GCMG - Earnings call transcript Q3 2021 | Grosvenor Capital Management, L.P.

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Operator

Please stand by. Good day everyone and welcome to the GCM Grosvenor November Webcast. Today's call is being recorded. [Operator Instructions] At this time, I would like to turn the call over to Stacie Selinger. Please go ahead

Stacie Selinger

you. Thank welcome Third and Calls. XXXX GCM to morning Quarter Grosvenor's Earnings Good Financial I Grosvenor's President, Michael Chief GCM joined Jon Pam and and Today by Officer, Chairman am Chief Executive Levin; Officer Bentley. Sacks,

of found view be measures are in of our available business. our non-GAAP of assessing presentation They non-GAAP A which on statements we fact, the the other also quarter's regarding factors could this known our for as this the the These year our includes Public can important and neither the results. future those Shareholder relate to of our reminder factors statements the do discuss section we earnings risk These business, by of fiscal performance, website. ended considered results nor on performance, December this our guarantees. that earnings Commission, involve with We'll of reconciliation uncertainties, forward-looking projections. any results, Shareholder GAAP that on the nearest and metrics on available historical and Before our in our in XXst, call important of achievements factors matters actual forward-looking performance indicated section Please section filings unknown statements for our cause of other call. refer be or both our Securities promises supplement, that financial be current metric a website. are all risks, from of expectations release Exchange expectations made cause should materially to statements the refer to to XXXX, different differ earnings that This the not XX-K may Public statements. to from and our materially to and discussed actual and results, the factors

Michael. you we look improve again engage to your communicate is with spirit, Thank we with feedback. turn goal us. that, the And forward In with shareholders. how over that to I'll and for to continually joining Our our call

Michael Sacks

you for Thank of and and listening all interest. you, thank you Stacie time to your

The third We one quarter results, enjoyed performance. of XXXX a GCM fundraising, for Grosvenor. and good strong business investment was

XXXX constructive payable to our XXXX. As a the XXXX Board on $X.XX of XXth, has our and with XXXX quarterly of dividend from December is outlook increased Xst, regards December remainder The per share. $X.XX record on to and is dividend our result, to shareholders XX% per share

to and yet respectively Our assets assets XX% under management, management, quarter XX%, of XXXX. under and under as assets the compared fee-paying contracted not increased third XX%, fee-paying management

and revenue comparison Our and and XX% fee-related ended quarter September fee-related the XXXX XX% of nine-month in compared earnings grew the third XX% to period and by XXth, XXXX. as respectively, to XX%

XX% XX% to in Our XXXX third same margin ago. quarter a of the earnings was compared year fee-related the quarter for

With fee-related regard run For XXXX, our year end our of above flows the X% approximate close anticipate expected compared revenue growth to compared in full flat growth as quarter earnings current moderately for to Strategies quarter results, to Strategies XXXX to fourth revenue expect earnings, to earnings and line normal XX% net XX% Return fee-related XX XXXX XX% of that range. will in the to To XXXX Absolute performance with Return and XXXX fee-related in accordance to XX% need performance third XX% fee-related to with in we experience XXXX, of fee-related with of resulting we growth XXXX of in compared plan, rate that assumptions. in as Absolute achieve XXXX. we our revenue with high in coming our the and XXXX fee-related our

fee-related our earnings It not we merger investment In is presentation. XXXX consistent achieve exceed levels XXXX. that XX% the if XX% original with of of is which addition, in do growth fundraising XXXX fundraising Obviously, projected to our market we or are that performance worth assuming would private goals. of noting fundraising

numbers vary. Our will

As and of period. focus makes sense and it with of That are XX% on respectively fees, quarter by income. net crystallization we our said, fourth and realization before, increases to the of year, regard adjusted most nine-month due the pleased and that EBITDA income and the same performance year EBITDA the for have adjusted nature quarter net to and the full XX% adjusted results to said last XX% to with we increased year-to-date adjusted XX% compared

to as Importantly, the million XXth In performance This share as increase at we $XX strong in at eligible end of of then performance unrealized that performance this of of have increase September XXXX, firm's to of June at XXth The September million would strategies. XXXX. annual and we from fees of carry XXXX, from million of year. addition private $X market third we and annual saw million collected received NAV XXth XXXX. already stood September the fees, $XX means continued year quarter, realized XXX% enjoyed September of the the of investment be in XXth this XX% we XXth, an year, across an of unrealized $XXX investment have

capital, In the new Turning $X to billion we quarter, our $X momentum fundraising, saw fundraising the we strong third to across fundraising bringing year-to-date raised billion. of business.

