Earnings call transcript Q1 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to the GCM Grosvenor 2023 First Quarter Results Call. [Operator Instructions] As a reminder, this call can be recorded. I would now like to hand the call over to Stacie Selinger, Head Investor – Head of Investor Relations.

You may begin.

Stacie Selinger

Thank you. to first welcome call. XXXX and morning, GCM 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;

on guarantees. actual facts They the statements uncertainties those quarter’s regarding These and this our includes relate differ reminder statements statements do discuss nor call. we business, considered this of forward-looking results, that forward-looking historical unknown Before call factors neither performance on materially the known matters are risks, statements for involve promises and our be that that projections. and may financial current results from a important other by all expectations this cause indicated made should our to This to not statements.

the we Public section to and the with and which the assessing of measures Shareholders all found of our reconciliation section presentation of our available the business. other to A refer Risk which can our release, in both website. Securities our XX-K, non-GAAP factors earnings supplement, Shareholders Factors are our to of the non-GAAP the on refer GAAP in as our section in We’ll filings metrics that our of be the website. earnings performance are nearest important available of also earnings Exchange and view Commission metric Please on of Public

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

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

Michael Sacks

Stacy. you, Thank

COVID shareholders. meme Ukraine, and has our with last periods, the X volatile specifically XXXX consecutive stocks, market The the during of the Through for been Grosvenor’s for Valley fourth of team has GCM quarter dislocation. each and in the generally management each approach and quarter Suisse, broad-based, Bank in Silicon diversified strategies the and year Grosvenor GCM tough first members in Credit business significant the portfolios solutions alternative of first and for asset The of years the enjoyed war quarter investors. volatility clients stability these to first strength times. From relative of marked strength our shines of

confidence proposition we bring our our firm the the and shareholders strong. in value such, in As clients, value for to remains of

provided quarter, first last the earnings in In under performed We environment. billion with on fundraising raised call. we line in a guidance the we $X tough just our

Private catch-up to private at Importantly, XX% growing our year-over-year. total rates, now private comprise AUM. roughly of line XX% fees, verticals top markets market double-digit fees, management grow continue strategies excluding with markets our

revenue on QX Due ago. to strategy roughly AUM, compared the impact in of overall fee-paying to fee-related a was return XXXX year absolute flat

expected, a ago. fee-related earnings slightly were we and earnings As year lower than margins fee-related both

industries, been competitive some performance relevant in and ARS Our regard has delivered recent to time. the quarter with and best first peers had we’ve

fee-paying an quarters. transaction Capital less the our previous markets AUM the we to almost and compares be was activity a alternative levels In twice overall depressed, average than markets space now. the first continue beginning for quarter driver That of believe which quarter, of of clients. that right significant X% distributed X rate is to private to

flywheel believe adjusted result pressure putting the low incentive was in industry, of important the low, to commitments. the income That’s fees LPs. an on factor adjusted activity and liquidity back the improve investor timing returned year-over-year result, a of being We were less levels As pick net Across capital which in will transaction up. and when new levels. levels slows EBITDA transaction

a QX year-over-year. high roughly ‘XX. will fees, that’s will management QX compared management be markets absolute flat pretty we fees QX in grow be fees, for digits single forward, will excluding strategies the ‘XX. similar FRE second And quarter, to Looking the anticipate return The to catch-up result private

For margins. growth FRE with to expect continue expanded XXXX, fee-related earnings the we full double-digit compared year to

have fundraising strong. our been While sales stretched pipeline cycles somewhat, remains

this As exceed we saw fundraising will in ‘XX and ‘XX, year. back half we half expect first fundraising

continues timing unrealized recent long revenue no set prediction carry to the we to intermediate well We significant although represent realizations. as to of levels make for up upside Our term. remain and the

powder For deploying XXXX, more advantageous continued investment excited fundraising will on growth environment we $XX be our solid we expansion. with seen a in we we’re a approximately to double-digit Perhaps while. continue see fee-related believe of in about anything, some margin billion assumptions than reasonable earnings dry than have more what FRE

