CHICAGO, Oct. 22, 2020 /PRNewswire/ -- GCM Grosvenor, a
global alternative asset management firm, announced today that in
the third quarter, Fee-Paying Assets Under Management ("FPAUM")
increased approximately 1% from the prior quarter to approximately
$49.9 billion and Contracted Not Yet
FPAUM increased approximately 19% from the prior quarter to
$6.6 billion. In addition, continued
positive investment performance resulted in approximately
$14.9 million of unrealized, accrued
annual performance fees as of September 30,
2020 that are eligible to be realized in 2020.
GCM Grosvenor also updated its previously announced forecast in
accordance with the following revised schedule and provided
guidance that it expects Adjusted Fee-Related Earnings for 2020 to
be $89 - 91 million.
|
Previously
Announced 2020
Forecast
|
Revised 2020
Forecast Range
|
Fee-paying
AUM
|
$51.1
billion
|
$50 - 52
billion
|
Management
fees1
|
$302.9
million
|
$300 - 303
million
|
Net incentive fees
attributable to GCM Grosvenor
|
$12.5
million
|
$23 - 25
million
|
Net fees attributable
to GCM Grosvenor2
|
$321.0
million
|
$330 - 333
million
|
Adjusted
EBITDA
|
$100.4
million
|
$116 - 118
million
|
Adjusted pre-tax net
income
|
$77.5
million
|
$90 - 92
million
|
Adjusted net
income3
|
$76.9
million
|
$88 - 90
million
|
|
|
1.
|
Excludes fund
reimbursement revenue
|
2.
|
Excludes revenue
related to Mosaic non-controlling interest ("NCI")
|
3.
|
Adjusted net income
is not pro forma for the proposed business combination between GCM
Grosvenor and CFAC
|
In addition, GCM Grosvenor announced that a special meeting of
stockholders of CF Finance Acquisition Corp. ("CFAC") will occur on
November 3, 2020 to approve the
proposed business combination between GCM Grosvenor and CFAC, a
special purpose acquisition company sponsored by Cantor Fitzgerald
and listed on the NASDAQ exchange. The announcement follows the
Securities and Exchange Commission's declaration of effectiveness
of GCM Grosvenor's registration statement. In addition to approval
by the stockholders of CFAC, consummation of the business
combination remains subject to customary closing conditions,
including approval by applicable foreign regulatory
authorities. Upon completion of the business combination, GCM
Grosvenor will be listed on the NASDAQ exchange under the ticker
"GCMG."
The firm also announced the members of its Board of Directors,
who will assume their positions with GCM Grosvenor upon completion
of the business combination. The members of GCM Grosvenor's newly
constituted Board of Directors will include Angela Blanton, Dr. Francesca Cornelli, Stephen Malkin, Blythe
Masters and Samuel Scott III.
These individuals will join Michael
Sacks, Chairman and CEO of GCM Grosvenor, and Jon Levin, GCM Grosvenor's President, on the
post-transaction Board.
"We believe that good governance is critically important to our
ability to drive value for our clients and shareholders," said Mr.
Sacks. "I am excited about the range of experience and expertise
that these individuals will bring to our Board as they help guide
the continued evolution of our organization."
- Angela Blanton has served
as Carnegie Mellon University's vice
president for Finance and chief financial officer since 2017 after
serving as interim vice president and chief financial officer in
2016. Ms. Blanton has over 20 years of experience spanning finance,
project management and engineering disciplines within the higher
education, financial services and manufacturing industries. Prior
to joining Carnegie Mellon, Ms. Blanton
was chief financial officer for PNC Investments Brokerage from
February 2015 to December 2015. Ms. Blanton serves on the boards
of Pittsburgh Public Theater, where she serves as the Chair of the
Education and Community Engagement Committee, Leadership Pittsburgh
Inc., Family House, Pittsburgh Women's Alliance and Strong Women
Strong Girls. Ms. Blanton received a Bachelor of Science in
electrical engineering from the University of
Michigan and her MBA from the Tepper School of Business at
Carnegie Mellon University.
