Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 09, 2021 | Jun. 30, 2020 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-39716 | ||
Entity Registrant Name | GCM Grosvenor Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 85-2226287 | ||
Entity Address, Address Line One | 900 North Michigan Avenue, Suite 1100 | ||
Entity Address, City or Town | Chicago | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60611 | ||
City Area Code | 312 | ||
Local Phone Number | 506-6500 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001819796 | ||
Common Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Class A common stock, $0.0001 par value per share | ||
Trading Symbol | GCMG | ||
Security Exchange Name | NASDAQ | ||
Warrant | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Warrants to purchase shares of Class A common stock | ||
Trading Symbol | GCMGW | ||
Security Exchange Name | NASDAQ | ||
Common Class A | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 41,603,993 | ||
Common Class C | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 144,235,246 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 198,146 | $ 79,866 |
Management fees receivable | 14,524 | 13,896 |
Incentive fees receivable | 69,424 | 20,771 |
Due from related parties | 11,326 | 10,226 |
Investments | 166,273 | 159,358 |
Premises and equipment, net | 7,870 | 8,871 |
Intangible assets, net | 8,588 | 16,092 |
Goodwill | 28,959 | 28,959 |
Deferred tax assets, net | 73,766 | 126 |
Other assets | 53,015 | 34,991 |
Total assets | 631,891 | 373,156 |
Liabilities and Equity (Deficit) | ||
Accrued compensation and benefits | 74,681 | 63,668 |
Employee related obligations | 25,274 | 22,614 |
Debt | 335,155 | 448,500 |
Payable to related parties pursuant to the tax receivable agreement | 60,131 | 0 |
Accrued expenses and other liabilities | 60,926 | 52,204 |
Total liabilities | 556,167 | 586,986 |
Commitments and contingencies (Note 16) | ||
Redeemable noncontrolling interest | 115,121 | |
Partners’ deficit | (308,373) | |
Preferred stock, $0.0001 par value, 100,000,000 shares authorized; 0 shares issued and outstanding as of December 31, 2020 | 0 | |
Additional paid-in capital | 2,298 | |
Accumulated other comprehensive loss | (2,233) | (6,854) |
Retained earnings | (20,098) | |
Member’s deficit - GCM, L.L.C. | (66) | |
Total GCM Grosvenor Inc. deficit / partners’ and member’s deficit | (20,015) | |
Total GCM Grosvenor Inc. deficit / partners’ and member’s deficit | (315,293) | |
Noncontrolling interests in subsidiaries | 94,013 | |
Noncontrolling interests in subsidiaries | 101,463 | |
Noncontrolling interests in GCMH | (113,395) | |
Total deficit | (39,397) | |
Total deficit | (213,830) | |
Total liabilities and equity (deficit) | 631,891 | $ 373,156 |
Common Class A | ||
Liabilities and Equity (Deficit) | ||
Common stock | 4 | |
Common Class B | ||
Liabilities and Equity (Deficit) | ||
Common stock | 0 | |
Common Class C | ||
Liabilities and Equity (Deficit) | ||
Common stock | $ 14 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) | Dec. 31, 2020$ / sharesshares |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 |
Preferred stock, authorized (in shares) | 100,000,000 |
Preferred stock issued (in shares) | 0 |
Preferred stock outstanding (in shares) | 0 |
Common Class A | |
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 |
Common stock, authorized (in shares) | 700,000,000 |
Common stock, outstanding (in shares) | 40,835,093 |
Common Class B | |
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 |
Common stock, authorized (in shares) | 500,000,000 |
Common stock, outstanding (in shares) | 0 |
Common Class C | |
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 |
Common stock, authorized (in shares) | 300,000,000 |
Common stock, outstanding (in shares) | 144,235,246 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Revenues | ||||
Operating revenue | $ 429,981 | $ 416,394 | $ 378,496 | |
Expenses | ||||
Employee compensation and benefits | 388,465 | 242,967 | 210,414 | |
General, administrative and other | 82,374 | 88,458 | 92,955 | |
Total operating expenses | 470,839 | 331,425 | 303,369 | |
Operating income (loss) | (40,858) | 84,969 | 75,127 | |
Investment income | 10,742 | 7,521 | 16,963 | |
Interest expense | (23,446) | (25,680) | (26,468) | |
Other income (expense) | (9,562) | (4,494) | (542) | |
Net other income (expense) | (22,266) | (22,653) | (10,047) | |
Income (loss) before income taxes | (63,124) | 62,316 | 65,080 | |
Income taxes | 4,506 | 2,318 | 1,395 | |
Net income | (67,630) | 59,998 | 63,685 | |
Less: Net income attributable to redeemable noncontrolling interest | 14,069 | 0 | 0 | |
Less: Net income attributable to noncontrolling interests in subsidiaries | 11,617 | 13,221 | 24,486 | |
Less: Net income (loss) attributable to noncontrolling interests in GCMH | (100,823) | 46,777 | 39,199 | |
Net income attributable to GCM Grosvenor Inc. | $ 7,507 | $ 0 | $ 0 | |
Earnings (loss) per share of Class A common stock: | ||||
Basic (in dollars per share) | [1] | $ 0.19 | $ 0 | $ 0 |
Diluted (in dollars per share) | [1] | $ (0.50) | $ 0 | $ 0 |
Weighted average shares of Class A common stock outstanding: | ||||
Basic (in shares) | [1] | 39,984,515 | 0 | 0 |
Diluted (in shares) | [1] | 184,219,761 | 0 | 0 |
Management fees | ||||
Revenues | ||||
Operating revenue | $ 310,745 | $ 324,716 | $ 315,598 | |
Incentive fees | ||||
Revenues | ||||
Operating revenue | 111,650 | 84,165 | 57,059 | |
Other operating income | ||||
Revenues | ||||
Operating revenue | $ 7,586 | $ 7,513 | $ 5,839 | |
[1] | Represents earnings (loss) per share of Class A common stock and weighted-average shares of Class A common stock outstanding for the period from November 17, 2020 through December 31, 2020, the period following the Transaction, as defined in Note 3 (see Note 19). |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (67,630) | $ 59,998 | $ 63,685 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Unrealized gain on cash flow hedges | (4,880) | (6,521) | 1,264 |
Foreign currency translation adjustment | 778 | 253 | (110) |
Total other comprehensive income (loss) | (4,102) | (6,268) | 1,154 |
Comprehensive income (loss) before noncontrolling interests | (71,732) | 53,730 | 64,839 |
Less: Comprehensive income attributable to redeemable noncontrolling interest | 14,069 | 0 | 0 |
Less: Comprehensive income attributable to noncontrolling interests in subsidiaries | 11,617 | 13,221 | 24,486 |
Less: Comprehensive income (loss) attributable to noncontrolling interests in GCMH | (105,174) | 40,509 | 40,353 |
Comprehensive income (loss) attributable to GCM Grosvenor Inc. | $ 7,756 | $ 0 | $ 0 |
Consolidated Statements of Equi
Consolidated Statements of Equity (Deficit) - USD ($) $ in Thousands | Total | Partners’ Deficit | Member’s Deficit-GCM, L.L.C. | Common StockCommon Class A | Common StockCommon Class C | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest in Subsidiaries | Noncontrolling Interest in GCMH | Cumulative-effect adjustment from adoption | Cumulative-effect adjustment from adoptionPartners’ Deficit | Cumulative-effect adjustment from adoptionAccumulated Other Comprehensive Income (Loss) | Cumulative-effect adjustment from adoptionNoncontrolling Interest in Subsidiaries |
Beginning balance at Dec. 31, 2017 | $ (160,407) | $ (302,616) | $ (17) | $ (1,740) | $ 143,966 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201409Member | |||||||||||||
Capital contributions from noncontrolling interest in subsidiaries | $ 6,447 | 6,447 | ||||||||||||
Deemed contributions | 19,495 | 19,495 | ||||||||||||
Capital distributions | (82,247) | (82,113) | (134) | |||||||||||
Capital distributions paid to noncontrolling interest | (49,234) | (49,234) | ||||||||||||
Unrealized gain on cash flow hedges | 1,264 | 1,264 | ||||||||||||
Translation adjustment | (110) | (110) | ||||||||||||
Net income (loss) | 63,685 | 39,121 | 78 | 24,486 | ||||||||||
Ending balance at Dec. 31, 2018 | $ (201,107) | (326,113) | (73) | (586) | 125,665 | $ 11,860 | $ 10,343 | $ 1,517 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201712Member | |||||||||||||
Capital contributions from noncontrolling interest in subsidiaries | $ 4,720 | 4,720 | ||||||||||||
Capital contributions | 18 | 18 | ||||||||||||
Deemed contributions | 30,233 | 30,233 | ||||||||||||
Capital distributions | (69,624) | (69,524) | (100) | |||||||||||
Capital distributions paid to noncontrolling interest | (43,660) | (43,660) | ||||||||||||
Unrealized gain on cash flow hedges | (6,521) | (6,521) | ||||||||||||
Translation adjustment | 253 | 253 | ||||||||||||
Net income (loss) | 59,998 | 46,688 | 89 | 13,221 | ||||||||||
Ending balance at Dec. 31, 2019 | (213,830) | $ (308,373) | $ (66) | (6,854) | 101,463 | $ 0 | $ (650) | $ 650 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Unrealized gain on cash flow hedges | (4,880) | |||||||||||||
Translation adjustment | 778 | |||||||||||||
Net income (loss) | (67,630) | |||||||||||||
Ending balance at Dec. 31, 2020 | (39,397) | $ 4 | $ 14 | $ 2,298 | $ (20,098) | $ (2,233) | $ 94,013 | $ (113,395) | ||||||
Ending balance at Dec. 31, 2020 | $ 115,121 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities | |||
Net income (loss) | $ (67,630) | $ 59,998 | $ 63,685 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | |||
Depreciation and amortization expense | 9,818 | 10,338 | 11,663 |
Deferred taxes | 629 | 0 | 0 |
Other non-cash compensation | 4,564 | 4,030 | 1,788 |
Non-cash partnership interest-based compensation | 172,358 | 30,233 | 19,495 |
Amortization of debt issuance costs | 1,336 | 1,643 | 1,686 |
Loss on extinguishment of debt | 1,514 | 0 | 0 |
Change in fair value of derivatives | 8,572 | 5,417 | 1,344 |
Amortization of deferred rent | 130 | 152 | (897) |
Proceeds received from investments | 8,050 | 10,289 | 18,347 |
Non-cash investment income | (10,742) | (7,521) | (16,963) |
Other | 94 | 526 | 539 |
Change in assets and liabilities | |||
Management fees receivable | (595) | 5,132 | (291) |
Incentive fees receivable | (48,653) | (7,242) | 7,594 |
Due from related parties | (1,100) | (3,467) | (1,218) |
Other assets | (16,568) | (5,876) | 1,968 |
Accrued compensation and benefits | 6,295 | (3,531) | (459) |
Employee related obligations | 2,660 | (4,029) | 6,583 |
Accrued expenses and other liabilities | (2,562) | 101 | 2,165 |
Net cash provided by operating activities | 68,170 | 96,193 | 117,029 |
Cash flows from investing activities | |||
Purchases of premises and equipment | (1,308) | (3,995) | (868) |
Contributions/subscriptions to investments | (23,911) | (21,505) | (23,210) |
Withdrawals/redemption from investments | 19,688 | 31,630 | 32,040 |
Net cash provided by (used in) investing activities | (5,531) | 6,130 | 7,962 |
Cash flows from financing activities | |||
Capital contributions received from noncontrolling interest | 177,832 | 4,720 | 6,447 |
Capital contributions received from member | 0 | 18 | 0 |
Capital distributions paid to partners and member | (153,670) | (69,624) | (82,247) |
Capital distributions paid to the noncontrolling interest | (39,812) | (43,660) | (49,234) |
Proceeds from credit facility | 20,000 | 25,000 | 0 |
Principal payments on credit facility | (45,000) | 0 | 0 |
Principal payments on senior loan | (91,195) | (7,325) | (27,447) |
Debt issuance costs | 0 | 0 | (1,291) |
Capital contributions related to the Transaction and PIPE transactions net of underwriting costs | 179,857 | 0 | 0 |
Proceeds from exercise of warrants | 6,745 | 0 | 0 |
Net cash provided by (used in) financing activities | 54,757 | (90,871) | (153,772) |
Effect of exchange rate changes on cash | 884 | 314 | (182) |
Net increase (decrease) in cash and cash equivalents | 118,280 | 11,766 | (28,963) |
Beginning of year | 79,866 | 68,100 | 97,063 |
End of year | 198,146 | 79,866 | 68,100 |
Supplemental disclosure of cash flow information | |||
Cash paid during the year for interest | 21,464 | 22,674 | 23,587 |
Cash paid during the year for income taxes | 3,160 | 1,739 | 1,352 |
Supplemental disclosure of non-cash information from financing activities | |||
Deemed contributions from GCMH Equityholders | 172,358 | 30,233 | 19,495 |
Establishment of deferred tax assets, net related to tax receivable agreement and the Transaction | $ 14,140 | $ 0 | $ 0 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization GCM Grosvenor Inc. (“GCMG”) and its subsidiaries including Grosvenor Capital Management Holdings, LLLP (the “Partnership” or “GCMH” and collectively, the “Company”), provide comprehensive investment solutions to primarily institutional clients who seek allocations to alternative investments such as hedge fund strategies, private equity, real estate, infrastructure and strategic investments. The Company collaborates with its clients to construct investment portfolios across multiple investment strategies in the private and public markets, customized to meet their specific objectives. The Company also offers specialized commingled funds which span the alternatives investing universe that are developed to meet broad market demands for strategies and risk-return objectives. The Company, through its subsidiaries acts as the investment adviser, general partner or managing member to customized funds and commingled funds (collectively, the “GCM Funds”). GCMG was incorporated on July 27, 2020 under the laws of the State of Delaware for the purpose of consummating the Transaction as described in Note 3, and merging with CF Finance Acquisition Corp. (“CFAC”), a blank check company incorporated on July 9, 2014 under the laws of the state of Delaware. GCMG owns all of the equity interests of GCM Grosvenor Holdings, LLC (“IntermediateCo”), formerly known as CF Finance Intermediate Acquisition, LLC until November 18, 2020, which is the general partner of GCMH subsequent to the Transaction. GCMG’s ownership (through IntermediateCo) of GCMH as of December 31, 2020 was approximately 22.1%. GCMH is a holding company operated pursuant to the Fifth Amended and Restated Limited Liability Limited Partnership Agreement (the “Partnership Agreement”) dated November 17, 2020, among the limited partners including, Grosvenor Holdings, L.L.C. (“Holdings”), Grosvenor Holdings II, L.L.C (“Holdings II”) and GCM Grosvenor Management, LLC (“Management LLC”) (collectively, “GCMH Equityholders”). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the accounts of the Company, its wholly-owned or majority-owned subsidiaries and entities in which the Company is deemed to have a direct or indirect controlling financial interest based on either a variable interest model or voting interest model. All intercompany balances and transactions have been eliminated in consolidation. Pursuant to the Transaction as described in Note 3, GCMG acquired approximately 22% of the common units of the Partnership. The portion of the consolidated subsidiaries not owned by GCMG and any related activity is eliminated through noncontrolling interests in the Consolidated Statements of Financial Condition and net income (loss) attributable to noncontrolling interests in the Consolidated Statements of Income. The combined financial statements of GCMH and its subsidiaries and GCM, L.L.C. (“GCM LLC”) have been determined to be the predecessor for accounting and reporting purposes for periods prior to the Transaction. The Company is an “emerging growth company” (“EGC”), as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), following the consummation of the merger of CFAC and the Company. The Company has elected to use this extended transition period for complying with new or revised accounting standards pursuant to Section 102(b)(1) of the JOBS Act that have different effective dates for public and private companies until the earlier of the date that it (i) is no longer an emerging growth company or (ii) affirmatively and irrevocably opts out of the extended transition periods provided by the JOBS Act. As result of this election, its consolidated financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Principles of Consolidation The Company first determines whether it has a variable interest in an entity. Fees paid to a decision maker or service provider are not deemed variable interests in an entity if (i) the fees are compensation for services provided and are commensurate with the level of effort required to provide those services; (ii) the service arrangement includes only terms, conditions, or amounts that are customarily present in arrangements for similar services negotiated at arm’s length; and (iii) the decision maker does not hold other interests in the entity that individually, or in the aggregate, would absorb more than an insignificant amount of the entity’s expected losses or receive more than an insignificant amount of the entity’s expected residual returns. The Company has evaluated its arrangements and determined that management fees, performance fees and carried interest are customary and commensurate with the services being performed and are not variable interests. For those entities in which it has a variable interest, the Company performs an analysis to determine whether the entity is a variable interest entity (“VIE’). The assessment of whether the entity is a VIE requires an evaluation of qualitative factors and, where applicable, quantitative factors. These judgments include: (a) determining whether the equity investment at risk is sufficient to permit the entity to finance its activities without additional subordinated financial support, (b) evaluating whether the equity holders, as a group, can make decisions that have a significant effect on the economic performance of the entity, and (c) determining whether the equity investors have proportionate voting rights to their obligations to absorb losses or rights to receive returns from an entity. The granting of substantive kick-out rights is a key consideration in determining whether a limited partnership or similar entity is a VIE. For entities that are determined to be VIEs, the Company consolidates those entities where it has concluded it is the primary beneficiary. The Company is determined to be the primary beneficiary if it holds a controlling financial interest which is defined as possessing (a) the power to direct the activities that most significantly impact the VIE’s economic performance and (b) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. In evaluating whether the Company is the primary beneficiary, the Company evaluates its economic interests in the entity held either directly or indirectly by the Company. The Company determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a VIE and reconsiders that conclusion continuously. At each reporting date, the Company assesses whether it is the primary beneficiary and will consolidate or deconsolidate accordingly. Refer to Note 10 for additional information on the Company’s VIEs. Entities that do not qualify as VIEs are assessed for consolidation as voting interest entities. Under the voting interest entity model, the Company consolidates those entities it controls through a majority voting interest. Cash and Cash Equivalents Cash and cash equivalents consist of cash and short-term, highly liquid money market funds with original maturities of three months or less. These money market funds are managed in a way to preserve a stable value of USD 1.00 per share; however, there is no guarantee that the value will not drop below USD 1.00 per share. In circumstances when Federal Deposit Insurance Corporation insured limits are exceeded, the risk of default depends on the creditworthiness of the counterparties to each of these transactions. Interest earned on cash and cash equivalents is recorded within other income (expense) in the Consolidated Statements of Income. As of December 31, 2020 and 2019, the Company held $21.5 million and $20.6 million, respectively, of foreign cash included within cash and cash equivalents in the Consolidated Statements of Financial Condition. Foreign Currency Gain or Loss The financial statements of the Company’s subsidiaries located in Japan, Hong Kong, the UK and South Korea are measured using the Japanese Yen, Hong Kong Dollar, British Pound and Korean Won, respectively, as the functional currency. The assets and liabilities of these subsidiaries are translated at the exchange rate prevailing at the reporting date and revenue and expenses are translated at the average monthly rates of exchange with the resulting translation adjustment included in the Consolidated Statements of Financial Condition as a component of accumulated other comprehensive loss. The Company earns fees denominated in several different foreign currencies. Corresponding transaction gains or losses are recognized in other income (expense) in the Consolidated Statements of Income. Management Fees and Incentive Fees Receivable Management fees and incentive fees receivable are equal to contractual amounts reduced for allowances, if applicable. The Company considers fees receivable to be fully collectible; accordingly, no allowance for doubtful accounts has been established as of December 31, 2020 and 2019. If accounts become uncollectible, they will be expensed when that determination is made. Amounts determined to be uncollectible are charged directly to general, administrative and other in the Consolidated Statements of Income. Due from Related Parties Due from related parties includes amounts receivable from the Company’s existing partners, employees, and nonconsolidated funds. Refer to Note 17 for further disclosure of transactions with related parties. COVID-19 In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (“COVID-19”) a global pandemic, which has resulted in significant disruption and uncertainty in the global economic markets. Given the amount of uncertainty currently regarding the scope and duration of the COVID-19 pandemic, the Company is unable to predict the precise impact the COVID-19 pandemic will have on the Company’s consolidated financial statements. In line with public markets and credit indices, the Company investments may be adversely impacted. Fair Value Measurements The Company categorizes its fair value measurements according to a three-level hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are defined as follows: • Level 1 – Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date; • Level 2 – Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active; and • Level 3 – Inputs that are unobservable. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The carrying amount of cash and cash equivalents and fees receivable approximate fair value due to the immediate or short-term maturity of these financial instruments. Investments Investments primarily consist of investments in GCM Funds and other funds the Company does not control, but is deemed to exert significant influence, and are accounted for using the equity method of accounting. Under the equity method of accounting, the Company records its share of the underlying income or loss of such entities, which reflects the net asset value of such investments. Management believes the net asset value of the funds is representative of fair value. The resulting unrealized gains and losses are included as investment income in the Consolidated Statements of Income. The Company’s investments in the GCM Funds investing in private equity, real estate and infrastructure (“GCM PEREI Funds”) are valued based on the most recent available information which typically has a delay of up to three months due to the timing of financial information received from the investments held by the GCM PEREI Funds. The Company records its share of capital contributions to and distributions from the GCM PEREI Funds within investments in the Consolidated Statements of Financial Condition during the three-month lag period. To the extent that management is aware of material events that affect the GCM PEREI Funds during the intervening period, the impact of the events would be disclosed in the notes to the consolidated financial statements. Certain subsidiaries which hold the general partner capital interest in the GCM Funds are not wholly owned and as such the portion of the Company’s investments owned by limited partners in those subsidiaries are reflected within noncontrolling interest in the Consolidated Statements of Financial Condition. Premises and Equipment Premises and equipment and aircraft-related assets are recorded at cost less accumulated depreciation and amortization. