Earnings call transcript Q4 2022

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Operator

Good day, and welcome to the GCM Grosvenor Fourth Quarter and Full Year 2022 Results Call. Later, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this call will be recorded.

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

You may begin.

Stacie Selinger

you. Thank welcome call. fourth and year and GCM earnings XXXX to morning, quarter Grosvenor's full Good am by and I Michael Pam Today, joined Sacks; Executive and Bentley. President, Officer, Chief Jon Levin; Chief Officer, GCM Financial Grosvenor's Chairman

and current we our forward-looking all made important These factors that guarantees. are statements statements. of projections. Exchange in not Commission to Factors with This on all section forward-looking a materially the fact statements financial and historical our differ do statements that on matters our release, that of include the and which discuss of this of and Securities the neither our this our Shareholders the expectations website. to Risk XX-K, call other should on are Before refer business, promises results, involve may other relate factors They our reminder performance unknown results call. for quarter's filings our and this uncertainties those be risks, statements regarding the considered by section actual nor from earnings Public indicated Please available our cause to known

to we important assessing A in which our available our view of website. performance earnings both measures also and in supplement, nearest business. non-GAAP on metrics of section reconciliation are of can as our to non-GAAP be Shareholders found We'll the of the the refer metric that GAAP earnings Public presentation

Our with that we your spirit, to feedback. to goal improve in And engage our look shareholders. is continually and communicate we how forward with

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

Michael Sacks

Thank you, Stacie.

clients or exceeded a raised we expectations our that earnings funds capital communicated our for we line year. while During Despite the financial were the raising $X.X results for of in fourth the total to backdrop, well billion $X.X call. moderately achieve last of performed on billion with challenging XXXX, of quarter

management year the continued year X%, the XXX fees, private to for of for by full earnings grow while excluding catch-up Fee-related with quarter markets rising markets margin full XX% over XXXX. QX points. by fees basis FRE XX% improved by fourth private verticals increased the Our and XXXX

the was capital net were EBITDA environment. the prior income to than lower category, entire due and the adjusted year case markets As for the

bright a we On investment. were to a $XXX fund the anchor with and note, a important pleased during new quarter, Elevate launch million specialized

Jon through As firm provides a with of Grosvenor category our that Solutions, in Solutions broader lot Elevate we investment with his that strategy, the believe in remarks. you Insurance will Sponsor take promise, and a the of part

growth markets strong Looking beyond we can of funds management at rates. fees, ahead, our the continued compound combined in our specialized five including pipeline, XXXX private us leave confident our market mid-teens private earnings in markets and that fee-related fundraising with

incentive always earnings of significant asset, forecasting While our adjusted time. net confidence represented by over rates fees in and fees strong give absolute power the a strategies with income performance that our carry challenge, have is EBITDA similar we adjusted growth us combined

we than these we lower in saw levels fundraising XXXX, of can achieve with total For objectives XXXX.

high private be last we Overall, equal 'XX like full said, XXXX exceed will to weighted XXXX in expect mid That over believe year year, and teens or levels. XXXX. back in fundraising total growth year the the management will of we in fees the towards markets

below of private with strong that XX% For to market QX fees of fee expected management fee to growth, private couple management overall fund of excluding XX% catch-up growth, closings points in QX quarter. due a over 'XX, we the expect minimal continued 'XX, markets

lower fee-related fees, strategies we earnings QX the of full compensation-related revenue the slightly the of fee-related 'XX. XX expenses, than limited Due expect fundraising, to the return of absolute both certain timing back-end QX the weighting and and catch-up our results of that effect are QX

This new month capital, strategies a that of of reflecting $X anniversary raised billion $XX was company, investments. our and which first is we worth time. as billion of accretive in have period and performance our as of on two such co-investments, fee the call marks public it secondaries over Since year earnings coming public, direct

and With powder $XX success for capture across billion more ability us our leaves strategies year-end, investment clients. of enthusiastic as than dry of fundraising to our about alpha opportunities generate

strategies fee AUM to two last years our ago. AUM, creation more XX% private We shift, of a markets markets forward. grown management fee-paying continue XX% with we private the accretive During by going two that just force believe and this private AUM from fee-paying will have up more market both value driving double be the and XX% towards now strategies movement fees years, mix comprising of

to achieved, strategic we the the made coming growth in business investments and to have in our white addition we In capture groundwork continued the growth have lay for space years.

