GCMG - Earnings call transcript Q3 2024 | Grosvenor Capital Management, L.P.

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Operator

Good day, and welcome to the GCM Grosvenor Third Quarter 2024 Results. [Operator's 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

Thank you. Good morning, and welcome to GCM Grosvenor's Third Quarter 2024 Earnings Call. by President, Chairman Financial Jon Bentley. joined Officer, Chief Officer, am Sacks; Michael Levin; I GCM and Grosvenor's Executive Pam Today, and Chief

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

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

Michael Sacks

Thanks, morning, Stacie, everyone. good and

a basis, XX% a strong quarter strong in our another fee-related net our period full XXXX. increased and XXXX. report over income adjusted to growth increased to XX% the in way pleased are We earnings year of year-to-date same On on

investment realization year-to-date to $X.X infrastructure strategies. is signs environment for our and when appreciation and good pipeline seeing clients believe stabilized continue year-over-year. expansion this clients. private with XX% we succeed. return compared Performance XX.X% we quarter, billion portfolio succeed across opportunities. capital valuations raised performance we quarter, end $X.X XXXX, the regard of the are which strategies our believe value strategy XX real in margin our a our growth all XX% quarter our year enjoyed the to been to that in margin bringing business, billion, a opportunity. and opportunities, investment fundraising fee-related across the earnings We in growth. we estate gross strong largely tremendous generating again pipeline new seen to delivered to every at over rate continues XX% late-stage was We over that the Our have have there business of has today increase solid and improve similarly Real we We showing composite with from year-over-year months. up total activity. a multi-strategy equity ago with Capital verticals. Absolute formation in are of to investment We've XX% the across return improvement last of was particularly activity And

private the strategies, and XXXX. we've and of to model key our separate the direct-oriented we and markets, We the continue private on The strong highlights billion year in of the discussed second momentum recent exceed strong to see fundraising raised the tailwinds fundraising $X.X power of year, first drivers expect our half heading we fundraising calls. half composition investment shift that the in credit. the business into to of behind the to recent the particularly shift infrastructure account The

XX% is our was for Notably, trend strategies absolute stabilized our re-up is was XX% strategies. on strategies. increase capital Earlier growth. and The performance has a strategies in account of cycle have re-ups. has account of for raised of Both $XX financial fundraising powerful to year-to-date the our business. will separate the and largely private those by continue of nearly stability separate return embedded and as based equity, John of strategies lines. we AUM of driven numbers of our direct-oriented recent XX% growth Over expected. the in of fundraising direct-oriented last X market in discussed this the been in accounts separate our Today, private XX% year, private market years, foundation XX% billion

are our portfolios. and nature our programmatic inside exposures in clients' core Our accounts of separate

continue them. a we and be We are the pipeline allocations are infrastructure positioned for of to be and solution looking well credit have considerable to re-up positioned to the well Investors private increase year. to and next over out part --

seen have may spotlighting we sell-side hosted the infrastructure of quarter a analyst advantages competitive last event reports You our platform. about

experienced, global. are we We are

power anticipated growth last was goal. the X-year net And our in significant AUM Our and see That adjusted this doubling EBITDA Michael. We growth years. we there. sourcing track confident client's a client allocation greater and allocations, our exposures. in their credit potential to over earnings secondaries puts them is the X have expect to Thank which benefit solutions of scale in momentum and record same credit last you, achieve remain includes of us by we to fee private can our Investors is portfolios. future. an target opportunity, holistic private continued to will single fastest-growing and the XXXX, are year, AUM the fee-related doubling turn point credit, credit with earnings all case it types co-investment John. the and implement to growth as even infrastructure engine provide in our and entirety the I'll of serving is our of so continue we time, further adjusted latent to for evolve positioned entry led with At incentive income providing for In grow over that, and These good. see pace We degree. that the different investments, of to success with year's We the over on growth growth Credit powerful. differentiators private XXXX vertical by complementary significant.