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets ranging from three Intangible Assets and Goodwill Finite-lived intangible assets primarily consist of investment management contracts, investor relationships, technology and trade name. These assets are amortized on a straight-line basis over their respective useful lives, ranging from 2 to 12 years. Intangible assets are reviewed for impairment whenever events or changes in circumstances suggest that the asset’s carrying value may not be recoverable. An impairment loss, calculated as the difference between the estimated fair value and the carrying value of the asset, is recognized if the sum of the estimated undiscounted cash flows relating to the asset is less than the corresponding carrying value. The Company has not recognized any impairment in the periods presented. Goodwill is reviewed for impairment at least annually at the reporting unit level utilizing a qualitative or quantitative approach, and more frequently if circumstances indicate impairment may have occurred. The impairment testing for goodwill under the qualitative approach is based first on a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its respective carrying value. If it is determined that it is more likely than not that the reporting unit’s fair value is less than its carrying value or when the quantitative approach is used, a two-step quantitative assessment is performed to (a) calculate the fair value of the reporting unit and compare it to its carrying value, and (b) if the carrying value exceeds its fair value, to measure an impairment loss. The amount of impairment is calculated as the excess of the carrying value of goodwill over its implied fair value. The Company performed a qualitative assessment of its goodwill on October 1, 2020 and 2019 and did not identify any impairment. Redeemable Noncontrolling Interest Noncontrolling interest related to certain limited partnership interests are subject to redemptions by third party investors. As these interests are redeemable upon the occurrence of an event that is not solely within the control of the Company, amounts relating to third party interests in such consolidated entities are classified within the mezzanine section as redeemable noncontrolling interest in the Consolidated Statements of Financial Condition. Noncontrolling Interests For entities that are consolidated, but not 100% owned, a portion of the income or loss and equity is allocated to owners other than the Company. The aggregate of the income or loss and corresponding equity that is not owned by the Company is included within noncontrolling interests in the consolidated financial statements. Noncontrolling interests is presented as a separate component of equity (deficit) in the Consolidated Statements of Financial Condition. Net income includes the net income attributable to the holders of noncontrolling interests in the Consolidated Statements of Income. Profits and losses, other than profit interest expense, are allocated to noncontrolling interest in proportion to their relative ownership interests regardless of their basis. Revenue Recognition On January 1, 2019, the Company adopted Accounting Standard Codification (“ASC”) 606, Revenue from Contracts with Customers , using the modified retrospective method and applied the guidance only to contracts that were not completed as of that date. As a result, prior period amounts continue to be reported under legacy GAAP. The adoption did not change the historical pattern of recognizing revenue for management fees, administrative fees or incentive fees, except for classification changes described further below. The Company recorded a cumulative-effect decrease to total partners’ deficit attributable to GCMH and an increase to noncontrolling interest of $10.4 million and $1.5 million, respectively, related to a change in the Company’s recognition of carried interest subject to potential repayment (“clawback”). Prior to the adoption of ASC 606, the Company deferred the recognition of revenue for all realized carried interest subject to clawback (typically for carried interest calculated under a deal-by-deal or, American waterfall) until the earlier of the termination of the related fund or the point at which repayment of any of the distributed carried interest could no longer occur. Under ASC 606, realized carried interest is considered variable consideration and is therefore constrained and not recognized until it is probable that a significant reversal will not occur. The Company has defined the portion to be deferred as the amount of carried interest, typically net of tax, that the Company would be required to return if there were no remaining investments at the assessment date. The adjustment also resulted in a net increase in incentive fees receivable of $1.3 million and decrease to deferred revenue, recorded within accrued expenses and other liabilities in the Consolidated Statements of Financial Condition , of $10.6 million. Contracts which earn the Company management fees and incentive fees are evaluated as contracts with customers under ASC 606 for the services further described below. Under ASC 606, the Company is required to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the Company satisfies its performance obligation. Management Fees Management Fees The Company earns management fees from providing investment management services to specialized funds and customized separate account clients. Specialized funds are generally structured as partnerships having multiple investors. Separate account clients may be structured using an affiliate-managed entity or may involve an investment management agreement between the Company and a single client. Certain separate account clients may have the Company manage assets both with full discretion over investments decisions as well as without discretion over investment decisions and may also receive access to various other advisory services the firm may provide as part of a single customized service which the Company has determined is a single performance obligation. The Company determined that for specialized funds, the fund is generally considered to be the customer while the individual investor or limited partner is the customer with respect to customized separate accounts. The Company satisfies its performance obligations over time as the services are rendered and the customer simultaneously receives and consumes the benefits of the services as they are performed, using the same time-based measure of progress towards completion. The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring the promised services to the customer. The Company’s management fees attributable to the GCM Funds investing in public market investments consist primarily of fees based on the net asset value of the assets managed. Fees may be calculated on a monthly or quarterly basis as of each subscription date, either in advance or arrears. Investment management fees calculated on a monthly or quarterly basis are primarily based on the assets under management at the beginning or end of such monthly or quarterly period or on average net assets. The Company’s management fees attributable to the GCM Funds investing in longer-term public market investments and private market investments are typically based on limited partner commitments to those funds during an initial commitment or investment period. Following the expiration or termination of such period, the fees generally become based on invested assets or based on invested capital and unfunded deal commitments less returned capital. Management fees are determined quarterly and are more commonly billed in advance based on the management fee rate applied to the management fee base at the end of the preceding quarterly period as defined in the respective contractual agreements. Management fees are a form of variable consideration as the basis for the management fee fluctuates over the life of the contract, therefore, management fees are constrained and not recognized until it is probable that a significant reversal will not occur. Certain operating agreements limit the expenses a fund bears to a percentage of the market value of the assets managed. The Company is required to reimburse the customer for such exceeded amounts (which the Company may be entitled to recoup in subsequent periods if expenses are sufficiently below the limit). The Company records these amounts as adjustments to the transaction price, which are reflected within management fees in the Consolidated Statements of Income. Prior to the adoption of ASC 606, such adjustments were recorded within general, administrative and other in the Consolidated Statements of Income. Certain GCM Fund agreements contain a management fee schedule that simulates the pattern of a fee based on invested capital that increases over the investment period and decreases over the life of the fund. In those circumstances the Company satisfies its performance obligations over time as the services are rendered and records as revenue the amounts it is entitled to invoice for the applicable quarter for which services have been rendered. Certain agreements contain a requirement to return management fees for commitments left unfunded at the termination of the GCM Fund’s life. The Company defers a portion of the fees collected that it views as probable of being required to return based on the Company’s investing experience and records this accrual as deferred revenue within accrued expenses and other liabilities in the Consolidated Statements of Financial Condition. Fund Expense Reimbursement Revenue The Company incurs certain costs, primarily related to accounting, client reporting, investment-decision making and treasury-related expenditures, for which it receives reimbursement from the GCM Funds in connection with its performance obligations to provide investment management services. The Company concluded it controls the services provided and resources used before they are transferred to the customer and therefore is a principal. Accordingly, the reimbursement for these costs incurred by the Company are presented on a gross basis within management fees and the related costs within general, administrative and other in the Consolidated Statements of Income with any outstanding amounts recorded within due from related parties in the Consolidated Statements of Financial Condition. Expense reimbursements are recognized at a point in time, in the periods during which the related expenses are incurred and the reimbursements are contractually earned. The Company may pay on behalf of and seek reimbursement from GCM Funds for professional fees and administrative or other fund expenses that the Company arranges for the GCM Funds. The Company concluded that the nature of its promise is to arrange for the services to be provided and it does not control the services provided by third parties before they are transferred to the customer. As a result, the Company is acting in the capacity of an agent to the GCM Funds. Accordingly, outstanding amounts related to these disbursements are recorded within due from related parties in the Consolidated Statements of Financial Condition. Incentive Fees Incentive fees consists of performance based incentive fees in the form of performance fees or incentive compensation and carried interest income. Performance Fees The Company may receive performance fees or incentive compensation from certain GCM Funds investing in public market investments. Performance fees are typically a fixed percentage of investment gains, subject to loss carryforward provisions that require the recapture of any previous losses before any performance fees can be earned in the current period. Performance fees may or may not be subject to a hurdle or a preferred return, which requires that clients earn a specified minimum return before a performance fee can be assessed. With the exception of certain GCM Funds, these performance fees are determined based upon investment performance at the end of a specified measurement period, generally the end of the calendar year. Certain GCM Funds have performance measurement periods extending beyond one year. Investment returns are highly susceptible to market factors, judgments, and actions of third parties that are outside of the Company’s control. Accordingly, performance fees are considered variable consideration and are therefore constrained and not recognized until it is probable that a significant reversal will not occur. In the event a client redeems from one of the GCM Funds prior to the end of a measurement period, any accrued performance fee is ordinarily due and payable by such redeeming client as of the date of the redemption. Carried Interest Carried interest is a performance-based capital allocation from a fund’s limited partners earned by the Company in certain GCM Funds invested in longer-term public market investments and private market investments. Carried interest is typically calculated as a percentage of the profits calculated in accordance with the terms of fund agreements at rates that range between 2.5%-20% after returning invested capital, certain fees and a preferred return to the fund’s limited partners. Carried interest is ultimately realized when underlying investments distribute proceeds or are sold and therefore carried interest is highly susceptible to market factors, judgments, and actions of third parties that are outside of the Company’s control. Accordingly, carried interest is considered variable consideration and is therefore constrained and not recognized as revenue until it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Agreements generally include a clawback provision that, if triggered, would require the Company to return up to the cumulative amount of carried interest distributed, typically net of tax, upon liquidation of those funds, if the aggregate amount paid as carried interest exceeds the amount actually due based upon the aggregate performance of each fund. The Company has defined the portion to be deferred as the amount of carried interest, typically net of tax, that the Company would be required to return if all remaining investments had no value as of the end of each reporting period. For the years ended December 31, 2020 and December 31, 2019, deferred revenue relating to constrained realized carried interest of approximately $8.5 million and $11.2 million respectively, was recorded within accrued expenses and other liabilities in the Consolidated Statements of Financial Condition. Other Operating Income Other operating income primarily consists of administrative fees from certain private investment vehicles that the Company does not manage or advise. Administrative fees represent fees for accounting and administration services provided to such vehicles. The fees earned under certain agreements are calculated by applying a fixed rate (or varying rate based on volume) multiplied by the number of positions held. The Company satisfies its performance obligations over time as the services are rendered and the customer simultaneously receives and consumes the benefits of the services as they are performed, using the same time-based measure of progress towards completion. Distribution Relationships The Company has entered into a number of distribution relationships with financial services firms to assist it in developing and servicing its client base. These relationships are non-exclusive and generally enable the Company to have direct contact with major clients. Management and incentive fee revenue in the Consolidated Statements of Income is recorded on a gross basis. Expenses pursuant to the revenue sharing arrangements in connection with these distribution agreements of $7.8 million, $9.2 million and $10.3 million for the years ended December 31, 2020, 2019 and 2018 were recorded within general, administrative and other in the Consolidated Statements of Income. Employee Compensation and Benefits Base Salary, Bonus and Other The Company compensates its employees through the cash payment of both a fixed component (“base salary”) and a variable component (“bonus”). Base salary is recorded on an accrual basis over each employee’s period of service. Bonus compensation is determined by the Company’s management and is generally discretionary based on judgment taking into consideration, among other things, the financial results of the Company, as well as the employee’s performance. Incentive Fee Compensation Incentive fee compensation consists of discretionary compensation accrued and paid annually based on incentive fee revenue. Carried Interest Certain employees and former employees are entitled to a portion of the carried interest realized from certain GCM Funds, which generally vest over a multi-year period and are payable upon a realization of the carried interest. Accordingly, carried interest resulting from a realization event gives rise to the incurrence of an obligation. Amounts payable under these arrangements are recorded within employee compensation and benefits when they become probable and reasonably estimable. For certain GCM Funds, realized carried interest is subject to clawback. Although the Company defers the portion of realized carried interest not meeting the criteria for revenue recognition, accruing an expense for amounts due to employees and former employees is based upon when it becomes probable and reasonably estimable that carried interest has been earned and therefore a liability has been incurred. As a result, the recording of an accrual for amounts due to employees and former employees generally precedes the recognition of the related carried interest revenue. The Company withholds a portion of the amounts due to employees and former employees as a reserve against contingent repayments to the GCM Funds. As of December 31, 2020 and 2019, an accrual of $13.5 million and $14.9 million, respectively, relating to amounts withheld was recorded within employee related obligations in the Consolidated Statements of Financial Condition. Compensation Awards The Company has established deferred compensation programs for certain employees and accrues deferred compensation expense ratably over the related vesting schedules, recognizing an increase or decrease in compensation expense based on the performance of certain GCM Funds. In addition, the Company has granted compensation awards to employees that represent investments that will be made in GCM Funds on behalf of the employees and were compensation for past services that were fully vested upon the award date. Compensation expense related to deferred compensation and other awards are included within employee compensation and benefits in the Consolidated Statements of Income. Partnership Interest in Holdings, Holdings II and Management LLC Various individuals, including current and former employees of the Company (“Recipients”), have been awarded partnership interests in Holdings, Holdings II and Management LLC. These partnership interests grant the Recipients the right to certain cash distributions of profits from Holdings, Holdings II and Management LLC to the extent such distributions are authorized and pursuant to the terms of their respective agreements. A partnership interest award is accounted for based on its substance. A partnership interest award that is in substance a profit-sharing arrangement or performance bonus would generally not be within the scope of the stock-based compensation guidance and would be accounted for under the guidance for deferred compensation plans, similar to a cash bonus. However, if the arrangement has characteristics more akin to the risks and rewards of equity ownership, the arrangement would be accounted for under stock-based compensation guidance. The Company analyzes awards granted to Recipients at the time they are granted or modified. Awards that are in substance a profit-sharing arrangement in which rights to distributions of profits are |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Business Combination | 3. Business Combination On November 17, 2020, the Company consummated a business combination pursuant to the definitive Transaction Agreement dated as of August 2, 2020, by and among CFAC, IntermediateCo, CF Finance Holdings, LLC (the “CF Sponsor”), Holdings, Management LLC, Holdings II, GCMH GP, L.L.C (“GCMHGP LLC”), GCM V, LLC (“GCM V”) and the Company (the “Transaction”). The Transaction was treated as a transaction between entities under common control. In connection with the Transaction Agreement: • CFAC merged with and into GCMG, upon which the separate corporate existence of CFAC ceased and GCMG became the surviving entity; • GCMH cancelled its ownership of the 100 shares of common stock of GCMG; • Each share of CFAC common stock was converted into one share of the GCMG’s Class A common stock, and each whole warrant of CFAC was converted into one warrant of the GCMG; • GCMG received $120.4 million remaining in CFAC’s trust account (the “Trust Account”) following redemptions made in connection with CFAC’s special meeting of stockholders relating to the transactions contemplated by the Transaction Agreement; • Qualified institutional buyers and accredited investors (“PIPE Investors”) purchased 19,500,000 shares of the GCMG’s Class A common stock at $10.00 per share; • The CF Sponsor purchased 3,500,000 shares of the GCMG’s Class A common stock and 1,500,000 of the GCMG's warrants for an aggregate price equal to $30.0 million pursuant to a forward purchase contract; • The CF Sponsor terminated, forfeited and cancelled, for no consideration, 2,351,534 shares of the GCMG’s Class A common stock and 150,000 of the GCMG’s warrants; • GCMG issued 900,000 warrants to purchase Class A common stock to Holdings; • Holdings assigned, and IntermediateCo assumed, all right, title and interest in and to the Option Agreement, dated as of October 5, 2017, by and among Holdings and HCFP VI AIV, L.P., H&F Chicago AIV I, L.P. and Hellman & Friedman Capital Executives VI, L.P (the “H&F Parties”) in exchange for consideration of $110.2 million, minus the purchase price payable to the H&F Parties by IntermediateCo under the Option Agreement in the Option Conveyance. • Immediately following the Option Conveyance, IntermediateCo consummated the exercise of certain options to purchase all of the Class B-2 common units of GCMH then held by certain investors; • GCMHGP LLC sold all of the outstanding equity interests of GCMH then held by it, including the general partnership and limited partnership interests, to IntermediateCo for $1.5 million and Holdings sold all of the outstanding equity interests of GCM LLC to IntermediateCo for $1.00; • GCMH was redomiciled as a limited liability limited partnership in the State of Delaware and its Limited Liability Limited Partnership Agreement was amended and restated to, among other things, reconstitute all previous classes of partnership interest to economically equivalent common units; • GCMH issued to IntermediateCo 28,316,895 Grosvenor common units and 23,893,809 warrants for Grosvenor common units, in each case in exchange for $227.7 million; • GCMG issued 144,235,246 shares of GCMG’s Class C common stock to GCM V. |
Mosaic Transaction