the $X XXXX a fundraising. having Xst, Through pipeline raised similar successfully the of that billion and year. July was the quarter quarter fundraising As It that end of in step the Clearly, the year on we is the the direction. our future. and quarter, quarter worth we've in half billion the to in opportunity of the third stood approximately the into in last raised $X second fourth of half of yesterday, billion continue remainder closed a despite strong of for pipeline, said exceed size third a at right we noting year would the the to we our first reminder, $X as the see thought

a to mention items. performance want do related moment, fundraising a investing on two While Jon deeper fundraising, will delve and I bit activity, investment in

First in billion up are market, specialized is approximately four $X.X at as approximately is the the we $X.X launching have of private the third of end funds billion that that that today, raised since quarter. market from

The Insurance GCM second million Return our Strategies This number the solution by just to Structured was this It eight, new and confidence it call in a Alternative close which like investment insurance vertical. Grosvenor our would Grosvenor slide company new saw relationships, led I going forward. that supports attention $XXX week. Absolute overview and quickly Solutions to your of with is in Insurance an provides strategy GCM Solutions relates effort teams. us investment closed begin and to of collaboration our

paying vertical investment see, under management over As performance, this well fee $XXX against XX% third modest year-over-year year contributions saw you Absolute a $XXX rates, last can of performed million Strategies We fees. assets the in million. million of net and of has of fee very to with quarter growth redemptions stable management $XXX assets solid and distributions management in outflow Return fee-paying million the under for $XX and

grow for increased we on saw flat us in prior we flow have the or a flows with periods Jon. of that. we embrace year, Report outflows, Slide revenue prospects our metrics to eight the Strategies ability positive our we And as of before inflows benefit our XXXX. culture highlights higher with closing, the a and excellence, our compounded. run Importantly, and this ago. communicated that, the think the core continue culture our rate our get impact in the in the we to Grosvenor, optimistic culture on the Absolute Impact important a our XXXX meet remain Return compliance, SEM sense values recently of way is on I’ll and vertical better to to than and the all pleased means is to were turn of report good of from for or I The at which a with regard our mention call is quarter fee strong is to year want available to clients, a a XXth Culture conjunction leave shareholders published a the one Annual result over ways the environment, I Report Impact year in likely that that expected whether Conference. than website for which and remainder service modestly to rates and market constituencies. for exceed of reflects of In we on the

Jon Levin

my begin I’ll management, fee-paying fee-paying Michael. We’ve yet experienced strong growth and on AUM. you, slide not and persistent assets our remarks management, contracted but Thank six. assets under in under

rates that combination in know, stable earnings-powered fee expanding our these with the growth. margins you fuel and metrics are As

FPAUM a a grown of growth Our at similar compound CNYFPAUM combination and XX% total XXXX and rate the since AUM our compounded at has annual figure. has

the market management past represents benefitted where since managements compared time XX% the end our with composition backdrop. years, a annual in sub-strategies. of well healthy all are worth XX% our environment private our a standpoint, for market over it’s had a AUMs business it’s from As occurring been you rate market alternatives growth noting each growth From and private aware that under firm Return power eligible in private fee-paying We’ve spent drives AUM, likewise of quarter the compound Absolute markets XXXX has in on has as fees. Michael of earnings to annual assets both end for the from of private AUM the Strategies and fees, as performance that of XX% at XXXX. increased growth already which few

alternatives full and along Canada better this of And to hires discussed from across set style, fee proposition, We quarter us raised Asia, new our of clients States. landscape has clients and our as up XX% raised mandates. for capital to that Europe, with and in geography, well continued channel, rate. already across the nvestment this across the Notably, positions of us recent outside and our the highly more this future internationally. we’ve year presence win been than expertise assets implementation success came believe strong diversified our United serve vertical, investment Reflective this value continue having quarter