Jonathan Levin

The individual topical in and on quite investor these we area, our going in for have good days, GCM. industry reason, this a is lot channel,

So investors half And today. is a AUM still my individual just alternatives. account for half that be target, global comments typical of this trillion. dollars. get which trillions around will is the institutional under Individual to so allocated roughly investors XX% $XXX of of to the that's total allocation, of Even if focus AUM, approximately a significantly

approach individuals broad delivering massive. of are is accreditation these channel sophisticated The terms investor Success the a group. spectrum singular asset and to who in through of a channels. distribution is individuals. of So to broad and not homogenous reached levels individual a solutions It's opportunity a requires multifaceted spectrum

interval solution who We've funds, several of plan of investors, our and For products XX% across and via for a a individual we registered next vehicles, multiple Europe is a the strategy, suite over The will capital on capital private including single distribution strategies. investors of in as partners, raised well billion comprising We've on accredited strategies private funds over time a for solutions launching raised purchaser fund past the investors and of from that tailored may strengthening as our individual resources. independent focused our clients. well market of centered robust years, for fundraising a strong advisers that broker-dealers hinges in as as product We've individual be raised custom both stage Australia for absolute the broader period. RIAs, nearly range non-accredited market on XXXX $X specialized market and growth since platforms. range presence well-designed distribution qualified use sold this investment including wirehouse through Success U.S., distribution a single wirehouses. of capital return on and

milestones we new quarter, growth our forming reached registered on new around This centered X products. significant strategy, both in partnerships

serve we core independent that a we fund. market will manager to First, private Axxes the announced as

We Axxes portfolio partner focused private will sourcing and and secondaries. equity of co-investments on be a executing investment diversified

focused a raising a the capital we're channel, Second, a of partner CION with investor from broader we audience. long new to individual record successfully excited strategic infrastructure. distribute to CION them announced partnership a track has with Investments product to on and

quarter in million commitment is anchor this from we anchor great for effort. an recall may second this commitment market $XXX at call, advantage launch. it immediate as you As secured a a Such scale our provides

are these partnerships years. of we're very their potential their both early for excited the over in While stages, coming growth

look the future the forward of update distribution call achievements continuing also in our that, products And this about suite turn over our with capabilities. in We to area. excited to We're Pam. and I'll you to to expand

Pamela Bentley

John. Thanks,

adjusted first same year. EBITDA We we in income which half quarter, enjoyed grew Year-to-date period the earnings are XX% grew in fee-related over XX%, build the 'XX. the of adjusted results strong third and with XX% pleased the on net momentum grew the our over

of billion ending quarter X% were Assets due not fundraising. under AUM X% at yet at as a AUM year billion, at from quarter $XX year-over-year, the management year a high fee-paying end, increase an ended stronger a a record increase quarter increased a record $X.X and billion. the Contracted also to fee-paying ago, $XX ago from of XX%

contracted once fee-paying growing a with driver provides top the fee-paying line AUM market quarter to converts again typically the tailwind Private key fee-paying markets AUM AUM next our X% a to not yet year-over-year. was and As few growth. a years reminder, by our in over private

represents XX% of total compared AUM. and our and Private the fees year-to-date prior year. XX% X% now Our fee-paying quarter grew AUM private business markets the for X% markets of management to

year over fee about 'XX, year. the goal. the closings timing fall prior private will that strategies stabilize depend XX% track For 'XX, X% our we Where management specialized the year, in fourth that of to full our the to and amount we quarter. beginning fees we meet exact management expectation the would fund in markets in on total spoke range return be absolute are this At and on of the to expect growth we

year-over-year to to Third and last year. expect quarter X% full increased guidance, be fees relative consistent management stable ARS ARS we 'XX management with our year fees prior

our Turning to expenses.

expect incentivize quarter relative million. including remain the awards. of quarter. philosophy our $X compensation, managing in FRE-related Our a incentive last long-term the our FRE-related and grew earnings XX% a consistent year-over-year compensation compensation Stock-based to fee-related plan on together healthy is through sequential QX. factors these next basis, in expenses year-to-date. combination slightly levels and uptick a program asset, and compensation quarter general align expenses million quarter. seasonal down our We and to seasonality, Non-GAAP use buyback some fourth awards, third to to in million in a our we equity were manage compensation annual equity fee-related from to other in $XX was quarter continue expect dilution and and greatest the due compensation We talent and year, $XX We Pulling increase X% we basis. and administrative awards. to compensation And was a with quarter those to do disciplined the were on

FRE consistent this guidance, with guidance FRE with expect Michael to growth we our noted, As to our from long-term year, X-year XXXX XXXX. to enjoy double consistent

nearly $XX of fees incentive million interest. ARS more million to the fees. carried $X Turning comprised million in of of $XX quarter, We realized than performance and

