Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 21, 2023 | Jun. 30, 2022 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
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 | 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 | $ 288.4 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCENone. | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001819796 | ||
Amendment Flag | false | ||
Common Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Class A common stock, $0.0001 par value per share | ||
Trading Symbol | GCMG | ||
Security Exchange Name | NASDAQ | ||
Warrant | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Warrants to purchase shares of Class A common stock | ||
Trading Symbol | GCMGW | ||
Security Exchange Name | NASDAQ | ||
Class A Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 41,611,742 | ||
Class C Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 144,235,246 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Chicago, Illinois |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 85,163 | $ 96,185 |
Management fees receivable | 18,720 | 21,693 |
Incentive fees receivable | 16,478 | 91,601 |
Due from related parties | 13,119 | 11,777 |
Investments | 223,970 | 226,345 |
Premises and equipment, net | 4,620 | 5,411 |
Lease right-of-use assets | 12,479 | 0 |
Intangible assets, net | 3,940 | 6,256 |
Goodwill | 28,959 | 28,959 |
Deferred tax assets, net | 60,320 | 68,542 |
Other assets | 21,165 | 24,855 |
Total assets | 488,933 | 581,624 |
Liabilities and Equity (Deficit) | ||
Accrued compensation and benefits | 52,997 | 98,132 |
Employee related obligations | 36,328 | 30,397 |
Debt | 387,627 | 390,516 |
Payable to related parties pursuant to the tax receivable agreement | 55,366 | 59,366 |
Lease liabilities | 15,520 | 0 |
Warrant liabilities | 7,861 | 30,981 |
Accrued expenses and other liabilities | 27,240 | 28,033 |
Total liabilities | 582,939 | 637,425 |
Commitments and contingencies (Note 18) | ||
Preferred stock, $0.0001 par value, 100,000,000 shares authorized; none issued | 0 | 0 |
Additional paid-in capital | 0 | 1,501 |
Accumulated other comprehensive income (loss) | 4,096 | (1,007) |
Retained earnings | (23,934) | (26,222) |
Total GCM Grosvenor Inc. deficit | (19,820) | (25,710) |
Noncontrolling interests in subsidiaries | 67,900 | 96,687 |
Noncontrolling interests in GCMH | (142,086) | (126,778) |
Total deficit | (94,006) | (55,801) |
Total liabilities and equity (deficit) | 488,933 | 581,624 |
Class A Common Stock | ||
Liabilities and Equity (Deficit) | ||
Common stock | 4 | 4 |
Class B common stock | ||
Liabilities and Equity (Deficit) | ||
Common stock | 0 | 0 |
Class C Common Stock | ||
Liabilities and Equity (Deficit) | ||
Common stock | $ 14 | $ 14 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock issued (in shares) | 0 | 0 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (in shares) | 700,000,000 | 700,000,000 |
Common stock, issued (in shares) | 41,806,215 | 43,964,090 |
Common stock, outstanding (in shares) | 41,806,215 | 43,964,090 |
Class B common stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, issued (in shares) | 0 | 0 |
Common stock, outstanding (in shares) | 0 | 0 |
Class C Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, issued (in shares) | 144,235,246 | 144,235,246 |
Common stock, outstanding (in shares) | 144,235,246 | 144,235,246 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Revenues | ||||
Operating revenue | $ 446,530 | $ 531,592 | $ 429,981 | |
Expenses | ||||
Employee compensation and benefits | 277,311 | 333,837 | 388,465 | |
General, administrative and other | 88,907 | 88,351 | 84,631 | |
Total operating expenses | 366,218 | 422,188 | 473,096 | |
Operating income (loss) | 80,312 | 109,404 | (43,115) | |
Investment income | 10,108 | 52,495 | 10,742 | |
Interest expense | (23,314) | (20,084) | (23,446) | |
Other income (expense) | 1,436 | 3,394 | (9,562) | |
Change in fair value of warrant liabilities | 20,551 | 7,853 | (13,315) | |
Net other income (expense) | 8,781 | 43,658 | (35,581) | |
Income (loss) before income taxes | 89,093 | 153,062 | (78,696) | |
Provision for income taxes | 9,611 | 10,993 | 4,506 | |
Net income | 79,482 | 142,069 | (83,202) | |
Less: Net income attributable to redeemable noncontrolling interest | 0 | 19,827 | 14,069 | |
Less: Net income attributable to noncontrolling interests in subsidiaries | 6,823 | 36,912 | 11,617 | |
Less: Net income (loss) attributable to noncontrolling interests in GCMH | 52,839 | 63,848 | (112,937) | |
Net income attributable to GCM Grosvenor Inc., basic | $ 19,820 | $ 21,482 | $ 4,049 | |
Earnings (loss) per share of Class A common stock: | ||||
Basic (in dollars per share) | [1] | $ 0.45 | $ 0.49 | $ 0.10 |
Diluted (in dollars per share) | [1] | $ 0.28 | $ 0.28 | $ (0.58) |
Weighted average shares of Class A common stock outstanding: | ||||
Basic (in shares) | [1] | 43,872,300 | 43,765,651 | 39,984,515 |
Diluted (in shares) | [1] | 188,567,992 | 189,059,374 | 184,219,761 |
Management fees | ||||
Revenues | ||||
Operating revenue | $ 367,242 | $ 351,216 | $ 310,745 | |
Incentive fees | ||||
Revenues | ||||
Operating revenue | 75,167 | 173,853 | 111,650 | |
Other operating income | ||||
Revenues | ||||
Operating revenue | $ 4,121 | $ 6,523 | $ 7,586 | |
[1]There were no shares of Class A common stock outstanding prior to November 17, 2020. For the year ended December 31, 2020, represents earnings (loss) per share of Class A common stock and weighted-average shares of Class A common stock outstanding for the period following the Transaction, as defined in Note 3, from November 17, 2020 through December 31, 2020. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 79,482 | $ 142,069 | $ (83,202) |
Other comprehensive income (loss), net of tax: | |||
Net change in cash flow hedges | 32,752 | 7,541 | (4,880) |
Foreign currency translation adjustment | (2,083) | (1,183) | 778 |
Total other comprehensive income (loss) | 30,669 | 6,358 | (4,102) |
Comprehensive income (loss) before noncontrolling interests | 110,151 | 148,427 | (87,304) |
Less: Comprehensive income attributable to redeemable noncontrolling interest | 0 | 19,827 | 14,069 |
Less: Comprehensive income attributable to noncontrolling interests in subsidiaries | 6,823 | 36,912 | 11,617 |
Less: Comprehensive income (loss) attributable to noncontrolling interests in GCMH | 78,405 | 68,720 | (117,288) |
Comprehensive income attributable to GCM Grosvenor Inc. | $ 24,923 | $ 22,968 | $ 4,298 |
Consolidated Statements of Equi
Consolidated Statements of Equity (Deficit) - USD ($) $ in Thousands | Total | Other Noncontrolling Subsidiaries | GCM Holdings | Partners’ Deficit | Class A Common Stock | Member’s Deficit-GCM, L.L.C. | Common Stock Class A Common Stock | Common Stock Class C Common Stock | Additional Paid-in Capital | Additional Paid-in Capital Class A Common Stock | Retained Earnings | Retained Earnings Class A Common Stock | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest in Subsidiaries | Noncontrolling Interest in Subsidiaries Other Noncontrolling Subsidiaries | Noncontrolling Interest in GCMH | Noncontrolling Interest in GCMH GCM Holdings | Noncontrolling Interest in GCMH Class A Common Stock | Cumulative-effect adjustment from adoption Partners’ Deficit | Cumulative-effect adjustment from adoption Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Dec. 31, 2019 | $ (213,830) | $ (308,373) | $ (66) | $ 0 | $ 0 | $ (6,854) | $ 101,463 | $ 0 | $ (650) | $ 650 | ||||||||||
Beginning balance at Dec. 31, 2019 | $ 0 | $ 0 | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Net change in cash flow hedges | (4,880) | |||||||||||||||||||
Translation adjustment | 778 | |||||||||||||||||||
Net income (loss) prior to the Transaction | (83,202) | |||||||||||||||||||
Ending balance at Dec. 31, 2020 | (82,190) | $ 0 | $ 0 | 2,705 | (29,832) | (2,233) | 94,013 | (146,861) | ||||||||||||
Ending balance at Dec. 31, 2020 | (82,190) | 4 | 14 | 2,705 | (29,832) | (2,233) | 94,013 | (146,861) | ||||||||||||
Beginning balance at Dec. 31, 2019 | 0 | |||||||||||||||||||
Ending balance at Dec. 31, 2020 | 115,121 | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Capital contributions from noncontrolling interest in subsidiaries | 3,461 | 3,461 | ||||||||||||||||||
Capital distributions paid to noncontrolling interests and Partners distributions | $ (37,699) | $ (77,936) | $ (37,699) | $ (77,936) | ||||||||||||||||
Equity reallocation to redeemable noncontrolling interest/Exercise of Mosaic call right | (61,495) | (14,033) | (47,462) | |||||||||||||||||
Net change in cash flow hedges | 7,541 | 1,757 | 5,784 | |||||||||||||||||
Translation adjustment | (1,183) | (271) | (912) | |||||||||||||||||
Net income (loss) prior to the Transaction | 142,069 | |||||||||||||||||||
Deferred tax adjustments related to TRA | 32 | 292 | (260) | |||||||||||||||||
Issuance of Class A common stock due to exercised warrants | 23,318 | 5,252 | 18,066 | |||||||||||||||||
Deemed contributions subsequent to the Transaction | 27,671 | 27,671 | ||||||||||||||||||
Repurchase of Class A common stock | $ (887) | $ (207) | $ (680) | |||||||||||||||||
Settlement of equity-based compensation in satisfaction of withholding tax requirements | (6,934) | (2,487) | (499) | (3,948) | ||||||||||||||||
Equity-based compensation | 43,756 | 9,979 | 33,777 | |||||||||||||||||
Declared dividends | (15,498) | (15,498) | ||||||||||||||||||
Equity reallocation between controlling and non-controlling interests | (1,875) | 1,875 | ||||||||||||||||||
Net income loss | 122,242 | 21,482 | 36,912 | 63,848 | ||||||||||||||||
Ending balance at Dec. 31, 2021 | (55,801) | 4 | 14 | 1,501 | (26,222) | (1,007) | 96,687 | (126,778) | ||||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||||||||||||
Capital distributions paid to redeemable noncontrolling interest | 11 | |||||||||||||||||||
Settlement of equity-based compensation in satisfaction of withholding tax requirements | $ (43,500) | |||||||||||||||||||
Equity transaction with Mosaic / Equity reallocation to redeemable noncontrolling interest | (91,459) | |||||||||||||||||||
Net income (loss) | 19,827 | |||||||||||||||||||
Ending balance at Dec. 31, 2021 | 0 | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Capital contributions from noncontrolling interest in subsidiaries | 1,789 | 1,789 | ||||||||||||||||||
Capital distributions paid to noncontrolling interests and Partners distributions | (37,399) | $ (118,349) | (37,399) | $ (118,349) | ||||||||||||||||
Net change in cash flow hedges | 32,752 | 5,589 | 27,163 | |||||||||||||||||
Translation adjustment | (2,083) | (486) | (1,597) | |||||||||||||||||
Net income (loss) prior to the Transaction | 79,482 | |||||||||||||||||||
Deferred tax adjustments related to TRA | 28 | 28 | 0 | |||||||||||||||||
Issuance of Class A common stock due to exercised warrants | 0 | |||||||||||||||||||
Deemed contributions subsequent to the Transaction | 31,811 | 31,811 | ||||||||||||||||||
Repurchase of Class A common stock | $ (26,391) | $ (5,906) | $ (132) | $ (20,353) | ||||||||||||||||
Settlement of equity-based compensation in satisfaction of withholding tax requirements | (6,445) | (1,464) | (4,981) | |||||||||||||||||
Equity-based compensation | 25,424 | 5,841 | 19,583 | |||||||||||||||||
Declared dividends | (18,824) | (18,824) | ||||||||||||||||||
Equity reallocation between controlling and non-controlling interests | 1,424 | (1,424) | ||||||||||||||||||
Net income loss | 79,482 | 19,820 | 6,823 | 52,839 | ||||||||||||||||
Ending balance at Dec. 31, 2022 | $ (94,006) | $ 4 | $ 14 | $ 0 | $ (23,934) | $ 4,096 | $ 67,900 | $ (142,086) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | |||
Net income (loss) | $ 79,482 | $ 142,069 | $ (83,202) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization expense | 3,856 | 4,020 | 9,818 |
Equity-based compensation | 25,424 | 43,756 | 0 |
Deferred income tax expense | 5,843 | 5,692 | 629 |
Other non-cash compensation | 1,336 | 3,300 | 4,564 |
Partnership interest-based compensation | 31,811 | 27,671 | 172,358 |
Amortization of debt issuance costs | 1,111 | 1,025 | 1,336 |
Amortization of terminated swap | 4,171 | 4,634 | 0 |
Proceeds received (payments made) for terminated interest rate derivatives | 40,344 | (26,296) | 0 |
Loss on extinguishment of debt | 0 | 675 | 1,514 |
Change in fair value of derivatives | 0 | 212 | 8,572 |
Change in fair value of warrant liabilities | (20,551) | (7,853) | 13,315 |
Change in payable to related parties pursuant to tax receivable agreement | (729) | 0 | 0 |
Amortization of deferred rent | 0 | (1,593) | 130 |
Proceeds received from investments | 21,771 | 21,297 | 8,050 |
Non-cash investment income | (10,108) | (52,495) | (10,742) |
Non-cash lease expense | 3,856 | 0 | 0 |
Other | 87 | 462 | 2,351 |
Change in assets and liabilities: | |||
Management fees receivable | 2,803 | (7,202) | (595) |
Incentive fees receivable | 75,123 | (22,177) | (48,653) |
Due from related parties | (1,342) | (451) | (1,100) |
Other assets | (1,061) | 23,008 | (16,568) |
Accrued compensation and benefits | (45,290) | 22,397 | 6,295 |
Lease liabilities | (5,512) | 0 | 0 |
Employee related obligations | 5,088 | 2,122 | 2,660 |
Accrued expenses and other liabilities | (1,000) | (5,470) | (2,562) |
Net cash provided by operating activities | 216,513 | 178,803 | 68,170 |
Cash flows from investing activities | |||
Purchases of premises and equipment | (782) | (577) | (1,308) |
Proceeds from assignment of aircraft share interest | 0 | 1,337 | 0 |
Contributions/subscriptions to investments | (29,436) | (40,332) | (23,911) |
Distributions from investments | 20,145 | 11,458 | 19,688 |
Net cash used in investing activities | (10,073) | (28,114) | (5,531) |
Cash flows from financing activities | |||
Capital contributions received from noncontrolling interest | 1,789 | 3,472 | 177,832 |
Capital distributions paid to partners and member | (118,349) | (77,936) | (153,670) |
Capital distributions paid to the noncontrolling interest | (37,399) | (81,199) | (39,812) |
Exercise of Mosaic call option | 0 | (150,122) | 0 |
Proceeds from senior loan issuance | 0 | 110,000 | 0 |
Principal payments on senior loan | (4,000) | (53,259) | (91,195) |
Proceeds from credit facility | 0 | 0 | 20,000 |
Principal payments on credit facility | 0 | 0 | (45,000) |
Debt issuance costs | 0 | (3,080) | 0 |
Capital contributions related to the Transaction and PIPE transactions net of underwriting costs | 0 | 0 | 179,857 |
Payments to repurchase Class A common stock | (26,391) | (887) | 0 |
Proceeds from exercise of warrants | 0 | 24,469 | 6,745 |
Payments to repurchase warrants | (2,569) | (1,273) | 0 |
Settlement of equity-based compensation in satisfaction of withholding tax requirements | (6,445) | (6,934) | 0 |
Dividends paid | (18,432) | (14,525) | 0 |
Capital distributions paid to partners and member | (3,271) | 0 | 0 |
Net cash provided by (used in) financing activities | (215,067) | (251,274) | 54,757 |
Effect of exchange rate changes on cash | (2,395) | (1,376) | 884 |
Net increase (decrease) in cash and cash equivalents | (11,022) | (101,961) | 118,280 |
Beginning of year | 96,185 | 198,146 | 79,866 |
End of year | 85,163 | 96,185 | 198,146 |
Supplemental disclosure of cash flow information | |||
Cash paid during the year for interest | 18,411 | 13,779 | 21,464 |
Cash paid during the year for income taxes | 8,543 | 4,370 | 3,160 |
Supplemental disclosure of cash flow information from operating activities | |||
Non-cash right-of-use assets obtained in exchange for new operating leases | 693 | 0 | 0 |
Supplemental disclosure of non-cash information from financing activities | |||
Deemed contributions from GCMH Equityholders | 31,811 | 27,671 | 172,358 |
Establishment of deferred tax assets, net related to tax receivable agreement and the Transaction | 28 | 292 | 14,140 |
Dividends declared but not paid | $ 1,366 | $ 973 | $ 0 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2022 | |
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”), which was 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, 2022 and December 31, 2021 was approximately 22.5% and 23.4%, respectively. 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, together with GCM Progress Subsidiary LLC, the “GCMH Equityholders”). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
