GCM Grosvenor Inc.

Company Overview

Business Model: GCM Grosvenor Inc. is a leading global solutions provider in alternative asset management, offering a client-centric approach across all major alternative investment strategies. The Company partners with institutional and individual clients to invest on their behalf across private and public markets, through portfolios customized to specific objectives or via specialized commingled funds. Its primary revenue generation mechanisms include management fees and incentive fees derived from primary fund investments and direct-oriented strategies such as secondaries, co-investments, direct investments, and seed investments.

Market Position: GCM Grosvenor Inc. is positioned as a leading global solutions provider with a 54-year history in alternative asset management. It is recognized as a pioneer in customized separate account solutions and a market leader in private equity, infrastructure, and alternative credit investing. The Company maintains a market-leading, dedicated effort to investing in and alongside middle market and small and emerging managers. Its competitive strengths include a highly scalable investment sourcing engine, deep client relationships (average 15-year tenure for top 25 clients), and a strong track record of competitive risk-adjusted returns across diverse alternative strategies.

Recent Strategic Developments:

• Global Expansion: Expanded its global footprint by opening new offices in Toronto, Canada, and Frankfurt, Germany (2021), and Sydney, Australia (2023).
• Individual Investor Offerings: In 2024, expanded offerings to individual investors by announcing two registered products focusing on private equity and infrastructure assets, utilizing investor-friendly interval fund structures.
• Strategic Joint Venture: Closed a joint venture, Grove Lane Partners LLC, on February 28, 2025, a distribution platform aimed at broadening individual investor access to alternative investments. GCM Grosvenor Inc. made a $15.0 million capital commitment for a 49% interest, with $3.5 million funded as of December 31, 2025.
• Elevate Strategy: Launched the Elevate strategy in 2022, closing its first Elevate fund in 2024 with approximately $800 million of capital, building on its expertise in small and emerging managers.
• Capital Raise: Entered into a Share Purchase Agreement with Sumitomo Mitsui Trust Bank, Limited on April 14, 2025, for the issuance and sale of 3,752,965 shares of Class A common stock, generating net proceeds of $49.8 million.
• ATM Equity Program: Established an at-the-market (ATM) equity program on November 18, 2025, to offer and sell up to $100.0 million in shares of its Class A common stock.

Geographic Footprint: GCM Grosvenor Inc. operates nine primary offices in eight countries, including the United States (headquarters in Chicago, Illinois), Frankfurt, Hong Kong, London, Seoul, Sydney, Tokyo, and Toronto. As of December 31, 2025, approximately 43% of its Assets Under Management (AUM) originated from clients based outside of the Americas. The Company serves clients from 34 countries and has deployed capital in over 100 countries.

Financial Performance

Revenue Analysis

Note: The Company's income statement structure does not separately present "Gross Profit" distinct from "Operating Income." Therefore, Operating Income is used as the primary measure of profitability before non-operating items.

Profitability Metrics:

• Operating Margin: 23.9% (2025) vs. 14.3% (2024)
• Net Margin: 8.1% (2025) vs. 3.6% (2024)

Investment in Growth:

• Capital Expenditures: $8.5 million (2025) vs. $16.7 million (2024)
• Strategic Investments:
  • Contributions/subscriptions to investments: $34.7 million (2025) vs. $26.2 million (2024).
  • Grove Lane Partners LLC: $3.5 million funded as of December 31, 2025, out of a $15.0 million total capital commitment.

Business Segment Analysis

GCM Grosvenor Inc. operates as a single operating and reportable segment, offering comprehensive alternative investment solutions. The Company's investment strategies are diversified across private markets and absolute return strategies, with a focus on customized separate accounts and specialized funds.

Investment Strategies Overview:

• Total Assets Under Management (AUM): $90.9 billion as of December 31, 2025, an increase of 13.5% from $80.1 billion as of December 31, 2024.
• Fee-Paying AUM (FPAUM): $72.5 billion as of December 31, 2025, up 12% from $64.8 billion as of December 31, 2024. FPAUM has grown at a 6% CAGR from $48.9 billion at the end of 2018.
• Contracted Not Yet Fee-Paying AUM (CNYFPAUM): $10.4 billion as of December 31, 2025, up 27% from $8.2 billion as of December 31, 2024. Approximately $2.1 billion of this is subject to a fee ramp-in schedule, with $0.6 billion, $0.5 billion, and $1.0 billion expected to begin charging fees in 2026, 2027, and 2028 and beyond, respectively. The remaining $8.3 billion will be charged as capital is invested.

