 0.91 $ 1.87 Total cost of public warrants repurchases $ — $ 2,569 $ 1,273 The following table shows a rollforward of the public and private warrants outstanding for the years ended December 31, 2023, 2022 and 2021: Public Warrants Private Warrants Total December 31, 2020 20,273,567 2,700,000 22,973,567 Exercises of warrants (1,794,003) — (1,794,003) Transfer in (out) 1,800,000 (1,800,000) — Repurchases (681,800) — (681,800) December 31, 2021 19,597,764 900,000 20,497,764 Exercises of warrants (30) — (30) Repurchases (2,812,764) — (2,812,764) December 31, 2022 16,784,970 900,000 17,684,970 Exercises of warrants — — — Repurchases — — — December 31, 2023 16,784,970 900,000 17,684,970 |
Schedule of Class A Common Stock Repurchase | The table below presents information about Class A common stock repurchased on the open market. Year Ended December 31, 2023 2022 2021 Class A common stock 564,189 3,278,337 78,730 Average cost per share $ 7.94 $ 8.05 $ 11.26 Total cost of Class A common stock repurchases $ 4,478 $ 26,391 $ 887 |
Warrants (Tables)
Warrants (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Stockholders' Equity Note, Warrants or Rights | The table below presents information about the repurchase of public warrants, which each entitle the holder to purchase one share of Class A common stock. Year Ended December 31, 2023 2022 2021 Public warrants — 2,812,764 681,800 Average cost per warrant $ — $ 0.91 $ 1.87 Total cost of public warrants repurchases $ — $ 2,569 $ 1,273 The following table shows a rollforward of the public and private warrants outstanding for the years ended December 31, 2023, 2022 and 2021: Public Warrants Private Warrants Total December 31, 2020 20,273,567 2,700,000 22,973,567 Exercises of warrants (1,794,003) — (1,794,003) Transfer in (out) 1,800,000 (1,800,000) — Repurchases (681,800) — (681,800) December 31, 2021 19,597,764 900,000 20,497,764 Exercises of warrants (30) — (30) Repurchases (2,812,764) — (2,812,764) December 31, 2022 16,784,970 900,000 17,684,970 Exercises of warrants — — — Repurchases — — — December 31, 2023 16,784,970 900,000 17,684,970 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Maximum Exposure to Loss Relating to Non-consolidated VIEs | The following table sets forth certain information regarding the VIEs in which the Company holds a variable interest but does not consolidate. The assets recognized on the Company’s Consolidated Statements of Financial Condition relate to the Company’s interests in and management fees, incentive fees and third party costs receivables from these non-consolidated VIEs. The Company’s maximum exposure to loss relating to non-consolidated VIEs as of December 31, 2023 and 2022 were as follows: As of December 31, 2023 2022 Investments $ 102,109 $ 98,712 Receivables 16,324 11,695 Maximum exposure to loss $ 118,433 $ 110,407 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premise and Equipment | A summary of premises and equipment as of December 31, 2023 and 2022 is as follows: As of December 31, Estimated Useful Lives 2023 2022 Furniture, fixtures and leasehold improvements $ 36,457 $ 36,481 3 – 7 years Office equipment 1,063 1,064 5 years Computer equipment and software 19,615 18,806 3 – 5 years Aircraft 1,550 1,550 5 years Assets in progress 3,407 107 Premises and equipment, at cost 62,092 58,008 Accumulated depreciation and amortization (54,714) (53,388) Premises and equipment, net $ 7,378 $ 4,620 |
Employee Compensation and Ben_2
Employee Compensation and Benefits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Compensation Related Costs [Abstract] | |
Schedule of Employee Compensation and Benefits | For the years ended December 31, 2023, 2022 and 2021, employee compensation and benefits consisted of the following: Year Ended December 31, 2023 2022 2021 Cash-based employee compensation and benefits $ 156,153 $ 160,522 $ 162,901 Equity-based compensation 50,667 30,721 44,190 Partnership interest-based compensation 103,934 31,811 27,671 Carried interest compensation 28,505 41,920 67,773 Cash-based incentive fee related compensation 15,628 11,001 28,002 Other non-cash compensation 1,157 1,336 3,300 Total employee compensation and benefits $ 356,044 $ 277,311 $ 333,837 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity | A summary of non-vested equity-classified RSU activity for the year ended December 31, 2023 is as follows: Number of RSUs Weighted-Average Grant-Date Fair Value Per RSU Balance as of December 31, 2022 2,240,797 $ 11.71 Granted 1,919,857 8.23 Reclassified from liability-classified RSUs 1,272,839 8.36 Vested (3,127,735) 10.52 Forfeited (141,595) 9.52 Balance as of December 31, 2023 2,164,163 $ 8.51 A summary of non-vested liability-classified RSU activity for the year ended December 31, 2023 is as follows: Number of RSUs Weighted-Average Grant-Date Fair Value Per RSU Balance as of December 31, 2022 3,155,161 $ 8.41 Granted 4,002,901 7.76 Reclassified to liability-classified RSUs (1,272,839) 8.36 Vested (2,153,025) 8.40 Forfeited (182,012) 7.89 Balance as of December 31, 2023 3,550,186 $ 7.73 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt Balance | The table below summarizes the outstanding debt balance as of December 31, 2023 and 2022: As of December 31, 2023 2022 Senior loan $ 389,000 $ 393,000 Less: debt issuance costs (4,273) (5,373) Total debt $ 384,727 $ 387,627 |
Schedule of Maturities of Long-term Debt | Maturities of debt for the next five years and thereafter are as follows: Year Ended December 31, 2024 4,000 2025 4,000 2026 4,000 2027 4,000 2028 373,000 Thereafter — Total $ 389,000 |
Interest Rate Derivatives (Tabl
Interest Rate Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives Recorded as Derivative Liability | The Company had the following interest rate derivative recorded within accrued expenses and other liabilities as of December 31, 2023 and 2022 in the Consolidated Statements of Financial Condition. Derivative Notional Amount Fair Value as of December 31, 2023 Fair Value as of December 31, 2022 Fixed Rate Paid Floating Rate Received Effective Date (2) Maturity Date Interest rate swap $ 300,000 $ (7,469) $ (6,473) 4.37 % 1 month Term SOFR (1) November 2022 February 2028 ____________ (1) Floating rate received subject to a 0.50% Floor. Refer to Note 14 regarding the interest rate on the outstanding debt for the July 1, 2023 Benchmark Transition Event. The floating rate received under the interest rate swap also defaulted to Term SOFR plus a Benchmark Replacement Adjustment concurrent with the Benchmark Transition Event. (2) Represents the date at which the derivative is in effect and the Company is contractually required to begin payment of interest under the terms of the agreement. |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | A rollforward of the amounts in accumulated other comprehensive income (loss) (“AOCI”) related to interest rate derivatives designated as cash flow hedges is as follows: Year Ended December 31, 2023 2022 2021 Derivative gain (loss) at beginning of