seen offices new new results and significant solutions, our where already in provide Frankfurt all efforts Sponsors Our insurance and Toronto Solution we've opportunity. efforts are in

embedded room from earnings fee-related increased that regard. and year-end business. XX% in the to Our as XX% expand operating years ago our scalability We two in leverage realize we believe to we at margin have continued

successor clients re-upping amounts, and scale predecessors, growing funds their all achieving new funds fund our are in rates bringing specialized existing we franchises market. at Our greater higher than larger to and and are while with size

to good two cumulative our in on increasing excess significant $X.XX four shareholders. per dividends made per we $X.XX to share. our times paid our public ago, commitment years Finally, cash $X.XX dividend quarterly to share, going return Since have from have just we

As of quarterly our annualized Friday, X.X%. dividend was

share and of million we've addition, In $XX warrant repurchases. through returned capital

count, share our our going with and [ph] managed forward. to associated have LTIP dilution intend any stock-based and significantly we mitigate compensation describe, will as Pam We

are last a losses proud of for shift, over years our We environment, clients and company. our delivered closing, we first despite paradigm and public despite year's both year a In as results last significant tough volatility. powerful two our value record-setting market

'XX for model while shown business have and ever are opportunities they of the been. beyond strength as our as well compelling in The for have the proposition value shareholders and clients and clients

investor remains for Importantly, demand alternatives strong.

forward. for to of our that all our value, stakeholders believe and to continue forward we represents going delivering We good stock look

And with Jon. to that, will turn it over I

Jonathan Levin

you, Thank Michael.

strategies and was $XXX XX% investments. of real fund, XX% fee-accretive we direct our estate. of was larger total capital within and level represents close This $X.X Our fund. opportunities than its of high of as client geography. infrastructure secondaries fundraising market which co-investments, private across now the equity, AUM million strategy, of was which and each XX% in year, reached XXXX represented final XX% diversification across Notably, noteworthy at XXXX once again secondaries markets, fundraising diversified of for raised billion private III, GSF such predecessor Private and its of in

with XXXX. capital past driver were As of XX% years, commitments in a clients of our new contributing existing key formation,

of where capital. high value have market they the Our rewarding their bar our difficult clients' advantage not proposition, against commit only a is but for a especially validation investors currently as strategic

Importantly, many GCM as these areas. of into new scope programs new strategies were their to new relationship or commitments with new the Grosvenor clients of expanded

to our one ability been clients evolve with drivers growth. and our will be Our has expand and of future strongest of continue the to

quarter. Solution of phenomenon was of strategy illustration the new Sponsored our launch this perfect in fourth the A

our private decade, been will GCM focus and we're and The was with category their which team in relationship expanding new has $XXX diverse equity launched million strategy, the largely Calpers on managers Grosvenor Elevate Elevate this initiative small, strategy. System. a a seeding Retirement from and our first which is the emerging for to over Employees a client be very excited with long-standing with Public California investment

platform of category fantastic existing of our Solutions and our possibilities the extension example also is build on our a Sponsor ability to The strengths.

managers diverse already small, Our a and firm. expertise investing for in the key differentiator is emerging

under We had management of diverse a and emerging billion dedicated managers have and invested have the management. $XX in XX for billion with in in XX $XX more years, effort investing small nearly assets of for year-end past managers than under years as culminating in assets

equity broadly. a have see opportunity more track significant consistently there is our private and returns investors by disclosures, emerging in managers public frequently exceeds diverse small, believed overlooked as and We And managers. exceptional risk-adjusted that you'll record too investing generate diverse in our to and that

of any Elevate to launch As extension of is these strategy natural investor The a relationships fantastic our reputation of preeminent as leadership, a a we built new and a efforts. a fund. a source looking for capital long-standing result have network of