Key Investment Strategies & Performance (as of December 31, 2025, unless otherwise noted):

Private Markets

• Represents $64.1 billion of AUM (71% of total AUM).
• FPAUM for private markets strategies increased 10% to $47.2 billion in 2025.
• Private Equity: $32.9 billion AUM. Recognized industry leader with global capabilities in primary funds, secondaries, and co-investments, focusing on middle market strategies.
  • Inception-to-date (since 2000) outperformance of S&P 500 for Primary Fund Investments (3.5%), Secondaries Investments (5.9% since 2014), and Co-Investments/Direct Investments (4.3% since 2009) as of September 30, 2025.
• Infrastructure: $18.7 billion AUM, a 212% increase since December 31, 2020. Leading open architecture platform with nearly two decades of experience, spanning fund investing, secondary investing, and direct investing.
  • Inception-to-date (since 2009) outperformance of MSCI World Infrastructure for Primary Fund Investments (5.6%) and Direct-Oriented Investments (9.3%) as of September 30, 2025.
• Real Estate: $7.2 billion AUM, a 124% increase since December 31, 2020. Manages portfolios through a flexible platform, primarily in North America, focusing on seeding new platforms, joint ventures, and other innovative implementation methods.
  • Inception-to-date (since 2010) outperformance of NFI-ODCE Index (3.9%) as of September 30, 2025.
• Direct-Oriented Strategies: Comprised 54% of Private Markets AUM as of December 31, 2025, up from 39% five years prior.

Absolute Return Strategies

• Represents $26.8 billion of AUM (29% of total AUM).
• FPAUM for absolute return strategies increased 15% to $25.3 billion in 2025, primarily due to a $3.0 billion increase in market value and $1.9 billion of contributions.
• Experienced and scaled platform providing customized solutions in hedge fund strategies for over 54 years.
• Annualized returns since inception (1996) for Absolute Return Strategies (Overall) were 7.2% (Gross) and 6.1% (Net) as of December 31, 2025.

Strategies Across Private Markets and Absolute Return Strategies

• Alternative Credit: $16.8 billion AUM, with $9.3 billion in private credit and $7.4 billion in liquid credit. Covers structured credit, corporate credit, distressed, direct lending, and real assets.
• Middle Market and Small and Emerging Managers: $22.4 billion AUM dedicated to these managers across both private markets and absolute return strategies.
• Sustainable and Impact Investing: $31.2 billion AUM. Offers client choice-driven solutions integrating Sustainable or Impact factors into portfolio construction.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: $30.7 million spent to repurchase 2,758,725 shares of Class A common stock in open market transactions during 2025.
• Dividend Payments: $25.3 million paid in dividends during 2025.
• Dividend Yield: Not explicitly stated.
• Future Capital Return Commitments: As of February 9, 2026, the Board of Directors increased the stock repurchase authorization to $255 million. A quarterly dividend of $0.12 per share of Class A common stock was declared on February 9, 2026, payable March 16, 2026.

Balance Sheet Position:

• Cash and Equivalents: $242.1 million as of December 31, 2025.
• Total Debt: $428.4 million (net of debt issuance costs) as of December 31, 2025.
• Net Cash Position: -$186.3 million (net debt) as of December 31, 2025.
• Credit Rating: Not disclosed.
• Debt Maturity Profile: Term Loan Facility of $431.4 million outstanding as of December 31, 2025, matures on February 25, 2030. Quarterly principal payments of $1.1 million are required. A $65 million prepayment was completed in February 2026. The Company also has a $50.0 million Revolving Credit Facility, with no outstanding balance as of December 31, 2025.

Cash Flow Generation:

• Operating Cash Flow: $183.5 million (2025) vs. $148.8 million (2024).

Operational Excellence

Production & Service Model: GCM Grosvenor Inc. employs a client-centric approach, providing investment management services through customized separate accounts and specialized commingled funds. The Company's operational philosophy is rooted in a "one firm" culture emphasizing integrity and responsibility, supported by a scalable investment origination engine and flexible implementation. It offers value-add ancillary services including fund administration, portfolio risk management, and research access, leveraging its data and technology systems.

Supply Chain Architecture: The Company's operational model relies on a robust internal control environment and a culture of compliance. It engages third-party service providers for various functions, including accounting, client reporting, and administration.