period $ 29,130 $ (3,622) $ (11,163) Amount recognized in other comprehensive income 1 1,536 27,285 540 Amount reclassified from accumulated other comprehensive income (loss) to interest expense (8,860) 5,467 7,001 Derivative gain (loss) at end of period 21,806 29,130 (3,622) Less: gain (loss) attributable to noncontrolling interests in GCMH 18,267 24,204 (2,959) Derivative gain (loss) at end of period, net $ 3,539 $ 4,926 $ (663) _____________ (1) |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Liabilities | A summary of accrued expenses and other liabilities as of December 31, 2023 and 2022 is as follows: As of December 31, 2023 2022 Carried interest payable $ 332 $ 250 Deferred revenue 8,795 8,972 Clawback obligation 200 200 Derivative liability 7,469 6,473 Other liabilities 14,417 11,345 Total accrued expenses and other liabilities $ 31,213 $ 27,240 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Lease, Cost | The components of operating lease expense recorded within general, administrative and other in the Consolidated Statements of Income (Loss) were as follows: Years Ended December 31, 2023 2022 Operating lease cost (1) $ 8,874 $ 7,514 Variable lease cost (2) 4,458 4,112 Less: sublease income 179 193 Total lease cost $ 13,153 $ 11,433 ____________ (1) Includes $0.3 million of short term lease expense for each of the years ended December 31, 2023 and 2022 . (2) Includes common area maintenance charges and other variable costs not included in the measurement of ROU assets and lease liabilities. The following table summarizes cash flows and other supplemental information related to our operating leases: Years Ended December 31, 2023 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 8,613 $ 8,813 Non-cash ROU assets obtained in exchange for new and extended operating leases $ 34,116 $ 693 Weighted average remaining lease term in years 13.1 years 2.9 years Weighted average discount rate 6.1 % 4.1 % |
Schedule of Minimum Annual Lease Commitments | As of December 31, 2023 the maturities of operating lease liabilities were as follows: Year Ended December 31, 2024 $ 4,349 2025 7,456 2026 5,785 2027 4,001 2028 4,001 Thereafter 49,667 Total lease payments $ 75,259 Less: tenant improvement allowance (7,049) Less: imputed interest (26,729) Total operating lease liabilities $ 41,481 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision (Benefit) for Income Taxes | The provision for income taxes for the years ended December 31, 2023, 2022 and 2021 consist of the following: Year Ended December 31, 2023 2022 2021 Current: Federal $ (282) $ (206) $ 1,970 State and local 3,309 2,137 2,155 Foreign 1,839 1,837 1,176 Total current provision for income taxes $ 4,866 $ 3,768 $ 5,301 Deferred: Federal $ 3,730 $ 4,208 $ 4,428 State and local (886) 1,838 1,364 Foreign (18) (203) (100) Total deferred income taxes expense 2,826 5,843 5,692 Total provision for income taxes $ 7,692 $ 9,611 $ 10,993 |
Schedule of Reconciliation of the U.S. Statutory Income Tax Rate to Effective Rate | A reconciliation of the U.S. statutory income tax rate to the Company’s effective tax rate is as follows: Year Ended December 31, 2023 2022 2021 Statutory U.S. federal income tax rate 21 % 21 % 21 % State and local income taxes (17) % 3 % 2 % Impact of noncontrolling interests (37) % (15) % (17) % Foreign income taxes (8) % 2 % 1 % Change in tax rates 6 % 1 % — % Provision-to-return adjustments 2 % — % — % Change in fair value of warrant liabilities 1 % (2) % — % Change in valuation allowance (4) % 2 % — % Tax receivable agreement liability expense (2) % — % — % Other 2 % (1) % — % Effective income tax rate (36) % 11 % 7 % |
Schedule of Current and Deferred Tax Assets | Deferred tax assets and liabilities are recorded net within deferred tax assets, net in the Company’s Consolidated Statements of Financial Condition. Details of the Company’s deferred tax assets and liabilities are as follows: As of December 31, 2023 2022 Investment in GCMH $ 92,656 $ 92,695 Unrealized gains and losses 2,437 2,041 Intangibles and other 2,423 934 Total deferred tax assets (before valuation allowance) 97,516 95,670 Valuation allowance (38,122) (35,229) Total deferred tax assets $ 59,394 $ 60,441 Right-of-use asset $ (1,096) $ (121) Total deferred tax liabilities $ (1,096) $ (121) Deferred tax assets, net $ 58,298 $ 60,320 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Basic and Diluted Earnings (Loss) Per Share | The following is a reconciliation of basic and diluted earnings (loss) per share for the years ended December 31, 2023, 2022 and 2021: Year Ended December 31, 2023 2022 2021 Numerator for earnings (loss) per share calculation: Net income attributable to GCM Grosvenor Inc., basic $ 12,774 $ 19,820 $ 21,482 Exercise of private warrants — — (382) Exercise of public warrants — — (1,126) Exchange of Partnership units (65,812) 33,209 33,252 Net income (loss) attributable to common stockholders, diluted (53,038) 53,029 53,226 Denominator for earnings (loss) per share calculation: Weighted-average shares, basic 43,198,517 43,872,300 43,765,651 Exercise of private warrants - incremental shares under the treasury stock method — — 90,062 Exercise of public warrants - incremental shares under the treasury stock method — — 691,396 Exchange of Partnership units 144,235,246 144,235,246 144,235,246 Assumed vesting of RSUs - incremental shares under the treasury stock method — 460,446 277,019 Weighted-average shares, diluted 187,433,763 188,567,992 189,059,374 Basic EPS Net income attributable to common stockholders, basic $ 12,774 $ 19,820 $ 21,482 Weighted-average shares, basic 43,198,517 43,872,300 43,765,651 Net income per share attributable to common stockholders, basic $ 0.30 $ 0.45 $ 0.49 Diluted EPS Net income (loss) attributable to common stockholders, diluted $ (53,038) $ 53,029 $ 53,226 Weighted-average shares, diluted 187,433,763 188,567,992 189,059,374 Net income (loss) per share attributable to common stockholders, diluted $ (0.28) $ 0.28 $ 0.28 |
Schedule of Outstanding Potentially Dilutive Securities Excluded from Calculation of Diluted Earnings (Loss) Per Share | The following outstanding potentially dilutive securities were excluded from the calculations of diluted earnings (loss) per share attributable to common stockholders because their impact would have been antidilutive for the periods presented: Year Ended December 31, 2023 2022 2021 Public warrants 16,784,970 16,784,970 — Private warrants 900,000 900,000 — Unvested RSUs under the treasury stock method 808,716 — — |
Organization (Details)
Organization (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Grosvenor Capital Management Holdings, LLLP | ||
Finite-Lived Intangible Assets [Line Items] | ||
Ownership percentage by parent | 23% | 22.50% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 USD ($) segment shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Nov. 17, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Interest earned on cash and cash equivalents | $ 2,000 | $ 800 | $ 100 | |