private that, meaningful believe have tailwinds and As market in markets infrastructure was fundraising you a XX, this slide quarters I strong contributor, Within the drove the mentioned. strategy. from will of benefitting addressable that most see more than quarter, on three we we significant

continue number we to see clients. which job one, from new as is Finally, clients, always existing well support as both

tailored to overall continues our through clients and represent are become we’ve staff. customized the As partnering a in partnerships, activities needs client’s viewed deeply business AUM client’s of an customized investment are with and current highly be and our embedded accounts, separate circumstances. of our of three unique as quarters you Through the to extension foundation which know

a We verticals. have our track successfully expanding customized our between programs, and cross-selling record of

end, fundraising, year year-to-date ongoing rate of our $X.X to at ago. growth clients identified than work multiple verticals, specialized As to-date, XX% be than six to XX% identified. across until of from are share Customized that a previously before are growing but we’ve talked discussed approximately of significant opportunity specialized more those basis, all across up done products On in our key XXXX faster vehicles. been as additional us that accounts top our AUM. We’ve about with six are scaling funds. we’ve quarter also of Notably, those they current a a has raised And the funds of private top six our on it we also launch specialized a see meaning we our separate won’t in their expect markets we funds, with past, those and one-third billion of from funds. fundraising

the Alternatives momentum. have The in anticipate and success similar fundraising effort a the and funds, human see across will offerings there is investors We’re on of that growth invest to multiple on recent the Solution, recent What We is in building to $XXX expanding of this driving to industry. Investment ample specialized team and impact value is from of our add to this business business, our good clear example the firms’ opportunity development vehicle excited coming a our to us Structured year. our is investments opportunity. investments insurance million positive capital which

of we non-institutional in solutions has again, Another represented capital approximately channel of growth the that products approximately platforms. of area capital comprised space. current outpacing where its firm. Non-institutional six our offer AUM, Today, our and XX% we in the are potential this share X% is growth and capital meaning, is seeing on current raising our significant accelerating year-to-date, growth but of capital in

that are opportunities. scale is of manufacturing capacity still Importantly, we growth, business. by to believe What we origination ample continue that we long this mean investment we have to the despite

active performance a one third investment but capital quarter, is network the sourcing capital XXth. also X,XXX an was was performance we've very year-to-date the sourcing a are bringing and three of very seen footprint Year-to-date, verticals. XX% net investments, of more vast Absolute absolute In success. We've of Our With approximately with of performance across $X billion X%, in across invested deployment. Annualized platform. for $X pleased was nearly last relative as basis. quarter than the activity, mentioned our opportunities billion. network, over the the regards cornerstone XXX Trailing we nearly Strategies and strong terms net the to I breadth reviewed XX-month we deployment Return across September both our years to on of which

to significant As a in on addition compared to carry we and compounds period. Return the performance experienced increase favorable management power. a second clients that fee asset strong our investments the gross saw a Absolute reminder, their directly market our strategies, creating for quarter, during increases speaks backdrop Within to appreciation unrealized base earnings Strategies in private our fee XX% which raising,

turn in more financial to call the Pam over about performance I'll Now, to detail. our talk

Pam Bentley

Jon. you, Thank

Turning value deliver our growth levels attractive generating we to asset XX, and revenue plan strong slide fee fee-related at a to on execute continue growth. enjoying proposition, continued and

expansion I we're won't and Michael scale. pleased with In and regards revenue addition, Jon that proposition across market. formation. our in other say outpaced rates we fees, to have to very fee so growth unlock our continued and asset value our our sign trajectory address the operating of in of both the as a growth than capital our embedded stable detail, resonating earnings business, our pace the be With leverage covered to very our

shift are to mix we fee fee experience in towards trend earnings continue a and our an co-investments, investments, accelerating activities secondaries. seeing direct as higher Consequently, positive power. such We management