feel portfolios, our are we picture safe broadly remains client a and good paying bring. client-first of team value shares. challenging, generating a cash, great diversified relationships, enjoy Although efforts approach back our dividend are in macro buying adding the pretty and environment, growing, it’s tough and fortunate that a It’s we result the client direct environment a to solutions healthy,

our we of have all going look forward to returns We strong for and a generating upside, opportunity significant with forward. constituents business and

it that, with turn And over Jon. to I’ll

Jon Levin

makes Thank will few on enables to addressable spend going strategy. market. alternative platform us credibly compete mandate to capital results more a depth a total nearly bit formation of large our you, an The detail any minutes for our Michael. and provider, breadth, for available I a solutions into and very which flexibility

long-term investor compared anything, do particular but not alternatives we As only the tailwinds the has moment of alternatives long-term heightened at relative for time to the Michael behind other asset in secular this outperformance classes abating. is demand demand. noted, challenging, see environment If

mature to alternative able investing proven that market. value adds remaining History programmatic alternatives committed to target this has deploying and continue approach to time. In their employing over in to capital around that are ensure a are fact, allocations to investors flexible creative strategies they asset

companies continues addition, to bullish that to backdrop, the alternatives. retail with on continue for long-term grow there investors. set to to alternatives, In attractive and an we be insurance allocators opportunity such as demand newer Against be

Now to our fundraising.

in markets X in investments. main first, increasing themes: and which we’ve strategies; new double with relationships areas; characterized X momentum mix our expanded fee-accretive new into channels success shift geographies been second, the private by the we’ve business and where made last years, has existing and client Over toward our the fundraising third, our

business We have mix the these capital business. about many last a important X years to had was that, we’ve fee-accretive of XX% private impact the for of over as most about the which but of in markets. This on XX% talked and things define raised of raised on secondaries. direct was double we our And investments that shift one has strategies, our it’s composition. material understand the calls, co-investments,

a AUM, of at markets our private the increase quarter, of comprises of which approximately XX% of AUM significant end from of end is As XXXX. now XX% the total first our the total

Within the most private significant markets, growth infrastructure driver. has been

programs X last cash as than continue the the $X strategy of for investors and billion more raised generation, Over infrastructure to yield protection. long-dated capital appreciate years, we’ve inflation appreciation

the well market and to further pick infrastructure area. broad in in space up significant experience positions this share us Our

second relationships Turning we relationships new of client have into extending strategies. through our and fundraising, to the driver expanded those our re-ups very successfully existing

private programs work Over Approximately X years, XX% in in of fundraising XX% our clients and top clients return have and past multiple existing XX to strategies of top the our XX approximately markets. both absolute one-third strategies clients. our cross-selling us has of with been our

past of to new fundraising our clients, the fundraising XX% of typically our came brings first me while the has years from the our driver. clients, fundraising over which come majority quarter Interestingly, third few existing from

in As believe office announced we’ve few of growth. geographies new new you we Sydney, a opening know, in been Most future past we and over drive years, channels the investing the significant which will recently, Australia.

encouraged While it any efforts for and of the we’ve potential, investments signs been takes we’re making. scale to their time the by full new that early reach

Similarly, to fundraising. their very markets, flows as Nearly insurance and non-institutional each contributors over XX% of contributors last years to combined, to these going from in to strong over retail these the the channels we years, fundraising expect large given be our addressable total last began forward. represent channels the X potential meaningful few channels came demonstrate or our

and to we channels us focus broad move growth existing strong on stability ample and as manufacturing and relationships platform, Our opportunities forward. deliver client growing provide with deep

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

Pam Bentley

Thanks, Jon.