Cash and cash equivalents | 44,354 | 85,163 | ||
Allowance for credit loss | $ 0 | $ 0 | ||
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Change in fair value of warrant liabilities | Change in fair value of warrant liabilities | ||
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Change in fair value of warrant liabilities | Change in fair value of warrant liabilities | ||
Realized carried interest | $ 5,600 | $ 6,500 | ||
Sales commissions and fees | 5,500 | 5,700 | $ 6,900 | |
Employee-related obligations | $ 12,700 | 13,300 | ||
Common stock, right to receive (in shares) | shares | 1 | |||
Number of reportable segments | segment | 1 | |||
Number of operating segments | segment | 1 | |||
Management Fees | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Deferred revenue | $ 3,200 | 2,400 | ||
GCMH Equity Holders' | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Tax savings agreement, percent | 85% | |||
Minimum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Estimated Useful Lives | 3 years | |||
Amortizable intangible asset, useful life | 2 years | |||
Carried interest rate | 2.50% | |||
Maximum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Estimated Useful Lives | 7 years | |||
Amortizable intangible asset, useful life | 12 years | |||
Carried interest rate | 20% | |||
Non-US | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cash and cash equivalents | $ 20,200 | $ 20,700 |
Mosaic Transaction (Details)
Mosaic Transaction (Details) $ in Thousands | 12 Months Ended | ||||||
Jul. 02, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jan. 01, 2020 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jul. 15, 2021 | |
Variable Interest Entity [Line Items] | |||||||
Proceeds from noncontrolling interests transferred | $ 125,400 | $ 2,255 | $ 1,789 | $ 3,472 | |||
Proceeds received to fund future investment commitments | 48,000 | ||||||
Maximum potential payment | $ 19,900 | ||||||
Potential payments | $ 4,900 | $ 7,500 | 7,500 | ||||
Option indexed to issuer's equity decrease in purchase price ratio | 1.225 | ||||||
Net purchase price | $ 165,000 | ||||||
Consolidated cash of acquired redeemable noncontrolling interest | $ 19,500 | ||||||
Equity transaction with Mosaic / Equity reallocation to redeemable noncontrolling interest | 61,495 | ||||||
Additional Paid-in Capital | |||||||
Variable Interest Entity [Line Items] | |||||||
Equity transaction with Mosaic / Equity reallocation to redeemable noncontrolling interest | 14,033 | ||||||
Noncontrolling Interest in GCMH | |||||||
Variable Interest Entity [Line Items] | |||||||
Equity transaction with Mosaic / Equity reallocation to redeemable noncontrolling interest | $ 47,462 | ||||||
Call Right | |||||||
Variable Interest Entity [Line Items] | |||||||
Payments for call right | $ 2,600 | ||||||
Purchase price ratio | 1.3 | ||||||
Internal rate of return, percentage | 12% | ||||||
Put Option | Mosaic Counterparty | |||||||
Variable Interest Entity [Line Items] | |||||||
Purchase price ratio | 1.3 | ||||||
Internal rate of return, percentage | 12% |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 444,999 | $ 446,530 | $ 531,592 |
Total management fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 375,444 | 367,242 | 351,216 |
Management fees, net | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 360,888 | 356,401 | 340,844 |
Fund expense reimbursement revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 14,556 | 10,841 | 10,372 |
Total incentive fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 64,903 | 75,167 | 173,853 |
Performance fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 15,313 | 2,623 | 51,947 |
Carried interest | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 49,590 | $ 72,544 | $ 121,906 |
Revenues - Additional Informati
Revenues - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |||
Revenue recognized | $ 0.5 | $ 0.4 | $ 2.3 |
Investments - Components of Inv
Investments - Components of Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Equity method investments | $ 228,822 | $ 213,776 |
Other investments | 11,380 | 10,194 |
Total investments | $ 240,202 | $ 223,970 |
Investments - Additional Inform
Investments - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Equity Method Investments [Line Items] | ||
Total investments | $ 240,202 | $ 223,970 |
Noncontrolling Interests | ||
Schedule of Equity Method Investments [Line Items] | ||
Total investments | $ 56,100 | $ 64,900 |
Investments - Summarized Financ
Investments - Summarized Financial Information of Equity Method Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||||
Total assets | $ 504,943 | $ 488,933 | ||
Total liabilities | 616,172 | 582,939 | ||
Total equity | (111,229) | (94,006) | $ (55,801) | $ (82,190) |
Net income | (29,206) | 79,482 | 142,069 | |
Equity Method Investment | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net realized and unrealized gain | 1,831,634 | 1,108,471 | 8,441,314 | |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Total assets | 42,312,866 | 40,326,304 | ||
Total liabilities | 1,357,554 | 1,655,742 | ||
Total equity | 40,955,312 | 38,670,562 | ||
Investment income | 187,989 | 109,180 | 195,613 | |
Expenses | 347,320 | 304,908 | 293,729 | |
Net investment loss | (159,331) | (195,728) | (98,116) | |
Net income | $ 1,672,303 | $ 912,743 | $ 8,343,198 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Money market funds | $ 10,282 | $ 36,240 |
Other investments | 11,192 | 10,007 |
Total assets | 21,474 | 46,247 |
Liabilities | ||
Warrants | 6,431 | 7,861 |
Interest rate derivatives | 7,469 | 6,473 |
Total liabilities | 13,900 | 14,334 |
Public warrants | ||
Liabilities | ||
Warrants | 6,042 | 7,386 |
Private warrants | ||
Liabilities | ||
Warrants | 389 | 475 |
Level 1 | ||
Assets | ||
Money market funds | 10,282 | 36,240 |
Other investments | 0 | 0 |
Total assets | 10,282 | 36,240 |
Liabilities | ||
Interest rate derivatives | 0 | 0 |
Total liabilities | 6,042 | 7,386 |
Level 1 | Public warrants | ||
Liabilities | ||
Warrants | 6,042 | 7,386 |
Level 1 | Private warrants | ||
Liabilities | ||
Warrants | 0 | 0 |
Level 2 | ||
Assets | ||
Money market funds | 0 | 0 |
Other investments | 0 | 0 |
Total assets | 0 | 0 |
Liabilities | ||
Interest rate derivatives | 7,469 | 6,473 |
Total liabilities | 7,469 | 6,473 |
Level 2 | Public warrants | ||
Liabilities | ||
Warrants | 0 | 0 |
Level 2 | Private warrants | ||
Liabilities | ||
Warrants | 0 | 0 |
Level 3 | ||
Assets | ||
Money market funds | 0 | 0 |
Other investments | 11,192 | 10,007 |
Total assets | 11,192 | 10,007 |
Liabilities | ||
Interest rate derivatives | 0 | 0 |
Total liabilities | 389 | 475 |
Level 3 | Public warrants | ||
Liabilities | ||
Warrants | 0 | 0 |
Level 3 | Private warrants | ||
Liabilities | ||
Warrants | $ 389 | $ 475 |
Fair Value Measurements - Measu
Fair Value Measurements - Measurement Inputs (Details) - Level 3 | Dec. 31, 2023 | Dec. 31, 2022 |
Discount rate | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input | 0.265 | 0.255 |