- Dr. Francesca Cornelli is
the dean of Northwestern University's
Kellogg School of Management, a position she has held since
August 1, 2019. She is also a
professor of finance and holds the Donald P. Jacobs Chair in
Finance. Prior to that, she was a professor of finance and deputy
dean at London Business School from
1994 to 2019. Dr. Cornelli's research interests include corporate
governance, private equity, privatization, bankruptcy, IPOs and
innovation policy. She has been an editor of the Review of
Financial Studies and previously served on the board of editors of
the Review of Economic Studies and as an associate editor at the
Journal of Finance. She is a research fellow at the Center for
Economic and Policy Research, and previously served as a director
of the American Finance Association. Dr. Cornelli has previously
taught at the Wharton School of the University
of Pennsylvania, the Fuqua School of Business at
Duke University, The London School of Economics, the Indian School of Business in Hyderabad and the New Economic School in
Moscow. She has also served as an
independent board member of several global corporations, including
Banca Intesa SanPaolo from 2016 to 2019, Telecom Italia from 2014
to 2018, American Finance Association from 2013 to 2016, and Swiss
Re International and Swiss Re Holdings from 2013 to 2019. In
January 2016 she helped create and
became a board member of AFFECT, a committee of the American
Finance Association designed to promote the advancement of women
academics in the field of finance.
- Stephen Malkin is the
President of Ranger Capital Corporation, a position he has held
continuously since departing from his position as a senior
executive of GCM Grosvenor in 2005. Mr. Malkin was associated with
GCM Grosvenor from 1992 through 2005, during most of which time he
served on GCM Grosvenor's Management Committee and shared
management responsibilities with Mr. Sacks. Mr. Malkin was also a
member of GCM Grosvenor's Absolute Return Strategies Investment
Committee and shared responsibility for portfolio management as
well as the evaluation, selection, and monitoring of various
Absolute Return Strategies investments. Prior to his role with GCM
Grosvenor, from 1988 through 1991, Mr. Malkin worked in various
management positions for JMB Realty Corporation, focusing on
non-real estate corporate acquisition opportunities. From 1983 to
1986, Mr. Malkin was an analyst with Salomon Brothers Inc in
Chicago and Tokyo. He received a B.B.A. from the
University of Michigan and an M.B.A. in
Finance from the Wharton School of the University of Pennsylvania.
- Blythe Masters is an
experienced financial services and technology executive and
currently an Industry Partner at the private equity and venture
capital firm Motive Partners. From March
2015 until December 2018, she
was the chief executive officer of Digital Asset. Ms. Masters was
previously a senior executive at J.P. Morgan, which she left in
2014 following the sale of the physical commodities business that
she built. Ms. Masters was a member of the Corporate &
Investment Bank Operating Committee and the firm's Executive
Committee. Positions at J.P. Morgan included Head of Global
Commodities, Head of Corporate & Investment Bank Regulatory
Affairs, CFO of the Investment Bank, Head of Global Credit
Portfolio and Credit Policy & Strategy, Head of North American
Structured Credit Products, Co-Head of Asset Backed Securitization
and Head of Global Credit Derivatives Marketing. Ms. Masters has
held a number of board positions throughout her career. She
currently serves on the boards of directors of Phunware, Inc.,
including its audit committee, and of AP Moeller Maersk, including
its technology and innovation committee. She previously served on
the board of directors of Santander Consumer USA Holdings from June
2015 to July 2016. She is the
former chairperson of the Global Financial Markets Association
(GFMA), having served on this board from 2009 to 2014, and served
as chairperson on the board of the Securities Industry and
Financial Markets Association from 2004 to 2014. From 2013 to 2019,
Ms. Masters was a board member of the Breast Cancer Research
Foundation and has served on the board of the Global Fund for Women
since 2013. She is also the former chairperson of the Greater New York City affiliate of
Susan G. Komen where she served on
the board from 2006 to 2012. Ms. Masters has a B.A. in economics
from the University of Cambridge.