Key Suppliers & Partners:

• Investment Managers: Third-party investment managers for primary fund investments.
• Third-Party Service Providers: For fund administration, portfolio risk management, research, legal, audit, tax reporting, accounting, insurance, technology, and other support functions.
• Third-Party Valuation Firms: Utilized to aid in determining the fair value of investments.
• Financial Institutions: For credit facilities and cash account balances.
• Insurance Broker: For procuring insurance coverage.

Facility Network: GCM Grosvenor Inc. maintains its headquarters in Chicago, Illinois, under a lease expiring September 30, 2037. It also leases office space in eight other countries, including Frankfurt, Hong Kong, London, Seoul, Sydney, Tokyo, and Toronto, supporting its global footprint.

Operational Metrics: The Company's margin on Fee-Related Earnings (FRE) increased to 44% for the year ended December 31, 2025, compared to 31% in 2020, demonstrating embedded operating leverage and scalability.

Market Access & Customer Relationships

Go-to-Market Strategy: GCM Grosvenor Inc. utilizes a multi-channel approach to market access.

• Direct Sales: Leverages an internal sales team and business development professionals for relationship management with existing clients and consultants, and for pursuing new business.
• Channel Partners: Markets products to wirehouses, Registered Investment Advisors (RIAs), and independent broker-dealers.
• Digital Platforms: Employs online sales channels and e-commerce initiatives, particularly for expanding individual investor access.

Customer Portfolio:

• Client Base: Over 700 institutional clients and a growing individual investor client base.
• Client Tenure & Diversification: The 25 largest clients by AUM have an average tenure of approximately 15 years. Clients are broadly diversified by type (pension funds, sovereign wealth entities, corporations, financial institutions, insurance corporations, family offices, high-net-worth, and mass affluent individuals), size, geography, and revenue.
• Strategic Partnerships: Approximately 55% of the top 50 clients by AUM work with GCM Grosvenor Inc. in multiple investment strategies, and 96% of those clients have added capital since the start of 2020. Existing clients contributed over 82% of total capital raised in 2025.
• Customer Concentration: Individual investors accounted for approximately 5% of AUM as of December 31, 2025, a segment expected to grow.
• Geographic Revenue Distribution: Approximately 43% of AUM came from clients based outside of the Americas as of December 31, 2025. The Company serves clients from 34 countries and has deployed capital in over 100 countries.

Competitive Intelligence

Market Structure & Dynamics

Industry Characteristics: The alternative asset management industry is experiencing strong growth, with total alternative AUM projected to increase from $12.6 trillion in 2020 to $29.2 trillion in 2029 (Preqin). Total global AUM in the asset and wealth management market is projected to increase from $139 trillion in 2024 to approximately $200 trillion in 2030 (PwC). Institutional investors are increasing allocations to alternatives (e.g., 94% for infrastructure, 92% for private credit, 90% for private equity). There is a trend towards the "democratization of alternatives," with individual investors currently under-allocated (less than 5% of portfolios) but representing a significant growth opportunity. Institutional investors are also seeking to consolidate relationships with fewer, deeper strategic partners. Effective sourcing of direct-oriented investments and sophisticated data and technology capabilities are increasingly important.

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors: GCM Grosvenor Inc. competes with a large number of asset management firms, commercial banks, broker-dealers, insurance companies, and other financial institutions. Specifically, in specialized funds, it competes with private and absolute return investment businesses of large international financial institutions and established local/regional competitors. For customized separate accounts, primary competition comes from other highly specialized and independent alternative asset management firms.

Emerging Competitive Threats: The Company faces competitive threats from developments in financial technology (fintech), including distributed ledger technology (blockchain) and artificial intelligence, which have the potential to disrupt the financial industry and change business operations.

Competitive Response Strategy: GCM Grosvenor Inc. aims to maintain its competitive advantage by expanding relationships with existing clients, growing its global footprint and client base, expanding distribution channels (including to individual investors and insurance companies), scaling its platform's origination potential, building new differentiated investment offerings (e.g., Elevate strategy, credit co-investments, real estate strategies, infrastructure debt), and strategically investing in growth while capturing operating leverage benefits.