Discount rate | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input | 0.275 | 0.265 |
Discount rate | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted average interest rate | 27% | 26% |
Expected remaining term (years) | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Expected remaining term (years) | 8 years | 9 years |
Expected remaining term (years) | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Expected remaining term (years) | 12 years | 13 years |
Expected return – liquid assets | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input | 0.020 | 0.020 |
Expected return – liquid assets | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input | 0.050 | 0.060 |
Expected return – liquid assets | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted average interest rate | 4.30% | 5% |
Expected total value to paid in capital – private assets | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input | 1.55 | 1.32 |
Expected total value to paid in capital – private assets | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input | 2.05 | 2.4 |
Expected total value to paid in capital – private assets | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input | 1.87 | 1.85 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | $ 11,192 | $ 10,007 |
Warrant liabilities | $ 6,431 | $ 7,861 |
Private warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value (in dollars per unit) | $ 0.43 | $ 0.53 |
Warrant liabilities | $ 389 | $ 475 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 11,192 | 10,007 |
Level 3 | Private warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrant liabilities | $ 389 | $ 475 |
Fair Value Measurements - Level
Fair Value Measurements - Level 3 Roll Forward (Details) - Level 3 - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | $ 10,007 | $ 11,010 |
Change in fair value | 1,185 | (1,003) |
Balance at end of period | $ 11,192 | $ 10,007 |
Fair Value Measurements - Lev_2
Fair Value Measurements - Level 3 Roll Forward Measured (Details) - Private warrants - Level 3 - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | $ 475 | $ 1,584 |
Change in fair value | (86) | (1,109) |
Balance at end of period | $ 389 | $ 475 |
Intangible Assets - Components
Intangible Assets - Components of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 62,358 | $ 62,358 |
Accumulated amortization | (59,731) | (58,418) |
Net carrying amount | 2,627 | 3,940 |
Investment management contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 36,190 | 36,190 |
Accumulated amortization | (36,190) | (36,190) |
Net carrying amount | 0 | 0 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 23,518 | 23,518 |
Accumulated amortization | (20,891) | (19,578) |
Net carrying amount | 2,627 | 3,940 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 2,030 | 2,030 |
Accumulated amortization | (2,030) | (2,030) |
Net carrying amount | 0 | 0 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 620 | 620 |
Accumulated amortization | (620) | (620) |
Net carrying amount | $ 0 | $ 0 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 1.3 | $ 2.3 | $ 2.3 |
Intangible Assets - Estimated F
Intangible Assets - Estimated Future Amortization Expense (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2024 | $ 1,313 |
2025 | 1,314 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
Thereafter | $ 0 |
Equity - Additional Information
Equity - Additional Information (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) class vote $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) | Feb. 08, 2024 USD ($) | Aug. 08, 2023 USD ($) | |
Class of Stock [Line Items] | |||||
Number of classes of preferred stock | class | 1 | ||||
Number of classes of common stock | class | 3 | ||||
Preferred stock, authorized (in shares) | shares | 100,000,000 | 100,000,000 | |||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||
Preferred stock issued (in shares) | shares | 0 | 0 | |||
Preferred stock outstanding (in shares) | shares | 0 | 0 | |||
Dividend equivalent payments | $ 20,114 | $ 18,824 | $ 15,498 | ||
Remaining repurchase amount | 40,200 | ||||
Class A Common Stock And Warrants | |||||
Class of Stock [Line Items] | |||||
Stock repurchase plan, aggregate | 90,000 | $ 115,000 | |||
Increase in authorized amount | $ 25,000 | ||||
Class A Common Stock And Warrants | Subsequent Event | |||||
Class of Stock [Line Items] | |||||
Stock repurchase plan, aggregate | $ 140,000 | ||||
Increase in authorized amount | $ 25,000 | ||||
Restricted Stock Units (RSUs) | |||||
Class of Stock [Line Items] | |||||
Dividend equivalent payments | $ 1,200 | $ 1,400 | |||
Class A Common Stock | |||||
Class of Stock [Line Items] | |||||
Common stock, number of votes per share | vote | 1 | ||||
Class A Common Stock | Restricted Stock Units (RSUs) | |||||
Class of Stock [Line Items] | |||||
Vested but not yet delivered (in shares) | shares | 268,441 | ||||
Class B common stock | |||||
Class of Stock [Line Items] | |||||
Common stock, number of votes per share | vote | 1 | ||||
Class C Common Stock | |||||
Class of Stock [Line Items] | |||||
Common stock, number of votes per share | vote | 10 | ||||
Common stock, voting rights, maximum percent | 75% |
Equity - Schedule of Common Sto
Equity - Schedule of Common Stock Outstanding (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Exercise of warrants (in shares) | 0 | 30 | 1,794,003 |
Class A Common Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Common stock outstanding, beginning balance (in shares) | 41,806,215 | 43,964,090 | 40,835,093 |
Exercise of warrants (in shares) | 30 | 1,794,003 | |
Repurchase of Class A shares (in shares) | (564,189) | (3,278,337) | (78,730) |
Common stock outstanding, ending balance (in shares) | 42,988,563 | 41,806,215 | 43,964,090 |
Class A Common Stock | Restricted Stock Units (RSUs) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net shares delivered for vested RSUs (in shares) | 1,746,537 | 1,120,432 | 1,413,724 |
Class B common stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Common stock outstanding, beginning balance (in shares) | 0 | 0 | 0 |
Exercise of warrants (in shares) | 0 | 0 | |
Repurchase of Class A shares (in shares) | 0 | 0 | 0 |
Common stock outstanding, ending balance (in shares) | 0 | 0 | 0 |
Class B common stock | Restricted Stock Units (RSUs) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net shares delivered for vested RSUs (in shares) | 0 | 0 | 0 |
Class C Common Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Common stock outstanding, beginning balance (in shares) | 144,235,246 | 144,235,246 | 144,235,246 |
Exercise of warrants (in shares) | 0 | 0 | |
Repurchase of Class A shares (in shares) | 0 | 0 | 0 |
Common stock outstanding, ending balance (in shares) | 144,235,246 | 144,235,246 | 144,235,246 |
Class C Common Stock | Restricted Stock Units (RSUs) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net shares delivered for vested RSUs (in shares) | 0 | 0 | 0 |