Mosaic Transaction | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Mosaic Transaction | Mosaic Transaction Effective January 1, 2020 (the “Effective Date”), the Partnership and several subsidiaries, (collectively, the “Seller”) entered into a Purchase and Sale Agreement (“Agreement”) and issued certain limited partnership interests in several subsidiaries (“Carry Plan Entities”) to Mosaic Acquisitions 2020, L.P. (“Mosaic”). In addition, Mosaic also acquired the rights to receive a percentage of carried interest from certain GCM Funds and agreed to provide additional funding under certain circumstances up to a maximum amount as defined in the Agreement (collectively, the “Mosaic Transaction”). Mosaic issued Class A and Class B equity interests to GCMH, Holdings and Mosaic Feeder, L.P. (“Mosaic Feeder”). The Partnership serves as the general partner of Mosaic, which was consolidated as the Partnership holds a controlling financial interest in Mosaic. Mosaic Feeder is beneficially owned by Lakeshore Investments GP, LLC (“Lakeshore”), a related party, and an unaffiliated third-party investor (“Mosaic Counterparty”) and is not consolidated. The Carry Plan Entities serve as general partners of, or are special limited partners in, certain of the GCM Funds. The consideration transferred by Mosaic Counterparty to the Seller for the interests acquired was $125.4 million. In addition, the Seller received an additional $48.0 million to fund future investment commitments. Additionally, the Seller could be required to pay additional amounts as long as Mosaic Feeder has an ownership interest in the transferred interests (“Potential Payments”) based on cash flow up to the relevant dates as defined in the Agreement that could total up to a maximum of $19.9 million, which is broken down as a maximum of $4.9 million on December 31, 2020, $7.5 million on December 31, 2021 and $7.5 million on December 31, 2022. GCMH made a payment of $4.9 million on December 31, 2020. Such amounts can be reduced (not below zero) by exceeding certain cumulative distribution thresholds at each relevant date. In addition, any such amounts paid to Mosaic will also reduce, on a dollar-for-dollar basis, the purchase price payable upon exercise of the Put Option. Additionally, the Agreement provided for a Recall Amount whereby beginning January 1, 2023, the Partnership could recall from Mosaic $15.1 million plus any Potential Payments that were made in previous periods. There were no contractual restrictions to the Partnership’s ability to recall the payments, other than if a Triggering Event as defined in the Agreement occurs, which management had deemed to be remote, and the credit risk associated with Mosaic’s ability to recall the distributions from Mosaic Counterparty. Effective December 31, 2020, the Partnership forfeited its rights to the Recall Amount. In addition, as part of the Mosaic Transaction, Holdings purchased an option from Mosaic Feeder for $2.6 million, payable December 31, 2020, for the right, but not the obligation, to require Mosaic Feeder to sell to Holdings all of the Class A and Class B equity interests held by Mosaic Feeder in Mosaic (the “Mosaic Call Right”) for a purchase price equal to the greater of 1.3x its investment or a 12% IRR on its investment (the “Call Price”). Prior to the closing of the Transaction, the Mosaic Call Right and payment obligation due December 31, 2020 was transferred from Holdings to the Company. On December 31, 2020, the Company paid $2.6 million to Mosaic Feeder. Further, Mosaic Counterparty had the right, but not the obligation, to require the Partnership to acquire all of the Class A and Class B Interests held by Mosaic Feeder in Mosaic (the “Put Option”) for a purchase price equal to Mosaic Counterparty receiving the greater of 1.3x of its investment or a 12% IRR on its investment (the “Put Price”). The Put Option could only be exercised if a Triggering Event as defined in the Agreement occurs, which management had deemed to be remote. If the Partnership declines to pay the Put Price, Mosaic Counterparty may either step in and act as the general partner of Mosaic and control Mosaic until Mosaic Counterparty recoups the Put Price or effect a transfer of the underlying assets of Mosaic to Mosaic Counterparty. The Carry Plan Entities had historically been accounted for as VIEs and were consolidated by the Partnership prior to the Mosaic Transaction as the Partnership was deemed the primary beneficiary through its controlling financial interests in the Carry Plan Entities. Management determined that the Mosaic Transaction should be evaluated under the guidance in ASC 810 and concluded that Mosaic is accounted for as a VIE and the Partnership was deemed the primary beneficiary and therefore consolidates Mosaic. In addition, the Partnership concluded that the Put Option was embedded in an equity host contract but did not meet the net settlement criterion of an embedded derivative and therefore no separate accounting was required. However, as the Put Option was not solely within the control of the Partnership, the noncontrolling interest related to Mosaic had been classified as mezzanine equity. The total assets of Mosaic was $101.4 million as of December 31, 2020 and was recorded within cash and cash equivalents and investments in the Consolidated Statements of Financial Condition. Mosaic had no liabilities as of December 31, 2020. The assets of Mosaic may only be used to settle obligations of Mosaic, if any. In addition, there was no recourse to the Partnership for Mosaic’s liabilities, except for certain entities in which there could be a clawback of previously distributed carried interest. The Company consolidates certain VIEs in which it is determined that the Company is the primary beneficiary as discussed in Note 2. The Company holds variable interests in certain entities that are VIEs, which are not consolidated, as it is determined that the Company is not the primary beneficiary. The Company’s involvement with such entities is generally in the form of direct equity interests in, and fee arrangements with, the entities in which it also serves as the general partner or managing member. The Company evaluated its variable interests in the VIEs and determined it is not considered the primary beneficiary of the entities primarily because it does not have interests in the entities that could potentially be significant. No reconsideration events occurred during the year ended December 31, 2020 which caused a change in the Company’s consolidation conclusions. As of December 31, 2020, the total unfunded commitments from the limited partners and general partners to the unconsolidated VIEs are $32.8 million. These commitments are the primary source of financing for the unconsolidated VIEs. The following table sets forth certain information regarding the VIEs in which the Company holds a variable interest but does not consolidate. The assets recognized on the Company’s Consolidated Statements of Financial Condition related to the Company’s interests in and management, incentive fees and third party costs receivables from these non-consolidated VIEs and the Company’s maximum exposure to loss relating to non-consolidated VIEs as of December 31, 2020 and 2019 were as follows: As of December 31, 2020 2019 Investments $ 77,511 $ 77,927 Receivables 14,322 9,135 Maximum exposure to loss $ 91,833 $ 87,062 The above table includes investments in VIEs which are owned by noncontrolling interest holders of approximately $77.4 million and $55.9 million as of December 31, 2020 and 2019, respectively. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue For the years ended December 31, 2020, 2019 and 2018, revenues consisted of the following: Year Ended December 31, Management fees 2020 2019 2018 Management fees $ 302,339 $ 318,008 $ 311,456 Fund expense reimbursement revenue 8,406 6,708 4,142 Total management fees $ 310,745 $ 324,716 $ 315,598 Year Ended December 31, Incentive fees 2020 2019 2018 Performance fees $ 52,726 $ 14,413 $ 3,111 Carried interest 58,924 69,752 53,948 Total incentive fees $ 111,650 $ 84,165 $ 57,059 The Company recognized revenues of $3.6 million and $1.8 million during the years ended December 31, 2020 and 2019, respectively, that were previously received and deferred as of December 31, 2019 and 2018, respectively. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | 6. Investments Investments consist of the following: As of December 31, 2020 2019 Equity method investments $ 165,095 $ 154,900 Other investments 1,178 4,458 Total investments $ 166,273 $ 159,358 As of December 31, 2020 and 2019, the Company held investments of $166.3 million and $159.4 million, respectively, of which $161.9 million and $95.7 million were owned by noncontrolling interest holders, respectively. Future net income (loss) and cash flow from investments held by noncontrolling interest holders will not be attributable to the Company. Equity method investments The summarized financial information of the Company’s equity method investments is as follows: As of December 31, 2020 2019 Total Assets $ 30,860,617 $ 28,594,587 Total Liabilities $ 2,228,078 $ 1,324,162 Total Equity $ 28,632,539 $ 27,270,425 Year Ended December 31, 2020 2019 2018 Investment income $ 71,613 $ 144,667 $ 115,640 Expenses 249,401 218,037 200,914 Net investment income (loss) (177,788) (73,370) (85,274) Net realized and unrealized gain 2,423,252 2,055,007 1,465,984 Net income $ 2,245,464 $ 1,981,637 $ 1,380,710 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Measurements The following table summarizes the Company’s assets and liabilities measured at fair value as of December 31, 2020 and 2019: Fair Value of Assets (Liabilities) as of December 31, 2020 Level 1 Level 2 Level 3 Total Money market funds $ 149,553 $ — $ — $ 149,553 Interest rate derivatives — (28,442) — (28,442) Total $ 149,553 $ (28,442) $ — $ 121,111 Fair Value of Assets (Liabilities) as of December 31, 2019 Level 1 Level 2 Level 3 Total Money market funds $ 45,209 $ — $ — $ 45,209 Interest rate derivatives — (14,990) — (14,990) Total $ 45,209 $ (14,990) $ — $ 30,219 Money market funds are valued using quoted market prices and are included in cash and cash equivalents on the Consolidated Statements of Financial Condition. Management determines the fair value of its interest rate derivative agreements based on the present value of expected future cash flows based on observable future LIBOR rates applicable to each swap contract using linear interpolation, inclusive of the risk of non-performance, using a discount rate appropriate for the duration. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets, net consist of the following: As of December 31, 2020 Gross carrying amount Accumulated amortization Net carrying amount Subject to amortization: Investment management contracts $ 36,190 $ (35,756) $ 434 Customer relationships 23,518 (15,364) 8,154 Technology 2,030 (2,030) — Other 620 (620) — $ 62,358 $ (53,770) $ 8,588 As of December 31, 2019 Gross carrying amount Accumulated amortization Net carrying amount Subject to amortization: Investment management contracts $ 36,190 $ (30,648) $ 5,542 Customer relationships 23,518 (13,258) 10,260 Technology 2,030 (1,740) 290 Other 620 (620) — $ 62,358 $ (46,266) $ 16,092 Amortization expense of $7.5 million, $7.8 million and $7.8 million was recognized for the years ended December 31, 2020, 2019 and 2018, respectively. The following approximates the estimated amortization expense relating to intangible assets: Year Ended December 31, 2021 $ 2,333 2022 2,316 2023 1,313 2024 1,313 2025 1,313 Thereafter — |
Equity
Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Equity | Equity Subsequent to the Transaction as described in Note 3, the Company had one class of preferred stock authorized, three classes of common stock authorized: Class A common stock, Class B common stock and Class C common stock, and warrants. Holders of Class A common stock and Class C common stock vote together as a single class on all matters submitted to the stockholders for their vote or approval, except as required by applicable law. Preferred Stock The Company has been authorized to issue 100,000,000 shares of preferred stock with a par value of $0.0001 per share. Voting and other rights and preferences may be determined from time to time by the Company’s Board of Directors. As of December 31, 2020, there were no shares of preferred stock issued or outstanding. Class A Common Stock Holders of Class A common stock are entitled to one vote for each share on all matters submitted to the stockholders for their vote or approval. Additionally, holders of shares of Class A common stock are entitled to receive dividends as and if declared by the Board of Directors out of legally available funds. Class B Common Stock Holders of Class B common stock are not entitled to any votes on any matter that is submitted to a vote by the Company’s stockholders, except as required by Delaware law. Del aware law would permit holders of Class B common stock to vote, with one vote per share, on a matter if it were to (i) change the par value of the Class B common stock or (ii) amend the Charter to alter the powers, preferences, or special rights of the Class B common stock as a whole in a way that would adversely affect the holders of Class B common stock. Holders of shares of Class B common stock are entitled to receive dividends as and if declared by the Board of Directors out of legally available funds. As of December 31, 2020, no shares of Class B common stock have been issued. Class C Common Stock Holders of Class C common stock are entitled to carry up to 10 votes per share and represent no more than 75% of the voting power of the total voting stock. Holders of Class C common stock do not have any right to receive dividends other than stock dividends consisting of shares of Class C common stock, paid proportionally with respect to each outstanding share of Class C common stock. Shares of Class C common stock are cancelled upon a sale or transfer of Class A common stock received as a result of any redemption or exchange of GCMH common units outstanding to any person that is not the Chairman of the Board and Chief Executive Officer of the Company or GCMH Equityholders (or affiliate or owner) as of November 17, 2020. Additionally, shares of Class C common stock are cancelled if there happens to be a redemption or exchange of a common unit for cash. The GCMH Equityholders may from time to time cause GCMH to redeem any or all of their GCMH common units in exchange, at the Company’s election, for either cash (based on the market price for a share of the Class A common stock) or shares of Class A common stock. Shares of Class A common stock, Class B common stock and Class C common stock are not subject to any conversion right. Shares of Common Stock Outstanding The following table shows a rollforward of the common stock outstanding since the Transaction, as defined in Note 3: Class A common stock Class B common stock Class C common stock November 17, 2020 Issuance of common stock pursuant to the Transaction 39,914,862 — 144,235,246 Exercise of warrants 920,231 — — December 31, 2020 40,835,093 — 144,235,246 Redeemable Warrants Public Warrants Each public warrant entitles the registered holder to purchase one share of Class A common stock at a price of $11.50 per share, subject to adjustment. A warrant holder may exercise its warrants only for a whole number of shares of Class A common stock. This means that only a whole warrant may be exercised at any given time by a warrant holder. The warrants will expire 5 years after the consummation of the Transaction, or earlier upon redemption or liquidation. Once the warrants become exercisable, the Company may call the warrants for redemption: • in whole and not in part; • at a price of $0.01 per warrant; • upon not less than 30 days’ prior written notice of redemption to each warrant holder; and • if, the last reported sale price of the Class A common stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending three trading days before the Company sends the notice of redemption to the warrant holders. Warrant holders do not have the rights or privileges of holders of Class A common stock and any voting rights until they exercise their warrants and receive shares of Class A common stock. After the issuance of shares of Class A common stock upon exercise of the warrants, each holder will be entitled to one vote for each share held of record on all matters to be voted on by stockholders. As of December 31, 2020 the Company had 21,473,567 shares of public warrants outstanding. Private Placement Warrants The private placement warrants (including the Class A common stock issuable upon exercise of the private placement warrants) will not be redeemable by the Company so long as they are held by CFAC or its permitted transferees. CFAC, or its permitted transferees, have the option to exercise the private placement warrants on a cashless basis. If holders of the private placement warrants elect to exercise them on a cashless basis, they would calculate the exercise price by dividing (x) the number of shares of Class A common stock underlying the warrants, multiplied by the difference between the exercise price of the warrants and the “fair market value” (defined below) by (y) the average volume weighted average last reported sale price of the Class A common stock for the 10 trading days ending on the third trading day prior to the date on which the notice of warrant exercise is sent to the warrant agent (the “fair market value”). As of December 31, 2020 the Company had 1,500,000 shares of private placement warrants outstanding. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Mosaic Transaction Effective January 1, 2020 (the “Effective Date”), the Partnership and several subsidiaries, (collectively, the “Seller”) entered into a Purchase and Sale Agreement (“Agreement”) and issued certain limited partnership interests in several subsidiaries (“Carry Plan Entities”) to Mosaic Acquisitions 2020, L.P. (“Mosaic”). In addition, Mosaic also acquired the rights to receive a percentage of carried interest from certain GCM Funds and agreed to provide additional funding under certain circumstances up to a maximum amount as defined in the Agreement (collectively, the “Mosaic Transaction”). Mosaic issued Class A and Class B equity interests to GCMH, Holdings and Mosaic Feeder, L.P. (“Mosaic Feeder”). The Partnership serves as the general partner of Mosaic, which was consolidated as the Partnership holds a controlling financial interest in Mosaic. Mosaic Feeder is beneficially owned by Lakeshore Investments GP, LLC (“Lakeshore”), a related party, and an unaffiliated third-party investor (“Mosaic Counterparty”) and is not consolidated. The Carry Plan Entities serve as general partners of, or are special limited partners in, certain of the GCM Funds. The consideration transferred by Mosaic Counterparty to the Seller for the interests acquired was $125.4 million. In addition, the Seller received an additional $48.0 million to fund future investment commitments. Additionally, the Seller could be required to pay additional amounts as long as Mosaic Feeder has an ownership interest in the transferred interests (“Potential Payments”) based on cash flow up to the relevant dates as defined in the Agreement that could total up to a maximum of $19.9 million, which is broken down as a maximum of $4.9 million on December 31, 2020, $7.5 million on December 31, 2021 and $7.5 million on December 31, 2022. GCMH made a payment of $4.9 million on December 31, 2020. Such amounts can be reduced (not below zero) by exceeding certain cumulative distribution thresholds at each relevant date. In addition, any such amounts paid to Mosaic will also reduce, on a dollar-for-dollar basis, the purchase price payable upon exercise of the Put Option. Additionally, the Agreement provided for a Recall Amount whereby beginning January 1, 2023, the Partnership could recall from Mosaic $15.1 million plus any Potential Payments that were made in previous periods. There were no contractual restrictions to the Partnership’s ability to recall the payments, other than if a Triggering Event as defined in the Agreement occurs, which management had deemed to be remote, and the credit risk associated with Mosaic’s ability to recall the distributions from Mosaic Counterparty. Effective December 31, 2020, the Partnership forfeited its rights to the Recall Amount. In addition, as part of the Mosaic Transaction, Holdings purchased an option from Mosaic Feeder for $2.6 million, payable December 31, 2020, for the right, but not the obligation, to require Mosaic Feeder to sell to Holdings all of the Class A and Class B equity interests held by Mosaic Feeder in Mosaic (the “Mosaic Call Right”) for a purchase price equal to the greater of 1.3x its investment or a 12% IRR on its investment (the “Call Price”). Prior to the closing of the Transaction, the Mosaic Call Right and payment obligation due December 31, 2020 was transferred from Holdings to the Company. On December 31, 2020, the Company paid $2.6 million to Mosaic Feeder. Further, Mosaic Counterparty had the right, but not the obligation, to require the Partnership to acquire all of the Class A and Class B Interests held by Mosaic Feeder in Mosaic (the “Put Option”) for a purchase price equal to Mosaic Counterparty receiving the greater of 1.3x of its investment or a 12% IRR on its investment (the “Put Price”). The Put Option could only be exercised if a Triggering Event as defined in the Agreement occurs, which management had deemed to be remote. If the Partnership declines to pay the Put Price, Mosaic Counterparty may either step in and act as the general partner of Mosaic and control Mosaic until Mosaic Counterparty recoups the Put Price or effect a transfer of the underlying assets of Mosaic to Mosaic Counterparty. The Carry Plan Entities had historically been accounted for as VIEs and were consolidated by the Partnership prior to the Mosaic Transaction as the Partnership was deemed the primary beneficiary through its controlling financial interests in the Carry Plan Entities. Management determined that the Mosaic Transaction should be evaluated under the guidance in ASC 810 and concluded that Mosaic is accounted for as a VIE and the Partnership was deemed the primary beneficiary and therefore consolidates Mosaic. In addition, the Partnership concluded that the Put Option was embedded in an equity host contract but did not meet the net settlement criterion of an embedded derivative and therefore no separate accounting was required. However, as the Put Option was not solely within the control of the Partnership, the noncontrolling interest related to Mosaic had been classified as mezzanine equity. The total assets of Mosaic was $101.4 million as of December 31, 2020 and was recorded within cash and cash equivalents and investments in the Consolidated Statements of Financial Condition. Mosaic had no liabilities as of December 31, 2020. The assets of Mosaic may only be used to settle obligations of Mosaic, if any. In addition, there was no recourse to the Partnership for Mosaic’s liabilities, except for certain entities in which there could be a clawback of previously distributed carried interest. The Company consolidates certain VIEs in which it is determined that the Company is the primary beneficiary as discussed in Note 2. The Company holds variable interests in certain entities that are VIEs, which are not consolidated, as it is determined that the Company is not the primary beneficiary. The Company’s involvement with such entities is generally in the form of direct equity interests in, and fee arrangements with, the entities in which it also serves as the general partner or managing member. The Company evaluated its variable interests in the VIEs and determined it is not considered the primary beneficiary of the entities primarily because it does not have interests in the entities that could potentially be significant. No reconsideration events occurred during the year ended December 31, 2020 which caused a change in the Company’s consolidation conclusions. As of December 31, 2020, the total unfunded commitments from the limited partners and general partners to the unconsolidated VIEs are $32.8 million. These commitments are the primary source of financing for the unconsolidated VIEs. The following table sets forth certain information regarding the VIEs in which the Company holds a variable interest but does not consolidate. The assets recognized on the Company’s Consolidated Statements of Financial Condition related to the Company’s interests in and management, incentive fees and third party costs receivables from these non-consolidated VIEs and the Company’s maximum exposure to loss relating to non-consolidated VIEs as of December 31, 2020 and 2019 were as follows: As of December 31, 2020 2019 Investments $ 77,511 $ 77,927 Receivables 14,322 9,135 Maximum exposure to loss $ 91,833 $ 87,062 The above table includes investments in VIEs which are owned by noncontrolling interest holders of approximately $77.4 million and $55.9 million as of December 31, 2020 and 2019, respectively. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment A summary of premises and equipment as of December 31, 2020 and 2019 is as follows: As of December 31, Estimated Useful Lives 2020 2019 Furniture, fixtures and leasehold improvements $ 36,614 $ 35,656 3 – 7 years Office equipment 994 967 5 years Computer equipment and software 17,868 17,447 3 – 5 years Aircraft 3,100 3,100 5 years Premises and equipment, at cost 58,576 57,170 Accumulated depreciation and amortization (50,706) (48,299) Premises and equipment, net $ 7,870 $ 8,871 In August 2019, the Company acquired a 12.5% interest in an aircraft which is being amortized over five years. Total depreciation and amortization expense related to premises and equipment of $2.3 million, $2.5 million and $3.9 million was recognized for the years ended December 31, 2020, 2019 and 2018, respectively. |
Employee Compensation and Benef
Employee Compensation and Benefits | 12 Months Ended |
Dec. 31, 2020 | |
Compensation Related Costs [Abstract] | |