Risk Assessment Framework

Strategic & Market Risks

• Market Dynamics: Exposure to difficult or volatile market, economic, and geopolitical conditions (e.g., interest rates, inflation, recession risk, bank failures, trade policy uncertainty, war/conflict). These can reduce investment values, limit high-quality investment managers, and hinder capital raising or deployment.
• Technology Disruption: Rapidly evolving artificial intelligence (AI) could disrupt markets, increase competition, and introduce legal/regulatory risks and compliance costs.
• Customer Concentration: Risk of redemptions and termination of engagements by investors in open-ended funds or customized separate accounts, and removal as general partner in closed-ended funds, leading to substantial revenue decreases.
• Investment Performance: Poor performance of funds could lead to reduced revenues, difficulty in raising future capital, and potential clawback obligations. Historical performance is not indicative of future results.
• Competition: Intense competition based on performance, service quality, capital availability, terms, brand, and reputation, potentially leading to fee pressure or loss of opportunities.
• Fundraising & Deployment: Decline in pace or size of fundraising or investment deployment adversely affects revenues, especially for funds with fees based on invested capital.
• Reputational Harm: Negative publicity, misconduct by employees/advisors/third-party providers, or dissatisfaction with services could damage reputation and client relationships.
• Conflicts of Interest: Inherent conflicts in business operations (e.g., investment allocation, carried interest incentives, expense allocation) could lead to investor dissatisfaction, litigation, or regulatory actions.
• International Operations: Risks associated with managing foreign operations, currency fluctuations, foreign regulatory regimes, political/economic instability, and restrictions on capital repatriation.

Operational & Execution Risks

• System Failures: Heavy reliance on internal and third-party financial, accounting, compliance, and technology systems; failures or disruptions (e.g., cyberattacks, natural disasters, human error) could disrupt business, cause financial loss, or damage reputation.
• Cybersecurity Incidents: Increasing frequency and sophistication of cyber threats (e.g., phishing, ransomware, AI-enhanced attacks) pose risks to IT Systems and sensitive data, potentially leading to financial losses, regulatory intervention, and reputational harm.
• Data Privacy: Rapidly developing and changing data privacy laws (e.g., CCPA, GDPR) increase compliance costs and enforcement risks.
• Loss of Key Personnel: Dependence on experienced and senior personnel; loss or prolonged absence could harm business, client relationships, and ability to raise new funds.
• Expansion Risks: Introducing new products, services, or entering new geographic markets may increase operational costs, regulatory complexities, and divert management attention.
• Due Diligence Limitations: Due diligence processes may not detect all relevant facts or risks, especially for underlying funds, potentially leading to poor investment outcomes.

Financial & Regulatory Risks

• Indebtedness: $428.4 million in debt as of December 31, 2025, exposes the Company to risks from adverse economic conditions, increased interest rates, and potential inability to meet debt service requirements or comply with covenants.
• Regulatory Compliance: Extensive and evolving laws and regulations (SEC, CFTC, FINRA, ERISA, AIFMD, MiFID II, etc.) impose significant compliance costs and risks of fines, sanctions, or reputational damage for non-compliance.
• Taxation: Subject to U.S. federal, state, and foreign income taxes. Changes in tax laws (e.g., IRA excise tax on repurchases, OBBBA, OECD Pillar Two) or challenges to tax positions could adversely affect financial results.
• Tax Receivable Agreement: Obligation to pay GCMH Equityholders 85% of tax savings from basis step-ups, which could be substantial and impact liquidity, potentially accelerating payments under certain conditions.
• Investment Company Status: Risk of being deemed an "investment company" under the Investment Company Act of 1940, which would impose impractical restrictions on business operations.
• Leverage in Funds: Dependence on leverage by funds and portfolio companies subjects them to volatility and contractions in debt financing markets, potentially reducing returns.
• Client Defaults: Risk of clients defaulting on fee payments or capital commitments, adversely affecting fund operations and performance.
• Valuation Subjectivity: Valuation methodologies for illiquid assets in funds are highly subjective, and reported values may not be realized, potentially leading to significant losses or loss of investor confidence.

Geopolitical & External Risks

• Geopolitical Exposure: International operations and investments expose the Company to risks from political hostilities, civil disturbances, war, and trade relations.
• Trade Relations & Sanctions: Exposure to trade sanctions, export control laws (OFAC, FCPA, UK Bribery Act, ECCTA), and foreign direct investment restrictions (CFIUS), which can limit investment opportunities and increase compliance burdens.
• Climate Change: Risks from climate- and sustainability-related legislation, technology trends (transition to lower-carbon economy), and physical impacts of climate change, potentially affecting portfolio companies and reputation.

Innovation & Technology Leadership

Research & Development Focus: GCM Grosvenor Inc. has made significant investments in its platform infrastructure, including investment teams across strategies and geographies. Its R&D efforts are implicitly focused on leveraging its proprietary data fabric and analytics capabilities to drive investment selection and generate competitive risk-adjusted returns.