XXXX. in in Based the quarter we $X.X quarter. this by this pipeline, was fee-related expect current of of fees management on to third third from management fees quarter market were Our fourth which million revenue private driven quarter. XX% funds, higher increased specialized the by over our catch-up the Part our catch-up be

expect we X%. catch-up mentioned, of revenue Michael in about be management inclusive As growth fourth quarter fee-related fees to the in

in quarter. Moving year, realized interest million earn of fees carried carried last the And earnings while this to quarter, our incentive performance throughout of our fees, is fees we quarter. the $XX we annual majority we in fourth noted The a and third realized providing typically revenue interest and with as to power increased to together, will moment. Taking fees upside flexibility XX% on fee-related the compared revenue address incentive the in XXXX quarter significant year-to-date continues basis. and adjusted increase, a us incentive which the I of firm's XX%

see Turning drive to to years slide the XX, our very financial to in investments we've we and under management continue performance. are made assets in recent pleased growth

and the As illustrating a continued our Michael net momentum earnings, adjusted positive income adjusted our on basis EBITDA, business. fee-related all increased, year-to-date of noted,

rest further which improvement continued and in fee-related through was margin We year. earnings also this quarter XX% margin, the expect saw we modest our this of in expansion the

anticipated our decreased after our firm relates of the discretionary In expenses. increased continue fees last contractual Our related received third to align the incentive fee compensation, and to related quarter out performance. XX% pool. with compensation to third earnings the professionals fee-related discipline realized our our scale this XX% In approximately positive obligations compensation quarter, quarter, our product fees, to carried interest in slightly continued investment we performance remaining paid discretionary senior the the At our base structure combined bonus incentive quarter. relative and from our as the retained further the with business margin of incentive carry be growth same the time, of embedded is both fee cash managing which in

was the was and estimate incentive fee $X incentive fee pool million incentive million. our share quarter, bonus before fees, this the of Specifically, pool, $X.X bonus firm's

our the our majority can so some I annual incentive typically As quarter incentive are in mentioned, performance of quarter. in compensation fees related anticipate fee fees realized next and you fourth the seasonality

from increase a As of firm carried of unrealized September the XXX% XXth, million, grew an $XXX to of share year ago. interest

the can we see in on XX% XX% mature. carry incentive older as by shares fees share ranging vintage, firm discretionary retained grow of to varied more from vintages funds as to recent years. to start the carry XX% seven, and incentive Consequently, bonuses before Importantly, firm will you any continue realizations fee where recent XX% approximately slide any for

for firm’s Over this the and term longer bodes the margin well earnings.

both based and fee on of anticipate discretionary related of fees For of XX% potential we of these to run realizations any carry XXXX, performance rate incentive fees, retaining bonuses. our XX% share incentive than

decreased a Delta COVID-XX travel. as anticipated of we’ve administrative slightly quarter, quarter expenses, lower delayed general to in variant and to our we fourth spread than $XX.X travel seen start to last to the broad coming the cost the million from the Already in quarter. in resume Turning return third

relative modest second levels So, anticipate G&A the in experienced in to we increases quarter. the we

continues XX, business to Turning and our generate balance flow end the cash to was strong slide cash million. quarter at $XXX

warrant stock million $X.X through million end have we of in October. amount and spent the place $XX of program Our and this repurchase remains

flow cited generation our shareholders increasing dividend again we capital as to to $X.XX and on quarter dividend $X.XX of free share, often will quarter to have We shareholders which cash the XXth share our ability to December to be per are record strong increased features Xst. of our December payable Last on and business. we this per attractive return

take trend are for creating. of continue be power the any now Thank questions. We the we’re earnings to us and excited to the again business you significant joining by positive and we happy

Operator

hear from Kotowski you. Chris Oppenheimer. of [Operator Thank we'll And Instructions] first

Chris Kotowski

you When of Is turned normal describe insurance I the you that get flesh can invest a it that -- start to expect vehicles Thanks just And completely we the to the it used alternative morning. new to of used are kind Yes, it be? were able raise? is kind is of I incremental? should what in strategies general, on? million GCM, this in other as And $XXX with -- fund a more for if that could and it you on bit life wonder that does good that vehicle taking to my just out guess, structure? fee companies -- also, replacing or question.