Employee Compensation and Benefits | Employee Compensation and Benefits For the years ended December 31, 2020, 2019 and 2018, employee compensation and benefits consisted of the following: Year Ended December 31, 2020 2019 2018 Cash-based employee compensation and benefits $ 165,829 $ 169,862 $ 157,351 Partnership interest-based compensation 172,358 30,233 19,495 Carried interest compensation 34,260 38,842 31,780 Cash-based incentive fee related compensation 11,454 — — Other 4,564 4,030 1,788 Total employee compensation and benefits $ 388,465 $ 242,967 $ 210,414 Partnership Interest in Holdings, Holdings II and Management LLC Payments to the employees for partnership interest awards are made by Holdings, Holdings II and Management LLC. As a result, the Company records a non-cash profits interest compensation charge and an offsetting deemed contribution to stockholders' equity/partners’ and member’s capital (deficit) to reflect the payments made by the GCMH Equityholders. As the payments are made by Holdings, Holdings II and Management LLC the expense that is pushed down to GCMH and the offsetting deemed contribution are each attributed solely to noncontrolling interest in GCMH. Any liability related to the awards is recognized at Holdings, Holdings II or Management LLC as Holdings, Holdings II or Management LLC is the party responsible for satisfying the obligation, and is not shown in the Company’s consolidated financial statements. The Company has recorded deemed contributions to stockholders' equity/partners’ and member’s capital (deficit) from Holdings, Holdings II and Management LLC of approximately $172.4 million, $30.2 million and $19.5 million for the years ended December 31, 2020, 2019 and 2018, respectively, for partnership interested-based compensation expense which will ultimately be paid by Holdings, Holdings II or Management LLC. The Company has modified awards to certain individuals upon their voluntary retirement or intention to retire as employees. These awards generally include a stated target amount that upon payment terminates the recipient’s rights to future distributions and allows for a lump sum buy-out of the awards, at the discretion of the managing member of Holdings, Holdings II, and Management LLC. The awards are accounted for as partnership interest-based compensation at the fair value of these expected future payments, in the period the employees accepted the offer. Partnership interest-based compensation expense of $46.9 million, $16.3 million and $0.0 million was recognized for the years ended December 31, 2020, 2019 and 2018, respectively, related to award modifications. The liability associated with awards that contain a stated target has been retained by Holdings at December 31, 2020 and 2019, respectively, and is re-measured at each reporting date, with any corresponding changes in liability being reflected as compensation expense of the Company. Certain recipients had unvested stated target payments of $12.3 million and $6.9 million for the years ended December 31, 2019 and 2018, respectively, which has not been reflected as compensation expense by the Company. For the year ended December 31, 2020, the Company had no unvested stated target payments. The Company recognized partnership interest-based compensation expense of $125.5 million, $13.9 million and $16.8 million for the years ended December 31, 2020, 2019 and 2018, respectively, related to profits interest awards that are in substance profit-sharing arrangements. The Company has determined that in-substance equity awards represent equity-based awards in accordance with stock-based compensation guidance. The Company records equity-based compensation expense over the requisite service period equal to the fair value at the grant date and the fair value is not remeasured unless the award is modified. In 2014, the Company granted equity awards that require a five Other Other consists of compensation expense related to deferred compensation programs and other awards that represent investments made in GCM Funds on behalf of the employees. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt The table below summarizes the outstanding debt balance as of December 31, 2020 and 2019. As of December 31, 2020 2019 Senior loan $ 340,259 $ 431,454 Credit facility — 25,000 Less debt issuance costs (5,104) (7,954) Total debt $ 335,155 $ 448,500 Maturities of debt for the next five years and thereafter are as follows: Year Ended December 31, 2021 $ — 2022 — 2023 — 2024 — 2025 340,259 Thereafter — Total $ 340,259 Senior Loan On January 2, 2014, the Company entered into a $460 million senior secured term loan facility (“Senior Loan”) due January 2, 2021, which was subsequently amended through a debt modification to extend approximately $281.6 million of aggregate principal amount of Senior Loan to a separate tranche with a maturity date of August 18, 2023 (the “2023 Term Loans”). The 2023 Term Loans had an interest rate for Eurodollar Rate Loans (“Euro Loans”) of 3% over LIBOR, subject to a 1.0% LIBOR floor. The remaining $133.0 million aggregate principal amount of original Senior Loan (“Initial Term Loans”) retained the same terms and maturity date. On April 19, 2017, the Company completed another amendment to its Senior Loan primarily to prepay the outstanding $133.0 million of Initial Term Loans using available Partnership cash and through raising an incremental $90 million of 2023 Term Loans. Certain lenders were fully paid down and did not participate in the incremental 2023 Term Loans. The Company accounted for this portion of the prepayment as a debt extinguishment. The Company accounted for the amendment of the remaining portion of Initial Term Loans as debt modifications as the amendments were with the same lenders and the changes in terms did not cause the debt instruments to be considered “substantially different”. On August 22, 2017, the Company amended its Senior Loan to raise an incremental $100.0 million of principal amount of 2023 Term Loans. On March 29, 2018, the Company completed an amendment and extension of its Senior Loan to further extend the maturity. Approximately $466.2 million aggregate principal amount of Senior Loan was extended from a maturity date of August 18, 2023 to a maturity date of March 29, 2025, converting all of the outstanding 2023 Term Loans to “2025 Term Loans”. The 2025 Term Loans have an interest rate for Euro Loans of 2.75% over the LIBOR, subject to a 1.0% LIBOR floor. The Company accounted for the amendments of its Senior Loan as a debt modification as the amendments were with the same lenders and the changes in terms did not cause the debt instruments to be considered “substantially different”. Effective August 22, 2017 through but not including March 31, 2018, quarterly principal payments of $1.2 million were required to be made toward the 2023 Term Loans. Effective March 29, 2018, quarterly principal payments of $1.2 million are required to be made toward the 2025 Term Loans beginning June 30, 2018 (less any reduction for prior or future voluntary or mandatory prepayments of principal). For the year ended December 31, 2020, the Company offered lenders the sale proceeds from the Mosaic Transaction to make a prepayment on the principal of the outstanding Senior Loan in the amount of $91.2 million, which reduced the principal to $340.3 million as of December 31, 2020. As a result of the prepayment, the Company recorded an expense of $1.5 million related to the acceleration of deferred debt issuance costs, which is included within other income (expense) in the Consolidated Statements of Income. In addition to the scheduled principal repayments, the Company was required to offer to make prepayments of Consolidated Excess Cash Flow (“Cash Flow Payments”) no later than five days following the date the quarterly financial statements are due if the leverage ratio exceeds 2.50x. The Cash Flow Payments were calculated as defined in the Senior Loan agreement based on a percentage of calculated excess cash. During the years ended December 31, 2019 and 2018, the Company made $7.3 million and $26.3 million, respectively, of Cash Flow Payments. As a result of the Cash Flow Payments made during the years ended December 31, 2019 and 2018, quarterly principal payments for the 2025 Term Loans were no longer required. As of December 31, 2020 and 2019, $340.3 million and $431.5 million of 2025 Term Loans were outstanding with weighted average interest rates of 3.98% and 4.45%, respectively. Under the credit and guaranty agreement governing the terms of the Senior Loan, the Company must maintain certain leverage and interest coverage ratios. The credit and guaranty agreement also contains other covenants that, among other things, restrict the ability of the Company and its subsidiaries to incur debt and restrict the Company and its subsidiaries ability to merge or consolidate, or sell or convey all or substantially all of the Company’s assets. As of December 31, 2020 and 2019, the Company was in compliance with all covenants. GCMH Equityholders and IntermediateCo have executed a pledge agreement (“Pledge Agreement”) and security agreement (“Security Agreement”) with the lenders of the Senior Loan. Under the Pledge Agreement, GCMH Equityholders and IntermediateCo have agreed to secure the obligations under the Senior Loan by pledging its interests in GCMH as collateral against the repayment of the senior secured notes, and GCMH has agreed to secure the obligations under the Senior Loan by granting a security interest in and continuing lien on the collateral described in the Security Agreement. The Pledge Agreement and Security Agreement will remain in effect until such time as all obligations relating to the Senior Loan have been fulfilled. Credit Facility Concurrent with the issuance of the Senior Loan, the Company entered into a $50 million revolving credit facility (“Credit Facility”), with a maturity of January 2, 2019 and interest rate based on a spread over LIBOR, which was subsequently extended to March 29, 2023 through a series of debt modifications. Additionally, the Credit Facility carries an unused commitment fee that is paid quarterly. On November 23, 2020, the Company repaid amounts drawn on the Credit Facility, resulting in no outstanding borrowings as of December 31, 2020. Other Certain subsidiaries of the Company agree to jointly and severally guarantee, as primary obligor and not merely as surety guarantee the obligations of their parent entity, GCMH. Amortization of the deferred costs of approximately $1.3 million, $1.6 million and $1.7 million for the years ended December 31, 2020, 2019 and 2018, respectively, is included within interest expense in the Consolidated Statements of Income. Based in part on quotes received from the administrative agent of the Senior Loan, the Company’s management estimates the fair value of the Senior Loan is approximately $342.0 million and $436.3 million as of December 31, 2020 and 2019, respectively. The Senior Loan is classified as a Level 2 liability within the fair value hierarchy. |
Interest Rate Derivatives
Interest Rate Derivatives | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Interest Rate Derivatives | Interest Rate Derivatives The Company has entered into various derivative agreements with a financial institution to hedge interest rate risk related to its outstanding debt. As of December 31, 2020 and 2019, the Company had the following interest rate derivatives recorded as a derivati ve liability recorded within accrued expenses and other liabilities in the Consolidated Statements of Financial Condition: As of December 31, 2020 Derivative Notional Amount Fair Value as of December 31, 2020 Fixed Rate Paid Floating Rate Received Effective Date (3) Maturity Date Interest rate swap $ 225,000 $ (11,163) 2.48 % 1 month LIBOR (1) January 2020 February 2023 Interest rate swap 75,000 (4,654) 3.05 % 1 month LIBOR (1) January 2020 February 2023 Interest rate collar 300,000 (12,625) 3.70 % 1 month LIBOR (2) February 2023 February 2025 $ (28,442) ____________ (1) Floating rate received subject to a 0.00% Floor (2) Floating rate received subject to a 2.45% Floor (3) Represents the date at which the derivative is in effect and the Company is contractually required to begin payment of interest under the terms of the agreement. As of December 31, 2019 Derivative Notional Amount Fair Value as of December 31, 2019 Fixed Rate Paid Floating Rate Received Effective Date (4) Maturity Date Interest rate swap $ 275,000 $ (124) 2.33 % 1 month LIBOR (1) January 2014 January 2020 Interest rate swap 225,000 (6,159) 2.48 % 1 month LIBOR (2) January 2020 February 2023 Interest rate swap 75,000 (3,348) 3.05 % 1 month LIBOR (2) January 2020 February 2023 Interest rate collar 300,000 (5,359) 3.70 % 1 month LIBOR (3) February 2023 February 2025 $ (14,990) ____________ (1) Floating rate received subject to a 1.00% Floor (2) Floating rate received subject to a 0.00% Floor (3) Floating rate received subject to a 2.45% Floor (4) Represents the date at which the derivative is in effect and the Company is contractually required to begin payment of interest under the terms of the agreement. A rollforward of the amounts in accumulated other comprehensive loss related to interest rate derivatives designated as cash flow hedges as follows: Year Ended December 31, 2020 2019 Unrealized loss at beginning of period $ (6,933) $ (412) Cumulative-effect adjustment from adoption of ASU 2017-12 650 — Amount of loss recognized in other comprehensive income (loss) (9,110) (6,688) Amount reclassified from accumulated other comprehensive loss to interest expense 4,230 167 Unrealized loss at end of period (11,163) (6,933) Less: Loss attributable to noncontrolling interests in GCMH (8,743) — Unrealized loss at end of period, net $ (2,420) $ (6,933) The amount of gain (loss) related to interest rate contracts not designated as hedging instruments was recognized as follows: Year Ended December 31, 2020 2019 Other income (expense) $ (8,572) $ (5,417) On January 5, 2017, the Company entered into a forward-starting swap agreement (“3-Year Swap Agreement”) with a financial institution to hedge interest rate risk related to payments made during the extended maturity of the 2023 Term Loans that has a notional amount of $225.0 million. The 3-Year Swap Agreement has a 0.00% LIBOR floor whereas the 2023 Term Loans contain a 1.00% LIBOR floor. The swap was determined to be an effective cash flow hedge at inception using a regression analysis; however the mismatch in floor terms creates hedge ineffectiveness which prior to the adoption of ASU 2017-12 was reflected within other income (expense) in the Consolidated Statements of Income. On May 18, 2018, the Company entered into a forward-starting swap agreement (“$75 million Swap Agreement”) with a financial institution to increase the amount of principal economically hedged during the term of the 3-Year Swap Agreement that has a notional amount of $75.0 million. The $75 million Swap Agreement has a 0.00% LIBOR floor whereas the 2023 Term Loans contain a 1.00% LIBOR floor. The swap did not qualify for hedge accounting at inception due to the floor rate mismatch and as a result, all changes in fair value of the $75 million Swap Agreement are reflected within other income (expense) in the Consolidated Statements of Income. On May 18, 2018, the Company entered into a forward-starting interest rate collar (“Interest Rate Collar”) with a financial institution to economically hedge interest rate risk related to payments made during the extended maturity of the 2025 Term Loans that has a notional amount of $300 million. The Interest Rate Collar has a 0.00% LIBOR floor whereas the 2025 Term Loans contain a 1.00% LIBOR floor. The Interest Rate Collar did not qualify for hedge accounting at inception due to the floor rate mismatch and as a result, all changes in fair value of the Interest Rate Collar are reflected within other income (expense) in the Consolidated Statements of Income. The fair values of the derivatives and interest rate collar are based on observable market inputs and represent the net amount required to terminate the positions, taking into consideration market rates and non-performance risk. Refer to Note 7 for further details. |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Liabilities | Accrued Expenses and Other Liabilities A summary of accrued expenses and other liabilities as of December 31, 2020 and 2019 is as follows: As of December 31, 2020 2019 Carried interest payable $ 3,122 $ 4,422 Deferred revenue 10,033 12,443 Deferred rent 7,015 6,885 Clawback obligation 1,400 3,600 Derivative liability 28,442 14,990 Other liabilities 10,914 9,864 Total accrued expenses and other liabilities $ 60,926 $ 52,204 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases The Company has entered into operating lease agreements for office space. The Company leases office space in various countries around the world and maintains its headquarters in Chicago, Illinois, where it leases primary office space under a lease agreement expiring September 2026 with an option to terminate early between September 2022 to September 2023 subject to a termination fee. The leases contain rent escalation clauses based on increases in base rent, real estate taxes and operating expenses. The minimum annual lease commitments as of December 31, 2020 are as follows: Year Ended December 31, 2021 $ 8,975 2022 8,323 2023 6,475 2024 2,941 2025 2,900 Thereafter 2,220 $ 31,834 Rental expense under operating lease agreements was approximately $7.3 million, $6.7 million and $5.9 million for the years ended December 31, 2020, 2019 and 2018, respectively, and is included within general, administrative and other in the Consolidated Statements of Income. Commitments The Company is required to pay a fixed management fee of $0.5 million per year for a five The Company had $81.8 million and $62.1 million of unfunded investment commitments as of December 31, 2020 and 2019, respectively, representing general partner capital funding commitments to several of the GCM Funds. As of December 31, 2020, $32.1 million received in the Mosaic Transaction is available to fund such commitments. Litigation In the normal course of business, the Company may enter into contracts that contain a number of representations and warranties, which may provide for general or specific indemnifications. The Company’s exposure under these contracts is not currently known, as any such exposure would be based on future claims, which could be made against the Company. The Company’s management is not currently aware of any such pending claims and based on its experience, the Company believes the risk of loss related to these arrangements to be remote. From time to time, the Company is a defendant in various lawsuits related to its business. The Company’s management does not believe that the outcome of any current litigation will have a material effect on the Company’s consolidated financial condition or results of operations. Off-Balance Sheet Risks The Company may be exposed to a risk of loss by virtue of certain subsidiaries serving as the general partner of GCM Funds organized as limited partnerships. As general partner of a GCM Fund organized as a limited partnership, the Company’s subsidiaries that serve as the general partner have exposure to risk of loss is not limited to the amount of its investment in such GCM Fund. The Company cannot predict the amount of loss, if any, which may occur as a result of this exposure; however, historically, the Company has not incurred any significant losses and management believes the likelihood is remote that a material loss will occur. |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Parties | Related Parties In regard to the following related party disclosures, the Company’s management cannot be sure that such transactions or arrangements would be the same to the Company if the parties involved were unrelated and such differences could be material. The Company provides certain employees partnership interest awards which are paid by Holdings, Holdings II and Management LLC. Refer to Note 12 for further details. The Company has a sublease agreement with Holdings. Because the terms of the sublease are identical to the terms of the original lease, there is no impact to net income (loss) in the Consolidated Statements of Income or Consolidated Statements of Cash Flows. The Company incurs certain costs, primarily related to accounting, client reporting, investment-decision making and treasury-related expenditures, for which it receives reimbursement from the GCM Funds in connection with its performance obligations to provide investment management services. Due from related parties in the Consolidated Statements of Financial Condition includes net receivables of approximately $11.2 million and $10.0 million as of December 31, 2020 and 2019, respectively, paid on behalf of affiliated entities that are reimbursable to the Company. Our executive officers, senior professionals, and certain current and former employees and their families invest on a discretionary basis in GCM Funds, which are generally not subject to management fees and performance fees. As of December 31, 2020 and 2019, such investments and future commitments aggregated $426.7 million and $334.8 million, respectively. Certain employees of the Company have an economic interest in an entity that is the owner and landlord of the building in which the principal headquarters of the Company are located. GCMH held an investment of approximately $3.3 million as of December 31, 2019 in an entity in which the managing member is an affiliate of the managing member of Holdings. During 2020, the Company funded $1.0 million of capital contributions, and then GCMH transferred the investment to Holdings for approximately $4.3 million prior to the close of the Transaction as defined in Note 3. There was no gain or loss recorded upon the sale. The Company utilizes the services of an insurance broker to procure insurance coverage, including its general commercial package policy, workers’ compensation and professional and management liability coverage for its directors and officers. Certain members of Holdings have an economic interest in, and relatives are employed by, the Company’s insurance broker. From time to time, certain of the Company’s executive officers utilize a private business aircraft, including an aircraft wholly owned or controlled by members of Holdings. Additionally, the Company arranges for the use of the private business aircraft through a number of charter services, including entities predominantly or wholly owned or controlled by members of Holdings. The Company paid approximately $0.5 million, $3.7 million and $3.2 million for the years ended December 31, 2020, 2019 and 2018, respectively, to utilize aircraft and charter services wholly owned or controlled by members of Holdings, which is recorded within general, administrative and other expenses in the Consolidated Statements of Income. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision (benefit) for income taxes for the years ended December 31, 2020, 2019 and 2018 consist of the following: Year Ended December 31, 2020 2019 2018 Current: Federal $ 1,118 $ — $ — State and local 1,771 1,683 976 Foreign 988 635 419 Total current income taxes expense $ 3,877 $ 2,318 $ 1,395 Deferred: Federal $ 937 $ — $ — State and local (301) — — Foreign (7) — — Total deferred income taxes expense 629 — — Total income tax expense $ 4,506 $ 2,318 $ 1,395 A reconciliation of the U.S. statutory income tax rate to the Company’s effective tax rate is as follows: Year Ended December 31, 2020 2019 2018 Statutory U.S. federal income tax rate 21 % 21 % 21 % State and local income taxes (2) % 3 % 1 % Impact of noncontrolling interests (26) % (5) % (8) % Income passed through to members 2 % (16) % (13) % Foreign income taxes (1) % 1 % 1 % Other (1) % — % — % Effective income tax rate (7) % 4 % 2 % Deferred tax assets and liabilities are recorded net within deferred tax assets, net in the Consolidated Statements of Financial Condition. Details of the Company’s deferred tax assets and liabilities are as follows: As of December 31, 2020 2019 Investment in GCMH $ 103,587 $ — Loss and credit carryforwards 17 — Intangibles and other 836 126 Total deferred tax assets (before valuation allowance) 104,440 126 Valuation allowance (30,430) Total deferred tax assets $ 74,010 $ 126 Other $ (244) $ — Total deferred tax liabilities $ (244) $ — Deferred tax assets, net $ 73,766 $ 126 GCMG’s sole material asset is its investment in GCMH, which is treated as a partnership for U.S. federal income tax purposes and for purposes of certain jurisdictional income taxes. GCMH’s net taxable income and any related tax credits are passed through to its partners and are included in the partners’ tax returns, even though such net taxable income or tax credits may not have actually been distributed. While GCMG consolidates GCMH for financial reporting purposes, GCMG will be taxed on its share of earnings of GCMH not attributed to the noncontrolling interest holders, which will continue to bear their share of income tax on allocable earnings of GCMH. The income tax burden on the earnings taxed to the noncontrolling interest holders is not reported by the Company in its consolidated financial statements under GAAP. As a result, the Company’s effective tax rate differs materially from the statutory rate. The primary factors impacting the effective tax are the allocation of tax benefit to noncontrolling interest as well as the income that was passed through to the partners prior to the Transaction as described in Note 3. GCMG has recorded a valuation allowance of approximately $30.4 million related to its outside partnership basis of its investment in GCMH for the amount of the deferred tax asset that is not expected to be realized. The Company analyzes its tax filing positions in all of the U.S. federal, state, local and foreign tax jurisdictions where it is required to file income tax returns, as well for all open tax years in these jurisdictions. As of December 31, 2020, the Company has examined all open tax years and major jurisdictions and determined there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken or expected to be taken in future tax returns. The Company is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Company’s policy is to recognize interest and penalties related to unrecognized tax benefits, if any, within income taxes in the Consolidated Statements of Income. Accrued interest and penalties, if any, would be included within accrued expenses and other liabilities in the Consolidated Statements of Financial Condition. The Company is subject to taxation in the U.S. and various states and foreign jurisdictions. As of December 31, 2020, tax years for 2020, 2019, 2018 and 2017 are subject to examination by the tax authorities. With few exceptions, as of December 31, 2020, the Company is no longer subject to U.S. federal, state, local, or foreign examinations by tax authorities for years before 2017. In connection with the Transaction, the Company recorded a deferred tax asset in the amount of $74.3 million, which is net of a valuation allowance of $28.2 million related to the portion of tax benefits that is not expected to be realized. Additionally, in connection with the Transaction and recording of the deferred tax asset, the Company recorded $60.1 million within payable to related parties pursuant to the tax receivable agreement in the Consolidated Statements of Financial Condition. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share The Company calculates earnings (loss) per share in accordance with ASC 260, Earnings Per Share , which requires a dual presentation of basic and diluted earnings (loss) per share. Basic earnings (loss) per share is calculated by dividing net income attributable to GCMG by the weighted-average shares of common stock outstanding without the consideration for potential dilutive shares of common stock. Diluted earnings (loss) per share represents basic earnings (loss) per share adjusted to include the potentially dilutive effect of outstanding share option awards, non-vested share awards, common stock warrants, and performance shares. Diluted earnings (loss) per share is computed by dividing the net income by the weighted-average number of common share equivalents outstanding for the period determined using the treasury stock method and if-converted method, as applicable. During periods of net loss, diluted loss per share is equal to basic loss per share because the antidilutive effect of potential common shares is disregarded. The Company analyzed the calculation of earnings (loss) per share for periods prior to the Transaction as described in Note 3, and determined that it resulted in values that would not be meaningful to the users of the consolidated financial statements. Therefore, earnings (loss) per share information has not been presented for periods prior to the Transaction on November 17, 2020. The basic and diluted earnings (loss) per share for the year ended December 31, 2020 represents only the period of November 17, 2020 to December 31, 2020. The following is a reconciliation of basic and diluted earnings (loss) per share from continuing operations for the period November 17, 2020 through December 31, 2020 : November 17, 2020 through December 31, 2020 Numerator for earnings (loss) per share calculation: Net income attributable to GCM Grosvenor Inc. $ 7,507 Exchange of Partnership units (98,929) Net loss attributable to common stockholders, diluted (91,422) Denominator for earnings (loss) per share calculation: Weighted-average shares, basic 39,984,515 Exchange of Partnership units 144,235,246 Weighted-average shares, diluted 184,219,761 Basic EPS Net income attributable to common stockholders, basic $ 7,507 Weighted-average shares, basic 39,984,515 Net income per share attributable to common stockholders, basic $ 0.19 Diluted EPS Net loss attributable to common stockholders, diluted $ (91,422) Weighted-average shares, diluted 184,219,761 Net loss per share attributable to common stockholders, diluted $ (0.50) Shares of the Company’s Class C common stock do not participate in the earnings or losses of the Company and are therefore not participating securities. As such, separate presentation of basic and diluted earnings (loss) per share of Class C common stock under the two-class method has not been presented. The following outstanding potentially dilutive securities were excluded from the calculation of diluted earnings (loss) per share attributable to common stockholders because their impact would have been antidilutive for the period presented: As of December 31, 2020 Redeemable warrants 22,973,567 |