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. The Company’s status as an EGC will terminate on December 31, 2023. 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 11 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, 2022 and 2021, the Company held $20.7 million and $27.5 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 Canada, Germany, Hong Kong, Japan, South Korea and the UK are measured using the Canadian Dollar, Euro, Hong Kong Dollar, Japanese Yen, Korean Won and British Pound, 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 income (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 Receivables Management fees and incentive fees receivables 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, 2022 and 2021. 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 19 for further disclosure of transactions with related parties. 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 under the circumstances. The carrying amounts 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 generally 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 gains and losses are included as investment income in the Consolidated Statements of Income. The Company’s equity method 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 interests in the Consolidated Statements of Financial Condition. For certain other debt investments, the Company has elected the fair value option. Such election is irrevocable and is made at the investment level at initial recognition. The debt investments are not publicly traded and are a Level 3 fair value measurement. For investments carried at fair value, the Company records the increase or decrease in fair value as investment income in the Consolidated Statements of Income. See Note 7 for additional information regarding the Company’s other investments. 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 Leases The Company’s leases primarily consist of operating lease agreements for office space in various countries around the world, including for its headquarters in Chicago, Illinois. On January 1, 2022, the Company adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) on a prospective basis. As a result, prior periods were not adjusted. The new standard requires lessees to use a right-of-use (“ROU”) model where lease ROU assets and lease liabilities are recorded on the Consolidated Statements of Financial Condition for all operating leases with initial terms exceeding one year. Lease ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s remaining minimum lease obligations. The Company made a permitted accounting policy election not to apply the ROU model to short-term leases, which are defined as leases with initial terms of one year or less. The Company determines whether a contract contains a lease at inception. Lease ROU assets and lease liabilities are initially recognized on the lease commencement date based on the present value of the minimum lease payments over the lease term. When determining the lease term, the Company generally does not include options to renew as it is not reasonably certain at contract inception that the Company will exercise the option(s). As the implicit rate is not generally readily determinable, the Company uses its incremental borrowing rate to determine the present value of future minimum lease payments. Lease ROU assets may include initial direct costs incurred by the Company and are reduced by lease incentives. Operating lease expense is recognized on a straight-line basis over the lease term within general, administrative and other in the Consolidated Statements of Income. 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, the amount of impairment is calculated as the excess of the carrying value of the reporting unit over its fair value. The Company performed an annual assessment of its goodwill on October 1, 2022 and 2021 and did not identify any impairment. Public and Private Warrants The Company evaluated the public and private warrants under Accounting Standards Codification (“ASC”) 815-40, Derivatives and Hedging—Contracts in Entity’s Own Equity , and concluded that they do not meet the criteria to be classified as equity (deficit) in the Consolidated Statements of Financial Condition. Specifically, the exercise of the public and private warrants may be settled in cash upon the occurrence of a tender offer or exchange that involves 50% or more of the Company’s Class A shareholders. Because such a tender offer may not result in a change in control and trigger cash settlement and the Company does not control the occurrence of such event, the Company concluded that the public warrants and private warrants do not meet the conditions to be classified as equity (deficit) in the Consolidated Statements of Financial Condition. Since the public and private warrants meet the definition of a derivative under ASC 815, the Company recorded these warrants as liabilities in the Consolidated Statements of Financial Condition at fair value upon the closing of the Transaction in accordance with ASC 820, Fair Value Measurement, with subsequent changes in their respective fair values recorded in the change in fair value of warrant liabilities within the Consolidated Statements of Income at each reporting date. 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 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. 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 and carried interest. Performance Fees The Company may receive performance fees 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 as revenue 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. As of December 31, 2022 and December 31, 2021, deferred revenue relating to constrained realized carried interest of $6.5 million and $6.6 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. 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 $5.7 million, $6.9 million and $7.8 million for the years ended December 31, 2022, 2021 and 2020, respectively, were recorded within general, administrative and other in the Consolidated Statements of Income. Employee Compensation and Benefits Cash-based Employee Compensation and Benefits 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 taking into consideration, among other things, the financial results of the Company, as well as the employee’s performance. Cash-based Incentive Fee Related Compensation Incentive fee compensation consists of discretionary compensation accrued and paid annually based on the Company’s share of incentive fee revenue. Carried Interest Compensation 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, 2022 and 2021, an accrual of $13.3 million and $13.5 million, respectively, relating to amounts withheld was recorded within employee related obligations in the Consolidated Statements of Financial Condition. Other Non-cash Compensation 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-Based Compensation 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 either (a) 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 or (b) transfer equity ownership between certain existing employee members of the GCMH Equityholders. 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 |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | 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. Following the consummation of the Transaction, GCMG indirectly holds general partnership and limited partnership interests in GCMH. The structure of the Transaction is an "Up-C” structure with the owners of GCMH retaining their ownership in GCMH. On the date of the Transaction, the Company recorded a liability related to the public and private warrants of $31.2 million, with offsetting entries to retained earnings and noncontrolling interests in GCMH, as applicable, in the Consolidated Statements of Financial Condition for the year ended December 31, 2020. In conjunction with the Transaction, the Company incurred approximately $11.6 million of transaction expenses, which were recorded within general, administrative and other expense in the Consolidated Statements of Income for the year ended December 31, 2020. |
Mosaic Transaction
Mosaic Transaction | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Mosaic Transaction | Mosaic Transaction Prior to Amendment and Exercise of Mosaic Call Right Effective January 1, 2020, 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 served as the general partner of Mosaic, which was consolidated as the Partnership holds a controlling financial interest in Mosaic. Mosaic Feeder was beneficially owned by Lakeshore Investments GP, LLC (“Lakeshore”), a related party, and an unaffiliated third-party investor (“Mosaic Counterparty”) and was not consolidated. 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 was 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 were eligible to be reduced (not below zero) by exceeding certain cumulative distribution thresholds at each relevant date. In addition, any such amounts paid to Mosaic would also reduce, on a dollar-for-dollar basis, the purchase price payable upon exercise of the Put Option. On December 31, 2020, the Company paid $2.6 million to Mosaic Feeder for the right, but not the obligation, to require Mosaic Feeder to sell to GCMH 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% internal rate of return on its investment. 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% internal rate of return on its investment (the “Put Price”). The Put Option could only be exercised if a Triggering Event as defined in the Agreement occurred, which management had deemed to be remote. If the Partnership declined 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. Management determined that the Mosaic Transaction should be evaluated under the guidance in ASC 810 and concluded that Mosaic was accounted for as a VIE. The Partnership was deemed the primary beneficiary and therefore consolidated 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. Amendment and Exercise of Mosaic Call Right |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues For the years ended December 31, 2022, 2021 and 2020, management fees and incentive fees consisted of the following: Year Ended December 31, Management fees 2022 2021 2020 Management fees, net $ 356,401 $ 340,844 $ 302,339 Fund expense reimbursement revenue 10,841 10,372 8,406 Total management fees $ 367,242 $ 351,216 $ 310,745 Year Ended December 31, Incentive fees 2022 2021 2020 Performance fees $ 2,623 $ 51,947 $ 52,726 Carried interest 72,544 121,906 58,924 Total incentive fees $ 75,167 $ 173,853 $ 111,650 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments Investments consist of the following: As of December 31, 2022 2021 Equity method investments $ 213,776 $ 214,153 Other investments 10,194 12,192 Total investments $ 223,970 $ 226,345 As of December 31, 2022 and 2021, the Company held investments of $224.0 million and $226.3 million, respectively, of which $64.9 million and $88.0 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, 2022 2021 Total Assets $ 40,326,304 $ 39,496,147 Total Liabilities $ 1,655,742 $ 1,340,239 Total Equity $ 38,670,562 $ 38,155,908 Year Ended December 31, 2022 2021 2020 Investment income $ 109,180 $ 195,613 $ 71,613 Expenses 304,908 293,729 249,401 Net investment loss (195,728) (98,116) (177,788) Net realized and unrealized gain 1,108,471 8,441,314 2,423,252 Net income $ 912,743 $ 8,343,198 $ 2,245,464 The Company evaluates each of its equity method investments to determine if any were significant as defined by the SEC. As of December 31, 2022 and 2021 and for the years then ended, no individual equity method investment held by the Company met the significance criteria. As such, the Company is not required to present separate financial statements for any of its equity method investments. Other Investments |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis and level of inputs used for such measurements as of December 31, 2022 and 2021: Fair Value as of December 31, 2022 Level 1 Level 2 Level 3 Total Assets Money market funds $ 36,240 $ — $ — $ 36,240 Other investments — — 10,007 10,007 Total assets $ 36,240 $ — $ 10,007 $ 46,247 Liabilities Public warrants $ 7,386 $ — $ — $ 7,386 Private warrants — — 475 475 Interest rate derivatives — 6,473 — 6,473 Total liabilities $ 7,386 $ 6,473 $ 475 $ 14,334 Fair Value as of December 31, 2021 Level 1 Level 2 Level 3 Total Assets Money market funds $ 27,209 $ — $ — $ 27,209 Interest rate derivatives — 2,695 — 2,695 Other investments — — 11,010 11,010 Total assets $ 27,209 $ 2,695 $ 11,010 $ 40,914 Liabilities Public warrants $ 29,397 $ — $ — $ 29,397 Private warrants — — 1,584 1,584 Total liabilities $ 29,397 $ — $ 1,584 $ 30,981 Money Market Funds Money market funds are valued using quoted market prices and are included in cash and cash equivalents in the Consolidated Statements of Financial Condition. Interest Rate Derivatives 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. See Note 16 for a dditional information regarding interest rate derivatives . Other Investments Investments in the subordinated notes of a structured alternatives investment solution are not publicly traded and are classified as Level 3. Management determines the fair value of these other investments using a discounted cash flow analysis (“Cash Flow Analysis”). The position was classified as Level 3 as of December 31, 2022 and December 31, 2021 because of the use of significant unobservable inputs in the Cash Flow Analysis as follows: December 31, 2022 December 31, 2021 Impact to Valuation from an Increase in Input (2) Significant Unobservable Inputs (1) Range Weighted Average Range Weighted Average Discount rate (3) 25.5% - 26.5% 26.0 % 25.0 % N/A Decrease Expected term (years) 10 – 15 N/A 10 – 15 N/A Decrease Expected return – liquid assets (4) 2.0% - 6.0% 5.0 % 3.0% - 7.0% 4.9 % 4 Increase Expected total value to paid in capital – private assets (5) 1.32x – 2.40x 1.85x 1.20x – 2.65x 1.90x 5 Increase ____________ (1) In determining these inputs, management considers the following factors including, but not limited to, liquidity, estimated yield, capital deployment, diversified multi-strategy appreciation, expected net multiple of investment capital across Private Assets investments, annual operating expenses, as well as investment guidelines such as concentration limits, position size, and investment periods. (2) Unless otherwise noted, this column represents the directional change in fair value of the Level 3 investments that would result from an increase to the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. (3) The discount rate was based on the relevant benchmark rate, spread, and yield migrations on related securitized assets. (4) Inputs were weighted based on actual and estimated expected return included in the range. (5) Inputs were weighted based on the actual and estimated commitments to the respective private asset investments included in the range. The resulting fair values of $10.0 million and $11.0 million were recorded within investments in the Consolidated Statements of Financial Condition as of December 31, 2022 and December 31, 2021, respectively. The following table presents changes in Level 3 assets measured at fair value for the years ended December 31, 2022 and December 31, 2021. Year Ended December 31, 2022 2021 Balance at beginning of period $ 11,010 $ — Purchases — 11,010 Change in fair value (1,003) — Balance at end of period $ 10,007 $ 11,010 Public Warrants The public warrants are valued using quoted market prices on the Nasdaq Stock Market LLC under the ticker GCMGW. Private Warrants The private warrants were classified as Level 3 as of December 31, 2022 and 2021 because of the use of significant unobservable inputs in the valuation, however the overall private warrant valuation and change in fair value are not material to the Consolidated Financial Statements. The valuations for the private warrants were determined to be $0.53 and $1.76 per unit as of December 31, 2022 and 2021, respectively. The resulting fair values of $0.5 million and $1.6 million were recorded within warrant liabilities in the Consolidated Statements of Financial Condition as of December 31, 2022 and 2021, respectively. During the year ended December 31, 2021, 1,800,000 private warrants were transferred between external third-parties and converted to public warrants upon transfer. See Note 10 for additional information regarding the warrant activity. The following table presents changes in Level 3 liabilities measured at fair value for the years ended December 31, 2022 and 2021: Year Ended December 31, 2022 2021 Balance at beginning of period $ (1,584) $ (6,372) Transfer out of Level 3 — 2,952 Change in fair value 1,109 1,836 Balance at end of period $ (475) $ (1,584) |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets, net consist of the following: As of December 31, 2022 Gross carrying amount Accumulated amortization Net carrying amount Subject to amortization: Investment management contracts $ 36,190 $ (36,190) $ — Customer relationships 23,518 (19,578) 3,940 Technology 2,030 (2,030) — Other 620 (620) — $ 62,358 $ (58,418) $ 3,940 As of December 31, 2021 Gross carrying amount Accumulated amortization Net carrying amount Subject to amortization: Investment management contracts $ 36,190 $ (35,981) $ 209 Customer relationships 23,518 (17,471) 6,047 Technology 2,030 (2,030) — Other 620 (620) — $ 62,358 $ (56,102) $ 6,256 Amortization expense of $2.3 million, $2.3 million and $7.5 million was recognized for the years ended December 31, 2022 , 2021 and 2020, respectively. The following approximates the future estimated amortization expense relating to intangible assets: Year Ended December 31, 2023 $ 1,314 2024 1,313 2025 1,313 2026 — 2027 — Thereafter — |