We challenging management well serve sheet-light scalability continued positioned as strength, us stability are and amidst our a balance fee-driven, business, well markets. have and to

contracted, to quarter, and markets not became a continue fundraising yet increase the AUM quarter. ago increase primary fourth X% and a X% AUM from of a AUM quarter. the ago increasing a combination Private Nearly be the a X% from XX% management to from a driver growth, year fee-paying from Assets year in Fee-paying increased quarter. of billion $X deployment. from fourth the the under in billion paying year increased $XX X% fee and from fee-paying of ago

offset was markets private healthy return flat on fees. year-over-year, strategies a experienced fee-related Although by impacts which XX% basis, was effectively growth on ‘XX management revenue management absolute of fees market year-over-year

expect are as quarter grow digits not same fees, on high management compared ago. expected absent markets to high the end increased and Excluding we private catch-up second first anticipate quarter catch-up which the quarter XX% any closings, quarter, management do our fees, the of we was fund fees the catch-up fees. private from second markets guidance. the specialized material a fees, In single Therefore, in modest to year of ‘XX,

return ‘XX. quarter As this last fees the we of foreshadowed strategies on fourth absolute management quarter call, our slightly versus declined

We be expect second same million $X.X realized roughly relatively QX, of from fees fees return QX, AUM quarter. we fee-paying absolute management Given in was strategies the flat this interest. in to carried ARS majority the incentive as quarter

to continues and until settle out, likely is and As interest realization be M&A be to environment Michael volume muted. the rates challenging, inflation mentioned, market

to That continues improve. said, carried interest our power earnings

have And been carried to carry million we carry contribute which firm transaction volumes is million. programs, believe As The of earnings. steadily $XXX of has we across share in unrealized unrealized the will meaningfully of firm return, quarter share our XXX end, increasing. $XXX when growth interest

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

This annualized and performance for high million impact if fee of of earnings ‘XX performance the $XX our combined of rate return investments of potential of QX, on growth performance ‘XX gross rate XX% in solid fee an performance return to million, high for with $XX watermarks, potential portfolios earnings the watermark. opportunistic all were assuming remainder is multi-strategy approximately X% for ‘XX. at compares Given

approximately is the to million, our slightly strategy alignment compensation in was shareholders. $XX the ‘XX. expenses, compensation down clients earnings compared and Fee-related of in first quarter our rooted to fostering employees, our Turning quarter between

quarter, expect FRE it elevated subsequent in a in do is As we decline reminder, quarters. marginally the typically compensation first to so

last disclosed As million quarter, we $XX of restricted we first granted the in million. resulting expense quarter, of in employees, compensation vested X.X in to stock X.X million which ‘XX, shares

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

we which X.X of shares authorization, $XX work. repurchased million $XX in continue million approximately put approximately we to or to stock have quarter, our million This and stock, remaining buyback

We year. return expect coming the to stock normalized of we below to quarter expense saw levels in fourth in in the second last compensation what quarter

other to expected, increased As the expenses from million. and $XX.X sequentially fourth administrative quarter non-GAAP general

continue balance-sheet continue to in manage to figure second We despite to excess pressures standpoint, quarter. dividend. tightly current comfortably capitalization From we cash and inflationary and stable a generation the our in expect is expenses this remain be our of light,

over said As in fee-related the anticipate dividend our time as increase. we earnings we have past, growing our

in that long-term I clients potential growth to the achieving our and shareholders. generate confidence long-term end our To remain for value by point, focused our We on embedded objectives. will reiterating unlocking our in full platform

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

Operator

from first Suisse. Bill Instructions] [Operator Katz from now we’ll question Credit And our take

Bill Katz

for much company question very you thank and Okay, the callout. the

updated maybe a for Michael for the or guidance. you So Jon, thanks question

to of I sort XX%, second about fee-related let’s something you of significant in just quarter. if of ramp, teens, pretty it said look second mentioned that and given So impute the half at a year-on-year say, would ballpark, of guidance year the of the sort growth earnings what

and So help of the outs the through half sort second of of us you sort can your walk FRE think about ins you the just trajectory? as

Michael Sacks

question. Sure. Thanks for the

for call, So we on said this growth double year, the FRE digits.