Regulatory and Net Capital Requ
Regulatory and Net Capital Requirements | 12 Months Ended |
Dec. 31, 2020 | |
Brokers and Dealers [Abstract] | |
Regulatory and Net Capital Requirements | Regulatory and Net Capital Requirements As a registered broker-dealer, GRV Securities LLC (“GSLLC”), a wholly-owned subsidiary of the Company, is subject to the SEC’s Uniform Net Capital Rule (“Rule 15c3-1”), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, as defined, shall not exceed 15 to 1. GSLLC is required to maintain minimum net capital equal to the greater of $5 thousand or 6 2/3 % of aggregate indebtedness, as defined. At December 31, 2020, GSLLC had net capital, as defined under Rule 15c3-1, of $1,003 thousand and excess net capital of $988 thousand. The ratio of aggregate indebtedness to net capital was .22 to 1. Although GSLLC does not claim exemption from the Rule 15c3‐3 of the Securities and Exchange Commission, it does not transact a business in securities with, or for, any person defined as a “customer” pursuant to Rule 17a‐5(c)(4) and does not carry margin accounts, credit balances, or securities for any person defined as a “customer” pursuant to Rule 17a‐5(c)(4). As a registered securities firm in Japan and in accordance with the Securities and Exchange Law, GCM Investments Japan K.K. (“GIJKK”), a wholly-owned subsidiary of the Company, is subject to the capital adequacy rule of the Financial Services Agency. This rule requires the maintenance of a capital adequacy percentage, which is defined as the percentage of adjusted capital to a quantified total of business risk, of not less than 120%. Adjusted capital is defined as net worth (which includes shareholders’ equity, net unrealized gains and losses on securities held, reserves and subordinated debts) less illiquid assets. Under this rule, there are no restrictions on the operations of GIJKK provided that the resulting net capital adequacy percentage exceeds 120%. As of December 31, 2020, the capital adequacy percentage of GIJKK was 447.1%. As a firm licensed to carry on the regulated activities of dealing in securities and advising in securities under the Securities and Futures Ordinance, GCM Investments Hong Kong Limited (“GCMHK”), a wholly-owned subsidiary of the Company, is required to maintain minimum liquid capital of HKD 3.0 million (approximately $387 thousand as of December 31, 2020). As of December 31, 2020, GCMHK had liquid capital of HKD 20.3 million (approximately $2.6 million). |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Dividends On January 4, 2021, the Company declared a quarterly dividend of $0.06 per share of Class A common stock to record holders at the close of business on March 1, 2021. The payment date will be March 15, 2021. On February 25, 2021, the Company declared a quarterly dividend of $0.08 per share of Class A common stock to record holders at the close of business on June 1, 2021. The payment date will be June 15, 2021. Credit Agreement Related On February 24, 2021, the Company entered into an amended credit agreement (“Amended Credit Agreement”), which reduced the interest rate on the Senior Loan from 2.75% over LIBOR, subject to a 1.0% LIBOR floor, to 2.50% over LIBOR, subject to a 0.50% LIBOR floor. The Amended Credit Agreement extended the maturity dates of the Senior Loan from March 29, 2025 to February 24, 2028 and the Credit Facility from March 29, 2023 to February 24, 2026. Concurrently with the effectiveness of the Amended Credit Agreement, the Company made a voluntary prepayment on the Senior Loan in an aggregate principal amount of $50.3 million. On February 24, 2021, the Company terminated all outstanding derivative instruments, which consisted of the three interest rate derivatives disclosed in Note 14. On March 1, 2021, the Company entered into a new interest rate derivative with a notional balance of $232.0 million, fixed rate paid of 1.33%, floating rate received of 1 month LIBOR with a 0.50% floor, and a termination date of February 24, 2028, to hedge interest rate risks associated with the Amended Credit Agreement. Restricted Stock Units On March 1, 2021, the Company’s board of directors approved an initial transaction award of 4.8 million restricted stock units (“RSUs”). The majority of RSUs vest in three equal installments starting on March 1, 2021. Related Party Transaction On March 11, 2021, GCMH entered into an agreement to assign 50% of its 12.5% share interest in an aircraft to Holdings, for cash consideration of approximately $1.3 million. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the accounts of the Company, its wholly-owned or majority-owned subsidiaries and entities in which the Company is deemed to have a direct or indirect controlling financial interest based on either a variable interest model or voting interest model. All intercompany balances and transactions have been eliminated in consolidation. Pursuant to the Transaction as described in Note 3, GCMG acquired approximately 22% of the common units of the Partnership. The portion of the consolidated subsidiaries not owned by GCMG and any related activity is eliminated through noncontrolling interests in the Consolidated Statements of Financial Condition and net income (loss) attributable to noncontrolling interests in the Consolidated Statements of Income. The combined financial statements of GCMH and its subsidiaries and GCM, L.L.C. (“GCM LLC”) have been determined to be the predecessor for accounting and reporting purposes for periods prior to the Transaction. The Company is an “emerging growth company” (“EGC”), as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), following the consummation of the merger of CFAC and the Company. The Company has elected to use this extended transition period for complying with new or revised accounting standards pursuant to Section 102(b)(1) of the JOBS Act that have different effective dates for public and private companies until the earlier of the date that it (i) is no longer an emerging growth company or (ii) affirmatively and irrevocably opts out of the extended transition periods provided by the JOBS Act. As result of this election, its consolidated financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Principles of Consolidation | Principles of Consolidation The Company first determines whether it has a variable interest in an entity. Fees paid to a decision maker or service provider are not deemed variable interests in an entity if (i) the fees are compensation for services provided and are commensurate with the level of effort required to provide those services; (ii) the service arrangement includes only terms, conditions, or amounts that are customarily present in arrangements for similar services negotiated at arm’s length; and (iii) the decision maker does not hold other interests in the entity that individually, or in the aggregate, would absorb more than an insignificant amount of the entity’s expected losses or receive more than an insignificant amount of the entity’s expected residual returns. The Company has evaluated its arrangements and determined that management fees, performance fees and carried interest are customary and commensurate with the services being performed and are not variable interests. For those entities in which it has a variable interest, the Company performs an analysis to determine whether the entity is a variable interest entity (“VIE’). The assessment of whether the entity is a VIE requires an evaluation of qualitative factors and, where applicable, quantitative factors. These judgments include: (a) determining whether the equity investment at risk is sufficient to permit the entity to finance its activities without additional subordinated financial support, (b) evaluating whether the equity holders, as a group, can make decisions that have a significant effect on the economic performance of the entity, and (c) determining whether the equity investors have proportionate voting rights to their obligations to absorb losses or rights to receive returns from an entity. The granting of substantive kick-out rights is a key consideration in determining whether a limited partnership or similar entity is a VIE. For entities that are determined to be VIEs, the Company consolidates those entities where it has concluded it is the primary beneficiary. The Company is determined to be the primary beneficiary if it holds a controlling financial interest which is defined as possessing (a) the power to direct the activities that most significantly impact the VIE’s economic performance and (b) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. In evaluating whether the Company is the primary beneficiary, the Company evaluates its economic interests in the entity held either directly or indirectly by the Company. The Company determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a VIE and reconsiders that conclusion continuously. At each reporting date, the Company assesses whether it is the primary beneficiary and will consolidate or deconsolidate accordingly. Refer to Note 10 for additional information on the Company’s VIEs. Entities that do not qualify as VIEs are assessed for consolidation as voting interest entities. Under the voting interest entity model, the Company consolidates those entities it controls through a majority voting interest. |
Cash and Cash Equivalents | Cash and Cash EquivalentsCash and cash equivalents consist of cash and short-term, highly liquid money market funds with original maturities of three months or less. These money market funds are managed in a way to preserve a stable value of USD 1.00 per share; however, there is no guarantee that the value will not drop below USD 1.00 per share. In circumstances when Federal Deposit Insurance Corporation insured limits are exceeded, the risk of default depends on the creditworthiness of the counterparties to each of these transactions. Interest earned on cash and cash equivalents is recorded within other income (expense) in the Consolidated Statements of Income. |
Foreign Currency Gain or Loss | Foreign Currency Gain or Loss The financial statements of the Company’s subsidiaries located in Japan, Hong Kong, the UK and South Korea are measured using the Japanese Yen, Hong Kong Dollar, British Pound and Korean Won, respectively, as the functional currency. The assets and liabilities of these subsidiaries are translated at the exchange rate prevailing at the reporting date and revenue and expenses are translated at the average monthly rates of exchange with the resulting translation adjustment included in the Consolidated Statements of Financial Condition as a component of accumulated other comprehensive loss. The Company earns fees denominated in several different foreign currencies. Corresponding transaction gains or losses are recognized in other income (expense) in the Consolidated Statements of Income. |
Management Fees and Incentive Fees Receivable | Management Fees and Incentive Fees Receivable Management fees and incentive fees receivable are equal to contractual amounts reduced for allowances, if applicable. The Company considers fees receivable to be fully collectible; accordingly, no allowance for doubtful accounts has been established as of December 31, 2020 and 2019. If accounts become uncollectible, they will be expensed when that determination is made. Amounts determined to be uncollectible are charged directly to general, administrative and other in the Consolidated Statements of Income. Management Fees Management Fees The Company earns management fees from providing investment management services to specialized funds and customized separate account clients. Specialized funds are generally structured as partnerships having multiple investors. Separate account clients may be structured using an affiliate-managed entity or may involve an investment management agreement between the Company and a single client. Certain separate account clients may have the Company manage assets both with full discretion over investments decisions as well as without discretion over investment decisions and may also receive access to various other advisory services the firm may provide as part of a single customized service which the Company has determined is a single performance obligation. The Company determined that for specialized funds, the fund is generally considered to be the customer while the individual investor or limited partner is the customer with respect to customized separate accounts. The Company satisfies its performance obligations over time as the services are rendered and the customer simultaneously receives and consumes the benefits of the services as they are performed, using the same time-based measure of progress towards completion. The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring the promised services to the customer. The Company’s management fees attributable to the GCM Funds investing in public market investments consist primarily of fees based on the net asset value of the assets managed. Fees may be calculated on a monthly or quarterly basis as of each subscription date, either in advance or arrears. Investment management fees calculated on a monthly or quarterly basis are primarily based on the assets under management at the beginning or end of such monthly or quarterly period or on average net assets. The Company’s management fees attributable to the GCM Funds investing in longer-term public market investments and private market investments are typically based on limited partner commitments to those funds during an initial commitment or investment period. Following the expiration or termination of such period, the fees generally become based on invested assets or based on invested capital and unfunded deal commitments less returned capital. Management fees are determined quarterly and are more commonly billed in advance based on the management fee rate applied to the management fee base at the end of the preceding quarterly period as defined in the respective contractual agreements. Management fees are a form of variable consideration as the basis for the management fee fluctuates over the life of the contract, therefore, management fees are constrained and not recognized until it is probable that a significant reversal will not occur. Certain operating agreements limit the expenses a fund bears to a percentage of the market value of the assets managed. The Company is required to reimburse the customer for such exceeded amounts (which the Company may be entitled to recoup in subsequent periods if expenses are sufficiently below the limit). The Company records these amounts as adjustments to the transaction price, which are reflected within management fees in the Consolidated Statements of Income. Prior to the adoption of ASC 606, such adjustments were recorded within general, administrative and other in the Consolidated Statements of Income. Certain GCM Fund agreements contain a management fee schedule that simulates the pattern of a fee based on invested capital that increases over the investment period and decreases over the life of the fund. In those circumstances the Company satisfies its performance obligations over time as the services are rendered and records as revenue the amounts it is entitled to invoice for the applicable quarter for which services have been rendered. Certain agreements contain a requirement to return management fees for commitments left unfunded at the termination of the GCM Fund’s life. The Company defers a portion of the fees collected that it views as probable of being required to return based on the Company’s investing experience and records this accrual as deferred revenue within accrued expenses and other liabilities in the Consolidated Statements of Financial Condition. Fund Expense Reimbursement Revenue The Company incurs certain costs, primarily related to accounting, client reporting, investment-decision making and treasury-related expenditures, for which it receives reimbursement from the GCM Funds in connection with its performance obligations to provide investment management services. The Company concluded it controls the services provided and resources used before they are transferred to the customer and therefore is a principal. Accordingly, the reimbursement for these costs incurred by the Company are presented on a gross basis within management fees and the related costs within general, administrative and other in the Consolidated Statements of Income with any outstanding amounts recorded within due from related parties in the Consolidated Statements of Financial Condition. Expense reimbursements are recognized at a point in time, in the periods during which the related expenses are incurred and the reimbursements are contractually earned. The Company may pay on behalf of and seek reimbursement from GCM Funds for professional fees and administrative or other fund expenses that the Company arranges for the GCM Funds. The Company concluded that the nature of its promise is to arrange for the services to be provided and it does not control the services provided by third parties before they are transferred to the customer. As a result, the Company is acting in the capacity of an agent to the GCM Funds. Accordingly, outstanding amounts related to these disbursements are recorded within due from related parties in the Consolidated Statements of Financial Condition. Incentive Fees Incentive fees consists of performance based incentive fees in the form of performance fees or incentive compensation and carried interest income. Performance Fees The Company may receive performance fees or incentive compensation from certain GCM Funds investing in public market investments. Performance fees are typically a fixed percentage of investment gains, subject to loss carryforward provisions that require the recapture of any previous losses before any performance fees can be earned in the current period. Performance fees may or may not be subject to a hurdle or a preferred return, which requires that clients earn a specified minimum return before a performance fee can be assessed. With the exception of certain GCM Funds, these performance fees are determined based upon investment performance at the end of a specified measurement period, generally the end of the calendar year. Certain GCM Funds have performance measurement periods extending beyond one year. Investment returns are highly susceptible to market factors, judgments, and actions of third parties that are outside of the Company’s control. Accordingly, performance fees are considered variable consideration and are therefore constrained and not recognized until it is probable that a significant reversal will not occur. In the event a client redeems from one of the GCM Funds prior to the end of a measurement period, any accrued performance fee is ordinarily due and payable by such redeeming client as of the date of the redemption. Carried Interest Carried interest is a performance-based capital allocation from a fund’s limited partners earned by the Company in certain GCM Funds invested in longer-term public market investments and private market investments. Carried interest is typically calculated as a percentage of the profits calculated in accordance with the terms of fund agreements at rates that range between 2.5%-20% after returning invested capital, certain fees and a preferred return to the fund’s limited partners. Carried interest is ultimately realized when underlying investments distribute proceeds or are sold and therefore carried interest is highly susceptible to market factors, judgments, and actions of third parties that are outside of the Company’s control. Accordingly, carried interest is considered variable consideration and is therefore constrained and not recognized as revenue until it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Agreements generally include a clawback provision that, if triggered, would require the Company to return up to the cumulative amount of carried interest distributed, typically net of tax, upon liquidation of those funds, if the aggregate amount paid as carried interest exceeds the amount actually due based upon the aggregate performance of each fund. The Company has defined the portion to be deferred as the amount of carried interest, typically net of tax, that the Company would be required to return if all remaining investments had no value as of the end of each reporting period. For the years ended December 31, 2020 and December 31, 2019, deferred revenue relating to constrained realized carried interest of approximately $8.5 million and $11.2 million respectively, was recorded within accrued expenses and other liabilities in the Consolidated Statements of Financial Condition. |
Due From Related Parties | Due from Related Parties Due from related parties includes amounts receivable from the Company’s existing partners, employees, and nonconsolidated funds. Refer to Note 17 for further disclosure of transactions with related parties. |
Fair Value Measurements | Fair Value Measurements The Company categorizes its fair value measurements according to a three-level hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are defined as follows: • Level 1 – Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date; • Level 2 – Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active; and • Level 3 – Inputs that are unobservable. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The carrying amount of cash and cash equivalents and fees receivable approximate fair value due to the immediate or short-term maturity of these financial instruments. |
Investments | Investments Investments primarily consist of investments in GCM Funds and other funds the Company does not control, but is deemed to exert significant influence, and are accounted for using the equity method of accounting. Under the equity method of accounting, the Company records its share of the underlying income or loss of such entities, which reflects the net asset value of such investments. Management believes the net asset value of the funds is representative of fair value. The resulting unrealized gains and losses are included as investment income in the Consolidated Statements of Income. The Company’s investments in the GCM Funds investing in private equity, real estate and infrastructure (“GCM PEREI Funds”) are valued based on the most recent available information which typically has a delay of up to three months due to the timing of financial information received from the investments held by the GCM PEREI Funds. The Company records its share of capital contributions to and distributions from the GCM PEREI Funds within investments in the Consolidated Statements of Financial Condition during the three-month lag period. To the extent that management is aware of material events that affect the GCM PEREI Funds during the intervening period, the impact of the events would be disclosed in the notes to the consolidated financial statements. |