Equity
Equity | 12 Months Ended |
Dec. 31, 2022 | |
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. See Note 10 for additional information regarding the 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 is 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, 2022 and 2021 , 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, 2022 and 2021, 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 for the years ended December 31, 2022 and 2021: Class A Class B Class C December 31, 2020 40,835,093 — 144,235,246 Exercise of warrants 1,794,003 — — Net shares delivered for vested RSUs 1,413,724 — — Repurchase of Class A shares (78,730) — — December 31, 2021 43,964,090 — 144,235,246 Exercise of warrants 30 — — Net shares delivered for vested RSUs 1,120,432 — — Repurchase of Class A shares (3,278,337) — — December 31, 2022 41,806,215 — 144,235,246 As of December 31, 2022, 154,603 RSUs were vested, but not yet delivered, and are therefore not yet included in outstanding Class A common stock. Dividends Dividends are reflected in the Consolidated Statements of Equity (Deficit) when declared by the Board of Directors. The table below summarizes dividends declared during 2022 and 2021: Declaration Date Record Date Payment Date Dividend per Common Share January 4, 2021 March 1, 2021 March 15, 2021 $0.06 February 25, 2021 June 1, 2021 June 15, 2021 $0.08 August 6, 2021 September 1, 2021 September 15, 2021 $0.09 November 8, 2021 December 1, 2021 December 15, 2021 $0.10 Total dividends paid per share, year ended December 31, 2021 $0.33 February 10, 2022 March 1, 2022 March 15, 2022 $0.10 May 5, 2022 June 1, 2022 June 15, 2022 $0.10 August 8, 2022 September 1, 2022 September 15, 2022 $0.10 November 7, 2022 December 1, 2022 December 15, 2022 $0.11 Total dividends paid per share, year ended December 31, 2022 $0.41 Dividend equivalent payments of $1.4 million and $1.0 million were accrued for holders of RSUs for the years ended December 31, 2022 and 2021, respectively. Distributions to partners represent distributions made to GCMH Equityholders. Stock Repurchase Plan On August 6, 2021, GCMG’s Board of Directors authorized a stock repurchase plan of up to an aggregate of $25.0 million, excluding fees and expenses, which may be used to repurchase shares of the Company’s outstanding Class A common stock and warrants to purchase shares of Class A common stock. Class A common stock and warrants may be repurchased from time to time in open market transactions, in privately negotiated transactions, including with employees or otherwise, pursuant to the requirements of Rule 10b5-1 and Rule 10b-18 of the Exchange Act, as well as to retire (by cash settlement or the payment of tax withholding amounts upon net settlement) equity-based awards granted under our 2020 Incentive Award Plan (and any successor plan thereto), with the terms and conditions of these repurchases depending on legal requirements, price, market and economic conditions and other factors. The Company is not obligated under the terms of the plan to repurchase any of its Class A common stock or warrants, the program has no expiration date, and the Company may suspend or terminate the program at any time without prior notice. Any shares of Class A common stock and any warrants repurchased as part of this program will be canceled. On February 10, May 5, and November 7, 2022, GCMG’s Board of Directors made increases to its stock repurchase authorization for shares and warrants. The increases of $20.0 million on February 10, 2022 and May 5, 2022 and of $25.0 million on November 7, 2022 increased the total authorization to $45.0 million, $65.0 million and $90.0 million as of February 10, May 5, and November 7, 2022, respectively. |
Warrants
Warrants | 12 Months Ended |
Dec. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Warrants | 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 expire 5 years after the consummation of the Transaction, or earlier upon redemption or liquidation. 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. 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 CF Sponsor, Holdings or their permitted transferees. CF Sponsor, Holdings or their 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”). The following table shows a rollforward of the public and private warrants outstanding for the years ended December 31, 2022 and 2021: Public Warrants Private Warrants Total December 31, 2020 20,273,567 2,700,000 22,973,567 Exercises of warrants (1,794,003) — (1,794,003) Transfer in (out) 1,800,000 (1,800,000) — Repurchases (681,800) — (681,800) December 31, 2021 19,597,764 900,000 20,497,764 Exercises of warrants (30) — (30) Repurchases (2,812,764) — (2,812,764) December 31, 2022 16,784,970 900,000 17,684,970 During the years ended December 31, 2022 and 2021, 30 and 1,794,003 public warrants were exercised, respectively, resulting in less than $0.1 million and $20.6 million of proceeds, respectively. Pursuant to the stock repurchase plan described in Note 9, during the years ended December 31, 2022 and 2021, the Company repurchased 2,812,764 and 681,800 public warrants, respectively, for $2.6 million (or an average of $0.91 per warrant) and $1.3 million (or an average of $1.87 per warrant), respectively. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities The Company consolidates certain VIEs in which it is determined that the Company is the primary beneficiary. 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 that caused a change in the Company’s consolidation conclusions occurred during either the year ended December 31, 2022 or 2021. As of December 31, 2022 and 2021, the total unfunded commitments from the special limited partner and general partners to the unconsolidated VIEs were $41.1 million and $34.7 million, respectively. 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 relate to the Company’s interests in and management fees, incentive fees and third party costs receivables from these non-consolidated VIEs. The Company’s maximum exposure to loss relating to non-consolidated VIEs as of December 31, 2022 and 2021 were as follows: As of December 31, 2022 2021 Investments $ 98,712 $ 104,609 Receivables 11,695 13,554 Maximum exposure to loss $ 110,407 $ 118,163 The above table includes investments in VIEs which are owned by noncontrolling interest holders of approximately $36.7 million and $50.4 million as of December 31, 2022 and 2021, respectively. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and EquipmentA summary of premises and equipment as of December 31, 2022 and 2021 is as follows: As of December 31, Estimated Useful Lives 2022 2021 Furniture, fixtures and leasehold improvements $ 36,481 $ 36,521 3 – 7 years Office equipment 1,064 1,017 5 years Computer equipment and software 18,806 18,345 3 – 5 years Aircraft 1,550 1,550 5 years Assets in progress 107 — Premises and equipment, at cost 58,008 57,433 Accumulated depreciation and amortization (53,388) (52,022) Premises and equipment, net $ 4,620 $ 5,411 In August 2019, the Company acquired a 12.5% interest in an aircraft which is being amortized over five years. In March 2021, the Company assigned 50% of its interest to Holdings for cash consideration of $1.3 million. Total depreciation and amortization expense related to premises and equipment of $1.5 million, $1.7 million and $2.3 million was recognized for the years ended December 31, 2022, 2021 and 2020, respectively. |
Employee Compensation and Benef
Employee Compensation and Benefits | 12 Months Ended |
Dec. 31, 2022 | |
Compensation Related Costs [Abstract] | |
Employee Compensation and Benefits | Employee Compensation and Benefits For the years ended December 31, 2022, 2021 and 2020, employee compensation and benefits consisted of the following: Year Ended December 31, 2022 2021 2020 Cash-based employee compensation and benefits $ 160,522 $ 162,901 $ 165,830 Equity-based compensation 30,721 44,190 — Partnership interest-based compensation 31,811 27,671 172,358 Carried interest compensation 41,920 67,773 34,259 Cash-based incentive fee related compensation 11,001 28,002 11,454 Other non-cash compensation 1,336 3,300 4,564 Total employee compensation and benefits $ 277,311 $ 333,837 $ 388,465 Partnership Interest in Holdings, Holdings II and Management LLC Payments and settlements for partnership interest awards to the employees are made by GCMH Equityholders. As a result, the Company records a non-cash profits interest compensation charge and an offsetting deemed contribution to equity (deficit) to reflect the payments or settlements made or owed by the GCMH Equityholders. Since payments or settlements 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 interests 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 equity (deficit) from Holdings, Holdings II and Management LLC of approximately $31.8 million, $27.7 million and $172.4 million for the years ended December 31, 2022, 2021 and 2020, respectively, for partnership interest-based compensation expense which was or will ultimately be paid or settled 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 related to award modifications of $6.3 million, $6.3 million and $46.9 million was recognized for the years ended December 31, 2022, 2021 and 2020, respectively. The liability associated with awards that contain a stated target has been retained by Holdings as of December 31, 2022 and 2021 and is re-measured at each reporting date, with any corresponding changes in liability being reflected as employee compensation and benefits expense of the Company. Certain recipients had unvested stated target payments of $0.0 million, $6.3 million, and $0.0 million as of December 31, 2022, 2021 and 2020, respectively, which has not been reflected as employee compensation and benefits expense by the Company. The Company recognized partnership interest-based compensation expense of $23.1 million, $21.4 million and $125.5 million for the years ended December 31, 2022, 2021 and 2020, respectively, related to profits interest awards that are in substance profit-sharing arrangements. In the year ended December 31, 2022, GCMH Equityholders entered into an agreement that will transfer equity ownership between certain existing employee members of the GCMH Equityholders (“GCMH Equityholders Awards”). The GCMH Equityholders Awards will entitle recipients to receive Class A common stock upon vesting. The non-cash awards serve to transfer equity ownership from existing GCMH Equityholders to other existing member employees upon vesting. The GCMH Equityholders Awards do not dilute Class A common stockholders and do not impact net cash flows of the Company. The GCMH Equityholders Awards are accounted for under ASC 718, Compensation—Stock Compensation . The awards generally will vest in May 2025 and do not entitle the recipients to dividends or distributions made on Class A common stock during the vesting period. As such, the fair value of the GCMH Equityholders Awards is based on the closing price of Class A common stock on the accounting grant date less the present value of dividends expected to be paid during the vesting period. GCMH Equityholders can settle the awards upon vesting by exchanging outstanding GCMH common units or by otherwise acquiring and delivering Class A common stock, and therefore the vesting of such awards will not dilute Class A common stockholders. The GCMH Equityholders Awards therefore have no economic impact on Class A common stockholders. As such, the expense that is pushed down to GCMH and the offsetting deemed contribution are each attributed solely to noncontrolling interests in GCMH, consistent with the accounting for payments to employees described above. The GCMH Equityholders Awards of 7,169,415 units had an aggregate grant date fair value of $53.4 million, or an average grant date fair value of $7.45 per unit. The Company recognized partnership interest-based compensation expense related to the GCMH Equityholders Awards of $2.4 million for the year ended December 31, 2022. As of December 31, 2022, total unrecognized compensation expense related to unvested GCMH Equityholders Awards was $51.0 million and is expected to be recognized over the remaining weighted average period of 2.3 years. Other Other consists of employee compensation and benefits expense related to deferred compensation programs and other awards that represent investments made in GCM Funds on behalf of the employees. |
Equity-Based Compensation