Core Technology Areas:

• Proprietary Data Fabric: Built over decades of investing in public and private markets, tracking data pertaining to more than 10,500 managers.
• Data and Analytics Capabilities: Essential for driving investment selection decisions and supporting flexible and dynamic reporting.
• Technology Systems: Comprehensive systems for portfolio monitoring, reporting, accounting, legal and compliance, and operations.

Innovation Pipeline:

• Elevate Strategy: A new investment strategy launched in 2022, focused on investing in and alongside small and emerging managers, with its first fund closing in 2024 with approximately $800 million.
• Individual Investor Products: Expanded product lineup in 2024 with registered products (interval funds) focusing on private equity and infrastructure assets, designed for broader accessibility.
• Future Offerings: Plans to grow offerings in credit co-investments and secondaries, value-add, core and core-plus real estate strategies, as well as infrastructure debt and project finance.

Intellectual Property Portfolio: GCM Grosvenor Inc. owns or has rights to trademarks, service marks, and trade names, including "GCM Grosvenor," and copyrights that protect its solutions content. These are considered material to its operations.

Leadership & Governance

Executive Leadership Team

Leadership Continuity: The Company's success depends on the efforts, judgment, and reputations of its personnel, particularly experienced and senior personnel. Nearly all managing directors and many executive directors are subject to employment contracts with incentives and restrictive covenants designed for long-term retention.

Board Composition: GCM Grosvenor Inc. is a "controlled company" under Nasdaq listing standards, with Key Holders controlling approximately 75% of the combined voting power of its common stock. As a result, it relies on exemptions from certain corporate governance requirements, such as having a majority of independent directors or independent directors selecting nominees.

Human Capital Strategy

Workforce Composition: As of December 31, 2025, GCM Grosvenor Inc. had 553 employees, including 185 investment professionals. These employees operate across nine offices globally.

Talent Management:

• Acquisition & Retention: The Company promotes a work environment that is interesting and challenging, aiming to provide professional growth opportunities. It offers a competitive compensation structure.
• Employee Value Proposition: Employees, former employees, and the firm had approximately $836 million of their own capital invested in various investment programs as of December 31, 2025, aligning interests with clients.

Diversity & Development: The Company aims to build an inclusive workplace where employees can thrive.

Environmental & Social Impact

Environmental Commitments:

• Sustainable Investing AUM: As of December 31, 2025, GCM Grosvenor Inc. managed $31.2 billion of Sustainable Investing AUM.
• Client Choice-Driven Approach: The Company offers clients choice regarding the integration of Sustainable and/or Impact factors into their portfolio construction, designing solutions to meet varied goals, priorities, and risk tolerances.

Social Impact Initiatives:

• Product Impact: The firm's "infrastructure advantage strategy" is a direct impact strategy that seeks to originate and execute infrastructure projects leveraging the inclusion of organized labor as a contributing factor to attractive risk-adjusted returns.

Business Cyclicality & Seasonality

Demand Patterns:

• Seasonal Trends: Performance-based fees are typically paid to the Company during the first quarter of each year, subsequent to when they are earned.
• Economic Sensitivity: The Company's revenues and cash flows are influenced by global financial markets, economic, and political environments, including interest rates, inflation, and market volatility. Asset flows can be variable from month-to-month and quarter-to-quarter.
• Industry Cycles: Private markets strategies typically involve client commitments over multi-year periods (expected duration of seven years or more), with management fees often based on committed or invested capital, making them less affected by short-term market appreciation or depreciation. Absolute return strategies, however, have fees based on Net Asset Value (NAV), which is impacted by market changes.

Planning & Forecasting: The Company's ability to realize investments and deploy capital is affected by market conditions, which can impact fee revenues.

Regulatory Environment & Compliance

Regulatory Framework: GCM Grosvenor Inc. is subject to extensive and evolving laws, rules, and regulations from various governmental agencies and self-regulatory organizations globally.

• U.S. Regulators: U.S. Securities and Exchange Commission (SEC) (primary regulator), Commodity Futures Trading Commission (CFTC), Internal Revenue Service (IRS), Financial Industry Regulatory Authority, Inc. (FINRA), U.S. Department of Labor (DOL) (under ERISA).
• International Regulators: Regulatory oversight in the European Union (EU), European Economic Area (EEA), U.K., Australia, Canada, Hong Kong, Japan, and South Korea.