existing seed investments We catalytic expertise to successful with while investment structured our generating our in partnering founders are leveraging life that as make cycles firm enable compelling for minority investors. partnerships scale early their successfully in returns to managers

roles to will of be who This adjacencies enable our leverage is led the Solutions and Sponsor of extending product [ph] senior existing partner that degree. category by a resources us The a existing moving platform large new to one partners an is also senior example into

which relationships, significant Last inherent quarter, discussed year-end. assets of were of management the customized account as under value our XX% in separate I

customized continue to capital in XX% going separate will potential which accounts, be essential growth raised dialogue We driver are an constantly around represent and in forward. new XXXX of

While and fundraising the specialized do the results meaningful moves specialized as a our we XXXX to fund anticipate we expect first funds in quarter, impact closings greater not to year on. have

the turn to over Pam. I'll call that, With

Pamela Bentley

Thanks, XX% of in key area our and in remain markets fourth year growth again quarter, our up driving primary results GCM of factors scalability fee-paying Jon. the 'XX private platform the The 'XX ago. a with private beyond. growth strength and AUM, and market was Grosvenor the In evident our were from

markets private of were fees catch-up fees, management XX% quarter of fourth from impact the quarter, increased in 'XX. $X.X the Excluding the which million

that XX%. are the to backdrop, the exceed this For markets management full in fees 'XX. growth we growth, while 'XX, satisfied we challenging And rate market with year private given expect increased

market expect over private we For management XX% QX 'XX, catch-up continued QX to 'XX. fee excluding of strong XX% growth, fees

on quarter quarter return our as this absolute to management strategies compared X.X% the 'XX. fees As foreshadowed third we call, declined of last

'XX fee-paying 'XX AUM, basis. we be quarter fees Given QX to down of on expect a ARS the management in starting sequential point slightly ARS

in the million fees interest. $X.X the of realized majority carried incentive from We quarter,

of more interest environment when While transactional predict active will carried we earnings our the continues a cannot power improve. to resume, timing

across market given share portfolios the higher of unrealized the than $XXX year-end, of XX% versus we the XXX market have private outperformance of firm our environment, figure this the interest million. which year in is As markets. is million programs, gross ago, a $XXX carried public Despite

Our annual crystallize quarter tied year. each the returns fourth investment performance typically ARS are in fees and to

X% multi-strategy 'XX to potential, of rate at Given million, return growth an 'XX watermarks public opportunistic $XX of fee our a which performance rate if our is return and compares earnings assuming were growth of and investments XX% impacts $XX ARS million watermark. for for portfolios approximately market all high funds, the high

the Turning the down earnings fee-related expect $XX our Fee-related slightly third as earnings compared million, discretionary and to we in business, to the quarter Consequently, do results the significant quarter finalize first in approximately to we of over quarter generally was of made first not year-end the quarter expect 'XX. we with growth the compensation decisions. year. investments compensation coming expenses. in compensation consistent than Other headcount 'XX be strategic

with to our of use continue awards reward the our the We and alignment on through compensation the business of to performance team's retain both of focus stock talent.

public tool coming we As said factors the have attractive. of made this was before, that one

to We have two prongs to basic stock-based our approach awards.

want provide long-term both current our align restricted incentivize to employees, to to we restricted million grant we LTIP 'XX, vesting stock use with reward we employees. and and In continue to First, and retention. varying granted to X.X shares our periods

we offset dilution back to compensation. to continue Second, will stock-based have shares and buy from

than $XX we on authorization. stock year-end, our remaining more buyback had of As million

were the Non-GAAP expenses the other general in third approximately million from modestly quarter, and fourth $XX and up quarter. administrative

increase sequential and We despite figure quarter slight expenses continue of expect this the pressures. a tightly 'XX manage inflationary to in first in

reiterate, Our We expansion in private in margin 'XX markets mid anticipate earnings 'XX in management we long-term will XX% and in from continued anticipate in in 'XX. fee-related high fee-related the growth grow in mid-teens. teens fee-related margin expanded To earnings to the 'XX, to earnings resulting beyond. fees XX%

and current provide the We track delivering the confidence. to shareholders. focused the market strong environment, us value and our our strength immune to not on record great of of our combined team scale are we platform, and with performance, While of long-term clients the diversification culture, with remain of our impact

and we're take now Thank for joining you happy again your questions. us, to

Operator

first Instructions] come Kotowski And will our Oppenheimer. question Chris Thank with you. [Operator from