As this year. us Michael noted, investment been strong, meaningful ARS to very positioning fees has generate performance performance

we has far accrued $XX ARS strong continued end, realized quarter annual annual thus performance performance $XX unrealized million the of to fees, As are QX. performance be fees of which million we've of to incremental in had year-to-date.

which provide Our significant as as strengthen and capital activity of end. We X% million $XXX look embedded markets approximately gross grew interest being potential, fees our year-over-year believe carried quarter forward M&A earnings to accelerates. unlocked the to incentive we unrealized

Our momentum as There per growth share. room we of healthy and dividend for is dividend positive strong, in we quarterly a maintaining is balance our earnings. sheet $X.XX enjoy are future

our now end. value We in quarter for objectives and to as and confidence and shares questions. of year-to-date, $XX To financial we ahead shareholders. take Thank our again our opportunities joining to plan we're to in happy buyback 'XX repurchase forward repurchased million also long-term the us, you to remaining your to leaving share look stock, our have close, deliver clients $XX And we've and continue purchase under million program. of

Operator

question Piper with from Love Crispin Instructions] Our [Operator's coming is first Sandler.

Crispin Love

-- on just of Just fundraising. quarter the be the to in off first do billion best Michael, order $X higher need with, think, you year second I half first. to But of that, reiterated over than you're fundraising. the fundraising in that should the going

that, So that's to your if is in out, speak whether back there? areas? up, just driving anything And confidence first, PE continued just calling can strength or infrastructure picking specific you there worth other it's

Michael Sacks

ago and to which kind have -- Yes. Thanks like we of won, you've we the includes opportunities if less than where Thank a to grown we pipeline you're question. pipeline, from of go or contracting image near-term and yet we're and that that talking the there haven't a closely, a going, quarter has significantly with are We tracking about an numbers we And some tried finished particularly kind that names you when thing. pipeline, ago. quarter included how of already you. near-term that weren't year and gotten give call for of of to that's what the wouldn't you sort but And next said confident. very something

going we wouldn't we and have quarter -- be the had. ever that's It to best solid do like so of that, are deliver a And on that certainly confidence we the quarter necessarily fundraising. good

prepared confidence. verbal have pipeline, is to is near-term the a So like where And every and than we that but strategy pipeline, it's it near-term touch you think of one reiterated and importantly, at tried on also our was visibility. real high I it in it's do larger strategies. finals, we that doable, sort look year of in every and think remarks, really very this pipeline when ago, we we because

last improved. we're fundraising will the an perspective very it to that. year, fundraising going from to year about into up expect improve So has happy be a next and This and is continue we to relative environment year,

Crispin Love

just you about the here. expect of I Great. about provide the that. just when here? few your so in And little share makeup has time, over with which decrease next been a difficult revenues but I But some been has interest one on the know then deal your years? also XX% longer-term general curious or intermediate market, a revenues of tepid but that's you think carried that term, in years, Would then revenue some appreciate election, with XX% Fee-related can thoughts following renewed potential, deal earnings optimism question. just and And FRE just just and the coming to thoughts it's bit over activity. your what's general you a

Michael Sacks

a Well, way I talk do. little the think about bit we why that's we things that

our doubling has getting to good, then And we organic and we've fee-related fee-centric growth said reiterated run top and that So some management line earnings we're this solid from good opportunity, as a is that think business has very growth. margin our want and we a ours, call, on to and out goal goal that. confidence by we're and this do end 'XX's of is the FRE are of standing year, we belief can that our goal on well way and that we

that and believe earnings. have growth and in fee-related opportunities So fee real we solid for management forward going necessitates we growth

clear the We the that have think carry the our a inside We transactions of there. history earnings particular of carry of tried earnings of And of in of unique to evolution power environment also pieces deck. you have information see macro it that. of of particular significant have and earnings significant that carry nature we power because the asset. and kind kind we depressed, we our new to of try make were think where couple included sort very We we help

the a highly And up good is and it's comment anticipate very likely as transaction do adjusted think carry so, would election. you And on likely is good EBITDA and regard feel is more X see the for than we net think that and earnings do with I looking the deployment. we out and that grow we one do our to election, we that's adjusted of your over that thing fee-related income outcome transactions, So line of the actually good or also activity faster the result grow our think years next about. which that and a the election picks for

Operator

next from Cowen. Our question is with coming Bill TD Katz

William Katz

And disclosure. notice the extra did Okay. we

from down to upon So XX% of drive maybe your softening your this It timing. FRE like just for little coming to double back X% algorithm a year you're depending sounds to digits bit the a doubling up guidance to toward growth.