Equity - Dividends Declared (De
Equity - Dividends Declared (Details) - $ / shares | 12 Months Ended | ||||||||||||||
Nov. 07, 2023 | Aug. 08, 2023 | May 09, 2023 | Feb. 09, 2023 | Nov. 07, 2022 | Aug. 08, 2022 | May 05, 2022 | Feb. 10, 2022 | Nov. 08, 2021 | Aug. 06, 2021 | Feb. 25, 2021 | Jan. 04, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Class A Common Stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Common stock, dividends declared (in dollars per share) | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.09 | $ 0.08 | $ 0.06 | $ 0.44 | $ 0.41 | $ 0.33 |
Equity - Schedule Of Deemed Rep
Equity - Schedule Of Deemed Repurchase Of Class A Common Stock (Details) - Class A Common Stock - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Class of Stock [Line Items] | |||
Average cost per deemed repurchase of Class A common stock (in dollars per share) | $ 7.94 | $ 8.05 | $ 11.26 |
Restricted Stock Units (RSUs) | |||
Class of Stock [Line Items] | |||
Deemed repurchases of Class A common stock (in shares) | 3,289,385 | 740,699 | 615,285 |
Average cost per deemed repurchase of Class A common stock (in dollars per share) | $ 7.85 | $ 8.70 | $ 11.27 |
Total cost of deemed repurchases | $ 25,835 | $ 6,445 | $ 6,934 |
Equity - Schedule of Repurchase
Equity - Schedule of Repurchase of Warrants (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Class of Warrant or Right [Line Items] | |||
Public warrants (in shares) | 0 | 2,812,764 | 681,800 |
Total cost of public warrants repurchases | $ 0 | $ 2,569 | $ 1,273 |
Public warrants | |||
Class of Warrant or Right [Line Items] | |||
Public warrants (in shares) | 0 | 2,812,764 | 681,800 |
Average cost per warrant (in dollars per share) | $ 0.91 | $ 1.87 | |
Public warrants | Class A Common Stock | |||
Class of Warrant or Right [Line Items] | |||
Number of shares called by each warrant (in shares) | 1 | ||
Public warrants (in shares) | 0 | 2,812,764 | 681,800 |
Average cost per warrant (in dollars per share) | $ 0 | $ 0.91 | $ 1.87 |
Total cost of public warrants repurchases | $ 0 | $ 2,569 | $ 1,273 |
Equity - Schedule of Class A Co
Equity - Schedule of Class A Common Stock Repurchase (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Class of Stock [Line Items] | |||
Total cost of Class A common stock repurchases | $ 4,478 | $ 26,391 | $ 887 |
Class A Common Stock | |||
Class of Stock [Line Items] | |||
Class A common stock (in shares) | 564,189 | 3,278,337 | 78,730 |
Average cost per share (in dollars per share) | $ 7.94 | $ 8.05 | $ 11.26 |
Total cost of Class A common stock repurchases | $ 4,478 | $ 26,391 | $ 887 |
Warrants - Additional Informati
Warrants - Additional Information (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) vote d $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | |
Class of Warrant or Right [Line Items] | |||
Exercise of warrants (in shares) | 0 | 30 | 1,794,003 |
Proceeds from exercise of warrants | $ | $ 0 | $ 0 | $ 24,469 |
Repurchase (in shares) | 0 | 2,812,764 | 681,800 |
Total cost of public warrants repurchases | $ | $ 0 | $ 2,569 | $ 1,273 |
Class A Common Stock | |||
Class of Warrant or Right [Line Items] | |||
Common stock, number of votes per share | vote | 1 | ||
Exercise of warrants (in shares) | 30 | 1,794,003 | |
Public warrants | |||
Class of Warrant or Right [Line Items] | |||
Warrant exercise price (in dollars per share) | $ / shares | $ 11.50 | ||
Expected remaining term (years) | 5 years | ||
Warrant redemption price (in dollars per share) | $ / shares | $ 0.01 | ||
Minimum period | 30 days | ||
Stock price minimum to redeem warrants (in dollars per share) | $ / shares | $ 18 | ||
Warrant redemption, consecutive trading days | 20 days | ||
Warrant redemption, trading days | 30 days | ||
Warrant redemption, notice of redemption | d | 3 | ||
Exercise of warrants (in shares) | 0 | 30 | 1,794,003 |
Proceeds from exercise of warrants | $ | $ 100 | $ 20,600 | |
Repurchase (in shares) | 0 | 2,812,764 | 681,800 |
Average cost per warrant (in dollars per share) | $ / shares | $ 0.91 | $ 1.87 | |
Public warrants | Class A Common Stock | |||
Class of Warrant or Right [Line Items] | |||
Number of shares called by each warrant (in shares) | 1 | ||
Repurchase (in shares) | 0 | 2,812,764 | 681,800 |
Total cost of public warrants repurchases | $ | $ 0 | $ 2,569 | $ 1,273 |
Average cost per warrant (in dollars per share) | $ / shares | $ 0 | $ 0.91 | $ 1.87 |
Private warrants | |||
Class of Warrant or Right [Line Items] | |||
Warrant redemption, trading days | 10 years | ||
Exercise of warrants (in shares) | 0 | 0 | 0 |
Repurchase (in shares) | 0 | 0 | 0 |
Warrants - Public Warrants and
Warrants - Public Warrants and Private Warrants Outstanding (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Movements of Class of Warrants Outstanding [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 17,684,970 | 20,497,764 | 22,973,567 |
Exercises of warrants (in shares) | 0 | (30) | (1,794,003) |
Transfer in (out) (in shares) | 0 | ||
Repurchase (in shares) | 0 | (2,812,764) | (681,800) |
Outstanding, end of period (in shares) | 17,684,970 | 17,684,970 | 20,497,764 |
Public Warrants | |||
Movements of Class of Warrants Outstanding [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 16,784,970 | 19,597,764 | 20,273,567 |
Exercises of warrants (in shares) | 0 | (30) | (1,794,003) |
Transfer in (out) (in shares) | 1,800,000 | ||
Repurchase (in shares) | 0 | (2,812,764) | (681,800) |
Outstanding, end of period (in shares) | 16,784,970 | 16,784,970 | 19,597,764 |
Private Warrants | |||
Movements of Class of Warrants Outstanding [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 900,000 | 900,000 | 2,700,000 |
Exercises of warrants (in shares) | 0 | 0 | 0 |
Transfer in (out) (in shares) | (1,800,000) | ||
Repurchase (in shares) | 0 | 0 | 0 |
Outstanding, end of period (in shares) | 900,000 | 900,000 | 900,000 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investments | $ 102,109 | $ 98,712 |
Variable Interest Entity, Not Primary Beneficiary | Noncontrolling Interests | ||
Variable Interest Entity [Line Items] | ||
Investments | 30,900 | 36,700 |
Unfunded Commitments | ||
Variable Interest Entity [Line Items] | ||
Commitment amount | 85,600 | 88,900 |
Unfunded Commitments | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Commitment amount | $ 42,100 | $ 41,100 |
Variable Interest Entities - Sc
Variable Interest Entities - Schedule of VIEs (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Variable Interest Entity [Line Items] | ||
Investments | $ 102,109 | $ 98,712 |
Receivables | 16,324 | 11,695 |
Maximum exposure to loss | $ 118,433 | $ 110,407 |
Premises and Equipment - Summar
Premises and Equipment - Summary of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Aug. 31, 2019 |
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, at cost | $ 62,092 | $ 58,008 | |
Accumulated depreciation and amortization | (54,714) | (53,388) | |
Premises and equipment, net | $ 7,378 | 4,620 | |