Equity-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Equity-Based Compensation | Equity-Based Compensation 2020 Incentive Award Plan During February 2021, the Company adopted the 2020 Incentive Award Plan, which allows for the granting of stock options, stock appreciation rights, restricted stock awards, restricted stock units, and other stock or cash based awards or dividend equivalent awards to employees, directors and consultants. Restricted Stock Units In March 2021, the Company granted 4.8 million RSUs to certain employees and directors in connection with the Transaction. Of the RSUs granted, the Company intends to settle less than 0.1 million RSUs in cash. The RSUs had an aggregate grant date fair value of $62.1 million. In addition to the March 2021 grant, an additional 0.4 million RSUs with an aggregate grant date fair value o f $4.1 million were granted to certain employees during the year ended December 31, 2021. The weighted-average grant date fair value of RSUs granted during the year ended December 31, 2021 was $12.86. In the year ended December 31, 2022, the Company granted 1.3 million equity-classified RSUs and 3.2 million liability-classified RSUs with aggregate grant date fair values o f $12.3 million and $27.2 million, respectively, to certain employees . The liability-classified RSUs are either classified as liabilities because they are required to be settled in cash or because the Company has the right to and intends to (as of December 31, 2022) settle the RSUs partially or wholly in cash. Upon delivery, the Company may withhold the number of shares to satisfy the statutory withholding tax obligation and deliver the net number of resulting shares vested. The equity-classified grants generally vest either (a) one-third at the grant date with the remainder over two years in equal annual installments or (b) over a one Note 13 for additional information regarding GCMH Equityholders Awards. A summary of non-vested equity-classified RSU activity for the year ended December 31, 2022 is as follows: Number of RSUs Weighted-Average Grant-Date Fair Value Per RSU Balance as of December 31, 2021 2,996,077 $ 12.84 Granted 1,284,314 9.59 Vested (1,950,257) 12.01 Forfeited (89,337) 12.60 Balance as of December 31, 2022 2,240,797 $ 11.71 A summary of non-vested liability-classified RSU activity for the year ended December 31, 2022 is as follows: Number of RSUs Weighted-Average Grant-Date Fair Value Per RSU Balance as of December 31, 2021 8,334 $ 13.04 Granted 3,222,961 8.44 Vested (76,134) 10.24 Balance as of December 31, 2022 3,155,161 $ 8.41 The total grant-date fair value of RSUs that vested during the years ended December 31, 2022 and 2021 was $24.2 million and $27.4 million, respectively. For the years ended December 31, 2022 and 2021, $30.7 million and $44.2 million, respectively, of compensation expense related to RSUs was recorded within employee compensation and benefits in the Consolidated Statements of Income. As of December 31, 2022, total unrecognized compensation expense related to non-vested RSUs was $28.6 million and is expected to be recognized over the remaining weighted average period of 0.5 years. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt The table below summarizes the outstanding debt balance as of December 31, 2022 and 2021: As of December 31, 2022 2021 Senior loan $ 393,000 $ 397,000 Less: debt issuance costs (5,373) (6,484) Total debt $ 387,627 $ 390,516 Maturities of debt for the next five years and thereafter are as follows: Year Ended December 31, 2023 $ 4,000 2024 4,000 2025 4,000 2026 4,000 2027 4,000 Thereafter 373,000 Total $ 393,000 Senior Loan On January 2, 2014, the Company entered into a senior secured term loan facility (“Senior Loan”) which was subsequently amended through several debt modifications. 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 was included within other income (expense) in the Consolidated Statements of Income for the year ended December 31, 2020. On February 24, 2021, the Company completed an amendment and extension of its Senior Loan to further extend the maturity (“Amended Credit Agreement”). Approximately $290.0 million of the aggregate principal amount of the Senior Loan was extended from a maturity date of March 29, 2025 (the “2025 Term Loans”) to a maturity date of February 24, 2028 , (as extended, the “2028 Term Loans”). The 2028 Term Loans have an interest rate of 2.50% over the LIBOR, subject to a 0.50% LIBOR floor. In the event of a Benchmark Transition Event, the interest rate will default to the Term Secured Overnight Financing Rate (“Term SOFR”) plus a Benchmark Replacement Adjustment as recommended by the Relevant Governmental Body (all terms as defined in the Amended Credit Agreement). 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. As a result of the prepayment in February 2021, the Company recorded an expense of $0.7 million related to the acceleration of deferred debt issuance costs, which was recorded within other income (expense) in the Consolidated Statements of Income for the year ended December 31, 2021. The Company capitalized $0.9 million of debt issuances costs related to payments to lenders in connection with the amendment and extension of its Senior Loan, which was recorded within debt in the Consolidated Statements of Financial Condition, and expensed $2.6 million of third-party costs related to the amendment which was recorded within general, administrative and other in the Consolidated Statements of Income for the year ended December 31, 2021. On June 23, 2021, the Company further amended its Senior Loan to increase the aggregate principal amount from $290.0 million to $400.0 million (as increased, the “Incremental 2028 Term Loans”). The Company capitalized $2.2 million of debt issuance costs related to payments to lenders in connection with the Incremental 2028 Term Loans, which was recorded within debt in the Consolidated Statements of Financial Condition. Since June 30, 2021, quarterly principal payments of $1.0 million are required to be made toward the Incremental 2028 Term Loans beginning June 30, 2021 (less any reduction for prior or future voluntary or mandatory prepayments of principal). In addition to the scheduled principal repayments, the Company is 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, 2022, 2021 and 2020, the Company did not make any Cash Flow Payments. As of December 31, 2022 and 2021, $393.0 million and $397.0 million of Incremental 2028 Term Loans were outstanding, respectively. The weighted average interest rates for the years ended December 31, 2022 and 2021 of 4.27% and 3.19%, 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, 2022 and 2021, 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 $50.0 million revolving credit facility (“Credit Facility”). The Credit Facility matures on February 24, 2026 and carries an unused commitment fee that is paid quarterly. There were no outstanding borrowings related to the Credit Facility as of each of December 31, 2022 and 2021. Other Certain subsidiaries of the Comp any agree to jointly and severally guarantee, as primary obligors and not merely as surety guarantees the obligations of their parent entity, GCMH. Amortization of deferred debt issuance costs was $1.1 million, $1.0 million and $1.3 million for the years ended December 31, 2022, 2021 and 2020, respectively. These amounts are recorded within interest expense in the Consolidated Statements of Income. The carrying value of the Senior Loan, excluding the unamortized debt issuance costs presented as a reduction to the principal balance, approximated the fair value as of December 31, 2022 and December 31, 2021 . As the Senior Loan was not accounted for at fair value, it was not included in the Company’s fair value hierarchy in Note 7, however had it been included, it would have been classified in Level 2. |
Interest Rate Derivatives
Interest Rate Derivatives | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Interest Rate Derivatives | Interest Rate Derivatives The Company has entered into various derivative agreements with financial institutions to hedge interest rate risk related to its outstanding debt. The Company had the following interest rate derivatives recorded as a liability within accrued expenses and other liabilities other assets As of December 31, 2022 Derivative Notional Amount Fair Value Fixed Rate Paid Floating Rate Received Effective Date (2) Maturity Date Interest rate swap $ 300,000 $ (6,473) 4.37 % 1 month LIBOR (1) November 2022 February 2028 ____________ (1) Floating rate received subject to a 0.50% Floor. Refer to Note 15 regarding the interest rate on the outstanding debt in the event of a Benchmark Transition Event. If the outstanding debt defaults to Term SOFR plus a Benchmark Replacement Adjustment, the floating rate received under the interest rate swaps will also default to such rate. (2) 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, 2021 Derivative Notional Amount Fair Value Fixed Rate Paid Floating Rate Received Effective Date (2) Maturity Date Interest rate swap $ 232,000 $ 2,264 1.33 % 1 month LIBOR (1) March 2021 February 2028 Interest rate swap 68,000 431 1.39 % 1 month LIBOR (1) July 2021 February 2028 $ 2,695 ____________ (1) Floating rate received subject to a 0.50% Floor. (2) Represents the date at which the derivative is in effect and the Company was contractually required to begin payment of interest under the terms of the agreement. A rollforward of the amounts in accumulated other comprehensive income (loss) (“AOCI”) related to interest rate derivatives designated as cash flow hedges is as follows: Year Ended December 31, 2022 2021 Derivative loss at beginning of period $ (3,622) $ (11,163) Amount recognized in other comprehensive income (loss) 1 27,285 540 Amount reclassified from accumulated other comprehensive income (loss) to interest expense 5,467 7,001 Derivative income (loss) at end of period 29,130 (3,622) Less: Loss attributable to noncontrolling interests in GCMH 24,204 (2,959) Derivative income (loss) at end of period, net $ 4,926 $ (663) _____________ (1) Net of $2.6 million tax expense and an immaterial tax impact for the years ended December 31, 2022 and 2021, respectively . On February 24, 2021, the Company terminated derivative instruments which were entered into in 2017 and 2018. Prior to termination, certain derivative instruments did not qualify for hedge accounting due to floor rate mismatches and as a result, all changes in fair value for those derivative instruments were reflected within other income (expense) in the Consolidated Statements of Income. The amount previously recorded as a hedge in AOCI remains in AOCI and was recorded in interest expense within the Consolidated Statements of Income over the original life of the swap. Prior to terminating the instruments in February 2021, the Company recognized a gain of $1.9 million related to interest rate contracts not designated as hedging instruments, which was recorded within other income (expense) in the Consolidated Statements of Income for the year ended December 31, 2021. Effective on March 1, 2021 , the Company entered into a swap agreement (“2028 Swap Agreement”) to hedge interest rate risk related to payments made during the extended maturity of the 2028 Term Loans that had a notional amount of $232.0 million . Effective on July 1, 2021, the Company entered into a swap agreement (“2028 Incremental Swap Agreement”) to hedge interest rate risk related to payments made for the increase in aggregate principal amount of the Incremental 2028 Term Loans that had a notional amount of $68.0 million. The 2028 Swap Agreement, the 2028 Incremental Swap Agreement and Incremental 2028 Term Loans have a 0.50% LIBOR floor. The 2028 Swap Agreement and 2028 Incremental Swap Agreement were determined to be effective cash flow hedges at inception based on a comparison of critical terms. In October 2022, the Company terminated the 2028 Swap Agreement and 2028 Incremental Swap Agreement effective on November 1, 2022. The Company received $40.3 million of cash for the fair market value of the interest rate swaps at termination. The amount previously recorded as a hedge in AOCI will remain in AOCI and will be recorded in interest expense within the Consolidated Statements of Comprehensive Income over the original life of the swaps. The Company reclassified $4.2 million and $4.6 million for the years ended December 31, 2022 and 2021, respectively, from AOCI to interest expense relating to the derivative instruments terminated that initially qualified for hedge accounting. The net impact of these reclassifications increased interest expense for the years ended December 31, 2022 and 2021. Effective on November 1, 2022 , the Company entered into a new swap agreement to hedge interest rate risk related to payments made for the 2028 Term Loans that has a notional amount of $300 million and a fixed rate of 4.37%. The new swap agreement and the 2028 Term Loans have a 0.50% LIBOR floor. The swap was determined to be an effective cash flow hedge at inception based on a comparison of critical terms. The fair va lues of the interest rate swaps 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. As of December 31, 2022, all of the Company’s derivative exposure is with one financial institution. By using derivatives, the Company is exposed to counterparty credit risk if the counterparty to the derivative contracts does not perform as expected. If a counterparty fails to perform, the Company's counterparty credit risk is equal to the amount reported as a derivative asset in the Consolidated Statements of Financial Condition. The Company minimizes counterparty credit risk through credit approvals and monitoring procedures, where appropriate. |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 and 2021 is as follows: As of December 31, 2022 2021 Carried interest payable $ 250 $ 1,510 Deferred revenue 8,972 8,484 Deferred rent — 5,421 Clawback obligation 200 600 Derivative liability 6,473 — Other liabilities 11,345 12,018 Total accrued expenses and other liabilities $ 27,240 $ 28,033 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
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. The leases contain rent escalation clauses based on increases in base rent, real estate taxes and operating expenses. The components of operating lease expense recorded within general, administrative and other in the Consolidated Statements of Income were as follows: Year Ended Operating lease cost (1) $ 7,514 Variable lease cost (2) 4,112 Less: sublease income 193 Total lease cost $ 11,433 ____________ (1) Includes less than $0.3 million of short term lease expense for year ended December 31, 2022. (2) Includes common area maintenance charges and other variable costs not included in the measurement of ROU assets and lease liabilities. The following table summarizes cash flows and other supplemental information related to our operating leases: Year Ended Cash paid for amounts included in the measurement of operating lease liabilities $ 8,813 Non-cash ROU assets obtained in exchange for new operating leases $ 693 Weighted average remaining lease term in years 2.9 years Weighted average discount rate 4.1 % As of December 31, 2022 the maturities of operating lease liabilities were as follows: Year Ended December 31, 2023 $ 7,331 2024 3,640 2025 3,548 2026 1,974 2027 — Thereafter — Total lease payments $ 16,493 Less: imputed interest (973) Total operating lease liabilities $ 15,520 Rental expense under operating lease agreements was approximately $7.5 million, $7.2 million and $7.3 million for the years ended December 31, 2022, 2021 and 2020, respectively, and is included within general, administrative and other in the Consolidated Statements of Income. Commitment s The Company was required to pay a fixed management fee of $0.5 million per year for a five year period that commenced in 2019 pursuant to its 12.5% interest in an aircraft. 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. The Company is now required to pay a fixed management fee of $0.3 million per year. The Company had $88.9 million and $83.5 million of unfunded investment commitments as of December 31, 2022 and 2021, respectively, representing general partner capital funding commitments to several of the GCM Funds. 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 Statements. 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 that 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, 2022 | |