more would a expansion. So that little suggest margin

can look in of margin? improved to years, including good growth like it of unpack think versus next looked you where for FRE get quarter-on-quarter, the very you The as terms sort can pretty out you margin So on over the several the leverage comp. significantly you revenue

as the understand ahead trying look algorithm few Just the to we years. to next

Michael Sacks

Sure.

period, that in market capabilities investor compounding we that the it's -- growth But point, over some And our this our think time question. obviously, core -- linear, now We strategy. at want that believe I second do a kind what answering fee get that if with in in believe up we XX% capital competencies of but drive private a put can pin better. and business frankly, want for to not keep into management we and believe or come that I market we individual you ARS, see can capital. keeps some drive performance and core we'll and actually we'll we to

from firm in already fee significant a line come over isn't NAV, few has has yet that last the at in money. in that's it upside and some you so years the that have flow what the exists where carry XX%, much that the compound -- and all at that We and it in it's it that's have then over into first FRE entire there. line. today the script it that it, for years the ebb And we fee capital the on answering top it's higher from And but the XX% line We'll carry where can time. growth that in some -- the still upside of upside -- we in years plus see margin has your said hopefully of can us we've management we and lot ARS, asset And as the will range believe believe. and question, incentive period has

we slide we show you as an to that new collected had date. of was of how value asset, that the of there noted, you that that So were asset what you you included trying that most at The you don't asset we collections. it that power is have today And see certain asset behind a of lot a much today larger was yet. despite date than your that

we grow good growth continued FRE top And committed organic think that. we then feel EBITDA from combination But and growth adjusted good, net of the getting a about income to line revenue margin so and through solid and faster. we're very adjusted the that

William Katz

maybe I'm one highlighted And Very you can maybe think incremental it's Johnson, mentioned you maybe a I then think right any the you you have -- then relatedly, to services to Okay. a sort yourself set. if expenditures I wondering bit you if prepared already And could of was expand retail suite about good. opportunity coming for that the you should of your Or or the embedded growth? in little pipe. needed remarks, talk of down assume resources opportunity? the sort that do curious that. we allocated drive on

Jonathan Levin

Yes.

respect ability a talent of dynamics, still year-over-year you leverage is So -- basis in start of actually operating for reality maybe question the the in invest all plans margin embedded of -- is for and with and commentary to and to The the part on you we goals. with true, top that business first, Michael in our doubling future keep I'll in existing on those contemplates business is spending Bill, based other the minds, and as line have our to happy the regard your the made do and which last in the with the your of space business to the that in 'XX businesses goals expansion. ability it's our our compared need our achieve achieve FRE to all to have from that 'XX to 'XX whatever frankly, pool

that opportunity, investing so -- regard is initiatives, us investor that With in business year, And individual not out. the away being something investor. is to individual one we're laid goals from for but financial every the in of broader them, various that takes the we've

on more We laid some commented I in on obviously, think it, out we call. our that in slides the presentation.

line some make years, over find And from And $X from But hard investor years. few $X channel, I all that a Point last hopefully, standpoint few raised the capital you'll we've right that's over one to points. digest information the away. of several was billion -- individual know valuable. since so billion roughly our being the to of bottom

already today. verticals. strategy different for So -- it's it space. raised have we raised all we raised different example, types return bunch real in all that it absolute fund, investment registered the our in of a We've of globally, meaning forms today, a business in our We've for different capital and of of

it raised account actually purchase closed-end are able of capital it individual to individual qualified business advisers done for both funds institutional We've can we've from have that done the that or investors type We've separate worth for multiple they net advisory in for solutions that that firms, We channel. high product. buy actually but use investor for custom clients. individual or investors, also done

and So And products been about lot registered as specific we're today's have are it's well. one private of had specific those do. equity of a we on highlighted to the in of business for very -- more one around the the launching, prospects what in launched of were the call active both the in a there's actually and and have around but for question, to process excited infrastructure, process -- earlier X quarter us, that highlighted really area your or

answers detail more your that happy into to dive of question, on hopefully, kind Bill. that, So but any

William Katz

products that Okay. had mentioned, you I intrigued did the pick all sounds of by follow but up suite up. It can offline. we that

Operator

Worthington from Our is next question Ken coming with JPMorgan.

