GCM Grosvenor Inc. reported its financial results for the three and nine months ended September 30, 2024, showing notable improvements in revenue and profitability compared to the same periods in 2023. Total operating revenues for Q3 2024 reached $122.9 million, a slight increase from $121.7 million in Q3 2023. For the nine-month period, revenues rose to $348.8 million from $328.4 million year-over-year.

Management fees, a significant revenue source, increased to $98.5 million in Q3 2024, up from $94.5 million in Q3 2023, and totaled $294.3 million for the nine months, compared to $280.4 million in the prior year. Performance fees also saw a substantial rise, with Q3 2024 performance fees at $2.7 million, up from $0.6 million in Q3 2023, and nine-month performance fees increasing to $13.1 million from $1.2 million.

Despite the revenue growth, net income for Q3 2024 was $12.1 million, down from $17.6 million in Q3 2023. However, for the nine-month period, net income improved significantly to $6.2 million from a net loss of $33.8 million in the same period last year. Net income attributable to GCM Grosvenor Inc. for Q3 2024 was $4.2 million, compared to $5.9 million in Q3 2023, while for the nine months, it increased to $11.1 million from $9.5 million.

The company’s total assets increased to $575.0 million as of September 30, 2024, up from $504.9 million at the end of 2023. Cash and cash equivalents also saw a significant rise, reaching $98.4 million compared to $44.4 million at the end of 2023. However, total liabilities increased to $688.1 million from $616.2 million, primarily due to a rise in debt, which stood at $432.9 million as of September 30, 2024, up from $384.7 million at the end of 2023.

Strategically, GCM Grosvenor has been active in managing its capital structure, including a stock repurchase program that has been increased to $140 million. During the nine months ended September 30, 2024, the company repurchased shares totaling $33.2 million. Additionally, the company amended its Term Loan Facility, increasing the principal amount and extending the maturity date, which reflects a proactive approach to managing its debt obligations.

Overall, GCM Grosvenor's performance in 2024 indicates a recovery trajectory, with improved revenues and net income, despite challenges in certain areas such as net income for the latest quarter. The company continues to focus on expanding its investment strategies and managing its financial position effectively.