Chris Kotowski

how first, Good on obviously, taking precedent for scale, Yeah. has my And there where been to the come not but big where was any start you any to And resulted I nature commitment. to program. morning your - is the of wondering, thanks in this had tenant experience way I questions. initial with about fund you in commitment? resulted wanted the on and compared anchor there a - Elevate think an ultimate that the

Michael Sacks

Sure.

know funds have word, in that don't - turned helped and II Fund will, into had to if that et we you the our short right And past. is III, gone Fund franchises, and launch launched funds of the successor I then large specialized Chris, answer have So on the if anchors we've to cetera. have have all successor

incredibly start to size months. with about raising and So this Elevate, in first We're of this marketplace and we do for in XX that. it be it terrific in terms think be money for and enable is We a attention Jon have an on fund its and to not his simply did number levels. we're remarks, and don't the are mention on one, the we the XX that, One, about investor. it of putting than larger few will we excited quality a do size that that will excited but anchor we different get next - and caliber thing, us to will anchor a

behalf think a that is are businesses. deploy that Second, think a capital to turn very all generate to exciting us fantastically grow addressing on interest the for diverse in emerging equity firms. to there of the there sponsors and private new of launch real new will And itself opportunity we is fund kinds good that in capital. into support and fund managers returns the Elevate capital ample private valuable in for small seed equity - terrific market, on need is own our that to we and investors there's And which other

the in space a as equity you long I been early and time, for and private have emerging allocating small of to capital the we Fund business stage know, diverse And decades. managers manager long,

wisely, the feel returns know that so we capital to deploy capital the very get outsized. And or we you the our right confident that to in ability when and available

excited it. very about we're So

time a and just to value we Solution And delivering we that there deliver would which we we about out about I value to are talk other and to into Sponsor believe point tried his that is last can Sponsor broadly defined opportunities, and future. move over on Solutions the the as sponsors sponsors. on comments forward program reiterate is where Jon ways in Elevate, And other that we're want touched it are excited building to

year, that positive had communicated and So a development firm was to in quarter, not in it's market terrific, which that the bright is think it our very thrilled fund spot for something prior, have we fourth and very and the we future. this we're a about for

Chris Kotowski

speaking, turns Yes. And you said before But you'd be fundraising for XX thinking months an or numbers. that so. on financially Presumably, correctly... that XXXX event probably I about not it it's for time. Am

Michael Sacks

the already for No. January that turned on - have That X. fund on fees

fees fund from enjoy capital investor a will anchor and the in XXXX a is it's some we structure revenue So fund that of that the on from committed catch-up. with

to January for money raise go we back will as those So X. that fund, fees

Chris Kotowski

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

Operator

William And Jeff with our Schmitt next comes from question Blair.

Jeff Schmitt

was the strong in this to was labor infrastructure infrastructure The this total. start with market fundraising the at in 'XX, right around some point you pretty you'll year. I And of now then diversified are fund, is the good infrastructure be supposed morning. XX% up Hi, year, think it

fundraising you be I'm inflation to for your funds? protected of do thinking and could this strategies. potential get aggressive just demand? raise there funds Or seeing So there the given competitors additional those Are upside about year think characteristics more you those

Michael Sacks

any of fund. enthusiastic a [ph] the last enthusiastic enthusiastic. money our strong. We're demand importantly, demand It [ph] in couple raised infrastructure account fund. of alts Lyft any we're very fact, remains for see in at where the don't at years. strong. we've change about separate it enthusiastic demand all We're don't vertical, over diversified very We the all we infrastructure. I we And remains about about in for change think see And And remain lot