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 13 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 $13.1 million and $11.7 million as of December 31, 2022 and 2021, 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, and such investments are generally not subject to management fees and performance fees. As of December 31, 2022 and 2021, such investments and future commitments were $366.2 million and $441.8 million in aggregate, 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. 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, net of reimbursements, approximately $2.4 million, $1.0 million and $0.5 million for the years ended December 31, 2022, 2021 and 2020, respectively, to utilize aircraft and charter services wholly owned or controlled by members of Holdings, which is recorded within general, administrative and other in the Consolidated Statements of Income. Prior to the Transaction, the Company paid for all direct and indirect expenses of GCMHGP LLC, including accounting and administrative expenses. GCMHGP LLC did not reimburse the Company for such expenses, which were immaterial to the Company. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision (benefit) for income taxes for the years ended December 31, 2022, 2021 and 2020 consist of the following: Year Ended December 31, 2022 2021 2020 Current: Federal $ (206) $ 1,970 $ 1,118 State and local 2,137 2,155 1,771 Foreign 1,837 1,176 988 Total current provision for income taxes $ 3,768 $ 5,301 $ 3,877 Deferred: Federal $ 4,208 $ 4,428 $ 937 State and local 1,838 1,364 (301) Foreign (203) (100) (7) Total deferred income taxes expense 5,843 5,692 629 Total provision for income taxes $ 9,611 $ 10,993 $ 4,506 A reconciliation of the U.S. statutory income tax rate to the Company’s effective tax rate is as follows: Year Ended December 31, 2022 2021 2020 Statutory U.S. federal income tax rate 21 % 21 % 21 % State and local income taxes 3 % 2 % (2) % Impact of noncontrolling interests (15) % (17) % (24) % Income passed through to members — % — % 1 % Foreign income taxes 2 % 1 % (1) % Other — % — % (1) % Effective income tax rate 11 % 7 % (6) % Deferred tax assets and liabilities are recorded net within deferred tax assets, net in the Company’s Consolidated Statements of Financial Condition. Details of the Company’s deferred tax assets and liabilities are as follows: As of December 31, 2022 2021 Investment in GCMH $ 92,695 $ 105,331 Unrealized gains and losses 2,041 — Intangibles and other 934 683 Total deferred tax assets (before valuation allowance) 95,670 106,014 Valuation allowance (35,229) (37,472) Total deferred tax assets $ 60,441 $ 68,542 Right-of-use asset $ (121) $ — Total deferred tax liabilities $ (121) $ — Deferred tax assets, net $ 60,320 $ 68,542 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 $35.2 million and $37.5 million as of December 31, 2022 and 2021, respectively, 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, 2022, 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, 2022, tax years for 2022, 2021, 2020 and 2019 are subject to examination by the tax authorities. With few exceptions, as of December 31, 2022, the Company is no longer subject to U.S. federal, state, local, or foreign examinations by tax authorities for years before 2019. On August 16, 2022, the IRA was signed into law. In general, the provisions of the IRA will be effective beginning with the fiscal year 2023, with certain exceptions. The IRA includes a new 15% corporate minimum tax as well as a 1% excise tax on corporate stock repurchases completed after December 31, 2022. As required under the authoritative guidance of ASC 740, Income Taxes, the Company reviewed the impact on income taxes due to the change in legislation and concluded there was no impact to the financial statements as of December 31, 2022. The Company is in the process of evaluating the potential future impacts of the IRA, and while we do not expect a material impact from this legislation on our Consolidated Financial Statements, we will continue to review and monitor any additional guidance provided by the Internal Revenue Service. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share 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 following is a reconciliation of basic and diluted earnings (loss) per share for the years ended December 31, 2022 and 2021 and for the period November 17, 2020 through December 31, 2020: Year Ended December 31, 2022 Year Ended December 31, 2021 November 17, 2020 through December 31, 2020 Numerator for earnings (loss) per share calculation: Net income attributable to GCM Grosvenor Inc., basic $ 19,820 $ 21,482 $ 4,049 Exercise of private warrants — (382) — Exercise of public warrants — (1,126) — Exchange of Partnership units 33,209 33,252 (111,042) Assumed vesting of RSUs — — — Net income (loss) attributable to common stockholders, diluted 53,029 53,226 (106,993) Denominator for earnings (loss) per share calculation: Weighted-average shares, basic 43,872,300 43,765,651 39,984,515 Exercise of private warrants - incremental shares under the treasury stock method — 90,062 — Exercise of public warrants - incremental shares under the treasury stock method — 691,396 — Exchange of Partnership units 144,235,246 144,235,246 144,235,246 Assumed vesting of RSUs - incremental shares under the treasury stock method 460,446 277,019 — Weighted-average shares, diluted 188,567,992 189,059,374 184,219,761 Basic EPS Net income attributable to common stockholders, basic $ 19,820 $ 21,482 $ 4,049 Weighted-average shares, basic 43,872,300 43,765,651 39,984,515 Net income per share attributable to common stockholders, basic $ 0.45 $ 0.49 $ 0.10 Diluted EPS Net income (loss) attributable to common stockholders, diluted $ 53,029 $ 53,226 $ (106,993) Weighted-average shares, diluted 188,567,992 189,059,374 184,219,761 Net income (loss) per share attributable common stockholders, diluted $ 0.28 $ 0.28 $ (0.58) When applying the if-converted method to calculate the potential dilutive impact of the exchangeable common units of the Partnership, the earnings per share numerator adjustment reflects the net income attributable to noncontrolling interests in GCMH, as reported, adjusted for the hypothetical incremental provision (benefit) for income taxes that would have been recorded by the Company if the units had been converted. 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, a separate presentation of basic and diluted earnings 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 calculations of diluted earnings per share attributable to common stockholders because their impact would have been antidilutive for the periods presented: Year Ended December 31, 2022 Year Ended December 31, 2021 November 17, 2020 through December 31, 2020 Public warrants 16,784,970 — 20,273,567 Private warrants 900,000 — 2,700,000 |
Regulatory and Net Capital Requ
Regulatory and Net Capital Requirements | 12 Months Ended |
Dec. 31, 2022 | |
Broker-Dealer [Abstract] | |
Regulatory and Net Capital Requirements | Regulatory and Net Capital Requirements We are required to maintain minimum net capital balances for regulatory purposes for our Japan, Hong Kong and United Kingdom subsidiaries as well as our U.S. broker-dealer subsidiary . These net capital requirements are met by retaining cash. The Company's U.S. registered broker-dealer 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. As of December 31, 2022, the Company's U.S. registered broker-dealer had net capital, as defined under Rule 15c3-1, of $1.2 million and excess net capital of $1.2 million. The ratio of aggregate indebtedness to net capital was 0.13 to 1. As of December 31, 2022, all broker-dealer subsidiaries are in compliance with regulatory requirements. Although the Company's U.S. registered broker-dealer 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). |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn February 9, 2023, the Company declared a quarterly dividend of $0.11 per share of Class A common stock to record holders as of the close of business on March 1, 2023. The payment date will be March 15, 2023. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
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. |
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 11 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 Canada, Germany, Hong Kong, Japan, South Korea and the UK are measured using the Canadian Dollar, Euro, Hong Kong Dollar, Japanese Yen, Korean Won and British Pound, 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 income (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 Receivables | Management Fees and Incentive Fees Receivables Management fees and incentive fees receivables 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, 2022 and 2021. 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. 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 and carried interest. Performance Fees The Company may receive performance fees 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 as revenue 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. As of December 31, 2022 and December 31, 2021, deferred revenue relating to constrained realized carried interest of $6.5 million and $6.6 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 19 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 under the circumstances. The carrying amounts 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 generally 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 gains and losses are included as investment income in the Consolidated Statements of Income. The Company’s equity method 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 interests in the Consolidated Statements of Financial Condition. For certain other debt investments, the Company has elected the fair value option. Such election is irrevocable and is made at the investment level at initial recognition. The debt investments are not publicly traded and are a Level 3 fair value measurement. For investments carried at fair value, the Company records the increase or decrease in fair value as investment income in the Consolidated Statements of Income. See Note 7 for additional information regarding the Company’s other investments. |
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 |
Leases | Leases The Company’s leases primarily consist of operating lease agreements for office space in various countries around the world, including for its headquarters in Chicago, Illinois. On January 1, 2022, the Company adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) on a prospective basis. As a result, prior periods were not adjusted. The new standard requires lessees to use a right-of-use (“ROU”) model where lease ROU assets and lease liabilities are recorded on the Consolidated Statements of Financial Condition for all operating leases with initial terms exceeding one year. Lease ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s remaining minimum lease obligations. The Company made a permitted accounting policy election not to apply the ROU model to short-term leases, which are defined as leases with initial terms of one year or less. |
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 |
Public and Private Warrants | Public and Private Warrants The Company evaluated the public and private warrants under Accounting Standards Codification (“ASC”) 815-40, Derivatives and Hedging—Contracts in Entity’s Own Equity , and concluded that they do not meet the criteria to be classified as equity (deficit) in the Consolidated Statements of Financial Condition. Specifically, the exercise of the public and private warrants may be settled in cash upon the occurrence of a tender offer or exchange that involves 50% or more of the Company’s Class A shareholders. Because such a tender offer may not result in a change in control and trigger cash settlement and the Company does not control the occurrence of such event, the Company concluded that the public warrants and private warrants do not meet the conditions to be classified as equity (deficit) in the Consolidated Statements of Financial Condition. Since the public and private warrants meet the definition of a derivative under ASC 815, the Company recorded these warrants as liabilities in the Consolidated Statements of Financial Condition at fair value upon the closing of the Transaction in accordance with ASC 820, Fair Value Measurement, with subsequent changes in their respective fair values recorded in the change in fair value of warrant liabilities within the Consolidated Statements of Income at each reporting date. |
Noncontrolling Interests | 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 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. 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 Cash-based Employee Compensation and Benefits 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 taking into consideration, among other things, the financial results of the Company, as well as the employee’s performance. Cash-based Incentive Fee Related Compensation Incentive fee compensation consists of discretionary compensation accrued and paid annually based on the Company’s share of incentive fee revenue. Carried Interest Compensation 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, 2022 and 2021, an accrual of $13.3 million and $13.5 million, respectively, relating to amounts withheld was recorded within employee related obligations in the Consolidated Statements of Financial Condition. Other Non-cash Compensation 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-Based Compensation 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 either (a) 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 or (b) transfer equity ownership between certain existing employee members of the GCMH Equityholders. 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. Since payments or settlements of partnership interest awards are made by GCMH Equityholders, the Company records a non-cash profits interest compensation charge and an offsetting deemed contribution to equity (deficit). 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 based fully on the discretion of the managing member of Holdings, Holdings II and Management LLC, are recorded within employee compensation and benefits in the Consolidated Statements of Income when Holdings, Holdings II or Management LLC makes distributions to the Recipients. Awards that are in substance stock-based compensation are recorded within employee compensation and benefits on a straight-line basis over the service period based on the grant date fair value of the equity awards. Profit-sharing arrangements that contain a stated target payment are recognized as partnership interest-based compensation expense equal to the present value of expected future payments on a straight-line basis over the service period. Any such expense previously recorded is reversed if the target amount is canceled or forfeited or if the required service period is not provided. Equity-Based Compensation The Company accounts for grants of equity-based awards, including restricted stock units (“RSUs”), at fair value as of the grant date. Each RSU represents the right to receive payment in the form of one share of Class A common stock or an amount equal to the market value of one share of Class A common stock. Holders of unvested RSUs do not have the right to vote with the underlying shares of Class A common stock, but are generally entitled to accrue dividend equivalents, which are generally paid in cash when such RSUs are delivered. The Company recognizes compensation expense attributable to these grants on a straight-line basis over the requisite service period, which is generally the vesting period. Expenses related to grants of equity-based awards are recorded within employee compensation and benefits in the Consolidated Statements of Income and within additional paid-in capital and noncontrolling interests in GCMH in the Consolidated Statements of Financial Condition . The grant-date fair value of RSUs is determined by the closing stock price on the grant date. Awards the Company intends to settle in cash as of the balance sheet date are classified as liabilities within employee related obligations in the Consolidated Statements of Financial Condition and are subsequently remeasured to the closing stock price as of each reporting date through either the payment date or the date that the Company no longer intends to settle in cash, with the changes in fair value recorded within employee compensation and benefits in the Consolidated Statements of Income . Forfeitures of equity-based awards are recognized as they occur. See Note 14 for additional information regarding the Company’s equity-based compensation. |
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 16. 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 |