Michael Sacks

It's try Thanks take Michael. that. to Chris. I'll

prospects for get So, company, and time the for in something, working easiest was faster And in then at effort start quick significant it's about us it we terms effort GCM it it And and the on together that and start perspective, just from thing as gate that what replacing it this reassuring who duration. of Insurance looked to anything, as my of led fund fee but a is already quarter be the the really this the Solutions are of a represents type interested in thought frankly, it's the most turn like teams and is is strategy enough capital, as terms I kind new. I constructive it's Insurance quarter, that with will doesn't just GCM new. to in of our And that is partners, clients, these early not investment announced so future. really it, probably it one, and by full It's themselves to me of look kind does like capital, to about think mention but those have the approach fourth -- or out of Solutions obligation probably new that about a number but remain to terms and a it's an it's collateralized it, long-term couldn't to start future me, first, and it's what of together structured there working good -- Grosvenor insurance and in it's a got early a of would but began. markets. as largely It of private like than any Grosvenor

it So, positive we feel really is and development. about the good view it just

Chris Kotowski

fee catch missed we expected the said it. Okay, fees maybe said, you it, expected I But great. think this and Pam fourth were some up some there And just quarter? then I And -- you what quarter in primarily fees underlying is I was is the revenue is the of or wondering, that is driver fourth growth expected and the roughly primary in of catch-up the kind X quarter, fee?

Michael Sacks

and at say quarter, quarter that want Pam, it's beginning but you -- AUM can of the can just that, fee-paying growth relative the don't go but solid positive higher beginning the specialized if of combination But Pam, quarter, in comments. also you fourth back QX fees, take it's know and on do ARS script to would is in a fundraising the of I compounding that obvious the fund have -- Pam to performance closes well. to the prior as I catch-up

Pam Bentley

Thanks Chris. question. Hi, for the

are catch-up we indicated, of growth quarter fees As -- the as part number I slightly and $X.X were fees that third quarter, million higher that in be the the in mentioned. they'll fourth X% expected and

Chris Kotowski

Okay, great. you. it Thank for me. That's

Michael Sacks

you, Thank Chris.

Operator

And from next hear Jeff [ph] Blair. Smith we'll William of

Unidentified Analyst

initial where but some morning, additional it's I good million unit. the you on from perspective? of $XXX but if touching on type insurance initial just a kind go early, have great Hi, Do a Structured just from might companies? you out that sort What obviously, new of thoughts, to this have thoughts there unit that-- for knowing mean, seeing of demand start Solution, Alternative fundraising are

Michael Sacks

early. it's Yes,

for aspirations be a when of unit said he very he I quarter, this business going our think our forward. significant addressed the last in it Levin could part Jon thought

know opportunity Solutions, intend continue senior is real to And announced so we seeing just that sure are enthusiastic. there's have I I earlier various never are normal beyond opportunities, faster that so hire ways It so of Insurance And we we've we to in think than we the Structured this contribute you Grosvenor invest inside always seeing space. we a custom started solutions And this another with before. and about in talk opportunity. And not we'd engaging said, contribute we're effort. we in you as everything are year types our we week -- that. far, Solution, decision about and next reinforces channel in there. Frankly, thought obviously GCM saw account -- that seen well And that. hire, it's we're get thrilled invest out we'd We think to to

Unidentified Analyst

the then the you'd Can in much at great. been Okay, you $X.X I it mentioned has think $XX private this raised sort specialized of funds fee-paying that just AUM around think is of looking market -- now? discuss billion And funding, how at stands I tranche funds. newer billion. of

does the a did $X around $X from the just mix in total does And that year? that of thinking there? come how much the So, brings billion And of beginning to billion. or compare I'm how the terms rate in that higher just fee

Jon Levin

Sure, don't funds specific are It's the you the are But or cited and Stacie obviously, the specialized was set I Pam, until know question going we in-market number do number that. compared away if that and funds or markets? have the done first on the fund FLAUM you I Stacie year. to FPAUM requests to fundraising specialized we closed. wanted reporting number or stay Pam, have to that from funds we've fundraising the private private AUM how did the to markets number be the time for We've we've for the if know want responsive for to the this heard funds,