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 3 years | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 7 years | ||
Furniture, fixtures and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, at cost | $ 36,457 | 36,481 | |
Furniture, fixtures and leasehold improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 3 years | ||
Furniture, fixtures and leasehold improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 7 years | ||
Office equipment | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, at cost | $ 1,063 | 1,064 | |
Estimated Useful Lives | 5 years | ||
Computer equipment and software | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, at cost | $ 19,615 | 18,806 | |
Computer equipment and software | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 3 years | ||
Computer equipment and software | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 5 years | ||
Aircraft | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, at cost | $ 1,550 | 1,550 | |
Estimated Useful Lives | 5 years | 5 years | |
Assets in progress | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, at cost | $ 3,407 | $ 107 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Mar. 31, 2021 | Aug. 31, 2019 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||||||
Percent of asset ownership interest (in percent) | 50% | |||||
Consideration received from assignment to partner | $ 1,300 | $ 0 | $ 0 | $ (1,337) | ||
Depreciation | $ 1,400 | $ 1,500 | $ 1,700 | |||
Aircraft | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Percent of asset acquired | 12.50% | 12.50% | ||||
Plant and equipment, useful life | 5 years | 5 years |
Employee Compensation and Ben_3
Employee Compensation and Benefits - Employee Compensation and Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Compensation Related Costs [Abstract] | |||
Cash-based employee compensation and benefits | $ 156,153 | $ 160,522 | $ 162,901 |
Equity-based compensation | 50,667 | 30,721 | 44,190 |
Partnership interest-based compensation | 103,934 | 31,811 | 27,671 |
Carried interest compensation | 28,505 | 41,920 | 67,773 |
Cash-based incentive fee related compensation | 15,628 | 11,001 | 28,002 |
Other non-cash compensation | 1,157 | 1,336 | 3,300 |
Total employee compensation and benefits | $ 356,044 | $ 277,311 | $ 333,837 |
Employee Compensation and Ben_4
Employee Compensation and Benefits - Additional Information (Details) - USD ($) | 12 Months Ended | |||
May 09, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Compensation Items [Line Items] | ||||
Partnership interest-based compensation | $ 103,934,000 | $ 31,811,000 | $ 27,671,000 | |
Interest-based compensation, award modifications | 0 | 6,300,000 | 6,300,000 | |
Unvested stated target payments | 0 | 0 | 6,300,000 | |
Interest-based compensation expense, profit interest | 21,400,000 | 23,100,000 | $ 21,400,000 | |
Holdings Awards | ||||
Compensation Items [Line Items] | ||||
Partnership interest-based compensation | 60,600,000 | |||
Aggregate grant date fair value | $ 155,500,000 | |||
Unrecognized compensation expense | $ 14,800,000 | |||
Weighted average period | 1 year | |||
Estimated holding period (in years) | 10 years | |||
Pre-tax cost of equity percentage | 15.40% | |||
Discount rate (as percent) | 13% | |||
Volatility rate (as percent) | 35% | |||
Discount rate for lack of marketability (as percent) | 40% | |||
Target amount reserved | $ 80,000,000 | |||
GCMH Equityholders Awards | ||||
Compensation Items [Line Items] | ||||
Partnership interest-based compensation | 21,900,000 | $ 2,400,000 | ||
Equityholders awards, aggregate grant fair value (in shares) | 7,169,415 | |||
Aggregate grant date fair value | $ 53,400,000 | |||
Equityholders awards, grant fair value (in usd per share) | $ 7.45 | |||
Unrecognized compensation expense | $ 29,100,000 | |||
Weighted average period | 1 year 3 months 18 days |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jan. 15, 2024 shares | Mar. 31, 2021 USD ($) shares | Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period, fair value | $ 51,000 | $ 24,200 | $ 27,400 | ||
Equity-based compensation | 50,667 | $ 30,721 | $ 44,190 | ||
Cost not yet recognized | $ 27,300 | ||||
Period for recognition | 1 year 8 months 12 days | ||||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | shares | 4,800,000 | 1,919,857 | 1,300,000 | 400,000 | |
Aggregate grant date fair value | $ 62,100 | $ 15,800 | $ 12,300 | $ 4,100 | |
Reclassified from liability-classified RSUs (in shares) | shares | 1,272,839 | ||||
Award vesting period | 2 years | ||||
Tax benefit | $ 2,200 | $ 900 | $ 1,300 | ||
Vesting ratio | 0.33 | ||||
Liability-Classified RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | shares | 4,002,901 | 3,200,000 | |||
Aggregate grant date fair value | $ 31,000 | $ 27,200 | |||
Reclassified from liability-classified RSUs (in shares) | shares | 1,272,839 | ||||
Liability-Classified RSUs | Subsequent Event | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | shares | 1,400,000 | ||||
Other Awards | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 1 year | ||||
Other Awards | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years |
Equity-Based Compensation - Sum
Equity-Based Compensation - Summary of RSU Activity (Details) - $ / shares | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted Stock Units (RSUs) | ||||
Number of RSUs | ||||
Beginning balance (in shares) | 2,240,797 | |||
Granted (in shares) | 4,800,000 | 1,919,857 | 1,300,000 | 400,000 |
Reclassified from liability-classified RSUs (in shares) | (1,272,839) | |||
Vested (in shares) | (3,127,735) | |||
Forfeited (in shares) | (141,595) | |||
Ending balance (in shares) | 2,164,163 | 2,240,797 | ||
Weighted-Average Grant-Date Fair Value Per RSU | ||||
Beginning balance (in dollars per share) | $ 11.71 | |||
Granted (in dollars per share) | 8.23 | |||
Reclassified from liability-classified RSUs (in dollars per share) | 8.36 | |||
Vested (in dollars per share) | 10.52 | |||
Forfeited (in dollars per share) | 9.52 | |||
Ending balance (in dollars per share) | $ 8.51 | $ 11.71 | ||
Liability-Classified RSUs | ||||
Number of RSUs | ||||
Beginning balance (in shares) | 3,155,161 | |||
Granted (in shares) | 4,002,901 | 3,200,000 | ||
Reclassified from liability-classified RSUs (in shares) | (1,272,839) | |||
Vested (in shares) | (2,153,025) | |||
Forfeited (in shares) | (182,012) | |||
Ending balance (in shares) | 3,550,186 | 3,155,161 | ||
Weighted-Average Grant-Date Fair Value Per RSU | ||||
Beginning balance (in dollars per share) | $ 8.41 | |||
Granted (in dollars per share) | 7.76 | |||
Reclassified from liability-classified RSUs (in dollars per share) | 8.36 | |||
Vested (in dollars per share) | 8.40 | |||
Forfeited (in dollars per share) | 7.89 | |||
Ending balance (in dollars per share) | $ 7.73 | $ 8.41 |
Debt - Schedule of Debt Outstan
Debt - Schedule of Debt Outstanding (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Senior loan | $ 389,000 | |
Less: debt issuance costs | (4,273) | $ (5,373) |