Premises and Equipment | Premises and Equipment Premises and equipment and aircraft-related assets are recorded at cost less accumulated depreciation and amortization. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets ranging from three |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Finite-lived intangible assets primarily consist of investment management contracts, investor relationships, technology and trade name. These assets are amortized on a straight-line basis over their respective useful lives, ranging from 2 to 12 years. Intangible assets are reviewed for impairment whenever events or changes in circumstances suggest that the asset’s carrying value may not be recoverable. An impairment loss, calculated as the difference between the estimated fair value and the carrying value of the asset, is recognized if the sum of the estimated undiscounted cash flows relating to the asset is less than the corresponding carrying value. The Company has not recognized any impairment in the periods presented. Goodwill is reviewed for impairment at least annually at the reporting unit level utilizing a qualitative or quantitative approach, and more frequently if circumstances indicate impairment may have occurred. The impairment testing for goodwill under the qualitative approach is based first on a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its respective carrying value. If it is determined that it is more likely than not that the reporting unit’s fair value is less than its carrying value or when the quantitative approach is used, a two-step quantitative assessment is performed to (a) calculate the fair value of the reporting unit and compare it to its carrying value, and (b) if the carrying value exceeds its fair value, to measure an impairment loss. The amount of impairment is calculated as the excess of the carrying value of goodwill over its implied fair value. |
Noncontrolling Interest | Redeemable Noncontrolling Interest Noncontrolling interest related to certain limited partnership interests are subject to redemptions by third party investors. As these interests are redeemable upon the occurrence of an event that is not solely within the control of the Company, amounts relating to third party interests in such consolidated entities are classified within the mezzanine section as redeemable noncontrolling interest in the Consolidated Statements of Financial Condition. Noncontrolling Interests For entities that are consolidated, but not 100% owned, a portion of the income or loss and equity is allocated to owners other than the Company. The aggregate of the income or loss and corresponding equity that is not owned by the Company is included within noncontrolling interests in the consolidated financial statements. Noncontrolling interests is presented as a separate component of equity (deficit) in the Consolidated Statements of Financial Condition. Net income includes the net income attributable to the holders of noncontrolling interests in the Consolidated Statements of Income. Profits and losses, other than profit interest expense, are allocated to noncontrolling interest in proportion to their relative ownership interests regardless of their basis. |
Revenue Recognition | Revenue Recognition On January 1, 2019, the Company adopted Accounting Standard Codification (“ASC”) 606, Revenue from Contracts with Customers , using the modified retrospective method and applied the guidance only to contracts that were not completed as of that date. As a result, prior period amounts continue to be reported under legacy GAAP. The adoption did not change the historical pattern of recognizing revenue for management fees, administrative fees or incentive fees, except for classification changes described further below. The Company recorded a cumulative-effect decrease to total partners’ deficit attributable to GCMH and an increase to noncontrolling interest of $10.4 million and $1.5 million, respectively, related to a change in the Company’s recognition of carried interest subject to potential repayment (“clawback”). Prior to the adoption of ASC 606, the Company deferred the recognition of revenue for all realized carried interest subject to clawback (typically for carried interest calculated under a deal-by-deal or, American waterfall) until the earlier of the termination of the related fund or the point at which repayment of any of the distributed carried interest could no longer occur. Under ASC 606, realized carried interest is considered variable consideration and is therefore constrained and not recognized until it is probable that a significant reversal will not occur. The Company has defined the portion to be deferred as the amount of carried interest, typically net of tax, that the Company would be required to return if there were no remaining investments at the assessment date. The adjustment also resulted in a net increase in incentive fees receivable of $1.3 million and decrease to deferred revenue, recorded within accrued expenses and other liabilities in the Consolidated Statements of Financial Condition , of $10.6 million. Contracts which earn the Company management fees and incentive fees are evaluated as contracts with customers under ASC 606 for the services further described below. Under ASC 606, the Company is required to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the Company satisfies its performance obligation. |
Other Operating Income | Other Operating Income Other operating income primarily consists of administrative fees from certain private investment vehicles that the Company does not manage or advise. Administrative fees represent fees for accounting and administration services provided to such vehicles. The fees earned under certain agreements are calculated by applying a fixed rate (or varying rate based on volume) multiplied by the number of positions held. The Company satisfies its performance obligations over time as the services are rendered and the customer simultaneously receives and consumes the benefits of the services as they are performed, using the same time-based measure of progress towards completion. |
Distribution Relationships | Distribution Relationships The Company has entered into a number of distribution relationships with financial services firms to assist it in developing and servicing its client base. These relationships are non-exclusive and generally enable the Company to have direct contact with major clients. |
Employee Compensation and Benefits | Employee Compensation and Benefits Base Salary, Bonus and Other The Company compensates its employees through the cash payment of both a fixed component (“base salary”) and a variable component (“bonus”). Base salary is recorded on an accrual basis over each employee’s period of service. Bonus compensation is determined by the Company’s management and is generally discretionary based on judgment taking into consideration, among other things, the financial results of the Company, as well as the employee’s performance. Incentive Fee Compensation Incentive fee compensation consists of discretionary compensation accrued and paid annually based on incentive fee revenue. Carried Interest Certain employees and former employees are entitled to a portion of the carried interest realized from certain GCM Funds, which generally vest over a multi-year period and are payable upon a realization of the carried interest. Accordingly, carried interest resulting from a realization event gives rise to the incurrence of an obligation. Amounts payable under these arrangements are recorded within employee compensation and benefits when they become probable and reasonably estimable. For certain GCM Funds, realized carried interest is subject to clawback. Although the Company defers the portion of realized carried interest not meeting the criteria for revenue recognition, accruing an expense for amounts due to employees and former employees is based upon when it becomes probable and reasonably estimable that carried interest has been earned and therefore a liability has been incurred. As a result, the recording of an accrual for amounts due to employees and former employees generally precedes the recognition of the related carried interest revenue. The Company withholds a portion of the amounts due to employees and former employees as a reserve against contingent repayments to the GCM Funds. As of December 31, 2020 and 2019, an accrual of $13.5 million and $14.9 million, respectively, relating to amounts withheld was recorded within employee related obligations in the Consolidated Statements of Financial Condition. Compensation Awards The Company has established deferred compensation programs for certain employees and accrues deferred compensation expense ratably over the related vesting schedules, recognizing an increase or decrease in compensation expense based on the performance of certain GCM Funds. In addition, the Company has granted compensation awards to employees that represent investments that will be made in GCM Funds on behalf of the employees and were compensation for past services that were fully vested upon the award date. Compensation expense related to deferred compensation and other awards are included within employee compensation and benefits in the Consolidated Statements of Income. Partnership Interest in Holdings, Holdings II and Management LLC Various individuals, including current and former employees of the Company (“Recipients”), have been awarded partnership interests in Holdings, Holdings II and Management LLC. These partnership interests grant the Recipients the right to certain cash distributions of profits from Holdings, Holdings II and Management LLC to the extent such distributions are authorized and pursuant to the terms of their respective agreements. A partnership interest award is accounted for based on its substance. A partnership interest award that is in substance a profit-sharing arrangement or performance bonus would generally not be within the scope of the stock-based compensation guidance and would be accounted for under the guidance for deferred compensation plans, similar to a cash bonus. However, if the arrangement has characteristics more akin to the risks and rewards of equity ownership, the arrangement would be accounted for under stock-based compensation guidance. |
Derivative Instruments | Derivative Instruments Derivative instruments enable the Company to manage its exposure to interest rate risk. The Company generally does not engage in derivative or hedging activities, except to hedge interest rate risk on floating rate debt, as described in Note 14. Derivatives are recognized in the Consolidated Statements of Financial Condition at fair value. In order to qualify for hedge accounting, a derivative must be considered highly effective at reducing the risk associated with the exposure being hedged. At inception, the Company documents all relationships between derivatives designated as hedging instruments and hedged items, the risk management objectives and strategies for undertaking various hedge transactions, the method of assessing hedge effectiveness, and, if applicable, why forecasted transactions are considered probable. This process includes linking all derivatives that are designated as hedges of the variability of cash flows that are to be received or paid in connection with either a recognized asset or liability, firm commitment or forecasted transaction (“cash flow hedges”) to assets or liabilities in the Consolidated Statements of Financial Condition, firm commitments or forecasted transactions. The Company generally uses the change in variable cash flows method to assess hedge effectiveness on a quarterly basis. The Company assesses effectiveness on a quarterly basis by evaluating whether the critical terms of the hedging instrument and the forecasted transaction have changed during the period and by evaluating the continued ability of the counterparty to honor its obligations under the contractual terms of the derivative. When the critical terms of the hedging instrument and the forecasted transaction do not match at inception the Company may use regression or other statistical analyses to assess effectiveness. For a qualifying cash flow hedge, changes in the fair value of the derivative, to the extent that the hedge is effective, are recorded within accumulated other comprehensive income (loss) in the Consolidated Statements of Financial Condition and are reclassified to interest expense in the Consolidated Statements of Income when the underlying transactions (interest payments) have an impact on earnings. Prior to the adoption of ASU No. 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities (Topic 815) any ineffective portions of a hedge were recorded within other income (expense) in the Consolidated Statements of Income. For derivative contracts that do not qualify for hedge accounting, the Company presents changes in fair value in current period earnings. Changes in the fair value of derivative instruments are reflected within other income (expense) in the Consolidated Statements of Income. |
Income Taxes | Income Taxes Income taxes are accounted for using the asset and liability method of accounting. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences on differences between the carrying amounts of assets and liabilities and their respective tax basis, using tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred assets and liabilities of a change in tax rates is recognized in income in the period when the change is enacted. Deferred tax assets are reduced by a valuation allowance when it is “more-likely-than not” that some portion or all of the deferred tax assets will not be realized. The realization of the deferred tax assets is dependent on the amount of the Company’s future taxable income. The Company recognizes interest and penalties related to the underpayment of income taxes, including those resulting from the late filing of tax returns as general, administrative and other expenses in the Consolidated Statements of Income. The Company has not incurred a significant amount of interest or penalties in any of the years presented. GCMH is treated as a partnership for U.S. federal income tax purposes, and is subject to various state and local taxes. GCMH Equityholders, as applicable, are taxed individually on their share of the earnings; therefore, the Company does not record a provision for federal income taxes on the GCMH Equityholders’ share of the earnings. The Company is subject to U.S. federal, applicable state corporate and foreign income taxes, including with respect to its allocable share of any taxable income of GCMH following the Transaction. Tax Receivable Agreement In connection with the Transaction as described in Note 3, GCMG entered into a Tax Receivable Agreement with the G CMH Equityholders that will provide for payment by GCMG to the GCMH Equityholders o f 85% of the amount of the tax savings, if any, that GCMG realizes (or, under certain circumstances, is deemed to realize) as a result of, or attributable to, (i) increases in the tax basis of assets owned directly or indirectly by GCMH or its subsidiaries from, among other things, any redemptions or exchanges of GCMH common shares (ii) existing tax basis (including amortization deductions arising from such tax basis) in intangible assets owned directly or indirectly by GCMH and its subsidiaries, and (iii) certain other tax benefits (including deductions in respect of imputed interest) related to GCMG making payments under the Tax Receivable Agreement. |
Earnings (Loss) Per Share | Earnings (Loss) Per Share The Company determines earnings (loss) per share in accordance with the authoritative guidance in ASC 260, Earnings Per Share . The two-class method of computing earning (loss) per share is required for entities that have participating securities. The two-class method is an earnings allocation formula that determines earning (loss) per share for participating securities according to dividends declared (or accumulated) and participation rights in undistributed earnings. The Company’s Class C Common Stock has no economic interest in the earnings of the Company, resulting in the two-class method not being applicable. The Company computes basic earnings (loss) per share by dividing net income (loss) attributable to GCMG by the weighted average number of shares outstanding for the applicable period. When calculating diluted earnings (loss) per share, the Company applies the treasury stock method and if-converted method, as applicable, to the warrants and the exchangeable common units of the Partnership to determine the dilutive weighted-average common units outstanding. |
Transaction Expenses | Transaction Expenses Legal fees and other costs that were determined to be direct and incremental to the Transaction as described in Note 3, were recorded to stockholders' equity/partners’ and member’s capital (deficit) as a reduction to additional paid-in capital in the Consolidated Statements of Financial Conditions. Other fees associated with the Transaction as described in Note 3, that were not direct and incremental were recorded to other income (expense) in the Consolidated Statements of Income. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income (loss) and other comprehensive income (loss). The Company’s other comprehensive income (loss) is comprised of unrealized gains and losses on cash flow hedges and foreign currency translation adjustments. |
Segments | Segments Management has determined the Company consists of a single operating and reportable segment, consistent with how the chief operating decision maker allocates resources and assesses performance. Revenues and long-lived assets attributed to locations outside of the United States (“U.S.”) are immaterial. |
Concentration | Concentration The Company has a client base that is diversified across a range of different types of institutional clients and also includes high net worth individuals. The institutional client base consists primarily of public, corporate and Taft-Hartley pension funds as well as banks, insurance companies, sovereign entities, foundations and endowments. The client base is also geographically diversified with concentrations in North America, Asia, the Middle East and Europe. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Recently Issued Accounting Standards - Adopted in Current Reporting Period In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-13, Fair Value Measurement (Topic 820): Changes to the Disclosure Requirements for Fair Value Measurement . The amendments remove or modify certain disclosures, while others were added. The Company adopted the guidance as of January 1, 2020. The adoption of this guidance did not have a material impact on the consolidated financial statements. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . The new guidance amends the hedge accounting model to enable entities to better portray their risk management activities in the financial statements. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and allows for the entire change in fair value of a “highly effective” cash flow hedge to be recognized in other comprehensive income until the hedged item affects earnings. An entity will apply the new guidance on a modified retrospective basis with a cumulative effect adjustment to accumulated other comprehensive income with a corresponding adjustment to retained earnings as of the beginning of the period of adoption. Changes to income statement presentation and financial statement disclosures will be applied prospectively. The Company adopted the guidance as of January 1, 2020. The resulting impact of adoption to its 3-Year Swap Agreement is recorded in opening accumulated other comprehensive income (loss) and opening partners’ deficit. In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . The guidance requires that all equity investments, except those accounted for under the equity method of accounting or those resulting in the consolidation of the investee, be accounted for at fair value with all fair value changes recognized in income. The Company adopted ASU 2016-01 on January 1, 2019 and the adoption did not have a material impact on its consolidated financial statements. Recently Issued Accounting Standards – To be Adopted in Future Periods In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) . The amendments in this update provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update apply only to contracts, hedging relationships and other transactions that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued because of reference rate reform. An entity may elect to adopt the amendments for contract modifications as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. An entity may elect to apply the amendments in ASU 2020-04 to eligible hedging relationships existing as of the beginning of the interim period that includes March 12, 2020 and to new eligible hedging relationships entered into after the beginning of the interim period that includes March 12, 2020. The Company is currently evaluating the impact on its consolidated financial statements upon adoption of this standard. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which modifies ASC 740 to simplify the accounting for income taxes. The guidance, among other changes, (i) provides a policy election to not allocate consolidated income taxes when a member of a consolidated tax return is not subject to income tax and (ii) provides guidance to evaluate whether a step-up in tax basis of goodwill relates to a business combination in which book goodwill was recognized or a separate transaction. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2020. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption of the amendments is permitted, including adoption in any interim period for (1) public business entities for periods for which financial statements have not yet been issued and (2) all other entities for periods for which financial statements have not yet been made available for issuance. The Company will defer adoption until the guidance is effective for non-public entities, as the Company currently qualifies as an EGC and has elected to take advantage of the extended transition period afforded to EGCs as it applies to the adoption of new accounting standards. The amendments related to changes in ownership of foreign equity method investments or foreign subsidiaries should be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The amendments related to franchise taxes that are partially based on income should be applied on either a retrospective basis for all periods presented or a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. All other amendments should be applied on a prospective basis. The Company is currently evaluating the impact on its consolidated financial statements upon adoption of this standard. In October 2018, the FASB issued ASU No. 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities , which reduces the cost and complexity of financial reporting associated with consolidation of VIEs. The amendment provides that indirect interests held through related parties in common control arrangements should be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests. The amendments in this ASU are effective for public business entities with fiscal years beginning after December 15, 2019 and interim periods within those reporting periods, and effective for non-public entities with fiscal years beginning after December 15, 2020 and interim periods within fiscal years beginning after December 15, 2021, with early adoption permitted. The Company will defer adoption until the guidance is effective for non-public entities, as the Company currently qualifies as an EGC and has elected to take advantage of the extended transition period afforded to EGCs as it applies to the adoption of new accounting standards. The guidance should be applied prospectively. The Company has concluded this guidance will not have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles — Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . Currently, the standard requires an entity to perform a two-step test to determine the amount, if any, of goodwill impairment. In Step 1, an entity compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds its fair value, the entity performs Step 2 and compares the implied fair value of goodwill with the carrying amount of that goodwill for that reporting unit. An impairment charge equal to the amount by which the carrying amount of goodwill for the reporting unit exceeds the implied fair value of that goodwill is recorded, limited to the amount of goodwill allocated to that reporting unit. The new guidance removes Step 2. An entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. An entity will apply the new guidance on a prospective basis. The amendments in this ASU are effective for public business entities that are a U.S. Securities and Exchange Commission (“SEC”) filer, excluding entities eligible to be smaller reporting companies as defined by the SEC, with fiscal years beginning after December 15, 2019. All other entities should adopt the amendments in this ASU in fiscal years beginning after December 15, 2022. Early adoption is permitted for annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company will defer adoption until the guidance is effective for non-public entities, as the Company currently qualifies as an EGC and has elected to take advantage of the extended transition period afforded to EGCs as it applies to the adoption of new accounting standards. The Company is currently evaluating the impact on its consolidated financial statements upon adoption of this standard. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments . ASU 2016-13 requires an entity to utilize a new impairment model known as the current expected credit loss (“CECL”) model to estimate its lifetime “expected credit loss” and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in more timely recognition of credit losses. ASU 2016-13 also requires new disclosures for financial assets measured at amortized cost, loans and available-for-sale debt securities. This guidance is for public business entities that are an SEC filer, excluding entities eligible to be smaller reporting companies as defined by the SEC, with fiscal years beginning after December 15, 2019. On March 9, 2020, the FASB extended the adoption date for all other entities to annual periods beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. The Company expects that adoption of this guidance will not have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The main difference between existing lease accounting guidance and the updated standard is that operating leases will now be recorded as assets and liabilities in the statement of financial position. The amendments in this ASU are effective for public business entities for annual reporting periods beginning after December 15, 2018. On June 3, 2020, the FASB extended the adoption date for all other entities to annual periods beginning after December 15, 2021, and interim periods within annual periods beginning after December 15, 2022, with early adoption permitted. The Company will defer adoption until the guidance is effective for non-public entities, as the Company currently qualifies as an EGC and has elected to take advantage of the extended transition period afforded to |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Disaggregation of Revenue | For the years ended December 31, 2020, 2019 and 2018, revenues consisted of the following: Year Ended December 31, Management fees 2020 2019 2018 Management fees $ 302,339 $ 318,008 $ 311,456 Fund expense reimbursement revenue 8,406 6,708 4,142 Total management fees $ 310,745 $ 324,716 $ 315,598 Year Ended December 31, Incentive fees 2020 2019 2018 Performance fees $ 52,726 $ 14,413 $ 3,111 Carried interest 58,924 69,752 53,948 Total incentive fees $ 111,650 $ 84,165 $ 57,059 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Components of Investments | Investments consist of the following: As of December 31, 2020 2019 Equity method investments $ 165,095 $ 154,900 Other investments 1,178 4,458 Total investments $ 166,273 $ 159,358 |
