Shares of GCM Grosvenor extended their recent rally in Wednesday's premarket session, rising approximately 0.7% to $11.38. This follows a substantial 14.1% surge in the prior trading session.
The alternative asset manager announced several positive financial developments. The company achieved record fundraising for the full year 2025, bringing in $10.7 billion, a 49% increase. Total assets under management climbed 14% year-over-year to $90.9 billion, while fee-paying AUM rose 12% to $72.5 billion.
Capital Return Initiatives
GCM's board authorized a $0.12 per-share dividend, payable on March 16. Furthermore, the company increased its existing share repurchase authorization by $35 million, bringing the total available for buybacks to $255 million. The firm also initiated a $65 million debt prepayment.
In response to the strong results, investment firm Oppenheimer raised its price target on GCM Grosvenor to $24 from $23, while maintaining an Outperform rating. Analysts cited the robust fundraising and growth in fee-paying assets.
Management Commentary and Outlook
Chairman and CEO Michael Sacks described 2025 as "a very strong" year with "record fundraising and excellent financial results." Management indicated a healthy fundraising pipeline heading into 2026 and highlighted growth in its absolute return strategies business.
While stock buybacks were characterized as an attractive use of capital, executives noted the inherent unpredictability of performance fee and carried interest income, which can fluctuate with market conditions. Investors are anticipated to monitor upcoming remarks from CEO Michael Sacks at the UBS Financial Services Conference for further insights on capital flows and growth.