I think we mid-teens. last had quarter, said,

you to are some fundraising to we’re into bit we double will environment us in. pipeline. now, longer half FRE growth which half fund closes numbers build we them reflecting we year. doing these second Sales first get than and more mid-teens, we’ve will is conservative visibility – the a about, catch-up and with So little but think fees a fundraising. when about And and But of bottom-up build double-digit continue a cycle granular specialized is our we such we talk talked we the that this exceed timing that to believe digits

Bill Katz

maybe grow. doing Okay. into I just the areas a for and double-click And a about just you into mentioned little to retail? the you or follow-up me, the what accelerate you incrementally was of maybe to bit sort if might quick the be Jon, could retail, opportunity wondering three of insurance either of sort talk different insurance opportunity

Jon Levin

to Sure, this Bill. morning. you to talk Nice

whatever idiosyncratic where they alts remain little where allocation as investors, or an investors an it example going to programs, world at what you be make particular exceeding proven good of or insurance alternatives be more time the comes think might in be environment. on a and they’re likely never can a investing years their sheets allocators it that is then think in an a of has mature around might a opposed might approach building be as I And have down to alternatives goals category where to interesting is but sure bit, investors be that still retail is allocation these call, companies for they taking be that down of to program I from terms near light their they’re asset of and to below to, have where idea, that strategies to be slowing kind a historically. and, slightly balance therefore, because or creative are asset to I the to off off committed want maintaining example, might example, what their you programmatic fundamentally, to taking program an are this noted vintages perspective great employing different alternatives, be,

of to number insurance that resources segment, to the necessary we’ve we I just as, a people an We’ve channels. would technical made years have what a expertise And made cover ago in those sure as cover done some of so to call, where speed well investment the we is sure few from be in to Similarly, like tend will coverage they’d house channels, perspective. over particular, the opportunity time. up that an be with our alternatives wire people below made there to think where the is be set what long-term

so be the just the time. under cover end allocated also building expertise it’s the you about people the and and where different and making have want design channels, And really, over the it focus technical at the to and day that of sure to they’re product secularly

Michael Sacks

Yes, Bill, Michael. it’s

at are comments, think a away Just think echoing see from moving and we channel see where I Jon’s I don’t don’t we geography alts people a all.

remain pretty see of the make of in we long-term think everybody so things over have growth And channels we’re going hears. years are as channels given that is those AUM, those change those to think demand see in grow where of – anywhere. alts. out. total that’s really terms They we So total. or channels investors, an alts grow any all that don’t our I you term X.X the going appreciative shook kind have about, to intermediate remain to last point And committed or of important the our to to are that ask how a sure percent But

Bill Katz

Thank you both.

Operator

Thank you.

question We from Please Kotowski Oppenheimer. will Chris take from go our ahead. next

Chris Kotowski

I can if first a like comment it equity-based in trends underlying in and was? you for full your was wondering what I’m the looked the we mean bit dynamic of the Excuse comp. wondering on kind quarter, see what expectation I outsized and an is Yes. year that the me. step-up

Michael Sacks

in her Chris. Thanks, that on comments. touched Pam

shares of would And enthusiastic year. that time – LTIP. those in in to ability LTIP. an our that frankly, interests coming and we still net we want what of the that below shares was we in about. number think of the I in We one stock-based we pool Shareholders align of public, line our was a when team I large thought investors. probably been sense at LTIP a use we came had remainder have have the to to general, that back use the would be And expect quite And it our has the LTIP. something we that think have comp public, of come that of for will were we the It

So those, that and continue from we’ll on LTIP. to use focus dilution I we’ll think continue to managing

– we’re use is minimize we doing like. for quite but I And doing what and able do We LTIP, job think good of dilution we’re to a which that to so the pretty we’re a far, some in point, at have need but our in there shares – will dilution. buyback we our the minimize and in future to continue some share can probably capital left authorization we increase so in buy to shareholders,

Chris Kotowski

of some – kind guess the just seems an [indiscernible]? was was only I allocated realize quarter. cash it’s I your Yes. mean, the of would but flow. I And kind $X.XX, kind be to of level share related speaks the of of to buybacks better for wondering net like dividend above $X.XX is your dividend it that, base incremental or lot income for adjusted that the dividend awful of And I

Michael Sacks

shares, to shares. Well, flow cash have at and now, make in I authorization there’s good likely buying back we’re room And directing we as do significant back buying emphasized think we issuance pretty continue relative levels, these that of back like And our our and our of the we’re said, and I from longer-term. that comp been the sure shares. there – a increase we dividend capital And we buying base to to level to the room dilution have to any shares but and – we those safety – safety from short-term dividend. dividend that managing do the both of of emphasize and and we’ve dividend, LTIP in stock-based and