Pam Bentley

fundraising today. referenced something separate markets number Pam. $X.X or billion his But Hi, disclose not do comments But the are of the considering future. AUM point, we for is the private the the done in for have we this this at the fee-paying We Michael funds that year. it's that accounts is not between our breakout specialized publicly

Unidentified Analyst

the should time mean, in QX. I down was Okay. you'd I travel we move there, should going on just down. seems the low due still on, type variant And on back last What I then sort think magnitude of up said, one be with expect quarter of travel bit a Delta little to G&A, it activity that to mean,

just well So, you increase? was can be would on XXXX as for kind modest any And helpful? a give G&A that of guidance

Pam Bentley

is our modest lack that Sure. year Michael that Yes, guidance XX% just range. FRE given that in we end the into But XX% baked to the quarter above of would slightly mentioned a expect fourth expect travel. we our increase growth continued to

baked to year, the So, our pandemic. return travel growth and for Similarly, travel that kind number. expense higher any expecting with further of next is in absent some XXXX, into issues certainly

of next So, the also year and year our for certainly expect baked XX% to kind that's next into that XX%. guidance

Unidentified Analyst

it. Got

Okay, that's helpful. Thank you.

Pam Bentley

Thank you.

Operator

hear from Ken And JPMorgan. we'll of Worthington next

Ken Worthington

questions. morning. Hi, good my taking Thanks for

additional information going the on here. keep I'm side. to pressing the appreciate private market So,

of in relative think, way funds, in the to $X.X You're I know of their Jon funds, are to was in just funds of left of -- target. pretty collective are think of the couple way we're six, lot those terms market, the don't the point I we Is we a I year target XX% funds now the this those of to the the where fundraising XX% four targets? out runway was to next four getting done? Are right billion much raised Where as I years. on over look there funds those if mentioned but know, terms assets,

how us you If would And but terms there of it could in and just individually, to maybe collectively. help don't like you close you it we products are? do do those

then -- So, and

Michael Sacks

sorry go -- you Ken, ahead.

Ken Worthington

pie then is in And the the environment is sky Yes. fabulous. fundraising the

targets is had should products is of cap. targets, maybe you set niche if got fundraising stated it that possible So, are this the -- things the and so the hard and four being the that in of environment to conservative think some targets good you've closer really we

of important get? to I think, So, any the part, element? that the first one more on is But us color

Michael Sacks

Sure.

we I to talk responsive out we So, I because a and was I and wish going you first that would we and on could push was can have about think what tell this, you us say we're appreciate asked. question you probably to prior figure connected it the way truly

things are four market, think to so think what to revenue the there. good will best of those a I said, of six that I we rest the we has XXXX. QX, relates -- are -- in report next next three that while final a some four year. other have will market our regard time longer, that. we've turned shown, to that how and -- increase -- pipeline, don't year, we them in So, the think and tell for achieved in stay out that three of the one in funds and with on views And where all to particular, now, It year. remaining is I think funds are market a a the class those of I close year enjoying very next understand left terms can funds the their predecessor results four And a fund to time in think of we've funds year, and good so that or strong in our final in additional in a probably that in now, The said really rates early them that will we they achieving we're math there's relative now, have to room the year, there on to the go fee-related the this growth have multi-asset and tailwind than way be say and and will three then will optimistic call, by out to close you -- stay of work only as in try in-market next next And the in-market about We this fundraising come metrics, of have in you fundraising. extremely earnings into in in-market one But today, fee-related like you on without our even, general, in way we is, market. the our throughout can are funds much year. a market

a we growth. with we to we correctly did I this as similar as assumptions, like. So, third roll would a fundraising, fundraising And of but say -- you continue of we not that as forward. know But a was precise fundraising year, levels everything are, environment good to can is in you this point levels strong out to other kind some will certainly we similar that of get the quarter that's of do couple

Ken Worthington

I'm the kind again, plugged this just is if comments. not was Incentive payout the the fee-related was compensation to to I of then resulting earning previously and that your Mosaic? quarter, million. in treating repurchase And directed incremental related correctly, up numbers are quarter this Incentive to a earnings the of Mosaic and assuming models were fees this Is $X.X great. $XXX,XXX, in looked this Grosvenor you're that was stream themselves, there And mortem I'm correctly. sure post the that how compensation on Mosaic? assuming plugged model related Pamela, from trying to do Okay, like on