Schedule of Summarized Information of Equity Method Investments | The summarized financial information of the Company’s equity method investments is as follows: As of December 31, 2020 2019 Total Assets $ 30,860,617 $ 28,594,587 Total Liabilities $ 2,228,078 $ 1,324,162 Total Equity $ 28,632,539 $ 27,270,425 Year Ended December 31, 2020 2019 2018 Investment income $ 71,613 $ 144,667 $ 115,640 Expenses 249,401 218,037 200,914 Net investment income (loss) (177,788) (73,370) (85,274) Net realized and unrealized gain 2,423,252 2,055,007 1,465,984 Net income $ 2,245,464 $ 1,981,637 $ 1,380,710 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities, Measured at Fair Value | The following table summarizes the Company’s assets and liabilities measured at fair value as of December 31, 2020 and 2019: Fair Value of Assets (Liabilities) as of December 31, 2020 Level 1 Level 2 Level 3 Total Money market funds $ 149,553 $ — $ — $ 149,553 Interest rate derivatives — (28,442) — (28,442) Total $ 149,553 $ (28,442) $ — $ 121,111 Fair Value of Assets (Liabilities) as of December 31, 2019 Level 1 Level 2 Level 3 Total Money market funds $ 45,209 $ — $ — $ 45,209 Interest rate derivatives — (14,990) — (14,990) Total $ 45,209 $ (14,990) $ — $ 30,219 Money market funds are valued using quoted market prices and are included in cash and cash equivalents on the Consolidated Statements of Financial Condition. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets, net consist of the following: As of December 31, 2020 Gross carrying amount Accumulated amortization Net carrying amount Subject to amortization: Investment management contracts $ 36,190 $ (35,756) $ 434 Customer relationships 23,518 (15,364) 8,154 Technology 2,030 (2,030) — Other 620 (620) — $ 62,358 $ (53,770) $ 8,588 As of December 31, 2019 Gross carrying amount Accumulated amortization Net carrying amount Subject to amortization: Investment management contracts $ 36,190 $ (30,648) $ 5,542 Customer relationships 23,518 (13,258) 10,260 Technology 2,030 (1,740) 290 Other 620 (620) — $ 62,358 $ (46,266) $ 16,092 |
Schedule of Estimated Amortization Expense | The following approximates the estimated amortization expense relating to intangible assets: Year Ended December 31, 2021 $ 2,333 2022 2,316 2023 1,313 2024 1,313 2025 1,313 Thereafter — |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Stock by Class | The following table shows a rollforward of the common stock outstanding since the Transaction, as defined in Note 3: Class A common stock Class B common stock Class C common stock November 17, 2020 Issuance of common stock pursuant to the Transaction 39,914,862 — 144,235,246 Exercise of warrants 920,231 — — December 31, 2020 40,835,093 — 144,235,246 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Maximum Exposure to Loss Relating to Non-consolidated VIEs | The following table sets forth certain information regarding the VIEs in which the Company holds a variable interest but does not consolidate. The assets recognized on the Company’s Consolidated Statements of Financial Condition related to the Company’s interests in and management, incentive fees and third party costs receivables from these non-consolidated VIEs and the Company’s maximum exposure to loss relating to non-consolidated VIEs as of December 31, 2020 and 2019 were as follows: As of December 31, 2020 2019 Investments $ 77,511 $ 77,927 Receivables 14,322 9,135 Maximum exposure to loss $ 91,833 $ 87,062 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Summary of Premise and Equipment | A summary of premises and equipment as of December 31, 2020 and 2019 is as follows: As of December 31, Estimated Useful Lives 2020 2019 Furniture, fixtures and leasehold improvements $ 36,614 $ 35,656 3 – 7 years Office equipment 994 967 5 years Computer equipment and software 17,868 17,447 3 – 5 years Aircraft 3,100 3,100 5 years Premises and equipment, at cost 58,576 57,170 Accumulated depreciation and amortization (50,706) (48,299) Premises and equipment, net $ 7,870 $ 8,871 |
Employee Compensation and Ben_2
Employee Compensation and Benefits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Compensation Related Costs [Abstract] | |
Schedule of Employee Compensation and Benefits | For the years ended December 31, 2020, 2019 and 2018, employee compensation and benefits consisted of the following: Year Ended December 31, 2020 2019 2018 Cash-based employee compensation and benefits $ 165,829 $ 169,862 $ 157,351 Partnership interest-based compensation 172,358 30,233 19,495 Carried interest compensation 34,260 38,842 31,780 Cash-based incentive fee related compensation 11,454 — — Other 4,564 4,030 1,788 Total employee compensation and benefits $ 388,465 $ 242,967 $ 210,414 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt Balance | The table below summarizes the outstanding debt balance as of December 31, 2020 and 2019. As of December 31, 2020 2019 Senior loan $ 340,259 $ 431,454 Credit facility — 25,000 Less debt issuance costs (5,104) (7,954) Total debt $ 335,155 $ 448,500 |
Schedule of Maturities of Long-term Debt | Maturities of debt for the next five years and thereafter are as follows: Year Ended December 31, 2021 $ — 2022 — 2023 — 2024 — 2025 340,259 Thereafter — Total $ 340,259 |
Interest Rate Derivatives (Tabl
Interest Rate Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives Recorded as Derivative Liability | As of December 31, 2020 and 2019, the Company had the following interest rate derivatives recorded as a derivati ve liability recorded within accrued expenses and other liabilities in the Consolidated Statements of Financial Condition: As of December 31, 2020 Derivative Notional Amount Fair Value as of December 31, 2020 Fixed Rate Paid Floating Rate Received Effective Date (3) Maturity Date Interest rate swap $ 225,000 $ (11,163) 2.48 % 1 month LIBOR (1) January 2020 February 2023 Interest rate swap 75,000 (4,654) 3.05 % 1 month LIBOR (1) January 2020 February 2023 Interest rate collar 300,000 (12,625) 3.70 % 1 month LIBOR (2) February 2023 February 2025 $ (28,442) ____________ (1) Floating rate received subject to a 0.00% Floor (2) Floating rate received subject to a 2.45% Floor (3) Represents the date at which the derivative is in effect and the Company is contractually required to begin payment of interest under the terms of the agreement. As of December 31, 2019 Derivative Notional Amount Fair Value as of December 31, 2019 Fixed Rate Paid Floating Rate Received Effective Date (4) Maturity Date Interest rate swap $ 275,000 $ (124) 2.33 % 1 month LIBOR (1) January 2014 January 2020 Interest rate swap 225,000 (6,159) 2.48 % 1 month LIBOR (2) January 2020 February 2023 Interest rate swap 75,000 (3,348) 3.05 % 1 month LIBOR (2) January 2020 February 2023 Interest rate collar 300,000 (5,359) 3.70 % 1 month LIBOR (3) February 2023 February 2025 $ (14,990) ____________ (1) Floating rate received subject to a 1.00% Floor (2) Floating rate received subject to a 0.00% Floor (3) Floating rate received subject to a 2.45% Floor (4) Represents the date at which the derivative is in effect and the Company is contractually required to begin payment of interest under the terms of the agreement. |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | A rollforward of the amounts in accumulated other comprehensive loss related to interest rate derivatives designated as cash flow hedges as follows: Year Ended December 31, 2020 2019 Unrealized loss at beginning of period $ (6,933) $ (412) Cumulative-effect adjustment from adoption of ASU 2017-12 650 — Amount of loss recognized in other comprehensive income (loss) (9,110) (6,688) Amount reclassified from accumulated other comprehensive loss to interest expense 4,230 167 Unrealized loss at end of period (11,163) (6,933) Less: Loss attributable to noncontrolling interests in GCMH (8,743) — Unrealized loss at end of period, net $ (2,420) $ (6,933) |
Derivative Instruments, Gain (Loss) | The amount of gain (loss) related to interest rate contracts not designated as hedging instruments was recognized as follows: Year Ended December 31, 2020 2019 Other income (expense) $ (8,572) $ (5,417) |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Liabilities | A summary of accrued expenses and other liabilities as of December 31, 2020 and 2019 is as follows: As of December 31, 2020 2019 Carried interest payable $ 3,122 $ 4,422 Deferred revenue 10,033 12,443 Deferred rent 7,015 6,885 Clawback obligation 1,400 3,600 Derivative liability 28,442 14,990 Other liabilities 10,914 9,864 Total accrued expenses and other liabilities $ 60,926 $ 52,204 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Minimum Annual Lease Commitments | The minimum annual lease commitments as of December 31, 2020 are as follows: Year Ended December 31, 2021 $ 8,975 2022 8,323 2023 6,475 2024 2,941 2025 2,900 Thereafter 2,220 $ 31,834 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision (Benefit) for Income Taxes | The provision (benefit) for income taxes for the years ended December 31, 2020, 2019 and 2018 consist of the following: Year Ended December 31, 2020 2019 2018 Current: Federal $ 1,118 $ — $ — State and local 1,771 1,683 976 Foreign 988 635 419 Total current income taxes expense $ 3,877 $ 2,318 $ 1,395 Deferred: Federal $ 937 $ — $ — State and local (301) — — Foreign (7) — — Total deferred income taxes expense 629 — — Total income tax expense $ 4,506 $ 2,318 $ 1,395 |
Schedule of Reconciliation of the U.S. Statutory Income Tax Rate to Effective Rate | A reconciliation of the U.S. statutory income tax rate to the Company’s effective tax rate is as follows: Year Ended December 31, 2020 2019 2018 Statutory U.S. federal income tax rate 21 % 21 % 21 % State and local income taxes (2) % 3 % 1 % Impact of noncontrolling interests (26) % (5) % (8) % Income passed through to members 2 % (16) % (13) % Foreign income taxes (1) % 1 % 1 % Other (1) % — % — % Effective income tax rate (7) % 4 % 2 % |
Schedule of Current and Deferred Tax Assets | Deferred tax assets and liabilities are recorded net within deferred tax assets, net in the Consolidated Statements of Financial Condition. Details of the Company’s deferred tax assets and liabilities are as follows: As of December 31, 2020 2019 Investment in GCMH $ 103,587 $ — Loss and credit carryforwards 17 — Intangibles and other 836 126 Total deferred tax assets (before valuation allowance) 104,440 126 Valuation allowance (30,430) Total deferred tax assets $ 74,010 $ 126 Other $ (244) $ — Total deferred tax liabilities $ (244) $ — Deferred tax assets, net $ 73,766 $ 126 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Basic and Diluted Earnings (Loss) Per Share | The following is a reconciliation of basic and diluted earnings (loss) per share from continuing operations for the period November 17, 2020 through December 31, 2020 : November 17, 2020 through December 31, 2020 Numerator for earnings (loss) per share calculation: Net income attributable to GCM Grosvenor Inc. $ 7,507 Exchange of Partnership units (98,929) Net loss attributable to common stockholders, diluted (91,422) Denominator for earnings (loss) per share calculation: Weighted-average shares, basic 39,984,515 Exchange of Partnership units 144,235,246 Weighted-average shares, diluted 184,219,761 Basic EPS Net income attributable to common stockholders, basic $ 7,507 Weighted-average shares, basic 39,984,515 Net income per share attributable to common stockholders, basic $ 0.19 Diluted EPS Net loss attributable to common stockholders, diluted $ (91,422) Weighted-average shares, diluted 184,219,761 Net loss per share attributable to common stockholders, diluted $ (0.50) |
Schedule of Outstanding Potentially Dilutive Securities Excluded from Calculation of Diluted Earnings (Loss) Per Share | The following outstanding potentially dilutive securities were excluded from the calculation of diluted earnings (loss) per share attributable to common stockholders because their impact would have been antidilutive for the period presented: As of December 31, 2020 Redeemable warrants 22,973,567 |
Organization (Details)
Organization (Details) | Dec. 31, 2020 |
GCMH | |
Finite-Lived Intangible Assets [Line Items] | |
Ownership percentage by parent | 22.10% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended | ||||
Dec. 31, 2020USD ($)class_of_stock$ / shares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Nov. 17, 2020 | Jan. 01, 2019USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stable value threshold (in dollars per share) | $ / shares | $ 1 | ||||
Cash and cash equivalents | $ 198,146,000 | $ 79,866,000 | |||
Allowance for credit loss | 0 | 0 | |||
Partners' capital (deficit) | (315,293,000) | ||||
Noncontrolling interests in subsidiaries | 101,463,000 | ||||
Realized carried interest | 8,500,000 | 11,200,000 | |||
Deferred revenue | (10,033,000) | (12,443,000) | |||
Sales commissions and fees | 7,800,000 | 9,200,000 | $ 10,300,000 | ||
Employee-related obligations | $ 13,500,000 | 14,900,000 | |||
Number of operating segments | class_of_stock | 1 | ||||
Number of reportable segments | class_of_stock | 1 | ||||
GCMH Equity Holders' | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Tax savings agreement, percent | 85.00% | ||||
Cumulative Effect, Period of Adoption, Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Partners' capital (deficit) | 10,400,000 | ||||
Noncontrolling interests in subsidiaries | 1,500,000 | ||||
Deferred revenue | $ 10,600,000 | ||||
Cumulative Effect, Period of Adoption, Adjustment | Total incentive fees | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Incentive fees receivable | $ 1,300,000 | ||||
Minimum | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Estimated Useful Lives | 3 years | ||||
Amortizable intangible asset, useful life | 2 years | ||||
Carried interest rate | 2.50% | ||||
Maximum | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Estimated Useful Lives | 7 years | ||||
Amortizable intangible asset, useful life | 12 years | ||||
Carried interest rate | 20.00% | ||||
Non-US | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cash and cash equivalents | $ 21,500,000 | $ 20,600,000 | |||
GCMH | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Ownership percent acquired | 22.00% |
Business Combinations (Details)
Business Combinations (Details) | Nov. 17, 2020USD ($)$ / sharesshares |
CF Sponsor | Class A common stock | |
Business Acquisition [Line Items] | |
Number of shares issued (in shares) | 3,500,000 |
Number of warrants issued (in shares) | 1,500,000 |
Aggregate price | $ | $ 30,000,000 |
Holdings | Class A common stock | |
Business Acquisition [Line Items] | |
Number of warrants issued (in shares) | 900,000 |
GCM V, LLC | Class C common stock | |
Business Acquisition [Line Items] | |
Number of shares issued (in shares) | 144,235,246 |
CF Finance Acquisition Corp. | |
Business Acquisition [Line Items] | |
Number of warrants converted (in shares) | 1 |
Consideration received | $ | $ 120,400,000 |
Transaction expenses | $ | $ 9,300,000 |
CF Finance Acquisition Corp. | Class A common stock | |
Business Acquisition [Line Items] | |
Number of shares converted (in shares) | 1 |
Private Placement | PIPE Investors | Class A common stock | |
Business Acquisition [Line Items] | |
Number of shares issued (in shares) | 19,500,000 |
Share price (in USD per share) | $ / shares | $ 10 |
GCMH | GCM Grosvenor Inc. | Class A common stock | |
Business Acquisition [Line Items] | |
Shares cancelled or forfeited (in shares) | 100 |
GCMH | IntermediateCo | |
Business Acquisition [Line Items] | |
Number of shares issued (in shares) | 28,316,895 |
Number of warrants issued (in shares) | 23,893,809 |
Aggregate price | $ | $ 227,700,000 |
CF Sponsor | |
Business Acquisition [Line Items] | |
Consideration amount | $ | $ 0 |
CF Sponsor | GCM Grosvenor Inc. | Class A common stock | |
Business Acquisition [Line Items] | |
Shares cancelled or forfeited (in shares) | 2,351,534 |
Number of warrants terminated, forfeited or cancelled (in shares) | 150,000 |
GCMHGP LLC | IntermediateCo | GCMH | |
Business Acquisition [Line Items] | |
Equity interests sold | $ | $ 1,500,000 |
Holdings | IntermediateCo | GCM LLC | |
Business Acquisition [Line Items] | |
Equity interests sold per share (in USD per share) | $ / shares | $ 1 |
Holdings | IntermediateCo | H&F Parties | |
Business Acquisition [Line Items] | |
Right, title and interest assigned | $ | $ 110,200,000 |
Mosaic Transaction (Details)
Mosaic Transaction (Details) $ in Thousands | Jan. 01, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2022USD ($) | Dec. 31, 2021USD ($) |
Variable Interest Entity [Line Items] | ||||||
Proceeds from noncontrolling interests transferred | $ 125,400 | $ 177,832 | $ 4,720 | $ 6,447 | ||
Proceeds received to fund future investment commitments | 48,000 | 32,100 | ||||
Maximum potential payment | 19,900 | |||||
Potential payments | 4,900 | |||||
Recall amount | $ 15,100 | |||||
Cash and cash equivalents | 198,146 | 79,866 | ||||
Total liabilities | 556,167 | $ 586,986 | ||||
Forecast | ||||||
Variable Interest Entity [Line Items] | ||||||
Potential payments | $ 7,500 | $ 7,500 | ||||
Put Option | Mosaic Counterparty | ||||||
Variable Interest Entity [Line Items] | ||||||
Purchase price ratio | 1.3 | |||||
Internal rate of return, percentage | 12.00% | |||||
Call Right | ||||||
Variable Interest Entity [Line Items] | ||||||
Payments for call right | 2,600 | |||||
Purchase price ratio | 1.3 | |||||
Internal rate of return, percentage | 12.00% | |||||
Variable Interest Entity, Primary Beneficiary | ||||||
Variable Interest Entity [Line Items] | ||||||
Cash and cash equivalents | 101,400 | |||||
Total liabilities | $ 0 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 429,981 | $ 416,394 | $ 378,496 |
Management fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 302,339 | 318,008 | 311,456 |
Fund expense reimbursement revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 8,406 | 6,708 | 4,142 |
Total management fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 310,745 | 324,716 | 315,598 |
Performance fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 52,726 | 14,413 | 3,111 |
Carried interest | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 58,924 | 69,752 | 53,948 |
Total incentive fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 111,650 | $ 84,165 | $ 57,059 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized | $ 3.6 | $ 1.8 |
Investments - Components of Inv
Investments - Components of Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Equity method investments | $ 165,095 | $ 154,900 |
Other investments | 1,178 | 4,458 |
Total investments | $ 166,273 | $ 159,358 |
Investments - Additional Inform
Investments - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | ||
Total investments | $ 166,273 | $ 159,358 |
Noncontrolling Interests | ||
Schedule of Equity Method Investments [Line Items] | ||
Total investments | $ 161,900 | $ 95,700 |
Investments - Summarized Financ
Investments - Summarized Financial Information of Equity Method Investments (Details) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Nov. 16, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||||
Total assets | $ 631,891 | $ 631,891 | $ 373,156 | ||
Total liabilities | 556,167 | 556,167 | 586,986 | ||
Total Equity | (39,397) | (39,397) | |||
Net income | (78,649) | $ (3,050) | (67,630) | 59,998 | $ 63,685 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total assets | 30,860,617 | 30,860,617 | 28,594,587 | ||
Total liabilities | 2,228,078 | 2,228,078 | 1,324,162 | ||
Total Equity | $ 28,632,539 | 28,632,539 | 27,270,425 | ||
Investment income | 71,613 | 144,667 | 115,640 | ||
Expenses | 249,401 | 218,037 | 200,914 | ||
Net investment income (loss) | (177,788) | (73,370) | (85,274) | ||
Net realized and unrealized gain | 2,423,252 | 2,055,007 | 1,465,984 | ||
Net income | $ 2,245,464 | $ 1,981,637 | $ 1,380,710 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 149,553 | $ 45,209 |
Interest rate derivatives | (28,442) | (14,990) |
Total | 121,111 | 30,219 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 149,553 | 45,209 |
Interest rate derivatives | 0 | 0 |
Total | 149,553 | 45,209 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Interest rate derivatives | (28,442) | (14,990) |
Total | (28,442) | (14,990) |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Interest rate derivatives | 0 | 0 |
Total | $ 0 | $ 0 |
Intangible Assets - Components
Intangible Assets - Components of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 62,358 | $ 62,358 |
Accumulated amortization | (53,770) | (46,266) |
Net carrying amount | 8,588 | 16,092 |
Investment Management Contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 36,190 | 36,190 |
Accumulated amortization | (35,756) | (30,648) |
Net carrying amount | 434 | 5,542 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 23,518 | 23,518 |
Accumulated amortization | (15,364) | (13,258) |
Net carrying amount | 8,154 | 10,260 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 2,030 | 2,030 |
Accumulated amortization | (2,030) | (1,740) |
Net carrying amount | 0 | 290 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 620 | 620 |
Accumulated amortization | (620) | (620) |
Net carrying amount | $ 0 | $ 0 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 7.5 | $ 7.8 | $ 7.8 |
Intangible Assets - Estimated F
Intangible Assets - Estimated Future Amortization Expense (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2021 | $ 2,333 |
2022 | 2,316 |
2023 | 1,313 |
2024 | 1,313 |
2025 | 1,313 |
Thereafter | $ 0 |
Equity - Additional Information
Equity - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2020class_of_stockvote$ / sharesshares | |
Class of Stock [Line Items] | |
Number of classes of preferred stock | class_of_stock | 1 |
Number of classes of common stock | class_of_stock | 3 |
Preferred stock, authorized (in shares) | 100,000,000 |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 |
Preferred stock issued (in shares) | 0 |
Preferred stock outstanding (in shares) | 0 |
Public Warrants | |
Class of Stock [Line Items] | |
Warrant exercise price (in USD per share) | $ / shares | $ 11.50 |
Warrants term | 5 years |
Warrant redemption price (in USD per share) | $ / shares | $ 0.01 |
Class of Warrant or Right, Notice Of Redemption, Minimum Period | 30 days |
Stock price minimum to redeem warrants (in USD per share) | $ / shares | $ 18 |
Warrant redemption, consecutive trading days | 20 days |
Warrant redemption, trading days | 30 days |
Warrants outstanding (in shares) | 21,473,567 |
Private Placement Warrants | |
Class of Stock [Line Items] | |
Warrant redemption, trading days | 10 years |
Warrants outstanding (in shares) | 1,500,000 |
Common Class A | |
Class of Stock [Line Items] | |
Common stock, number of votes per share | vote | 1 |
Common stock, issued (in shares) | 40,835,093 |
Common Class A | Public Warrants | |
Class of Stock [Line Items] | |
Number of shares called by each warrant (in shares) | 1 |
Common Class B | |
Class of Stock [Line Items] | |
Common stock, issued (in shares) | 0 |
Common Class C | |
Class of Stock [Line Items] | |
Common stock, number of votes per share | vote | 10 |
Common stock, issued (in shares) | 144,235,246 |
Common stock, voting rights, maximum percent | 75.00% |
Equity - Schedule of Common Sto
Equity - Schedule of Common Stock Outstanding (Details) | 1 Months Ended |
Dec. 31, 2020shares | |
Common Class A | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Common stock outstanding, beginning balance (in shares) | |
Issuance of common stock pursuant to the Transaction (in shares) | 39,914,862 |
Exercise of warrants (in shares) | 920,231 |
Common stock outstanding, ending balance (in shares) | 40,835,093 |