Chris Kotowski

Valley? Silicon the collapse just question terms of there of was the last affect doesn’t Or do that’s something – a us happening was conversations, impact? of change kind over tone And something have curious, Okay. from in of that then from I’m people after that off of there me an kind banking in fundraising or system these as allocation of really and did the and kinds separate decisions is, that’s hold

Michael Sacks

Bank related Credit I we’ve Suisse. seen that’s to Valley directly to don’t think Silicon or an impact

volatility when importantly, think X highlight general levels years. And levels and the we seen we that – months, last over in the of – in lower the touched where to rates return last we’ve cycle. remarks, I more so peak to is I activity, lower in levels the each this we up quarter see that transaction having the transaction to that general our general, going that are going we are levels volatility, going first normal the intentionally and a just distributions of the to saw distribution of we prepared of just of and XX, when the rates obviously importantly, think of of type XX again. the the which sales to levels change – we in you kind sales definitely inflation, see did on volatility in kind of are on of bigger are out, impact on and timing – Those cycle pick is liquidity

specific any reasonable change plans any importantly, that events don’t see periods. but time over like – think in volatility we an And I SVB. investor

it’s question, the a think it as but help people it’s levels said, that of levels your I in are just transaction SVB doesn’t I not direct thing. don’t significant correlation. anything. high – as the distribution hope And I but and an know we answers as volatility, – So don’t that just I And terms

Chris Kotowski

me. it That’s for thanks. Great, Okay.

Operator

Thank you.

from from Adam We Beatty our question UBS. next will take

Adam Beatty

Thank you. morning. Good

backdrop about now? right ask AUM specifically, the to yet building will pretty of big the And paying on for wanted there’s that start deployment chunk kind outlook of a challenging not deployment. Just fees, given

on have? asset across thoughts and maybe the with undeployed up deployment to Thank you. various So that I your AUM wanted you opportunities how lines just seeing classes you’re that the get

Michael Sacks

capital people deploy and pretty – were at actually at space opportunities our to we’ve good about healthy. teams, down, mentioned, Sure. credit they And investment coming the return. Distribution deployment good now both was think in team, our the they’re of they’re rates of rates enthusiastic opportunities the levels are return, as seeing deploy are capital

set awareness to putting conversations, regard is years coming part better these sort want a of enthusiastic think they’re they of sales do what’s don’t there’s of cycle terms to the of I general it on with miss so think investors terms to And there. these in in And vintages. the X.X was and work acute fairly than that opportunity money ago that I

work, that. I may in a they of So vintages want our for come these was cycle putting $XX – powder. are end and back fund sure, dry on stretch, comment of in the billion But people excited but that to the and or on raise sales the think, about like people something money

Jon Levin

just would I said. add what Adam, Michael to And

they our do diversified accounts, management. diversified we remember often I is of business you those their our with to what are we’re lot XX% or or separate one programmatic by they’re about geography vintage, to of doing is are under in separate a assets think accounts, thing And type, as what so a helping asset company institutions diversified etcetera. by by approach alternatives, that know,

to ability interesting course, of opportunity talk great we making a lot the more an the consistent that more in one certainly folks the propositions where so even is the seeing of you’re right something and industry of hearing space in is about. that the Michael that now, as is environment And we’re we set deploy on and to margin, sure just the are said, deployer bring alternative value a

Adam Beatty

and that, the private you’ve strategies. think retail about talked little the a for And the how appliance Thanks in in of market sense. having adding Makes the really back Jon. bit, absolute then to feature institutional return distinctive turning appreciate Grosvenor past, I

Just and the being in wondering feedback the terms whether as able offer to on to differentiated you. gatekeepers shelf, put retail in those what had that to how two strategies. of positive Thank deciding plays you’ve space folks