Kenneth Worthington

or RIA to the on directly continue the wealth you compared partnerships management. what with to how wirehouse channel. the discussion do look through they might sold work like wanted the economics if just John,

on different? the like look so So will sort assume the that partnerships we partnerships because AUM of these revenue ongoing And an should relationships, of at probably accelerate it dollar sub-advised thinking basis there's is we Or growth. about a this dollar share?

Jonathan Levin

Ken. Thanks,

we can particular comment the about maybe comments I on on and good then some think a it's broad first talked make call. make partnerships I'll X a it And today's specific on question.

individual of through your the can are lot the you sense I brand think broader you've I'm of those or very sure, exclusive one, And space and the options in firms use a I like pursue net distribution, have that of types investor through the of idea that of of alt concepts. partnerships or simultaneously. net both you think the big margin, not the can actually distribution And internal internal name successful science, mutually partnerships do idea you own the or things, distribute is honestly. businesses not that kind comparison it in revenue whether that distribute seen, the like a with perfect

them the not would well. between pursue certainly distribution someone the I through matter I a can strategies, scale. you we're and of that's think worked could good speaking, either internal the that do, or the clear think you a pay to is you have is roughly way distribution a But of is those you're when it that about that that difference argue I point partnership make through to you think negligible that's I been math both outcome pay something you for and -- you little distribution can is scientifically something broader get what can And to and for bit pay conclusion. think or going out through to no both do

that for that to still to our think targets. we're was other allows I Bill's invest questions growth be it going we and how achieve the methodical us point to on

operate they all can differently. to partnerships today, think the I actually specifically

kind in particular sub-adviser. of one like that of we're independent Ken, a case, account particular So And case, core almost. like just in kind manager running it's a a separate

you're sharing call separate of the seen a just making, that "paying more And a, manufacturing a point it's it can to kind account up similar effectively the you're of distribution running running for distribution pool one for was a supporting a as a of paying the shares JV, raising you knowledge, is and partner some it through that -- in a you've speaks about I asset that kind in management and them through your knowledge from others comes account. I pursue is giving manufacturing capital And process still dollar cases, which very your you're In good little but the for, math think is have distribution. JV a kind that technical it bit -- that's the of separate other think capital dollar between and the You're obviously of your to of distribution. as internal the that where think instead of the strategy. perspective, hybrid of is other of of own that of math it which an through why you

So hopefully, your up. follow that anything please else on there's that, gets to question. if But

Kenneth Worthington

maybe a of a that you helps follow-up, No, handful just then a have in specialized lot. And funds market. as

us to XQ what on handful the closes at can sort the to fourth just the have inform which of XQ? XQ anything closes least in for likely You depending are and is or in hope of of into actually expectation closes have XQ, -- just third in quarter. What closed timing had slip Can stuff. you more the had closes maybe in more quarter, expected you'll acknowledging have

Michael Sacks

Michael. it's Ken,

to going fee markets So private factor the where sort most QX Elevate full land X have IAF. Pam we going related specifically of for in of in funds be closes the is and growth funds, to are on in referenced, determining to of closes market really that for our directly rate our QX year we in management that

tried brought brought that that and fund than $XX exception the we've to as million has is higher our that our bigger our specialized all we fund. and of our accounts that mentioned that's successor or we've -- one up separate funds strategies significantly, in I the prior been fund every pipeline. for I And than and of series fund in of know, all of our every mention, for less think near-term strategies as have really was that fund with pipeline the you prior series,

into numbers And So for talked year. that next plan continue to that make to fund will be a those closes be would on have final QX us Pam have Elevate. about. might -- we then that to not help close might only we hope The funds

so good where feel about about and that. And and otherwise, kind everything franchises, specialized pipeline. and good still rolling, is that's the We our we we on rocking fund feel record else of very growing of are these track

Operator

is Stephanie coming from with next Morgan Our Ma Stanley. question

Stephanie Ma

this Just particularly And are do in how about latest on how your your get again, private banks credit appetite implications credit? changes for you outcome thoughts positioning think outlook, to the the step election. now the business? and private wanted industry have dynamics of If you more to the after in thinking competitive

Michael Sacks

then It's for that's I'll is a demand -- terms John, is we bit right. and -- in the cetera. client, up to credit of I of client, don't I coming space -- of geography The that. trajectory the I growing. from take I that conversation And -- to don't something. leave everywhere good channel, just of if in I the jump and private type something think of coming very think changing. is you sort But if to get try et reason, And little the Maybe, if

going talked to is implementation credit risk grow. But a little space -- to and to on it going growth to a it's can bringing clients, a and our going it's we're right, think that bit over and a just in Sure. appetite? just to which we short-term rates not we that important one that's based different remarks trend. It's continue time. off just continue risk a And that's to general, strategy and it's so move private that bigger It on and going And and about start. methods revenue go and going may trend see decelerate accelerate and and long-term more our the bigger it's of stop up to little not a in being to for part a stream while, but little, We grow.