Provision for Income Taxes/Tax Receivable Agreement | Provision for 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 periods 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. Inflation Reduction Act On August 16, 2022, the Inflation Reduction Act (the “IRA”) was signed into law. The IRA contains a number of tax related provisions including a 15% minimum corporate income tax on certain large corporations as well as a 1% excise tax on stock repurchases. The Company is in the process of evaluating the potential future impacts of the IRA and while it does not expect a material impact from this legislation on its Consolidated Financial Statements, it will continue to review and monitor any additional guidance provided by the Internal Revenue Service. 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 ASC 260, Earnings Per Share . The two-class method of computing earnings (loss) per share is required for entities that have participating securities. The Company’s Class C Common Stock has no economic interest in the earnings of the Company and the Company’s outstanding RSUs do not receive nonforfeitable dividends. As a result, the two-class method is not 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, the exchangeable common units of the Partnership and the RSUs to determine the diluted net income (loss) attributable to GCMG and 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 Condition. Other fees associated with the Transaction as described in Note 3, that were not direct and incremental were recorded to general, administrative and other 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 non-institutional clients. 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 February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Leases (Topic 842) , which requires that operating leases be recorded as assets and liabilities in the statement of financial position, among other changes. 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 adopted this standard on January 1, 2022 on a prospective basis. Adoption increased both the Company’s assets and liabilities for the recorded lease ROU and lease liability, with no material impact to the Company’s Consolidated Statements of Income as expense for operating leases continues to be recognized on a straight-line basis. The Company elected to apply practical expedients provided in the guidance to not reassess: (1) whether expired or existing contracts are or contain leases, (2) existing lease classification and (3) initial direct costs. On adoption, the Company recognized approximately $16 million of lease ROU assets and approximately $21 million of lease liabilities related to its operating leases in its Consolidated Financial Statements, including approximately $5 million that was reclassified from accrued rent (included in accrued expenses and other liabilities in the Consolidated Statements of Financial Condition as of December 31, 2021) to lease liabilities. 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. The Company deferred 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 method of adoption varies for the updates included in the ASU. The Company’s adoption of the standard on December 31, 2022 did not have a material impact on the Consolidated Financial Statements. Recently Issued Accounting Standards – To be Adopted in Future Periods 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 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 adopted this standard on January 1, 2023 on a prospective basis. Adoption did not have a material impact on the Consolidated Financial Statements. |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Disaggregation of Revenue | For the years ended December 31, 2022, 2021 and 2020, management fees and incentive fees consisted of the following: Year Ended December 31, Management fees 2022 2021 2020 Management fees, net $ 356,401 $ 340,844 $ 302,339 Fund expense reimbursement revenue 10,841 10,372 8,406 Total management fees $ 367,242 $ 351,216 $ 310,745 Year Ended December 31, Incentive fees 2022 2021 2020 Performance fees $ 2,623 $ 51,947 $ 52,726 Carried interest 72,544 121,906 58,924 Total incentive fees $ 75,167 $ 173,853 $ 111,650 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Components of Investments | Investments consist of the following: As of December 31, 2022 2021 Equity method investments $ 213,776 $ 214,153 Other investments 10,194 12,192 Total investments $ 223,970 $ 226,345 |
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, 2022 2021 Total Assets $ 40,326,304 $ 39,496,147 Total Liabilities $ 1,655,742 $ 1,340,239 Total Equity $ 38,670,562 $ 38,155,908 Year Ended December 31, 2022 2021 2020 Investment income $ 109,180 $ 195,613 $ 71,613 Expenses 304,908 293,729 249,401 Net investment loss (195,728) (98,116) (177,788) Net realized and unrealized gain 1,108,471 8,441,314 2,423,252 Net income $ 912,743 $ 8,343,198 $ 2,245,464 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 on a recurring basis and level of inputs used for such measurements as of December 31, 2022 and 2021: Fair Value as of December 31, 2022 Level 1 Level 2 Level 3 Total Assets Money market funds $ 36,240 $ — $ — $ 36,240 Other investments — — 10,007 10,007 Total assets $ 36,240 $ — $ 10,007 $ 46,247 Liabilities Public warrants $ 7,386 $ — $ — $ 7,386 Private warrants — — 475 475 Interest rate derivatives — 6,473 — 6,473 Total liabilities $ 7,386 $ 6,473 $ 475 $ 14,334 Fair Value as of December 31, 2021 Level 1 Level 2 Level 3 Total Assets Money market funds $ 27,209 $ — $ — $ 27,209 Interest rate derivatives — 2,695 — 2,695 Other investments — — 11,010 11,010 Total assets $ 27,209 $ 2,695 $ 11,010 $ 40,914 Liabilities Public warrants $ 29,397 $ — $ — $ 29,397 Private warrants — — 1,584 1,584 Total liabilities $ 29,397 $ — $ 1,584 $ 30,981 |
Schedule of Fair Value Measurement Inputs and Valuation Techniques | The position was classified as Level 3 as of December 31, 2022 and December 31, 2021 because of the use of significant unobservable inputs in the Cash Flow Analysis as follows: December 31, 2022 December 31, 2021 Impact to Valuation from an Increase in Input (2) Significant Unobservable Inputs (1) Range Weighted Average Range Weighted Average Discount rate (3) 25.5% - 26.5% 26.0 % 25.0 % N/A Decrease Expected term (years) 10 – 15 N/A 10 – 15 N/A Decrease Expected return – liquid assets (4) 2.0% - 6.0% 5.0 % 3.0% - 7.0% 4.9 % 4 Increase Expected total value to paid in capital – private assets (5) 1.32x – 2.40x 1.85x 1.20x – 2.65x 1.90x 5 Increase ____________ (1) In determining these inputs, management considers the following factors including, but not limited to, liquidity, estimated yield, capital deployment, diversified multi-strategy appreciation, expected net multiple of investment capital across Private Assets investments, annual operating expenses, as well as investment guidelines such as concentration limits, position size, and investment periods. (2) Unless otherwise noted, this column represents the directional change in fair value of the Level 3 investments that would result from an increase to the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. (3) The discount rate was based on the relevant benchmark rate, spread, and yield migrations on related securitized assets. (4) Inputs were weighted based on actual and estimated expected return included in the range. (5) Inputs were weighted based on the actual and estimated commitments to the respective private asset investments included in the range. |
Schedule of Assets Measured on Recurring Basis | The following table presents changes in Level 3 assets measured at fair value for the years ended December 31, 2022 and December 31, 2021. Year Ended December 31, 2022 2021 Balance at beginning of period $ 11,010 $ — Purchases — 11,010 Change in fair value (1,003) — Balance at end of period $ 10,007 $ 11,010 |
Schedule of Fair Value, Liabilities Measured on Recurring Basis | The following table presents changes in Level 3 liabilities measured at fair value for the years ended December 31, 2022 and 2021: Year Ended December 31, 2022 2021 Balance at beginning of period $ (1,584) $ (6,372) Transfer out of Level 3 — 2,952 Change in fair value 1,109 1,836 Balance at end of period $ (475) $ (1,584) |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets, net consist of the following: As of December 31, 2022 Gross carrying amount Accumulated amortization Net carrying amount Subject to amortization: Investment management contracts $ 36,190 $ (36,190) $ — Customer relationships 23,518 (19,578) 3,940 Technology 2,030 (2,030) — Other 620 (620) — $ 62,358 $ (58,418) $ 3,940 As of December 31, 2021 Gross carrying amount Accumulated amortization Net carrying amount Subject to amortization: Investment management contracts $ 36,190 $ (35,981) $ 209 Customer relationships 23,518 (17,471) 6,047 Technology 2,030 (2,030) — Other 620 (620) — $ 62,358 $ (56,102) $ 6,256 |
Schedule of Estimated Amortization Expense | The following approximates the future estimated amortization expense relating to intangible assets: Year Ended December 31, 2023 $ 1,314 2024 1,313 2025 1,313 2026 — 2027 — Thereafter — |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Stock by Class | The following table shows a rollforward of the common stock outstanding for the years ended December 31, 2022 and 2021: Class A Class B Class C December 31, 2020 40,835,093 — 144,235,246 Exercise of warrants 1,794,003 — — Net shares delivered for vested RSUs 1,413,724 — — Repurchase of Class A shares (78,730) — — December 31, 2021 43,964,090 — 144,235,246 Exercise of warrants 30 — — Net shares delivered for vested RSUs 1,120,432 — — Repurchase of Class A shares (3,278,337) — — December 31, 2022 41,806,215 — 144,235,246 |
Schedule of Dividends Declared | The table below summarizes dividends declared during 2022 and 2021: Declaration Date Record Date Payment Date Dividend per Common Share January 4, 2021 March 1, 2021 March 15, 2021 $0.06 February 25, 2021 June 1, 2021 June 15, 2021 $0.08 August 6, 2021 September 1, 2021 September 15, 2021 $0.09 November 8, 2021 December 1, 2021 December 15, 2021 $0.10 Total dividends paid per share, year ended December 31, 2021 $0.33 February 10, 2022 March 1, 2022 March 15, 2022 $0.10 May 5, 2022 June 1, 2022 June 15, 2022 $0.10 August 8, 2022 September 1, 2022 September 15, 2022 $0.10 November 7, 2022 December 1, 2022 December 15, 2022 $0.11 Total dividends paid per share, year ended December 31, 2022 $0.41 |
Warrants (Tables)
Warrants (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Stockholders' Equity Note, Warrants or Rights | The following table shows a rollforward of the public and private warrants outstanding for the years ended December 31, 2022 and 2021: Public Warrants Private Warrants Total December 31, 2020 20,273,567 2,700,000 22,973,567 Exercises of warrants (1,794,003) — (1,794,003) Transfer in (out) 1,800,000 (1,800,000) — Repurchases (681,800) — (681,800) December 31, 2021 19,597,764 900,000 20,497,764 Exercises of warrants (30) — (30) Repurchases (2,812,764) — (2,812,764) December 31, 2022 16,784,970 900,000 17,684,970 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 relate to the Company’s interests in and management fees, incentive fees and third party costs receivables from these non-consolidated VIEs. The Company’s maximum exposure to loss relating to non-consolidated VIEs as of December 31, 2022 and 2021 were as follows: As of December 31, 2022 2021 Investments $ 98,712 $ 104,609 Receivables 11,695 13,554 Maximum exposure to loss $ 110,407 $ 118,163 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Summary of Premise and Equipment | A summary of premises and equipment as of December 31, 2022 and 2021 is as follows: As of December 31, Estimated Useful Lives 2022 2021 Furniture, fixtures and leasehold improvements $ 36,481 $ 36,521 3 – 7 years Office equipment 1,064 1,017 5 years Computer equipment and software 18,806 18,345 3 – 5 years Aircraft 1,550 1,550 5 years Assets in progress 107 — Premises and equipment, at cost 58,008 57,433 Accumulated depreciation and amortization (53,388) (52,022) Premises and equipment, net $ 4,620 $ 5,411 |
Employee Compensation and Ben_2
Employee Compensation and Benefits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Compensation Related Costs [Abstract] | |
Schedule of Employee Compensation and Benefits | For the years ended December 31, 2022, 2021 and 2020, employee compensation and benefits consisted of the following: Year Ended December 31, 2022 2021 2020 Cash-based employee compensation and benefits $ 160,522 $ 162,901 $ 165,830 Equity-based compensation 30,721 44,190 — Partnership interest-based compensation 31,811 27,671 172,358 Carried interest compensation 41,920 67,773 34,259 Cash-based incentive fee related compensation 11,001 28,002 11,454 Other non-cash compensation 1,336 3,300 4,564 Total employee compensation and benefits $ 277,311 $ 333,837 $ 388,465 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity | A summary of non-vested equity-classified RSU activity for the year ended December 31, 2022 is as follows: Number of RSUs Weighted-Average Grant-Date Fair Value Per RSU Balance as of December 31, 2021 2,996,077 $ 12.84 Granted 1,284,314 9.59 Vested (1,950,257) 12.01 Forfeited (89,337) 12.60 Balance as of December 31, 2022 2,240,797 $ 11.71 A summary of non-vested liability-classified RSU activity for the year ended December 31, 2022 is as follows: Number of RSUs Weighted-Average Grant-Date Fair Value Per RSU Balance as of December 31, 2021 8,334 $ 13.04 Granted 3,222,961 8.44 Vested (76,134) 10.24 Balance as of December 31, 2022 3,155,161 $ 8.41 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt Balance | The table below summarizes the outstanding debt balance as of December 31, 2022 and 2021: As of December 31, 2022 2021 Senior loan $ 393,000 $ 397,000 Less: debt issuance costs (5,373) (6,484) Total debt $ 387,627 $ 390,516 |
Schedule of Maturities of Long-term Debt | Maturities of debt for the next five years and thereafter are as follows: Year Ended December 31, 2023 $ 4,000 2024 4,000 2025 4,000 2026 4,000 2027 4,000 Thereafter 373,000 Total $ 393,000 |
Interest Rate Derivatives (Tabl
Interest Rate Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives Recorded as Derivative Liability | The Company had the following interest rate derivatives recorded as a liability within accrued expenses and other liabilities other assets As of December 31, 2022 Derivative Notional Amount Fair Value Fixed Rate Paid Floating Rate Received Effective Date (2) Maturity Date Interest rate swap $ 300,000 $ (6,473) 4.37 % 1 month LIBOR (1) November 2022 February 2028 ____________ (1) Floating rate received subject to a 0.50% Floor. Refer to Note 15 regarding the interest rate on the outstanding debt in the event of a Benchmark Transition Event. If the outstanding debt defaults to Term SOFR plus a Benchmark Replacement Adjustment, the floating rate received under the interest rate swaps will also default to such rate. (2) 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, 2021 Derivative Notional Amount Fair Value Fixed Rate Paid Floating Rate Received Effective Date (2) Maturity Date Interest rate swap $ 232,000 $ 2,264 1.33 % 1 month LIBOR (1) March 2021 February 2028 Interest rate swap 68,000 431 1.39 % 1 month LIBOR (1) July 2021 February 2028 $ 2,695 ____________ (1) Floating rate received subject to a 0.50% Floor. (2) Represents the date at which the derivative is in effect and the Company was 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 income (loss) (“AOCI”) related to interest rate derivatives designated as cash flow hedges is as follows: Year Ended December 31, 2022 2021 Derivative loss at beginning of period $ (3,622) $ (11,163) Amount recognized in other comprehensive income (loss) 1 27,285 540 Amount reclassified from accumulated other comprehensive income (loss) to interest expense 5,467 7,001 Derivative income (loss) at end of period 29,130 (3,622) Less: Loss attributable to noncontrolling interests in GCMH 24,204 (2,959) Derivative income (loss) at end of period, net $ 4,926 $ (663) _____________ (1) Net of $2.6 million tax expense and an immaterial tax impact for the years ended December 31, 2022 and 2021, respectively . |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Liabilities | A summary of accrued expenses and other liabilities as of December 31, 2022 and 2021 is as follows: As of December 31, 2022 2021 Carried interest payable $ 250 $ 1,510 Deferred revenue 8,972 8,484 Deferred rent — 5,421 Clawback obligation 200 600 Derivative liability 6,473 — Other liabilities 11,345 12,018 Total accrued expenses and other liabilities $ 27,240 $ 28,033 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Lease, Cost | The components of operating lease expense recorded within general, administrative and other in the Consolidated Statements of Income were as follows: Year Ended Operating lease cost (1) $ 7,514 Variable lease cost (2) 4,112 Less: sublease income 193 Total lease cost $ 11,433 ____________ (1) Includes less than $0.3 million of short term lease expense for year ended December 31, 2022. (2) Includes common area maintenance charges and other variable costs not included in the measurement of ROU assets and lease liabilities. The following table summarizes cash flows and other supplemental information related to our operating leases: Year Ended Cash paid for amounts included in the measurement of operating lease liabilities $ 8,813 Non-cash ROU assets obtained in exchange for new operating leases $ 693 Weighted average remaining lease term in years 2.9 years Weighted average discount rate 4.1 % |