Michael Sacks

verticals, of some forward. all of in we that think some have different for and there to retail investors, appeal retail going we different channel in number that including and are return, have are us our hard working funds that have on we we number opportunity think and ARS appeal do of a do and We approaches have And a absolute – some funds. pretty

of in That market space, you’re I growth – there’s bit said, it’s absolute a overall it than think is return more probably little conversation. penetration. conversation good general, a an share in the pretty

product so which think you have good we good with do, we have opportunity. track And if record, we

Adam Beatty

Perfect. it. Thanks, Michael. Much appreciate

Operator

you. Thank

We Please JPMorgan. from go next go to will Kenneth ahead. Worthington

Alex Bernstein

Alex double-click fundraising Ken. just wanted Thanks I is and the quarter. to the this my Good on Hi, really mix for for questions. Maybe Bernstein taking on morning. this

You release. spoke on a it’s about are change. dramatic this numbers bit in and in also of the And the your call terms pretty the

at being If AUM, big XX% the from a Americas. and quarter, you look this for from if Yet looks like example, total it EMEA we only driver. look it XX%, at really was was

quarter, wanted topic Just going capital India and space, in it of more that other Asia, through broadly East in to what’s deploy an seen LP and places? than the other this earnings like of the seen what sounds from geographies, just some different more Middle from coming there what and looks that heard specifically a perspective, I be definitely driver seems there. institutional we’ve the double-click better to it may we’ve you’re get maybe like understanding in which on number And big some seeing. that

Michael Sacks

the Sure. for question. Thanks

said, demand I appreciation think see interest we’ve as in we everywhere. alts and the the strong and really

business, you separate when a has separate do, like fundraising account think we relationships, that have be can a account lumpy. I large

so opportunity or in just set the bit world about are in phenomenon markets. as is certain the those – And in random that really of are it’s there the isn’t continuing demand a for and pipeline, to attractiveness you’re out, you would I or areas timing. so significant said, asking capital globally Asia, Middle the it more or think quarter we – point strong relating And that would that are that East, related long-term anticipate markets first more that to to all raise markets

Alex Bernstein

as build you. an platform, the expense the as side folks required? most have relative of the those be again. in be been Thank of just already Sydney. to the additions out relating add may investment sort thinking already think Like Are continuing And anything sort you Helpful. much Just more Thanks, you up Is should about on expect to those about the about mentioned running? investments how made think was we that? equation and to line there of office when they to the to made? investment and can trying we of potential top

Michael Sacks

Well, we investments think can related to revenues. that good and to we are generating always line make top

see in where Pam the year, with won’t baking for granular investing to the we’re bottom-up a year. rest be I the we of think we for of we when regard think will what talks build rest or about be the

we bottoms-up of baking Our thing. including ‘XX, spend same touch what terms that in it’s see we ‘XX for – when And the grow. people granular, in us on help investment for to

And so that, about being careful smart we’re like I feel that. about

spent cost we’re awful managing in we this I think And time that lot well environment. headcount and an of talking about in environment. this

of kind – so to that’s numbers, that that’s attention our close you and speak. assume paying baked there, that into should So we’re

Alex Bernstein

Understood. Appreciate the responses.

Operator

take Michael Instructions] next our [Operator Morgan Stanley. we Cyprys you. from Thank from question will

Michael Cyprys

that areas particular X seeing versus sets much where taking types strategies Hey, could different the wanted commentary sales question. cycles versus now on not to last? good just morning. How extending? you Thanks the you’re on pressure your there any are maybe which customer ago? bit and to months more are you elaborate X I a or on come the seeing of for that’s Maybe back as sales extending. with cycle And

Michael Sacks

in not of a lot I is And Clearly, a that there absolute And and of a of conversation it’s think lot the Jon importantly, difference – there from around seen timing lot is lot demand maybe ago. a a awful infrastructure a an don’t again, X difference pipeline of touched ago, is there months opportunity flows there’s see and continues on, think to of and a difference. think infrastructure we space. credit. as lot we months little from bit an cycle X significant