Total debt | 384,727 | 387,627 |
Senior Loan | ||
Debt Instrument [Line Items] | ||
Senior loan | $ 389,000 | $ 393,000 |
Debt - Maturities of Debt (Deta
Debt - Maturities of Debt (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2024 | $ 4,000 |
2025 | 4,000 |
2026 | 4,000 |
2027 | 4,000 |
2028 | 373,000 |
Thereafter | 0 |
Total | $ 389,000 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | 12 Months Ended | |||||||
Jul. 01, 2023 | Jun. 30, 2021 | Feb. 24, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 23, 2021 | Jan. 02, 2014 | |
Debt Instrument [Line Items] | ||||||||
Debt issuance costs | $ 4,273,000 | $ 5,373,000 | ||||||
Amortization of debt issuance costs | 1,100,000 | 1,111,000 | $ 1,025,000 | |||||
Senior loan | $ 389,000,000 | |||||||
Amended Term Loan Facility Due February 24, 2028, Amendment 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Periodic principal payment | $ 1,000,000 | |||||||
Senior Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Prepayment deadline following quarterly financial statement if leverage ratio exceeds 2.50 | 5 days | |||||||
Repayments of debt | $ 0 | 0 | 0 | |||||
Senior loan | 389,000,000 | 393,000,000 | ||||||
Senior Loan | 2028 Term Loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount | $ 290,000,000 | |||||||
Senior loan | $ 389,000,000 | $ 393,000,000 | ||||||
Weighted Average | 7.59% | 4.27% | ||||||
Senior Loan | 2028 Term Loans | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount | $ 50,300,000 | |||||||
Senior Loan | 2028 Term Loans | London Interbank Offered Rate (LIBOR) 1 | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.50% | |||||||
Debt, LIBOR floor | 0.50% | |||||||
Senior Loan | 2028 Term Loans | SOFR | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.11% | |||||||
Senior Loan | Amended Term Loan Facility Due February 24, 2028, Amendment 1 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issuance costs | $ 900,000 | |||||||
Accelerated debt issuance expense | 700,000 | |||||||
Amortization of debt issuance costs | $ 2,600,000 | |||||||
Senior Loan | Amended Term Loan Facility Due February 24, 2028, Amendment 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount | $ 400,000,000 | |||||||
Debt issuance costs | $ 2,200,000 | |||||||
Credit Facility | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 50,000,000 | |||||||
Line of credit outstanding | $ 0 | $ 0 |
Interest Rate Derivatives - Sch
Interest Rate Derivatives - Schedule of Derivative Liabilities (Details) - Interest Rate Swap, 4.37% - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Nov. 01, 2022 |
Derivative [Line Items] | |||
Notional Amount | $ 300,000,000 | ||
Fair value | $ (7,469,000) | $ (6,473,000) | |
Fixed Rate Paid | 4.37% | 4.37% | |
Derivative, LIBOR floor | 0.50% |
Interest Rate Derivatives - Eff
Interest Rate Derivatives - Effect on Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative [Roll Forward] | |||
Beginning balance | $ (94,006) | $ (55,801) | $ (82,190) |
Ending balance | (111,229) | (94,006) | (55,801) |
Derivative gain (loss) at end of period, net | (27,634) | (19,820) | |
Amount reclassified from AOCI to interest expense, tax provision (benefit) | 400 | (2,600) | |
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | |||
Derivative [Roll Forward] | |||
Beginning balance | 29,130 | (3,622) | (11,163) |
Amount recognized in other comprehensive income | 1,536 | 27,285 | 540 |
Amount reclassified from accumulated other comprehensive income (loss) to interest expense | (8,860) | 5,467 | 7,001 |
Ending balance | 21,806 | 29,130 | (3,622) |
Less: gain (loss) attributable to noncontrolling interests in GCMH | 18,267 | 24,204 | (2,959) |
Derivative gain (loss) at end of period, net | $ 3,539 | $ 4,926 | $ (663) |
Interest Rate Derivatives - Add
Interest Rate Derivatives - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Oct. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Nov. 01, 2022 | Jul. 01, 2021 | Mar. 01, 2021 | |
Derivative [Line Items] | |||||||
Gain (loss) reclassified from AOCI to interest expense, tax | $ (6,700,000) | $ 4,200,000 | $ 4,600,000 | ||||
Amount expected to be reclassified to interest expense in next twelve months | $ 8,900,000 | ||||||
Interest Rate Contract | Other Nonoperating Income Expense | |||||||
Derivative [Line Items] | |||||||
Other income (expense) | $ 1,900,000 | ||||||
Interest Rate Swap, 4.37% | |||||||
Derivative [Line Items] | |||||||
Notional Amount | $ 300,000,000 | $ 232,000,000 | |||||
Derivative, LIBOR floor | 0.50% | ||||||
Fixed Rate Paid | 4.37% | 4.37% | |||||
Interest Rate Swap, 1.39% | |||||||
Derivative [Line Items] | |||||||
Notional Amount | $ 68,000,000 | ||||||
Interest Rate Swap, 1.39% | London Interbank Offered Rate (LIBOR) 1 | |||||||
Derivative [Line Items] | |||||||
Derivative, LIBOR floor | 0.50% | ||||||
Interest Rate Swap, 4.37% and 1.39% | |||||||
Derivative [Line Items] | |||||||
Proceeds from derivative instrument | $ 40,300,000 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Carried interest payable | $ 332 | $ 250 |
Deferred revenue | 8,795 | 8,972 |
Clawback obligation | 200 | 200 |
Derivative liability | 7,469 | 6,473 |
Other liabilities | 14,417 | 11,345 |
Total accrued expenses and other liabilities | $ 31,213 | $ 27,240 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Mar. 11, 2021 | Jun. 30, 2023 | Mar. 31, 2021 | Aug. 31, 2019 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2019 | |
Loss Contingencies [Line Items] | ||||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 8,613 | $ 8,813 | ||||||
Weighted average remaining lease term in years | 13 years 1 month 6 days | 2 years 10 months 24 days | ||||||
Tenant improvement allowance | $ 7,049 | |||||||
Management fee duration | 5 years | |||||||
Consideration received from assignment to partner | $ 1,300 | 0 | $ 0 | $ (1,337) | ||||
Fixed Management Fee | ||||||||
Loss Contingencies [Line Items] | ||||||||
Annual management fee | 300 | $ 500 | ||||||
Unfunded Commitments | ||||||||
Loss Contingencies [Line Items] | ||||||||
Commitment amount | $ 85,600 | $ 88,900 | ||||||
Aircraft | ||||||||
Loss Contingencies [Line Items] | ||||||||
Percent of asset acquired | 12.50% | 12.50% | ||||||
Aircraft | Grosvenor Capital Management Holdings, LLLP | ||||||||
Loss Contingencies [Line Items] | ||||||||
Percent of asset acquired | 12.50% | |||||||
Percent of asset ownership assigned to partner | 50% | |||||||
Consideration received from assignment to partner | $ 1,300 | |||||||
Office Building | NEW YORK | ||||||||
Loss Contingencies [Line Items] | ||||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 65,700 | |||||||
Weighted average remaining lease term in years | 16 years 3 months 18 days | |||||||
Tenant improvement allowance | $ 7,000 | |||||||
Rent concession period | 16 months |
Commitments and Contingencies_2
Commitments and Contingencies - Components of Operating Lease (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease cost | $ 8,874 | $ 7,514 |
Variable lease cost | 4,458 | 4,112 |