- Samuel C. Scott III has
served on the board of directors of BNY Mellon since 2003, where he
currently serves as a member of its Audit Committee, its Human
Resources and Compensation Committee and is the chairperson of its
Corporate Governance, Nominating & Social Responsibility
Committee. Prior to his retirement in 2009, Mr. Scott served as
Chairman, since 2001, Chief Executive Officer, since 2001, and
President and Chief Operating Officer, since 1997, of Corn Products
International, Inc., a leading global ingredients solutions
provider now known as Ingredion Incorporated. In addition to his
public board service, Mr. Scott also serves on the board of The
Chicago Council on Global Affairs, the Board of Trustees of the
Ringling College of Art and Design, the board of the Northwestern
Medical Group and the board of the American Business Immigration
Coalition. Mr. Scott served on the board of Motorola Solutions,
Inc. from 1993 until 2019 and was its lead director from 2015 to
2019. Mr. Scott also served on the board of Abbott Laboratories
from 2007 until 2020. Mr. Scott received both a Bachelor of Science
degree and a Master in Business Administration degree from
Fairleigh Dickinson University.
About GCM Grosvenor
GCM Grosvenor is a global alternative asset management solutions
provider across private equity, infrastructure, real estate,
credit, and absolute return investment strategies. The firm is in
its 50th year of operation and is dedicated to
delivering value for clients in the growing alternative investment
asset classes.
GCM Grosvenor's experienced team of 485 professionals serves a
global client base of institutional and high net worth investors.
The firm is headquartered in Chicago, with offices in New York, Los
Angeles, London,
Tokyo, Hong Kong, and Seoul.
Forward-Looking Statements
This press release contains certain forward-looking statements
within the meaning of the federal securities laws, including with
respect to the proposed transaction between GCM Grosvenor and CFAC,
the anticipated timing of such transaction and GCM Grosvenor's
outlook for 2020. These forward-looking statements generally are
identified by the words "believe," "project," "expect,"
"anticipate," "estimate," "intend," "strategy," "future,"
"opportunity," "plan," "may," "should," "will," "would" and similar
expressions. Forward-looking statements are predictions,
projections and other statements about future events that are based
on current expectations and assumptions and, as a result, are
subject to risks and uncertainties. Many factors could cause actual
future events to differ materially from the forward-looking
statements in this press release including but not limited to: (i)
the risk that the transaction may not be completed in a timely
manner or at all, which may adversely affect the price of CFAC's
securities, (ii) the risk that the transaction may not be completed
by CFAC's business combination deadline and the potential failure
to obtain an extension of the business combination deadline if
sought by CFAC, (iii) the failure to satisfy the conditions to the
consummation of the transaction, including the approval by the
stockholders of CFAC, the satisfaction of the minimum trust account
amount following redemptions by CFAC's public stockholders and the
receipt of certain governmental and regulatory approvals, (iv) the
occurrence of any event, change or other circumstance that could
give rise to the termination of the transaction, (v) the ability to
implement business plans, forecasts, and other expectations after
the completion of the transaction, and identify and realize
additional opportunities, (vi) the impact of the ongoing COVID-19
pandemic and (vii) the risk of downturns in the highly competitive
asset management industry. The foregoing list of factors is not
exhaustive. You should carefully consider the foregoing factors and
the other risks and uncertainties described in the "Risk Factors"
section of the joint prospectus/proxy statement included in the
registration statement on Form S-4 discussed below and other
documents filed by CFAC and GCM Grosvenor Inc. from time to time
with the U.S. Securities and Exchange Commission (the "SEC"). These
filings identify and address other important risks and
uncertainties that could cause actual events and results to differ
materially from those contained in the forward-looking statements.
Forward-looking statements speak only as of the date they are made.
Readers are cautioned not to put undue reliance on forward-looking
statements, and GCM Grosvenor and CFAC assume no obligation and do
not intend to update or revise these forward-looking statements,
whether as a result of new information, future events, or
otherwise. Neither GCM Grosvenor nor CFAC gives any assurance that
GCM Grosvenor will achieve its expectations.
Use of Projections
This press release contains reference to financial forecasts
with respect to GCM Grosvenor's projected financial results. The
assumptions and estimates underlying the prospective financial
information are inherently uncertain and are subject to a wide
variety of significant business, economic and competitive risks and
uncertainties that could cause actual results to differ materially
from those contained in the prospective financial information.
Accordingly, there can be no assurance that the prospective results
are indicative of the future performance of GCM Grosvenor or that
actual results will not differ materially from those presented in
the prospective financial information. Reference to the prospective
financial information in this press release should not be regarded
as a representation by any person that the results contained in the
prospective financial information will be achieved.