Common Class B | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Common stock outstanding, beginning balance (in shares) | |
Issuance of common stock pursuant to the Transaction (in shares) | 0 |
Exercise of warrants (in shares) | 0 |
Common stock outstanding, ending balance (in shares) | 0 |
Common Class C | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Common stock outstanding, beginning balance (in shares) | |
Issuance of common stock pursuant to the Transaction (in shares) | 144,235,246 |
Exercise of warrants (in shares) | 0 |
Common stock outstanding, ending balance (in shares) | 144,235,246 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investments | $ 77,511 | $ 77,927 |
Variable Interest Entity, Not Primary Beneficiary | Noncontrolling Interests | ||
Variable Interest Entity [Line Items] | ||
Investments | 77,400 | 55,900 |
Unfunded Commitments | ||
Variable Interest Entity [Line Items] | ||
Commitment amount | 81,800 | $ 62,100 |
Unfunded Commitments | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Commitment amount | $ 32,800 |
Variable Interest Entities - Sc
Variable Interest Entities - Schedule of VIEs (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Investments | $ 77,511 | $ 77,927 |
Receivables | 14,322 | 9,135 |
Maximum exposure to loss | $ 91,833 | $ 87,062 |
Premises and Equipment - Summar
Premises and Equipment - Summary of Premises and Equipment (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Aug. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, at cost | $ 58,576 | $ 57,170 | |
Accumulated depreciation and amortization | (50,706) | (48,299) | |
Premises and equipment, net | $ 7,870 | 8,871 | |
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 3 years | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 7 years | ||
Furniture, fixtures and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, at cost | $ 36,614 | 35,656 | |
Furniture, fixtures and leasehold improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 3 years | ||
Furniture, fixtures and leasehold improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 7 years | ||
Office equipment | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, at cost | $ 994 | 967 | |
Estimated Useful Lives | 5 years | ||
Computer equipment and software | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, at cost | $ 17,868 | 17,447 | |
Computer equipment and software | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 3 years | ||
Computer equipment and software | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 5 years | ||
Aircraft | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, at cost | $ 3,100 | $ 3,100 | |
Estimated Useful Lives | 5 years | 5 years |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation | $ 2.3 | $ 2.5 | $ 3.9 | |
Aircraft | ||||
Property, Plant and Equipment [Line Items] | ||||
Percent of asset acquired | 12.50% | 12.50% | ||
Plant and equipment, useful life | 5 years | 5 years |
Employee Compensation and Ben_3
Employee Compensation and Benefits - Employee Compensation and Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Compensation Related Costs [Abstract] | |||
Cash-based employee compensation and benefits | $ 165,829 | $ 169,862 | $ 157,351 |
Partnership interest-based compensation | 172,358 | 30,233 | 19,495 |
Carried interest compensation | 34,260 | 38,842 | 31,780 |
Cash-based incentive fee related compensation | 11,454 | 0 | 0 |
Other | 4,564 | 4,030 | 1,788 |
Total employee compensation and benefits | $ 388,465 | $ 242,967 | $ 210,414 |
Employee Compensation and Ben_4
Employee Compensation and Benefits - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2014 | |
Compensation Related Costs [Abstract] | ||||
Partnership interest-based compensation | $ 172,358,000 | $ 30,233,000 | $ 19,495,000 | |
Interest-based compensation, award modifications | 46,900,000 | 16,300,000 | 0 | |
Unvested stated target payments | 0 | 12,300,000 | 6,900,000 | |
Interest-based compensation expense, profit interest | $ 125,500,000 | $ 13,900,000 | 16,800,000 | |
Service period | 5 years | |||
Interest-based compensation expense, equity awards | $ 2,700,000 |
Debt - Schedule of Debt Outstan
Debt - Schedule of Debt Outstanding (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 340,259 | |
Less debt issuance costs | (5,104) | $ (7,954) |
Total debt | 335,155 | 448,500 |
Senior Loan | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 340,259 | 431,454 |
Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 0 | $ 25,000 |
Debt - Maturities of Debt (Deta
Debt - Maturities of Debt (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 0 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 | 340,259 |
Thereafter | 0 |
Total | $ 340,259 |
Debt - Additional Information (
Debt - Additional Information (Details) | Mar. 29, 2018USD ($) | Aug. 22, 2017USD ($) | Apr. 19, 2017USD ($) | Jan. 02, 2014USD ($) | Mar. 30, 2018USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | ||||||||
Principal payments on senior loan | $ 91,195,000 | $ 7,325,000 | $ 27,447,000 | |||||
Long-term debt, gross | 340,259,000 | |||||||
Amortization of debt issuance costs | 1,336,000 | 1,643,000 | 1,686,000 | |||||
Senior Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal payments on senior loan | 91,200,000 | 7,300,000 | $ 26,300,000 | |||||
Long-term debt, gross | 340,259,000 | $ 431,454,000 | ||||||
Accelerated debt issuance expense | $ 1,500,000 | |||||||
Prepayment deadline following quarterly financial statement if leverage ratio exceeds 2.50 | 5 days | |||||||
Maximum leverage ratio | 2.50 | |||||||
Weighted average interest rate | 3.98% | 4.45% | ||||||
Senior Loan | Fair Value, Inputs, Level 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, fair value disclosure | $ 342,000,000 | $ 436,300,000 | ||||||
Senior Loan | Senior Secured Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount | $ 460,000,000 | |||||||
Senior Loan | 2023 Term Loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount | $ 281,600,000 | |||||||
Debt, LIBOR floor | 1.00% | |||||||
Proceeds from issuance of senior long-term debt | $ 100,000,000 | $ 90,000,000 | ||||||
Periodic principal payment | $ 1,200,000 | |||||||
Senior Loan | 2023 Term Loans | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 3.00% | |||||||
Debt, LIBOR floor | 1.00% | |||||||
Senior Loan | Initial Term Loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount | $ 133,000,000 | |||||||
Repurchased face amount | $ 133,000,000 | |||||||
Senior Loan | 2025 Term Loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount | $ 466,200,000 | |||||||
Debt, LIBOR floor | 1.00% | |||||||
Periodic principal payment | 1,200,000 | |||||||
Senior Loan | 2025 Term Loans | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.75% | |||||||
Debt, LIBOR floor | 1.00% | |||||||
Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | 0 | $ 25,000,000 | ||||||
Credit Facility | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 50,000,000 | |||||||
Line of credit outstanding | $ 0 |
Interest Rate Derivatives - Sch
Interest Rate Derivatives - Schedule of Derivative Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | May 18, 2018 |
Derivative [Line Items] | |||
Fair Value | $ (28,442) | $ (14,990) | |
Interest Rate Swap, 2.48% and 3.05% | |||
Derivative [Line Items] | |||
Derivative, LIBOR floor | 0.00% | 0.00% | |
Interest Rate Swap, 2.48% | |||
Derivative [Line Items] | |||
Notional Amount | $ 225,000 | $ 225,000 | |
Fair Value | $ (11,163) | $ (6,159) | |
Fixed Rate Paid | 2.48% | 2.48% | |
Interest Rate Swap, 3.05% | |||
Derivative [Line Items] | |||
Notional Amount | $ 75,000 | $ 75,000 | |
Fair Value | $ (4,654) | $ (3,348) | |
Fixed Rate Paid | 3.05% | 3.05% | |
Interest Rate Collar | |||
Derivative [Line Items] | |||
Notional Amount | $ 300,000 | $ 300,000 | |
Fair Value | $ (12,625) | $ (5,359) | |
Fixed Rate Paid | 3.70% | 3.70% | |
Derivative, LIBOR floor | 2.45% | 2.45% | 0.00% |
Interest Rate Swap, 2.33% | |||
Derivative [Line Items] | |||
Notional Amount | $ 275,000 | ||
Fair Value | $ (124) | ||
Fixed Rate Paid | 2.33% | ||
Derivative, LIBOR floor | 1.00% |
Interest Rate Derivatives - Eff
Interest Rate Derivatives - Effect on Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative [Roll Forward] | ||
Ending balance | $ (39,397) | |
Total GCM Grosvenor Inc. deficit / partners’ and member’s deficit | (20,015) | |
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | ||
Derivative [Roll Forward] | ||
Beginning balance | (6,933) | $ (412) |
Amount of loss recognized in other comprehensive income (loss) | (9,110) | (6,688) |
Amount reclassified from accumulated other comprehensive loss to interest expense | 4,230 | 167 |
Ending balance | (11,163) | (6,933) |
Less: Loss attributable to noncontrolling interests in GCMH | (8,743) | 0 |
Total GCM Grosvenor Inc. deficit / partners’ and member’s deficit | (2,420) | (6,933) |
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | Cumulative Effect, Period of Adoption, Adjustment | ||
Derivative [Roll Forward] | ||
Beginning balance | $ 650 | 0 |
Ending balance | $ 650 |
Interest Rate Derivatives - Gai
Interest Rate Derivatives - Gain (Loss) Recognized in Earnings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Interest Rate Contract | Other income (expense) | ||
Derivative [Line Items] | ||
Derivative instruments gain (loss), net | $ (8,572) | $ (5,417) |
Interest Rate Derivatives - Add
Interest Rate Derivatives - Additional Information (Details) - USD ($) $ in Millions | May 18, 2018 | Jan. 05, 2017 | Jan. 02, 2014 | Dec. 31, 2020 | Dec. 31, 2019 |
Senior Loan | 2023 Term Loans | |||||
Derivative [Line Items] | |||||
Debt, LIBOR floor | 1.00% | ||||
Senior Loan | 2025 Term Loans | |||||
Derivative [Line Items] | |||||
Debt, LIBOR floor | 1.00% | ||||
Interest Rate Swap | |||||
Derivative [Line Items] | |||||
Term of derivative contract | 3 years | 3 years | |||
Notional amount | $ 75 | $ 225 | |||
Derivative, LIBOR floor | 0.00% | 0.00% | |||
Interest Rate Collar | |||||
Derivative [Line Items] | |||||
Notional amount | $ 300 | ||||
Derivative, LIBOR floor | 0.00% | 2.45% | 2.45% |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Carried interest payable | $ 3,122 | $ 4,422 |
Deferred revenue | 10,033 | 12,443 |
Deferred rent | 7,015 | 6,885 |
Clawback obligation | 1,400 | 3,600 |
Derivative liability | 28,442 | 14,990 |
Other liabilities | 10,914 | 9,864 |
Total accrued expenses and other liabilities | $ 60,926 | $ 52,204 |
Commitments and Contingencies -
Commitments and Contingencies - Operating Lease Maturity (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2021 | $ 8,975 |
2022 | 8,323 |
2023 | 6,475 |
2024 | 2,941 |
2025 | 2,900 |
Thereafter | 2,220 |
Future minimum lease commitment | $ 31,834 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Aug. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Loss Contingencies [Line Items] | |||||
Rent expense | $ 7,300 | $ 6,700 | $ 5,900 | ||
Proceeds received to fund future investment commitments | $ 48,000 | 32,100 | |||
Fixed Management Fee | |||||
Loss Contingencies [Line Items] | |||||
Annual management fee | 500 | ||||
Management fee duration | 5 years | ||||
Unfunded Commitments | |||||
Loss Contingencies [Line Items] | |||||
Commitment amount | $ 81,800 | $ 62,100 | |||
Aircraft | |||||
Loss Contingencies [Line Items] | |||||
Percent of asset acquired | 12.50% | 12.50% |
Related Parties (Details)
Related Parties (Details) - USD ($) $ in Millions | Nov. 16, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | ||||
Net receivables from related parties | $ 11.2 | $ 10 | ||
Management | ||||
Related Party Transaction [Line Items] | ||||
Investment balance of related party | 426.7 | 334.8 | ||
Affiliated Entity | Aircraft Utilization | GCMH | ||||
Related Party Transaction [Line Items] | ||||
Amounts of transaction | $ 0.5 | 3.7 | $ 3.2 | |
Affiliated Entity | Capital Contributions | ||||
Related Party Transaction [Line Items] | ||||
Amounts of transaction | $ 1 | |||
GCMH | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
Equity security investment | $ 3.3 | |||
GCMH | Limited Partner | ||||
Related Party Transaction [Line Items] | ||||
Transfer of equity security investment | $ 4.3 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | |||
Federal | $ 1,118 | $ 0 | $ 0 |
State and local | 1,771 | 1,683 | 976 |
Foreign | 988 | 635 | 419 |
Total current income taxes expense | 3,877 | 2,318 | 1,395 |
Deferred: | |||
Federal | 937 | 0 | 0 |
State and local | (301) | 0 | 0 |
Foreign | (7) | 0 | 0 |
Total deferred income taxes expense | 629 | 0 | 0 |
Total income tax expense | $ 4,506 | $ 2,318 | $ 1,395 |
Income Taxes - Income Tax Recon
Income Taxes - Income Tax Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal income tax rate | 21.00% | 21.00% | 21.00% |
State and local income taxes | (2.00%) | 3.00% | 1.00% |
Impact of noncontrolling interests | (26.00%) | (5.00%) | (8.00%) |
Income passed through to members | 2.00% | (16.00%) | (13.00%) |
Foreign income taxes | (1.00%) | 1.00% | 1.00% |
Other | (1.00%) | 0.00% | 0.00% |
Effective income tax rate | (7.00%) | 4.00% | 2.00% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Investment in GCMH | $ 103,587 | $ 0 |
Loss and credit carryforwards | 17 | 0 |
Intangibles and other | 836 | 126 |
Total deferred tax assets (before valuation allowance) | 104,440 | 126 |
Valuation allowance | (30,430) | |
Total deferred tax assets | 74,010 | 126 |
Other | (244) | 0 |
Total deferred tax liabilities | (244) | 0 |
Deferred tax assets, net | $ 73,766 | $ 126 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | Nov. 17, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||
Valuation allowance | $ 30,430,000 | ||
Unrecognized tax benefits | 0 | ||
Deferred tax asset | 74,010,000 | 126,000 | |
Payable to related parties pursuant to the tax receivable agreement | $ 60,131,000 | $ 0 | |
CF Finance Acquisition Corp. | |||
Business Acquisition [Line Items] | |||
Deferred tax asset | $ 74,300,000 | ||
Valuation allowance | 28,200,000 | ||
Payable to related parties pursuant to the tax receivable agreement | $ 60,100,000 |
Earnings (Loss) Per Share - Rec
Earnings (Loss) Per Share - Reconciliation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Numerator for earnings (loss) per share calculation: | ||||
Net income attributable to GCM Grosvenor Inc. | $ 7,507 | $ 0 | $ 0 | |
Exchange of Partnership units | (98,929) | |||
Net loss attributable to common stockholders, diluted | $ (91,422) | |||
Denominator for earnings (loss) per share calculation: | ||||
Weighted-average shares, basic (in shares) | [1] | 39,984,515 | 0 | 0 |
Exchange of partnership units (in shares) | 144,235,246 | |||
Weighted-average shares, diluted (in shares) | [1] | 184,219,761 | 0 | 0 |
Basic EPS | ||||
Net income attributable to common stockholders, basic | $ 7,507 | |||
Weighted-average shares, basic (in shares) | [1] | 39,984,515 | 0 | 0 |
Net income per share attributable to common stockholders, basic (in dollars per share) | [1] | $ 0.19 | $ 0 | $ 0 |
Diluted EPS | ||||
Net loss attributable to common stockholders, diluted | $ (91,422) | |||
Weighted-average shares, diluted (in shares) | [1] | 184,219,761 | 0 | 0 |
Net income per share attributable to common stockholders, diluted (in dollars per share) | [1] | $ (0.50) | $ 0 | $ 0 |
[1] | Represents earnings (loss) per share of Class A common stock and weighted-average shares of Class A common stock outstanding for the period from November 17, 2020 through December 31, 2020, the period following the Transaction, as defined in Note 3 (see Note 19). |
Earnings (Loss) Per Share - Pot
Earnings (Loss) Per Share - Potentially Dilutive Securities Excluded from Calculation of EPS (Details) | 12 Months Ended |
Dec. 31, 2020shares | |
Warrant | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Antidilutive securities excluded from computation of EPS (in shares) | 22,973,567 |
Regulatory and Net Capital Re_2
Regulatory and Net Capital Requirements (Details) $ in Thousands, $ in Millions | Dec. 31, 2020USD ($) | Dec. 31, 2020HKD ($) |
Regulatory Assets [Line Items] | ||
Minimum net capital percent | 6.6666% | 6.6666% |
GRV Securities LLC | ||
Regulatory Assets [Line Items] | ||
Minimum net capital amount | $ 5 | |
Net capital | 1,003 | |
Excess net capital | $ 988 | |
Aggregate indebtedness ratio | 0.22 | 0.22 |
GCM Investments Japan K.K. | ||
Regulatory Assets [Line Items] | ||
Capital adequacy percent | 447.10% | 447.10% |
GCM Investments Hong Kong Limited | ||
Regulatory Assets [Line Items] | ||
Liquid capital minimum requirement | $ 387 | $ 3 |
Liquid capital | $ 2,600 | $ 20.3 |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, shares in Millions, $ in Millions | Mar. 01, 2021USD ($)installmentshares | Feb. 25, 2021$ / shares | Feb. 24, 2021USD ($)instrument | Feb. 23, 2021 | Jan. 04, 2021$ / shares | Mar. 29, 2018 | Jan. 02, 2014 | Aug. 31, 2019 |
Aircraft | GCMH | ||||||||
Subsequent Event [Line Items] | ||||||||
Percent of asset ownership interest | 12.50% | |||||||
2025 Term Loans | Senior Loan | ||||||||
Subsequent Event [Line Items] | ||||||||
Debt, LIBOR floor | 1.00% | |||||||
2025 Term Loans | Senior Loan | London Interbank Offered Rate (LIBOR) | ||||||||
Subsequent Event [Line Items] | ||||||||
Basis spread on variable rate | 2.75% | |||||||
Debt, LIBOR floor | 1.00% | |||||||
Subsequent Event | Restricted Stock Units (RSUs) | ||||||||
Subsequent Event [Line Items] | ||||||||
Shares authorized (in shares) | shares | 4.8 | |||||||
Number of installments | installment | 3 | |||||||
Subsequent Event | Aircraft | GCMH | ||||||||
Subsequent Event [Line Items] | ||||||||
Percent of asset ownership assigned to partner | 50.00% | |||||||
Consideration received from assignment to partner | $ 1.3 | |||||||
Subsequent Event | Interest Rate Contract | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of instruments terminated | instrument | 3 | |||||||
Notional amount | $ 232 | |||||||
Derivative, fixed interest rate | 1.33% | |||||||
Derivative, LIBOR floor | 0.50% | |||||||
Subsequent Event | 2025 Term Loans | Senior Loan | ||||||||
Subsequent Event [Line Items] | ||||||||
Debt, LIBOR floor | 1.00% | |||||||
Early repayment of senior debt | $ 50.3 | |||||||
Subsequent Event | 2025 Term Loans | Senior Loan | London Interbank Offered Rate (LIBOR) | ||||||||
Subsequent Event [Line Items] | ||||||||
Basis spread on variable rate | 2.75% | |||||||
Subsequent Event | 2028 Term Loans | Senior Loan | ||||||||
Subsequent Event [Line Items] | ||||||||
Debt, LIBOR floor | 0.50% | |||||||
Subsequent Event | 2028 Term Loans | Senior Loan | London Interbank Offered Rate (LIBOR) | ||||||||
Subsequent Event [Line Items] | ||||||||
Basis spread on variable rate | 2.50% | |||||||
Subsequent Event | Common Class A | ||||||||
Subsequent Event [Line Items] | ||||||||
Common stock, dividends declared (in dollars per share) | $ / shares | $ 0.08 | $ 0.06 |
Uncategorized Items - gcm-20201
Label | Element | Value |
Adjustments to Additional Paid in Capital, Deferred Tax Adjustment | gcm_AdjustmentsToAdditionalPaidInCapitalDeferredTaxAdjustment | $ 14,140,000 |
Stockholders' Equity, Recapitalization | gcm_StockholdersEquityRecapitalization | (111,638,000) |
Noncontrolling Interest, Increase from Sale of Parent Equity Interest | us-gaap_NoncontrollingInterestIncreaseFromSaleOfParentEquityInterest | 4,035,000 |
Stockholders' Equity, Reallocation From (To) Temporary Equity | gcm_StockholdersEquityReallocationFromToTemporaryEquity | 60,935,000 |
Stockholders' Equity, Reallocation From (To) Temporary Equity | gcm_StockholdersEquityReallocationFromToTemporaryEquity | (4,900,000) |
Partners' Capital Account, Deemed Contributions | gcm_PartnersCapitalAccountDeemedContributions | 42,410,000 |
Adjustments to Additional Paid in Capital, Warrant Issued | us-gaap_AdjustmentsToAdditionalPaidInCapitalWarrantIssued | 10,581,000 |
Temporary Equity, Net Income | us-gaap_TemporaryEquityNetIncome | 5,944,000 |
Temporary Equity, Net Income | us-gaap_TemporaryEquityNetIncome | 8,125,000 |
Partners' Capital Account, Distributions | us-gaap_PartnersCapitalAccountDistributions | 153,670,000 |
Temporary Equity, Capital Distributions | gcm_TemporaryEquityCapitalDistributions | 16,710,000 |
Noncontrolling Interest, Increase Deemed Contributions | gcm_NoncontrollingInterestIncreaseDeemedContributions | 129,948,000 |
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | us-gaap_AdjustmentsToAdditionalPaidInCapitalStockIssuedIssuanceCosts | 47,824,000 |
Temporary Equity, Capital Contributions | gcm_TemporaryEquityCapitalContributions | 173,797,000 |
Temporary Equity, Reallocation To (From) Temporary Equity | gcm_TemporaryEquityReallocationToFromTemporaryEquity | 4,900,000 |
Temporary Equity, Reallocation To (From) Temporary Equity | gcm_TemporaryEquityReallocationToFromTemporaryEquity | (60,935,000) |
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | us-gaap_MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders | 23,102,000 |
Limited Partner [Member] | ||
Stockholders' Equity, Recapitalization | gcm_StockholdersEquityRecapitalization | 366,192,000 |
Stockholders' Equity, Reallocation From (To) Temporary Equity | gcm_StockholdersEquityReallocationFromToTemporaryEquity | 60,935,000 |
Partners' Capital Account, Deemed Contributions | gcm_PartnersCapitalAccountDeemedContributions | 42,410,000 |
Partners' Capital Account, Distributions | us-gaap_PartnersCapitalAccountDistributions | 153,524,000 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | (6,990,000) |
Member Units [Member] | ||
Stockholders' Equity, Recapitalization | gcm_StockholdersEquityRecapitalization | 145,000 |
Partners' Capital Account, Distributions | us-gaap_PartnersCapitalAccountDistributions | 146,000 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | 67,000 |
Additional Paid-in Capital [Member] | ||
Adjustments to Additional Paid in Capital, Deferred Tax Adjustment | gcm_AdjustmentsToAdditionalPaidInCapitalDeferredTaxAdjustment | 14,011,000 |
Stockholders' Equity, Recapitalization | gcm_StockholdersEquityRecapitalization | (342,945,000) |
Adjustments to Additional Paid in Capital, Warrant Issued | us-gaap_AdjustmentsToAdditionalPaidInCapitalWarrantIssued | 2,298,000 |
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | us-gaap_AdjustmentsToAdditionalPaidInCapitalStockIssuedIssuanceCosts | 10,367,000 |
AOCI Including Portion Attributable to Noncontrolling Interest [Member] | ||
Stockholders' Equity, Recapitalization | gcm_StockholdersEquityRecapitalization | 8,970,000 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | us-gaap_OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax | 393,000 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | us-gaap_OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax | 84,000 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | us-gaap_OtherComprehensiveIncomeLossCashFlowHedgeGainLossAfterReclassificationAndTax | 165,000 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | us-gaap_OtherComprehensiveIncomeLossCashFlowHedgeGainLossAfterReclassificationAndTax | (5,641,000) |
Retained Earnings [Member] | ||
Stockholders' Equity, Recapitalization | gcm_StockholdersEquityRecapitalization | (26,541,000) |
Stockholders' Equity, Reallocation From (To) Temporary Equity | gcm_StockholdersEquityReallocationFromToTemporaryEquity | (1,064,000) |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | 7,507,000 |
Noncontrolling Interest, Other Noncontrolling Interests [Member] | ||
Noncontrolling Interest, Increase from Sale of Parent Equity Interest | us-gaap_NoncontrollingInterestIncreaseFromSaleOfParentEquityInterest | 4,035,000 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | 3,873,000 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | 7,744,000 |
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | us-gaap_MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders | 23,102,000 |
Noncontrolling Interest, Limited Partnerships [Member] | ||
Adjustments to Additional Paid in Capital, Deferred Tax Adjustment | gcm_AdjustmentsToAdditionalPaidInCapitalDeferredTaxAdjustment | 129,000 |
Stockholders' Equity, Recapitalization | gcm_StockholdersEquityRecapitalization | (117,459,000) |
Stockholders' Equity, Reallocation From (To) Temporary Equity | gcm_StockholdersEquityReallocationFromToTemporaryEquity | (3,836,000) |
Adjustments to Additional Paid in Capital, Warrant Issued | us-gaap_AdjustmentsToAdditionalPaidInCapitalWarrantIssued | 8,283,000 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | us-gaap_OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax | 301,000 |
Noncontrolling Interest, Increase Deemed Contributions | gcm_NoncontrollingInterestIncreaseDeemedContributions | 129,948,000 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | us-gaap_OtherComprehensiveIncomeLossCashFlowHedgeGainLossAfterReclassificationAndTax | 596,000 |
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | us-gaap_AdjustmentsToAdditionalPaidInCapitalStockIssuedIssuanceCosts | 37,457,000 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | (93,900,000) |
Common Class C [Member] | ||
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | 0 |
Common Class C [Member] | Common Stock [Member] | ||
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | 14,000 |
Common Class C [Member] | Additional Paid-in Capital [Member] | ||
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | (14,000) |
Common Class A [Member] | ||
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | 339,319,000 |
Common Class A [Member] | Common Stock [Member] | ||
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | 4,000 |
Common Class A [Member] | Additional Paid-in Capital [Member] | ||
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | $ 339,315,000 |