Schedule of Minimum Annual Lease Commitments | As of December 31, 2022 the maturities of operating lease liabilities were as follows: Year Ended December 31, 2023 $ 7,331 2024 3,640 2025 3,548 2026 1,974 2027 — Thereafter — Total lease payments $ 16,493 Less: imputed interest (973) Total operating lease liabilities $ 15,520 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision (Benefit) for Income Taxes | The provision (benefit) for income taxes for the years ended December 31, 2022, 2021 and 2020 consist of the following: Year Ended December 31, 2022 2021 2020 Current: Federal $ (206) $ 1,970 $ 1,118 State and local 2,137 2,155 1,771 Foreign 1,837 1,176 988 Total current provision for income taxes $ 3,768 $ 5,301 $ 3,877 Deferred: Federal $ 4,208 $ 4,428 $ 937 State and local 1,838 1,364 (301) Foreign (203) (100) (7) Total deferred income taxes expense 5,843 5,692 629 Total provision for income taxes $ 9,611 $ 10,993 $ 4,506 |
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, 2022 2021 2020 Statutory U.S. federal income tax rate 21 % 21 % 21 % State and local income taxes 3 % 2 % (2) % Impact of noncontrolling interests (15) % (17) % (24) % Income passed through to members — % — % 1 % Foreign income taxes 2 % 1 % (1) % Other — % — % (1) % Effective income tax rate 11 % 7 % (6) % |
Schedule of Current and Deferred Tax Assets | Deferred tax assets and liabilities are recorded net within deferred tax assets, net in the Company’s Consolidated Statements of Financial Condition. Details of the Company’s deferred tax assets and liabilities are as follows: As of December 31, 2022 2021 Investment in GCMH $ 92,695 $ 105,331 Unrealized gains and losses 2,041 — Intangibles and other 934 683 Total deferred tax assets (before valuation allowance) 95,670 106,014 Valuation allowance (35,229) (37,472) Total deferred tax assets $ 60,441 $ 68,542 Right-of-use asset $ (121) $ — Total deferred tax liabilities $ (121) $ — Deferred tax assets, net $ 60,320 $ 68,542 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 for the years ended December 31, 2022 and 2021 and for the period November 17, 2020 through December 31, 2020: Year Ended December 31, 2022 Year Ended December 31, 2021 November 17, 2020 through December 31, 2020 Numerator for earnings (loss) per share calculation: Net income attributable to GCM Grosvenor Inc., basic $ 19,820 $ 21,482 $ 4,049 Exercise of private warrants — (382) — Exercise of public warrants — (1,126) — Exchange of Partnership units 33,209 33,252 (111,042) Assumed vesting of RSUs — — — Net income (loss) attributable to common stockholders, diluted 53,029 53,226 (106,993) Denominator for earnings (loss) per share calculation: Weighted-average shares, basic 43,872,300 43,765,651 39,984,515 Exercise of private warrants - incremental shares under the treasury stock method — 90,062 — Exercise of public warrants - incremental shares under the treasury stock method — 691,396 — Exchange of Partnership units 144,235,246 144,235,246 144,235,246 Assumed vesting of RSUs - incremental shares under the treasury stock method 460,446 277,019 — Weighted-average shares, diluted 188,567,992 189,059,374 184,219,761 Basic EPS Net income attributable to common stockholders, basic $ 19,820 $ 21,482 $ 4,049 Weighted-average shares, basic 43,872,300 43,765,651 39,984,515 Net income per share attributable to common stockholders, basic $ 0.45 $ 0.49 $ 0.10 Diluted EPS Net income (loss) attributable to common stockholders, diluted $ 53,029 $ 53,226 $ (106,993) Weighted-average shares, diluted 188,567,992 189,059,374 184,219,761 Net income (loss) per share attributable common stockholders, diluted $ 0.28 $ 0.28 $ (0.58) |
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 calculations of diluted earnings per share attributable to common stockholders because their impact would have been antidilutive for the periods presented: Year Ended December 31, 2022 Year Ended December 31, 2021 November 17, 2020 through December 31, 2020 Public warrants 16,784,970 — 20,273,567 Private warrants 900,000 — 2,700,000 |
Organization (Details)
Organization (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Grosvenor Capital Management Holdings, LLLP | ||
Finite-Lived Intangible Assets [Line Items] | ||
Ownership percentage by parent | 22.50% | 23.40% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) segment class $ / shares shares | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jan. 01, 2022 USD ($) | Nov. 17, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stable value threshold (in dollars per share) | $ / shares | $ 1 | ||||
Cash and cash equivalents | $ 85,163,000 | $ 96,185,000 | |||
Allowance for credit loss | $ 0 | 0 | |||
Fair Value, Recurring Basis, Unobservable Input Reconciliation, Asset, Gain (Loss), Statement Of Income, Extensible List Not Disclosed Flag | Consolidated Statements of Income | ||||
Fair Value, Recurring Basis, Unobservable Input Reconciliation, Liability, Gain (Loss), Statement Of Income Extensible List Not Disclosed Flag | Consolidated Statements of Income | ||||
Realized carried interest | $ 6,500,000 | 6,600,000 | |||
Sales commissions and fees | 5,700,000 | 6,900,000 | $ 7,800,000 | ||
Employee-related obligations | $ 13,300,000 | 13,500,000 | |||
Common stock, right to receive (in shares) | shares | 1 | ||||
Number of operating segments | class | 1 | ||||
Number of reportable segments | segment | 1 | ||||
Lease right-of-use assets | $ 12,479,000 | 0 | |||
Lease liabilities | $ 15,520,000 | 0 | |||
Accounting Standards Update 2016-02 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Lease right-of-use assets | $ 16,000,000 | ||||
Lease liabilities | 21,000,000 | ||||
Accrued rent | $ 5,000,000 | ||||
GCMH Equity Holders' | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Tax savings agreement, percent | 85% | ||||
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% | ||||
Non-US | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cash and cash equivalents | $ 20,700,000 | $ 27,500,000 | |||
GCMH | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Ownership percent acquired | 22% |
Business Combinations (Details)
Business Combinations (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Nov. 17, 2020 | |
Business Acquisition [Line Items] | ||||
Warrant liabilities | $ 7,861 | $ 30,981 | ||
CF Finance Acquisition Corp. | ||||
Business Acquisition [Line Items] | ||||
Warrant liabilities | $ 31,200 | |||
Transaction expenses | $ 11,600 |
Mosaic Transaction (Details)
Mosaic Transaction (Details) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | ||||||
Jul. 02, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jan. 01, 2020 USD ($) | Dec. 31, 2020 USD ($) | Nov. 16, 2020 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jul. 15, 2021 | |
Variable Interest Entity [Line Items] | |||||||||
Proceeds from noncontrolling interests transferred | $ 125,400 | $ 1,789 | $ 3,472 | $ 177,832 | |||||
Proceeds received to fund future investment commitments | 48,000 | ||||||||
Maximum potential payment | $ 19,900 | ||||||||
Potential payments | $ 4,900 | $ 4,900 | $ 7,500 | 7,500 | $ 4,900 | ||||
Option indexed to issuer's equity decrease in purchase price ratio | 1.225 | ||||||||
Net purchase price | $ 165,000 | ||||||||
Consolidated cash of acquired redeemable noncontrolling interest | $ 19,500 | ||||||||
Equity transaction with Mosaic / Equity reallocation to redeemable noncontrolling interest | 4,900 | $ (60,935) | 61,495 | ||||||
Additional Paid-in Capital | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Equity transaction with Mosaic / Equity reallocation to redeemable noncontrolling interest | 14,033 | ||||||||
Noncontrolling Interest in GCMH | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Equity transaction with Mosaic / Equity reallocation to redeemable noncontrolling interest | $ 3,836 | $ 47,462 | |||||||
Call Right | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Payments for call right | $ 2,600 | ||||||||
Purchase price ratio | 1.3 | ||||||||
Internal rate of return, percentage | 12% | ||||||||
Put Option | Mosaic Counterparty | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Purchase price ratio | 1.3 | ||||||||
Internal rate of return, percentage | 12% |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 446,530 | $ 531,592 | $ 429,981 |
Total management fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 367,242 | 351,216 | 310,745 |
Management fees, net | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 356,401 | 340,844 | 302,339 |
Fund expense reimbursement revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 10,841 | 10,372 | 8,406 |
Total incentive fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 75,167 | 173,853 | 111,650 |
Performance fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,623 | 51,947 | 52,726 |
Carried interest | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 72,544 | $ 121,906 | $ 58,924 |
Revenues - Additional Informati
Revenues - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |||
Revenue recognized | $ 0.4 | $ 2.3 | $ 3.6 |
Investments - Components of Inv
Investments - Components of Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Equity method investments | $ 213,776 | $ 214,153 |
Other investments | 10,194 | 12,192 |
Total investments | $ 223,970 | $ 226,345 |
Investments - Additional Inform
Investments - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Equity Method Investments [Line Items] | ||
Total investments | $ 223,970 | $ 226,345 |
Noncontrolling Interests | ||
Schedule of Equity Method Investments [Line Items] | ||
Total investments | $ 64,900 | $ 88,000 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||||
Total assets | $ 488,933 | $ 581,624 | |||
Total liabilities | 582,939 | 637,425 | |||
Total Equity | $ (82,190) | (94,006) | (55,801) | $ (82,190) | |
Net income | $ (94,221) | $ (3,050) | 79,482 | 142,069 | (83,202) |
Equity Method Investment | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Net realized and unrealized gain | 1,108,471 | 8,441,314 | 2,423,252 | ||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total assets | 40,326,304 | 39,496,147 | |||
Total liabilities | 1,655,742 | 1,340,239 | |||
Total Equity | 38,670,562 | 38,155,908 | |||
Investment income | 109,180 | 195,613 | 71,613 | ||
Expenses | 304,908 | 293,729 | 249,401 | ||
Net investment loss | (195,728) | (98,116) | (177,788) | ||
Net income | $ 912,743 | $ 8,343,198 | $ 2,245,464 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Money market funds | $ 36,240 | $ 27,209 |
Interest rate derivatives | 2,695 | |
Other investments | 10,007 | 11,010 |
Total assets | 46,247 | 40,914 |
Liabilities | ||
Warrants | 7,861 | 30,981 |
Interest rate derivatives | 6,473 | 0 |
Total liabilities | 14,334 | 30,981 |
Public warrants | ||
Liabilities | ||
Warrants | 7,386 | 29,397 |
Private warrants | ||
Liabilities | ||
Warrants | 475 | 1,584 |
Level 1 | ||
Assets | ||
Money market funds | 36,240 | 27,209 |
Interest rate derivatives | 0 | |
Other investments | 0 | 0 |
Total assets | 36,240 | 27,209 |
Liabilities | ||
Interest rate derivatives | 0 | |
Total liabilities | 7,386 | 29,397 |
Level 1 | Public warrants | ||
Liabilities | ||
Warrants | 7,386 | 29,397 |
Level 1 | Private warrants | ||
Liabilities | ||
Warrants | 0 | 0 |
Level 2 | ||
Assets | ||
Money market funds | 0 | 0 |
Interest rate derivatives | 2,695 | |
Other investments | 0 | 0 |
Total assets | 0 | 2,695 |
Liabilities | ||
Interest rate derivatives | 6,473 | |
Total liabilities | 6,473 | 0 |
Level 2 | Public warrants | ||
Liabilities | ||
Warrants | 0 | 0 |
Level 2 | Private warrants | ||
Liabilities | ||
Warrants | 0 | 0 |
Level 3 | ||
Assets | ||
Money market funds | 0 | 0 |
Interest rate derivatives | 0 | |
Other investments | 10,007 | 11,010 |
Total assets | 10,007 | 11,010 |
Liabilities | ||
Interest rate derivatives | 0 | |
Total liabilities | 475 | 1,584 |
Level 3 | Public warrants | ||
Liabilities | ||
Warrants | 0 | 0 |
Level 3 | Private warrants | ||
Liabilities | ||
Warrants | $ 475 | $ 1,584 |
Fair Value Measurements - Measu
Fair Value Measurements - Measurement Inputs (Details) - Level 3 | Dec. 31, 2022 | Dec. 31, 2021 |
Discount rate | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input | 0.255 | |
Discount rate | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input | 0.265 | 0.250 |
Discount rate | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted average interest rate | 26% | |
Expected term (years) | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Expected term (years) | 10 years | 10 years |
Expected term (years) | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Expected term (years) | 15 years | 15 years |
Expected return – liquid assets | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input | 0.020 | 0.030 |
Expected return – liquid assets | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input | 0.060 | 0.070 |
Expected return – liquid assets | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted average interest rate | 5% | 4.90% |
Expected total value to paid in capital – private assets | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input | 1.32 | 1.2 |
Expected total value to paid in capital – private assets | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input | 2.4 | 2.65 |
Expected total value to paid in capital – private assets | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input | 1.85 | 1.9 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | $ 11,010 | $ 10,007 |
Warrant liabilities | $ 30,981 | $ 7,861 |
Transfer in (out) (in shares) | 0 | |
Private warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value (in dollars per unit) | $ 1.76 | $ 0.53 |
Warrant liabilities | $ 1,584 | $ 475 |
Transfer in (out) (in shares) | 1,800,000 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | $ 11,010 | 10,007 |
Level 3 | Private warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrant liabilities | $ 1,584 | $ 475 |
Fair Value Measurements - Level
Fair Value Measurements - Level 3 Roll Forward (Details) - Level 3 - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | $ 11,010 | $ 0 |
Purchases | 0 | 11,010 |
Change in fair value | (1,003) | 0 |
Balance at end of period | 10,007 | 11,010 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | (1,584) | (6,372) |
Transfer out of Level 3 | 0 | 2,952 |
Change in fair value | 1,109 | 1,836 |
Balance at end of period | $ (475) | $ (1,584) |
Intangible Assets - Components
Intangible Assets - Components of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 62,358 | $ 62,358 |
Accumulated amortization | (58,418) | (56,102) |
Net carrying amount | 3,940 | 6,256 |
Investment management contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 36,190 | 36,190 |
Accumulated amortization | (36,190) | (35,981) |
Net carrying amount | 0 | 209 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 23,518 | 23,518 |
Accumulated amortization | (19,578) | (17,471) |
Net carrying amount | 3,940 | 6,047 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 2,030 | 2,030 |
Accumulated amortization | (2,030) | (2,030) |
Net carrying amount | 0 | 0 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 2.3 | $ 2.3 | $ 7.5 |
Intangible Assets - Estimated F
Intangible Assets - Estimated Future Amortization Expense (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2023 | $ 1,314 |
2024 | 1,313 |
2025 | 1,313 |
2026 | 0 |
2027 | 0 |
Thereafter | $ 0 |
Equity - Additional Information
Equity - Additional Information (Details) | 12 Months Ended | ||||||
Dec. 31, 2022 USD ($) vote class $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) | Nov. 07, 2022 USD ($) | May 05, 2022 USD ($) | Feb. 10, 2022 USD ($) | Aug. 06, 2021 USD ($) | |
Class of Stock [Line Items] | |||||||
Number of classes of preferred stock | class | 1 | ||||||
Number of classes of common stock | class | 3 | ||||||
Preferred stock, authorized (in shares) | 100,000,000 | 100,000,000 | |||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||||
Preferred stock issued (in shares) | 0 | 0 | |||||
Preferred stock outstanding (in shares) | 0 | 0 | |||||
Dividend equivalent payments | $ | $ 18,824,000 | $ 15,498,000 | |||||
Repurchase (in shares) | 2,812,764 | 681,800 | |||||
Payments for repurchase of warrants | $ | $ 2,569,000 | $ 1,273,000 | $ 0 | ||||
Payments to repurchase Class A common stock | $ | $ 26,391,000 | $ 887,000 | $ 0 | ||||
Stock repurchased (in dollars per share) | $ / shares | $ 8.70 | $ 11.27 | |||||
Remaining repurchase amount | $ | $ 45,500,000 | ||||||
Public warrants | |||||||
Class of Stock [Line Items] | |||||||
Repurchase (in shares) | 2,812,764 | 681,800 | |||||