Additional Information and Where to Find It
This press release relates to a proposed transaction between GCM
Grosvenor and CFAC. This press release does not constitute an offer
to sell or exchange, or the solicitation of an offer to buy or
exchange, any securities, nor shall there be any sale of securities
in any jurisdiction in which such offer, sale or exchange would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. CFAC and GCM Grosvenor
Inc. have filed a registration statement on Form S-4 that has been
declared effective by the Securities and Exchange Commission and
includes a joint proxy statement/prospectus. The proxy
statement/prospectus has been sent to all CFAC stockholders as of
October 8, 2020. CFAC and GCM
Grosvenor Inc. also will file other documents regarding the
proposed transaction with the SEC. Before making any voting
decision, investors and security holders of CFAC are urged to read
the registration statement, the proxy statement/prospectus and all
other relevant documents filed or that will be filed with the SEC
in connection with the proposed transaction as they become
available because they will contain important information about the
proposed transaction.
Investors and security holders will be able to obtain free
copies of the proxy statement/prospectus and all other relevant
documents filed or that will be filed with the SEC by CFAC through
the website maintained by the SEC at www.sec.gov.
Participants in Solicitation
CFAC and GCM Grosvenor Inc. and their respective directors and
officers may be deemed to be participants in the solicitation of
proxies from CFAC's stockholders in connection with the proposed
transaction between CFAC and GCM Grosvenor. Information about
CFAC's directors and executive officers and their ownership of
CFAC's securities is set forth in the Form S-4 registration
statement filed by GCM Grosvenor that includes a joint proxy
statement/prospectus. Additional information regarding the
interests of those persons and other persons who may be deemed
participants in the proposed transaction may be obtained by reading
the proxy statement/prospectus regarding the proposed transaction.
You may obtain free copies of these documents as described in the
preceding paragraph.
Use of Non-GAAP Financial Measures
This presentation includes projections of net incentive fees
attributable to GCM Grosvenor, net fees attributable to GCM
Grosvenor, adjusted pre-tax income, adjusted net income and
adjusted EBITDA, non-GAAP financial measures. These non-GAAP
measures are in addition to , and not a substitute for or superior
to, measures of financial performance prepared in accordance with
GAAP, and should not be considered as an alternative to revenue,
net income, operating income or any other performance measures
derived in accordance with GAAP.
Net incentive fees attributable to GCM Grosvenor represent
incentive fees excluding (a) carried interest attributable to
employees and former employees and (b) carried interest
attributable to non-controlling interest holders. Net fees
attributable to GCM Grosvenor represent total operating revenues
excluding (a) reimbursement of expenses paid on behalf of GCM
Grosvenor's funds and affiliates, (b) carried interest attributable
to employees and former employees and (c) carried interest
attributable to non-controlling interest holders. Adjusted pre-tax
net income represents net income attributable to GCM Grosvenor
excluding (a) income taxes and (b) certain significant items that
we believe are not indicative of our core performance. Adjusted net
income represents adjusted pre-tax income minus income taxes.
Adjusted EBITDA represents adjusted net income excluding (a) income
taxes, (b) depreciation expense and (c) interest expense on our
outstanding debt. Adjusted fee-related earnings represents adjusted
EBITDA further adjusted to exclude incentive fees and related
compensation in addition to other non-operating income, and
includes depreciation expense.
GCM Grosvenor believes that these non-GAAP measures of financial
results provide useful supplemental information to investors about
GCM Grosvenor. GCM Grosvenor's management uses these non-GAAP
measures to evaluate GCM's projected financial and operating
performance. However, there are a number of limitations related to
the use of these non-GAAP measures and their nearest GAAP
equivalents. For example other companies may calculate non-GAAP
measures differently, or may use other measures to calculate their
financial performance, and therefore GCM Grosvenor's non-GAAP
measures may not be directly comparable to similarly titled
measures of other companies.
Due to the high variability and difficulty in making accurate
forecasts and projections of some of the information excluded from
these projected measures, together with some of the excluded
information not being ascertainable or accessible, GCM Grosvenor is
unable to quantify certain amounts that would be required to be
included in the most directly comparable GAAP financial measures
without unreasonable effort. Consequently, no disclosure of
estimated comparable GAAP measures is included and no
reconciliation of the forward looking non GAAP financial measures
is included.
SOURCE GCM Grosvenor