Industry-Specific Regulations:

• Investment Advisory: Subject to the Investment Advisers Act of 1940 (Advisers Act) and the Investment Company Act of 1940 (Investment Company Act).
• Broker-Dealer: Its affiliate, GRV Securities, LLC, is registered with the SEC as a broker-dealer and is a member of FINRA, subject to Exchange Act and FINRA rules.
• Commodity Trading: Registered as a commodity pool operator and commodity trading advisor, subject to the Commodity Exchange Act (CEA) and CFTC regulations.
• ERISA: Subject to fiduciary responsibility provisions of ERISA and prohibited transaction provisions of ERISA and Section 4975 of the Code for certain funds.
• EU/UK Regulations: Subject to the European Union Alternative Investment Fund Managers Directive (AIFMD) and UK AIFMD, Markets in Financial Instruments Directive II (MiFID II), EU Securitization Regulation, prudential requirements (IFR/IFD), Corporate Sustainability Reporting Directive (CSRD), Corporate Sustainability Due Diligence Directive (CSDDD), and Sustainability-Related Disclosures in the Financial Services Sector (SFDR) and EU Taxonomy. The UK is also developing its own Sustainability Reporting Standards (UK SRS) and Sustainability Disclosure Requirements (SDR).

Trade & Export Controls:

• Anti-Corruption: Subject to the Foreign Corrupt Practices Act (FCPA) and the U.K. Bribery Act.
• Sanctions & Export Controls: Subject to laws administered by the Office of Foreign Assets Control (OFAC), U.S. Department of Commerce, and U.S. Department of State.
• Foreign Investment Review: Subject to review by the Committee on Foreign Investment in the U.S. (CFIUS) and an August 2023 Executive Order directing restrictions on outbound investments in advanced technology sectors involving "countries of concern." The UK Economic Crime and Corporate Transparency Act 2023 (ECCTA) also impacts financial crime compliance.

Legal Proceedings: The Company is a defendant in various lawsuits related to its business from time to time but does not believe the outcome of any current litigation will have a material effect on its consolidated financial statements.

Tax Strategy & Considerations

Tax Profile: GCM Grosvenor Inc. is taxed as a corporation for U.S. federal and state income tax purposes on its share of taxable income. Grosvenor Capital Management Holdings, LLLP (GCMH) is treated as a pass-through entity for U.S. federal and state income tax purposes. Non-U.S. subsidiaries generally operate as corporate entities subject to local or non-U.S. income taxes.

• Effective Tax Rate: 8% (2025) vs. 27% (2024). The primary factors impacting the effective tax rate are the portion of income allocated to noncontrolling interest holders, state and non-U.S. taxes, and discrete tax adjustments.

Tax Reform Impact:

• Inflation Reduction Act of 2022 (IRA): Imposes a 1% U.S. federal excise tax on certain stock repurchases.
• "One Big Beautiful Bill Act" (OBBBA) (July 4, 2025): Modified key business tax provisions, including restoration of 100% bonus depreciation, immediate deduction of U.S. domestic research and experimental expenditures, and changes to the EBITDA-based business interest expense limitation and international operations. The Company does not expect a material impact on its 2025 financial statements from this legislation.
• OECD Pillar Two: International accord to set a minimum global corporate tax rate of 15%, with ongoing developments regarding its implementation and potential exemptions for U.S. parented groups.

Tax Receivable Agreement: GCM Grosvenor Inc. has a Tax Receivable Agreement with the GCMH Equityholders, obligating it to pay 85% of the tax savings realized from increases in tax basis (e.g., from exchanges of GCMH common units) and other tax benefits. As of December 31, 2025, the amount payable under this agreement was $54.6 million. These payments are expected to be substantial and could impact liquidity.

Insurance & Risk Transfer

Risk Management Framework: GCM Grosvenor Inc. has an Enterprise Risk Management Committee (ERMC) tasked with overseeing firm-wide risks, including market, liquidity, operational, and reputational risks. The ERMC meets at least quarterly to identify, assess, monitor, and mitigate key enterprise risks at corporate, business unit, and fund levels. Senior management reports to the audit committee of the Board of Directors on risk management activities.

Insurance Coverage: The Company maintains errors or omissions and cyber liability insurance, as well as general commercial package policy, workers’ compensation, and professional and management liability coverage for its directors and officers.

Risk Transfer Mechanisms: GCM Grosvenor Inc. utilizes interest rate swap agreements to hedge interest rate risk on its floating-rate debt. As of December 31, 2025, it had swap agreements with notional amounts of $300.0 million, $28.5 million, and $317.0 million, with fixed rates of 4.37%, 4.47%, and 4.17% respectively, to hedge against interest rate fluctuations on its Term Loan Facility.