Pam Bentley

incentive fee the are we'll the the see are that that quarter. quarter incentive In expect structure. the we relate to the as relates fourth in in fees. to Yes, And the fees in see that we related unwinding I related performance are our what a be -- to quarter, of that majority a quarter, to fees of of the Mosaic performance ARS $X.X including in fourth mentioned, fees the realized related comp carried primarily you incentive result to And interest those that was carried be portion realized. expected the interest to that million, predominantly

a So, fourth you expect quarter. in should the see similar level

Ken Worthington

Okay.

this relative that all was a And on employees earnings you What think essentially of How going one here. about incremental payout fall is The than purchase in fall incorporate so XQ slide be. financing the this Mosaic? on what of to And the would trying earnings? of was a should the the rationale purchase we XXXX, then it assumed presented six Mosaic sort slide a like of Mosaic. and these to of and of just the Again, to rather to a on the formerly valuation what price bottom-line that value that did bottom-line. follow-up appears to paying on not everything reconcile payout to carry I times, letting so

Thank trying to this do I'm So, mortem. you. post

Michael Sacks

get we of always which burning So, back, incentive Mosaic, only at next still And share the share that. as low firm I and are we're to kind -- accrued over that through but that didn't when is of probably and of performances. carry as margin, the bonuses we at ate the performance have discretionary we revenues -- firm also out extent year, so so we the pay -- did of we're it firm rather those year. the -- back of fees when than in to able And we Mosaic, that go people, we was accrue and the -- bonus relative several cash through carry. think is and encouraged look we pool, of years, now ARS carry, of comp some that and the not share over we've business fees not growing, Mosaic we margin off to a the the that some are both a realign grows and but we we out FRE -- the carries, get dinged of pay end And firm share

therefore, And will picture want I with But -- in alignment firm on of share, as think firm. picture good the pool you. we've interest happily that growing the look and our greater a and a EBITDA, a bonus there modeling, on in growing with of -- FRE, was actual if So, with and receipts got we'll -- help performance general, it of general, growing we you people, some will got forward. that we growing positive we've your top do

Ken Worthington

Great. Thank you very much.

Operator

Peter of from Morgan hear We'll Instructions] [Operator [indiscernible] Stanley.

Unidentified Analyst

my Hey, taking question. thanks for

that And you platforms? customer non-institutional Thank do that in six those mentioned set? new You set? is distribution teams to make growth raised from follow-up, How that I just sense quick a clients, what non-institutional customer think of can XX% support products you're mentioned out you. for think capital And inflows? are year-to-date about what products building you driving on also

Michael Sacks

you go -- Jon. it. So ahead take

Jon Levin

I'm Sure, to take happy one. that

to about general when you're in channel, when channel. that the non-institutional the the in that of and allow think set in the you're institutional that And part to you thematically I what experiences the of thesis can what seeing institutions similar trying what I to portfolios to to say same whole you ask solutions access. So, investors have interest it's seeing type ask allow are to I that would the the those similar drive of alternative is think non-institutions of them to build

broader largely similar mix private you're type it's clearly, private to business. market favor say more a seeing for in would seeing markets, strategies. of But what the being the interest liquid So you're I alternatives

I distribution where positive return the on coverage the it's terms making would area an think some and of incremental in building there, out definitely investment think have capital. we

people perspective. would see as And as both raised of take we continue to as an external a have there, internal that AUM. those We in assets perspective, the channels, cover terms of sales an call sales we well what that up share greater we

So, to a of investment make from we flows AUM talked X% XX% distribution of to smart about standpoint. will continue

Operator

Mr. further anything [indiscernible]? there was And

Unidentified Analyst

No, that's Thank it. you.

Operator

this Instructions] appears further there no It [Operator time. at questions are

Michael Sacks

questions the call. you thank interest appreciate Great, talk and the you and again to for joining soon. We we'll all the

Jon Levin

Thank you very much.

Operator

you That all participation. does your conclude today's conference. for Thank

disconnect. You now may

Grosvenor Capital Management (GCMG) 12 Nov 212021 Q3 Earnings call transcript