We've in and levels little the traditional seen kind you pick and whole fundraising up. assets space much to the start a in see back, macro decline And fundraising slowdown think bit transaction due to come a anything, I decline up loosens just levels. and as the environment the of as transaction in

infrastructure equity it lot a last years, to a going about got lead quarters think demand what over used question, and dominating but or There's this that four that was do should over for that not quarters out bunch fundraising the where has a kind of infrastructure, I be so of a six of to question. we whatever or private we a continue it's and we couple taken the have of have quarters to the there, raised team, last well, couple money and a year. we're great of

Jeff Schmitt

for adjusted we which of should its normalized pretty much in the margin, is good rate? result, the drop Okay. terms given growth? that on just future revenue dependent environment And about sort how then more flat of But a EBITDA I a margin And year, is revenue. guess, upon of fairly in it's the think expansion in run how

Michael Sacks

to it's feel a hard, environment. were year significantly We as very it's levels last macro They transaction Pam correlated just general predict and noted, capital and levels. much question. levels activity so the transaction very down light are in with carry markets great of Well,

our levels earnings up, the difference great got in. result see ARS fees performance and maintained FRE as our is adjusted has EBITDA bit. start power resume, us, shoots pick its that's rates and there obviously, Our starting for kind and we'll we're is maybe sharp and to asset fees, believe transaction asset and of timing some there. real our very a of predictions. - that green a very and between transaction we as we feel that our come pick We're And And and we've belief stabilize But seeing value. carry not carry up levels like incentive a there's at making little to more there

us that, that So will will that growth and will impact good does, regard. predict - income is it's It's know our that just we our its power it in when. question for and asset come, the hard we when is EBITDA, in underlying of a carry return. but the margins thing slightly, and and for it earnings that And a there in for when net and and growth grew come to the it

Jeff Schmitt

sense. Thank Okay. That makes you.

Operator

our JPMorgan. And Worthington with question come from Ken next will

Ken Worthington

Hi, good taking morning and for questions. thanks the

of the sort private fundraising wanted to for to as dig environment I So XXXX. business XQ from into we markets transition the

you environment last bigger sort in expressed in of or transition? of levels. you think than have the as fundraising And added qualifier the the seen that change in XXXX So be In I confidence we you 'XX 'XX. a to sort comments today, the equal call, higher would

So feeling are little a you less confident?

here the which CIS year. final and their closes And this on III I guess kicker have is MAC III,

Or for needs reach prior your reach fundraising accelerate that you think I if can in? feel extended confident Is be prior your of something targets? to sort not, to those for funds. to you targets fundraising

Michael Sacks

Yes.

So for thanks the question, Ken.

of an make mid-teens intended of any to of just specifically, be achieve growth FRE we mid-teens not our way the that to was than to that need 'XX, we in for indication what do less can FRE terms just said with fundraising think goal that first year. to really That even call number. That clarify was we I all had context what of last happen. we to was in provide will what you think for we in

effort make appreciation to was going what happen. 'XX. think that's think mid-teens think needed to have That give an kind than And in us that growth. in effort very fact, you what's in we'll we no FRE an And our you in important an fundraising is we tell It hear to for more you had more of that. to I do was way we 'XX for

long in slowdown has year, is our sheet And demand balance related had macro levels, remained of flows kind on is Nobody's to denominator capital strong. last down. to where want you a alts from environment bond and - are the view dual see which cash had of related their means markets of - away allocation, importantly, significantly the Nobody transaction that portfolios, moving alts portfolio entirely and the stock was reduced own - the are they you was factors kind back long overall lowering strategies. for reduced really it have both coming it that changing to and from to the

of new loosen as commitments. that's levels kind making a And slowed And see is So increase up, to to new outlook. see programs of that our as bit people down everything increase, little our funds view new you'll in commitments transaction and terms you'll well. and

does As to do and far do to We pipeline MAC fundraising the diversified that. accelerate. that as need have infrastructure,

closes well. do in in I to those think bit it's environment period, have where documents see bigger verticals sign end want of specific the little pipeline subscription across slower the a wait a you'll and that the natural solid efforts to and expectation people firm all their the nice for as a we towards