We credit have $XX the space. billion deployed in

capture flows less to strategy. credit are Michael, I about credit is to issue, a specific is that ability people have place think, the We extent The forward. that leaning

the I of just close to as sort that strengths wanting think will enables in credit of flows kind said, really one we raise it’s about investors of So whatever capital come an timing and a level will But as the say us great flows. wanting Grosvenor. are of platform the people close see the and looking for deploy later conversation infrastructural forward, think and flows about to And to the I really really the breadth of see for. to, opposed those And would capital flows thing. I earlier and it’s of of at capture our

– If ARS, it’s So flows. if – it’s that. is the flows. becomes capture think We and secondaries, platform we like And good ability of credit very the liquidity large. we feel of we or clear, capture capture our volatility we equity private are will to that breadth writ will the will kind platform value If about just And it’s feel good of I feel the about flows have the the stretched it’s think and infrastructure, so of breadth out very timing there. I capture the flows. the we the

Michael Cyprys

follow-up just re-up question, the mentioned you customers. And a Great.

bit. Just in to little dig there a

trending how years? today customers the are versus increasing investment? those coming accounts, rates what do your past like How size into much versus re-up of funds of the back separate that of the past is couple their look and years? And customers As renewing their couple are

Michael Sacks

diminished not They’ve really little bit. the levels been diminished they always want for changed. there But strong slowdown gotten a or Re-up rates have invest, not the or has as frankly, bit a strong. re-up. and And are Re-ups of to to a haven’t people want cycle Maybe have changed. there’s re-up stretched us. been

of other are their do things lot they on they on likely of the we sort them, that do top more is committed cornerstone of our is that in these as account some of part kind other the separate business the – base the our programs important that they’re around or of feeling of that them the do to core activity. may to strategies. trim side base the stuff Generally, The what investors of are separate of to or their and opposed XX% to, they they try they’re or hammer account AUM of a

nice good a in years. are at us. timing, of for to X, re-ups the you’ve grow X that that out very that we more terms to frankly, we look feels when feature looking that us. ability feel re-up know, forward great and look your And we to X, So got It’s

business. nice that’s so our of very And aspect a

As fundraising nice a Jon was of investors. new the see first mentioned, in our lot to quarter it from come

think confident change a market that So optimistic economic in general, and hearing general factor and and we with are driving of the transaction we’re time it been you’re important – level and volatile we are certainly is we the and has good. hope in today. significant period feel distributions – do activity levels, But just that market

Michael Cyprys

Great. Thank you.

Operator

you. Thank

We will Jeff question take Blair. Schmitt our from from next William

Tyler Mulier

I Tyler to that about. were circle wanted is on back this to for Jeff. credit Mulier Hi, talking just you

the of would higher at on past over client Fed since comments interest in distressed? year, should by think portfolios? sort maybe like could move maybe for we on the the presuming XXXX, us the Given you the specific rates, impact be strategies the funds rates how increasing level rate benefit hurdle highest Or demand about some offset give

Michael Sacks

opportunity in for to compensated for going compensated forward. set than for more has provide ability the that feel – the improvement clients higher rates opportunity good the We and

any at And issues so there don’t see all. we

bit and little but more the has as second positive sector. again, level need the the first credit, going went and – issue in commitments what’s pretty banking private of into in speed opposed than the is that the alternative effect liquidity a I of on, us. it so what we in to as I’m the As focus that and that a that quarter investing to it. is credit here which miss of and about quarter that’s these commitments. be bigger adjusts timing denominator you’re well, want bit little may denominator than the getting continued a attention, more credit, hammering function And It in part taken a overall is a And to what good at, this, are people excited is of vintages. They more just all is the that forward understand said, the some to this and have be banking is probably gets on for going question really, – don’t and think as effect, place commitments time things and the actually liquidity for of system

Tyler Mulier

Great. you. Thank

Operator

further I’m showing any questions. And not Thank you.

Stacie Selinger

thank joining next forward with look and welcome quarter. again Well, follow-up for you We we today. you speaking your us again questions, to

Michael Sacks

you. Thank

Operator

and ladies has you, hope Thank today’s conference. for gentlemen, and participating everyone day. great in thank you This today’s We concludes a program.

all disconnect. may You

Grosvenor Capital Management (GCMG) 10 May 232023 Q1 Earnings call transcript