Jonathan Levin

agree powerful for interest that where the is I bank But trends, of actually think that bank GFC. private maybe That's I think and on most trends after saw powerful of go, definitely that. something like driver. secular a to is the pullback Michael. was don't cyclical we this focus begin cyclical. which the anything evolution credit, times, Yes. secular pullback credit I the completely, going And the far focus lot secular rates I and think than they the aspects when that's I trend are certainly like there's on more people like with the things But obviously,

the have observed, a feature, capital the equity. would of most we saw that's I And public the happen same in private day-to-day it inherently, that think you don't it's volatility. invest credit classes might is not there not of and is other private but where of amounts happen powerful industry. rather markets It obviously the We've it equity and bug seen private of the asset with in secular the capital. driver be way demand the a a evolution

you're is GCM and a still amount for there's the you area in that, capital Grosvenor, but that We think early part entire outside that the the part where its powerful it so Michael's I markets there's the co-investing, then and implementation investing, that, infrastructure, would have that's equity, very where you point secondary talk where, of where shift an a to the in place And more private still credit, point, huge like basis, that's tremendous of huge to think going like stages. to an most I a talk sponsor-backed of is of a the where X frankly, private looks more there's in of on generally for getting the train opportunity. trend, about is to money credit particular, where be have deployed when lending And a looks surface. about credit areas rather Michael lot have markets just kind making. scratching direct And we a corporate of one-way evolution

Michael Sacks

election, if up writ And the But in demand the shrink about short you that's that in terms last activity and all. thing of a term. credit in It's as not of I part the would term short is going just us private for add is believe to large result I transaction have to term, both at said. John not is for likely as and this sort short of pick

Operator

next Bill Cowen. question from is with Our TD Katz coming

William Katz

opportunity set carried particularly Just for the on realizations, thinking interest. through the

within a comp of it through the there disclosures, was your like looking looked some line. Just reversal

payout. So your as around I comp, a XX%, XX% think, was

what GCMG that residual we total, a as and of a, was how then should payout b, ratio the the accrued the carry Just higher majority forward, wondering, the vast net to of particularly is reversal? And you given that go rising about percentage ahead? think looking

Michael Sacks

kind half out Yes. that of -- we're we're pay ratio paying payout the holding of out -- we're that sort I'm not we or -- that, ratios about in that of like idea think I to holding think paying will you talking XX% that -- that's change philosophy, comfortable modeling. for and comp I historic those of perfectly for that, are us without planning a

depend the on depends robust I being -- little it's candid, linear. the are. don't bit perfectly revenues just a it that a reality will think how of I -- think little

when to -- and in and with revenues hold improve the that clear firm ago And if saw they direction see firm where line them frankly, we if in we and promise the so of the the for ratio couple can now. back years that for when improve a very grow,

seeing as I we'll anticipate rate, making focused a it's would expect anything is don't -- then line to ever philosophy, we philosophy. what I if margin think change feel like in increase, about we've talk think we people have in walk which revenues -- to I a kind change be you're other the I here opportunity And absent we benefit So FRE would through, which which like in that obviously, tried almost were that, just compensation that the of would and line. we But margin not announcement we some which some again, growing fast something to And these opportunity we're than up which to think level revenue is bit them we around margin grow, we us think more that upside a where year as a for have, we're at throughout margin, trying going opportunity accrue and on the others like have revenues little the to we that based in on. upside in absent have end year. moving

Operator

there further the remarks. will to no are it or back company And the now this time. closing questions any at turn for additional I appears conference

Stacie Selinger

and for questions. for the Thank time all us taking and of joining you, everyone, the today

if weekend. very look next questions We additional forward or any again quarter. not, happy we you with to Have speaking to great are follow with a up

Operator

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

You may all disconnect.

Grosvenor Capital Management (GCMG) 8 Nov 242024 Q3 Earnings call transcript