And to expect of both year. we have closings this do funds for so those some productive fund

Ken Worthington

was Excellent. That super helpful. Okay.

according the fees? should us catch-up year, loaded. be fees. just of sort on catch-up set robust versus more how 'XX to How catch-up we level all of Okay, back-end sort if fundraising help plan? fees to second should think the versus year about catch-up half will in 'XX think year these suggests of that goes It bit this we a about fees So last

Michael Sacks

We just for good expect this MAC expect mentioned about, we year. Elevate as be X. on talked And they'll catch-up fund higher. we some MAC The started earlier has I January closings fees.

QX, that catch-up exceed to fees kind the And of and you catch-up last QX, think market little are the [ph] fees raised will of point fees generate going catch-up five labor we they in funds closing bit catch-up have fees, will or will you and to this Lyft a And year at first the then extent have have catch-up will- as some have of fees that money there. Those there year. the three the well. in equal infrastructure a so then

Ken Worthington

great. you. Thank Okay,

Operator

Beatty question [Operator with Thank next UBS. you come will Instructions] from Adam Our

Adam Beatty

questions of broadly. morning. Elevate Sponsor couple more you Solutions A on Thank good and and

to of fund maybe salient the either the First, financing from or the broadly, with in the history. wondering of the [ph] balance term, question, longer Capital permanent return for just of how expects Grosvenor's fund more the for need need terms even on firm part given LP eventual the own seems issuers in mechanics, perhaps

the then market terms - as And formed or capital in about firms are bit given just Thank seeing a you. there broadly, in of are and at issuer more environment wondering of little the rate formation, what before same you're small less challenges? being some the the

Jonathan Levin

is Happy Sure. to Adam, this John. take that one.

I think you that out the but the can be strategy themselves. look with of partnerships talent. investments the in all is think investments of could Elevate the have multifaceted won't sponsor funds these And kind can of equal, being you as way they

relationships the the could You themselves. then company and also revenue or those part or GP of financing It's for have would interest, management have a could itself. interest return, are that you managers co-investment shares managers. possible economic package those equity the And minority with in be whether

coming bulk fund, for of whether co-investment course. capital, or life of financing level, right, a investment over GP capital management equity at I the company the be the would or the think in the duration in due course the private the back that's of that the

at your that all point, had share fund form coming back cash in the would that, invested be LPs the and and capital their it the after interest duration. is But capital to equity last back a long back. having flowing revenue of have could point, cash so flow would participation interest your our And remaining of capital or for a

good strategy. profile So for think investors we this a type in that's of

environment can X the to denominator selective to of about sourcing X if over the correlation on launches, certainly to that number deals huge in firms and funnel. we part your nature. things we're effect highly there to investment always cyclicality thinking some markets XX, question, have some years, that's new a is highly, a feel a general fund like But that think and we their doing I that we right the XX partner has exists X launches. small time with second huge general, is form relation to that plenty of capital of in And X of in and be enough the reality network,

Adam Beatty

the on I detail. on the think I one billion. particularly quick Jon. it's appreciate or backlog, AUM of deployed fee then you, Thank the that And $X.X that's Perfect. just charged portion maybe invested capital, a

think, your what Just how budgeting it long either there? like you. would the in X of fund X-year historically do do frame? you or Thank now, a Is given right have take up deploy year, how what you Or you, set you thinking or long are that? kind that to think time

Jonathan Levin

We've year few be There that's over a period guidance generally that bit generally time. that that it's we've but said that's could ratable of the some little a longer, on given front.