Less: sublease income | 179 | 193 |
Total lease cost | 13,153 | 11,433 |
Short-term lease (less than) | $ 300 | $ 300 |
Commitments and Contingencies_3
Commitments and Contingencies - Supplemental of Cash Flow (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 8,613 | $ 8,813 | |
Non-cash ROU assets obtained in exchange for new and extended operating leases | $ 34,116 | $ 693 | $ 0 |
Weighted average remaining lease term in years | 13 years 1 month 6 days | 2 years 10 months 24 days | |
Weighted average discount rate | 6.10% | 4.10% |
Commitments and Contingencies_4
Commitments and Contingencies - Operating Lease Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
2024 | $ 4,349 | |
2025 | 7,456 | |
2026 | 5,785 | |
2027 | 4,001 | |
2028 | 4,001 | |
Thereafter | 49,667 | |
Total lease payments | 75,259 | |
Less: tenant improvement allowance | (7,049) | |
Less: imputed interest | (26,729) | |
Lease liabilities | $ 41,481 | $ 15,520 |
Related Parties (Details)
Related Parties (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party | |||
Related Party Transaction [Line Items] | |||
Net receivables from related parties | $ 13.5 | $ 13.1 | |
Related Party | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Net receivables from related parties | 0.1 | 0.1 | |
Management | |||
Related Party Transaction [Line Items] | |||
Investment balance of related party | 377.5 | 366.2 | |
Affiliated Entity | Grosvenor Capital Management Holdings, LLLP | Aircraft Utilization | |||
Related Party Transaction [Line Items] | |||
Amounts of transaction | $ 3.4 | $ 2.4 | $ 1 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
Federal | $ (282) | $ (206) | $ 1,970 |
State and local | 3,309 | 2,137 | 2,155 |
Foreign | 1,839 | 1,837 | 1,176 |
Total current provision for income taxes | 4,866 | 3,768 | 5,301 |
Deferred: | |||
Federal | 3,730 | 4,208 | 4,428 |
State and local | (886) | 1,838 | 1,364 |
Foreign | (18) | (203) | (100) |
Total deferred income taxes expense | 2,826 | 5,843 | 5,692 |
Total provision for income taxes | $ 7,692 | $ 9,611 | $ 10,993 |
Income Taxes - Income Tax Recon
Income Taxes - Income Tax Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal income tax rate | 21% | 21% | 21% |
State and local income taxes | (17.00%) | 3% | 2% |
Impact of noncontrolling interests | (37.00%) | (15.00%) | (17.00%) |
Foreign income taxes | (8.00%) | 2% | 1% |
Change in tax rates | 6% | 1% | 0% |
Provision-to-return adjustments | 2% | 0% | 0% |
Change in fair value of warrant liabilities | 0.01 | (0.02) | 0 |
Change in valuation allowance | (4.00%) | 2% | 0% |
Tax receivable agreement liability expense | (0.02) | 0 | 0 |
Other | 2% | (1.00%) | 0% |
Effective income tax rate | (36.00%) | 11% | 7% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Investment in GCMH | $ 92,656 | $ 92,695 |
Unrealized gains and losses | 2,437 | 2,041 |
Intangibles and other | 2,423 | 934 |
Total deferred tax assets (before valuation allowance) | 97,516 | 95,670 |
Valuation allowance | (38,122) | (35,229) |
Total deferred tax assets | 59,394 | 60,441 |
Right-of-use asset | (1,096) | (121) |
Total deferred tax liabilities | (1,096) | (121) |
Deferred tax assets, net | $ 58,298 | $ 60,320 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Valuation allowance | $ 38,122,000 | $ 35,229,000 |
Unrecognized tax benefits | $ 0 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator for earnings (loss) per share calculation: | ||||
Net income attributable to GCM Grosvenor Inc., basic | $ 21,482 | $ 12,774 | $ 19,820 | $ 21,482 |
Net income (loss) attributable to common stockholders, diluted | $ 53,226 | $ (53,038) | $ 53,029 | |
Denominator for earnings (loss) per share calculation: | ||||
Weighted-average shares, basic (in shares) | 43,765,651 | 43,198,517 | 43,872,300 | 43,765,651 |
Exchange of partnership units (in shares) | 144,235,246 | 144,235,246 | 144,235,246 | |
Assumed vesting of RSUs - incremental shares under the treasury stock method (in shares) | 277,019 | 0 | 460,446 | |
Weighted-average shares, diluted (in shares) | 189,059,374 | 187,433,763 | 188,567,992 | 189,059,374 |
Basic EPS | ||||
Net income attributable to common stockholders, basic | $ 21,482 | $ 12,774 | $ 19,820 | |
Weighted-average shares, basic (in shares) | 43,765,651 | 43,198,517 | 43,872,300 | 43,765,651 |
Net income per share attributable to common stockholders, basic (in dollars per share) | $ 0.49 | $ 0.30 | $ 0.45 | $ 0.49 |
Diluted EPS | ||||
Net income (loss) attributable to common stockholders, diluted | $ 53,226 | $ (53,038) | $ 53,029 | |
Weighted-average shares, diluted (in shares) | 189,059,374 | 187,433,763 | 188,567,992 | 189,059,374 |
Net income (loss) per share attributable to common stockholders, diluted (in dollars per share) | $ 0.28 | $ (0.28) | $ 0.28 | $ 0.28 |
Private warrants | ||||
Numerator for earnings (loss) per share calculation: | ||||
Exercise | $ (382) | $ 0 | $ 0 | |
Denominator for earnings (loss) per share calculation: | ||||
Exercise of warrants- incremental shares under treasury stock method (in shares) | 90,062 | 0 | 0 | |
Public warrants | ||||
Numerator for earnings (loss) per share calculation: | ||||
Exercise | $ (1,126) | $ 0 | $ 0 | |
Denominator for earnings (loss) per share calculation: | ||||
Exercise of warrants- incremental shares under treasury stock method (in shares) | 691,396 | 0 | 0 | |
Partnership Units | ||||
Numerator for earnings (loss) per share calculation: | ||||
Exercise | $ 33,252 | $ (65,812) | $ 33,209 |
Earnings (Loss) Per Share - Pot
Earnings (Loss) Per Share - Potentially Dilutive Securities Excluded from Calculation of EPS (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Warrant | Public warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of EPS (in shares) | 16,784,970 | 16,784,970 | 0 |
Warrant | Private warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of EPS (in shares) | 900,000 | 900,000 | 0 |
Restricted Stock Units (RSUs) | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of EPS (in shares) | 808,716 | 0 | 0 |
Regulatory and Net Capital Re_2
Regulatory and Net Capital Requirements (Details) - GRV Securities LLC $ in Millions | Dec. 31, 2023 USD ($) |
Regulatory Assets [Line Items] | |
Net capital | $ 0.6 |
Excess net capital | $ 0.6 |
Aggregate indebtedness ratio | 0.23 |
Subsequent Events (Details)
Subsequent Events (Details) - Class A Common Stock - $ / shares | 12 Months Ended | |||||||||||||||
Feb. 08, 2024 | Nov. 07, 2023 | Aug. 08, 2023 | May 09, 2023 | Feb. 09, 2023 | Nov. 07, 2022 | Aug. 08, 2022 | May 05, 2022 | Feb. 10, 2022 | Nov. 08, 2021 | Aug. 06, 2021 | Feb. 25, 2021 | Jan. 04, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Subsequent Event [Line Items] | ||||||||||||||||
Common stock, dividends declared (in dollars per share) | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.09 | $ 0.08 | $ 0.06 | $ 0.44 | $ 0.41 | $ 0.33 | |
Subsequent Event | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Common stock, dividends declared (in dollars per share) | $ 0.11 |