Adam Beatty

Thanks good. much. very sounds Okay,

Operator

Cyprys with next our comes Stanley. from And Michael Morgan question

Michael Cyprys

business taking Hey, And fundraising good morning. of return the absolute thanks was there. for the outlook the question. in I terms hoping to dig into

in year you appetite absolute LP hoping marketplace seeing on in strategies, the particularly return what you're last could of terms just was benchmarks the broad in I that versus strong comment for light outperformance of So strategy. in

demand in of expect versus you're trends Are sort terms less any of as you. expectation And well? more What into where strategies do particular any seeing there redemption gross Thank demand? 'XX? around you sales

Michael Sacks

Thank you, Mike.

is demand is that there the specific and I demand the think mixed. for strategies

always they So you'll - - about great see to space there's people take want talk and that have that diversified that demand. ability in that so there's and a of sets to the accounts different that of place level underneath terms have year seeing towards had a capital in and interest you're on shift credit-oriented strategies strategies, you last of focus those whether year strategies. make funds of sort Commodities separate number and the ups an people strategy is have [ph] different

is We class think we environment. demand not we're to not that for think And you're we of of allocations change said that I don't theme the asset through We class. that any strong - compounding, but believe for that think time for the asset think macro in and the have a hedge kind a be there through net see of the kind inflow incremental growing we - kind picture overarching continues long real overarching in funds. to don't

from do and - of but when portfolios to some a alts effect. you environment somewhat to year, doing, last things liquid have fund and some think people they I use denominator money think see they're their that that suspect this abate liquid liquidity, had over an to for terms And you that because I and saying that strategies in will obvious for we alts keep people want ARS you will in may like little of that's can is but that, want do take allocated to that be the year. that funding tend elsewhere place keep a we liquidity book

general, as in we would we good had of growth different about others very strategy, and expect of this which of some approaches that, talk year, And which ARS one vertical, year, of number redemptions. have some some we inside there of kind a to those experience our while results are see could in last

basis, large modest major year allocation this year, budgeting some but in And the than writ hedge to a more redemptions net and funds. on modest not increase - we're sheet actually last a for seeing balance

like strategies as you way, it the showed like feel compared mention the necessarily portfolios vertical just the that ARS about weird strategies. of respect in value to year want ARS get know to do doesn't I we our we talk And of to last and clients ARS Mike, said, lot the a performance That certainly a deserves. traditional the that

focused is in ARS which worried comparison important, about of firm perspective, do? to about that to you value the assets the management, managers. think, strategies think when from not and at that revenues traditional - did And what look asset asset think as traditional so the equally do you a did kind what hedge be But of the let's to let's about we've comparison tried funds make always compared it I

be continue last was in And the look last and revenues be firms, to if will did what you long-only it manager, asset believe than traditional be last case revenues we the compared much year time. over to that year year the to a at and to business a better management traditional

Michael Cyprys

back a just circling Great. on follow-up question, Thank you. Elevate. And

a for the strategy you and have launching time some vehicle - fund you're that, So strategy fund capability with that now. had guys around

your as strategies the marketplace look you that a today curious have bring able you there's already separate just fund. guys other kind and that account and and might to package of if investments, you capabilities commingled types of to So at be

the you separate Just that side? you're of about account what there on on different pockets do how the taking growth opportunity sort think fund already doing side, in

Michael Sacks

Yes.

And We and manufacturing that can that fund we both account we impact in and capability custom origination have we grow specialized lot separate in of a can form. believe we have in and space. lot the a of grow capability

We in solutions the have sponsor that space.

a - products are fund make - of the We - can we've so a and structured channel you know a sense sense channel. there make There products that of that while. been lot can commingled are that in for and insurance pushing for channel lot for that

over funds So the I And long sort and manufacturing. of are to several a next of and strategies we long that add new origination ability new have years. lot think we

it do move it of You've last And us continue as think we forward. see over years. you'll I do to seen couple us the

Michael Cyprys

Great. Thank you.

Operator

time. showing further this not at any I'm And questions you. Thank

Michael Sacks

Thank very Thank much. and your you We to we you. look all appreciate as forward. forward we shareholders move for interest, delivering

Operator

you gentlemen, great and program. hope thank This for ladies conference. everyone participating has And does you. in today's conclude We day. today's a Thank

all disconnect. may You

Grosvenor Capital Management (GCMG) 14 Feb 232022 Q4 Earnings call transcript