Payments for repurchase of warrants | $ | $ 2,600,000 | $ 1,300,000 | |||||
Class of warrant or right per warrant (in dollars per share) | $ / shares | $ 0.91 | $ 1.87 | |||||
Class A Common Stock And Warrants | |||||||
Class of Stock [Line Items] | |||||||
Stock repurchase plan, aggregate | $ | $ 90,000,000 | $ 65,000,000 | $ 45,000,000 | $ 25,000,000 | |||
Increase In authorized amount | $ | $ 25,000,000 | $ 20,000,000 | $ 20,000,000 | ||||
Restricted Stock Units (RSUs) | |||||||
Class of Stock [Line Items] | |||||||
Dividend equivalent payments | $ | $ 1,400,000 | $ 1,000,000 | |||||
Shares withheld in connection with payment of tax liabilities on behalf of employees upon settlement (in shares) | 740,699 | 615,285 | |||||
Class A Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Common stock, number of votes per share | vote | 1 | ||||||
Common stock, issued (in shares) | 41,806,215 | 43,964,090 | |||||
Settlement of vested RSUs, amount | $ | $ 6,400,000 | $ 6,900,000 | |||||
Repurchased (in shares) | 3,278,337 | 78,730 | |||||
Payments to repurchase Class A common stock | $ | $ 26,400,000 | $ 900,000 | |||||
Stock repurchased (in dollars per share) | $ / shares | $ 8.05 | $ 11.26 | |||||
Class A Common Stock | Restricted Stock Units (RSUs) | |||||||
Class of Stock [Line Items] | |||||||
Vested but not yet delivered (in shares) | 154,603 | ||||||
Class B common stock | |||||||
Class of Stock [Line Items] | |||||||
Common stock, number of votes per share | vote | 1 | ||||||
Common stock, issued (in shares) | 0 | 0 | |||||
Repurchased (in shares) | 0 | 0 | |||||
Class C Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Common stock, number of votes per share | vote | 10 | ||||||
Common stock, issued (in shares) | 144,235,246 | 144,235,246 | |||||
Common stock, voting rights, maximum percent | 75% | ||||||
Repurchased (in shares) | 0 | 0 |
Equity - Schedule of Common Sto
Equity - Schedule of Common Stock Outstanding (Details) - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Exercise of warrants (in shares) | 30 | 1,794,003 |
Class A Common Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Common stock outstanding, beginning balance (in shares) | 43,964,090 | 40,835,093 |
Exercise of warrants (in shares) | 30 | 1,794,003 |
Repurchase of Class A shares (in shares) | (3,278,337) | (78,730) |
Common stock outstanding, ending balance (in shares) | 41,806,215 | 43,964,090 |
Class A Common Stock | Restricted Stock Units (RSUs) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Net shares delivered for vested RSUs (in shares) | 1,120,432 | 1,413,724 |
Class B common stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Common stock outstanding, beginning balance (in shares) | 0 | 0 |
Exercise of warrants (in shares) | 0 | 0 |
Repurchase of Class A shares (in shares) | 0 | 0 |
Common stock outstanding, ending balance (in shares) | 0 | 0 |
Class B common stock | Restricted Stock Units (RSUs) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Net shares delivered for vested RSUs (in shares) | 0 | 0 |
Class C Common Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Common stock outstanding, beginning balance (in shares) | 144,235,246 | 144,235,246 |
Exercise of warrants (in shares) | 0 | 0 |
Repurchase of Class A shares (in shares) | 0 | 0 |
Common stock outstanding, ending balance (in shares) | 144,235,246 | 144,235,246 |
Class C Common Stock | Restricted Stock Units (RSUs) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Net shares delivered for vested RSUs (in shares) | 0 | 0 |
Equity - Dividends Declared (De
Equity - Dividends Declared (Details) - $ / shares | 12 Months Ended | |||||||||
Nov. 07, 2022 | Aug. 08, 2022 | May 05, 2022 | Feb. 10, 2022 | Nov. 08, 2021 | Aug. 06, 2021 | Feb. 25, 2021 | Jan. 04, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Class A Common Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Common stock, dividends declared (in dollars per share) | $ 0.11 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.09 | $ 0.08 | $ 0.06 | $ 0.33 | $ 0.41 |
Warrants - Additional Informati
Warrants - Additional Information (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) vote day $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) | |
Class of Warrant or Right [Line Items] | |||
Exercise of warrants (in shares) | 30 | 1,794,003 | |
Proceeds from exercise of warrants | $ | $ 0 | $ 24,469 | $ 6,745 |
Repurchase (in shares) | 2,812,764 | 681,800 | |
Payments for repurchase of warrants | $ | $ 2,569 | $ 1,273 | $ 0 |
Class A Common Stock | |||
Class of Warrant or Right [Line Items] | |||
Common stock, number of votes per share | vote | 1 | ||
Exercise of warrants (in shares) | 30 | 1,794,003 | |
Public warrants | |||
Class of Warrant or Right [Line Items] | |||
Warrant exercise price (in dollars per share) | $ / shares | $ 11.50 | ||
Expected term (years) | 5 years | ||
Warrant redemption price (in dollars per share) | $ / shares | $ 0.01 | ||
Minimum period | 30 days | ||
Stock price minimum to redeem warrants (in dollars per share) | $ / shares | $ 18 | ||
Warrant redemption, consecutive trading days | 20 days | ||
Warrant redemption, trading days | 30 days | ||
Warrant redemption, notice of redemption | day | 3 | ||
Exercise of warrants (in shares) | 30 | 1,794,003 | |
Proceeds from exercise of warrants | $ | $ 100 | $ 20,600 | |
Repurchase (in shares) | 2,812,764 | 681,800 | |
Payments for repurchase of warrants | $ | $ 2,600 | $ 1,300 | |
Class of warrant or right per warrant (in dollars per share) | $ / shares | $ 0.91 | $ 1.87 | |
Public warrants | Class A Common Stock | |||
Class of Warrant or Right [Line Items] | |||
Number of shares called by each warrant (in shares) | 1 | ||
Private warrants | |||
Class of Warrant or Right [Line Items] | |||
Warrant redemption, trading days | 10 years | ||
Exercise of warrants (in shares) | 0 | 0 | |
Repurchase (in shares) | 0 | 0 |
Warrants - Public Warrants and
Warrants - Public Warrants and Private Warrants Outstanding (Details) - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Movements of Class of Warrants Outstanding [Roll Forward] | ||
Outstanding, beginning of period (in shares) | 20,497,764 | 22,973,567 |
Exercises of warrants (in shares) | (30) | (1,794,003) |
Transfer in (out) (in shares) | 0 | |
Repurchase (in shares) | (2,812,764) | (681,800) |
Outstanding, end of period (in shares) | 17,684,970 | 20,497,764 |
Public Warrants | ||
Movements of Class of Warrants Outstanding [Roll Forward] | ||
Outstanding, beginning of period (in shares) | 19,597,764 | 20,273,567 |
Exercises of warrants (in shares) | (30) | (1,794,003) |
Transfer in (out) (in shares) | 1,800,000 | |
Repurchase (in shares) | (2,812,764) | (681,800) |
Outstanding, end of period (in shares) | 16,784,970 | 19,597,764 |
Private Warrants | ||
Movements of Class of Warrants Outstanding [Roll Forward] | ||
Outstanding, beginning of period (in shares) | 900,000 | 2,700,000 |
Exercises of warrants (in shares) | 0 | 0 |
Transfer in (out) (in shares) | (1,800,000) | |
Repurchase (in shares) | 0 | 0 |
Outstanding, end of period (in shares) | 900,000 | 900,000 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investments | $ 98,712 | $ 104,609 |
Variable Interest Entity, Not Primary Beneficiary | Noncontrolling Interests | ||
Variable Interest Entity [Line Items] | ||
Investments | 36,700 | 50,400 |
Unfunded Commitments | ||
Variable Interest Entity [Line Items] | ||
Commitment amount | 88,900 | 83,500 |
Unfunded Commitments | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Commitment amount | $ 41,100 | $ 34,700 |
Variable Interest Entities - Sc
Variable Interest Entities - Schedule of VIEs (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Investments | $ 98,712 | $ 104,609 |
Receivables | 11,695 | 13,554 |
Maximum exposure to loss | $ 110,407 | $ 118,163 |
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, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, at cost | $ 58,008 | $ 57,433 | |
Accumulated depreciation and amortization | (53,388) | (52,022) | |
Premises and equipment, net | $ 4,620 | 5,411 | |
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 | $ 36,481 | 36,521 | |
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 | $ 1,064 | 1,017 | |
Estimated Useful Lives | 5 years | ||
Computer equipment and software | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, at cost | $ 18,806 | 18,345 | |
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 | $ 1,550 | 1,550 | |
Estimated Useful Lives | 5 years | 5 years | |
Assets in progress | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, at cost | $ 107 | $ 0 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Mar. 11, 2021 | Mar. 10, 2021 | Mar. 31, 2021 | Aug. 31, 2019 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||||||
Percent of asset acquired | 12.50% | ||||||
Percent of asset ownership interest (in percent) | 50% | ||||||
Consideration received from assignment to partner | $ 1,300 | $ 0 | $ (1,337) | $ 0 | |||
Depreciation | $ 1,500 | $ 1,700 | $ 2,300 | ||||
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Compensation Related Costs [Abstract] | |||
Cash-based employee compensation and benefits | $ 160,522 | $ 162,901 | $ 165,830 |
Equity-based compensation | 30,721 | 44,190 | 0 |
Partnership interest-based compensation | 31,811 | 27,671 | 172,358 |
Carried interest compensation | 41,920 | 67,773 | 34,259 |
Cash-based incentive fee related compensation | 11,001 | 28,002 | 11,454 |
Other non-cash compensation | 1,336 | 3,300 | 4,564 |
Total employee compensation and benefits | $ 277,311 | $ 333,837 | $ 388,465 |
Employee Compensation and Ben_4
Employee Compensation and Benefits - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Compensation Items [Line Items] | |||
Partnership interest-based compensation | $ 31,811 | $ 27,671 | $ 172,358 |
Interest-based compensation, award modifications | 6,300 | 6,300 | 46,900 |
Unvested stated target payments | 0 | 6,300 | 0 |
Interest-based compensation expense, profit interest | 23,100 | $ 21,400 | $ 125,500 |
GCMH Equityholders Awards | |||
Compensation Items [Line Items] | |||
Partnership interest-based compensation | $ 2,400 | ||
Equityholders awards, aggregate grant fair value (in shares) | 7,169,415 | ||
Partnership Interest, Aggregate Grant Date Fair Value | $ 53,400 | ||
Equityholders awards, grant fair value (in usd per share) | $ 7.45 | ||
Unrecognized compensation expense | $ 51,000 | ||
Weighted average period | 2 years 3 months 18 days |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 USD ($) shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation | $ 30,721 | $ 44,190 | $ 0 | |
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | shares | 4,800,000 | 1,284,314 | 400,000 | |
RSUs, settled in cash (in shares) | shares | 100,000 | |||
Aggregate grant date fair value | $ 62,100 | $ 12,300 | $ 4,100 | |
Granted (in dollars per share) | $ / shares | $ 9.59 | $ 12.86 | ||
Vesting ratio | 0.33 | |||
Award vesting period | 2 years | |||
Vested in period, fair value | $ 24,200 | $ 27,400 | ||
Equity-based compensation | 30,700 | 44,200 | ||
Cost not yet recognized | $ 28,600 | |||
Period for recognition | 6 months | |||
Tax benefit | $ 900 | $ 1,300 | ||
Liability-Classified RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | shares | 3,222,961 | |||
Aggregate grant date fair value | $ 27,200 | |||
Granted (in dollars per share) | $ / shares | $ 8.44 | |||
Other Awards | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 1 year | |||
Other Awards | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years |
Equity-Based Compensation - Sum
Equity-Based Compensation - Summary of RSU Activity (Details) - $ / shares | 1 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted Stock Units (RSUs) | |||
Number of RSUs | |||
Beginning balance (in shares) | 2,996,077 | ||
Granted (in shares) | 4,800,000 | 1,284,314 | 400,000 |
Vested (in shares) | (1,950,257) | ||
Forfeited (in shares) | (89,337) | ||
Ending balance (in shares) | 2,240,797 | 2,996,077 | |
Weighted-Average Grant-Date Fair Value Per RSU | |||
Beginning balance (in dollars per share) | $ 12.84 | ||
Granted (in dollars per share) | 9.59 | $ 12.86 | |
Vested (in dollars per share) | 12.01 | ||
Forfeited (in dollars per share) | 12.60 | ||
Ending balance (in dollars per share) | $ 11.71 | $ 12.84 | |
Liability-Classified RSUs | |||
Number of RSUs | |||
Beginning balance (in shares) | 8,334 | ||
Granted (in shares) | 3,222,961 | ||
Vested (in shares) | (76,134) | ||
Ending balance (in shares) | 3,155,161 | 8,334 | |
Weighted-Average Grant-Date Fair Value Per RSU | |||
Beginning balance (in dollars per share) | $ 13.04 | ||
Granted (in dollars per share) | 8.44 | ||
Vested (in dollars per share) | 10.24 | ||
Ending balance (in dollars per share) | $ 8.41 | $ 13.04 |
Debt - Schedule of Debt Outstan
Debt - Schedule of Debt Outstanding (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Senior loan | $ 393,000 | |
Less: debt issuance costs | (5,373) | $ (6,484) |
Total debt | 387,627 | 390,516 |
Senior Loan | ||
Debt Instrument [Line Items] | ||
Senior loan | $ 393,000 | $ 397,000 |
Debt - Maturities of Debt (Deta
Debt - Maturities of Debt (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 4,000 |
2024 | 4,000 |
2025 | 4,000 |
2026 | 4,000 |
2027 | 4,000 |
Thereafter | 373,000 |
Total | $ 393,000 |
Debt - Additional Information (
Debt - Additional Information (Details) | 12 Months Ended | |||||
Jun. 23, 2021 USD ($) | Feb. 24, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jan. 02, 2014 USD ($) | |
Debt Instrument [Line Items] | ||||||
Repayments of senior debt | $ 4,000,000 | $ 53,259,000 | $ 91,195,000 | |||
Less: debt issuance costs | 5,373,000 | 6,484,000 | ||||
Amortization of debt | 1,111,000 | 1,025,000 | 1,336,000 | |||
Senior loan | $ 393,000,000 | |||||
Senior Loan | ||||||
Debt Instrument [Line Items] | ||||||
Repurchased face amount | 91,200,000 | |||||
Face amount | 340,300,000 | |||||
Interest expense, debt | 1,500,000 | |||||
Periodic principal payment | $ 1,000,000 | |||||
Prepayment deadline following quarterly financial statement if leverage ratio exceeds 2.50 | 5 days | |||||
Maximum leverage ratio | 2.50 | |||||
Repayments of debt | $ 0 | 0 | $ 0 | |||
Senior loan | 393,000,000 | $ 397,000,000 | ||||
Senior Loan | 2028 Term Loans | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 290,000,000 | |||||
Senior loan | $ 393,000,000 | |||||
Weighted Average | 4.27% | 3.19% | ||||
Senior Loan | 2028 Term Loans | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.50% | |||||
Debt, LIBOR floor | 0.50% | |||||
Senior Loan | Amended Term Loan Facility Due February 24, 2028, Amendment 1 | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of senior debt | $ 50,300,000 | |||||
Accelerated debt issuance expense | $ 700,000 | |||||
Less: debt issuance costs | 900,000 | |||||
Amortization of debt | 2,600,000 | |||||
Senior Loan | Amended Term Loan Facility Due February 24, 2028, Amendment 2 | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | 400,000,000 | |||||
Less: debt issuance costs | $ 2,200,000 | |||||
Credit Facility | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 50,000,000 | |||||
Line of credit outstanding | $ 0 | $ 0 |
Interest Rate Derivatives - Sch
Interest Rate Derivatives - Schedule of Derivative Liabilities (Details) - USD ($) | Dec. 31, 2022 | Nov. 01, 2022 | Dec. 31, 2021 | Jul. 01, 2021 | Mar. 01, 2021 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other liabilities | ||||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | ||||
Derivative [Line Items] | |||||
Fair Value | $ (6,473,000) | $ 0 | |||
Fair value | 2,695,000 | ||||
Fair value, net | 2,695,000 | ||||
Interest Rate Swap, 4.37% | |||||
Derivative [Line Items] | |||||
Notional Amount | 300,000,000 | ||||
Notional Amount | $ 300,000,000 | ||||
Fair Value | $ (6,473,000) | ||||
Fixed Rate Paid | 4.37% | 4.37% | |||
Derivative, LIBOR floor | 0.50% | ||||
Interest Rate Swap, 1.33% | |||||
Derivative [Line Items] | |||||
Notional Amount | 232,000,000 | $ 232,000,000 | |||
Fair value | $ 2,264,000 | ||||
Fixed Rate Paid | 1.33% | ||||
Derivative, LIBOR floor | 0.50% | ||||
Interest Rate Swap, 1.39% | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 68,000,000 | $ 68,000,000 | |||
Fair value | $ 431,000 | ||||
Fixed Rate Paid | 1.39% | ||||
Derivative, LIBOR floor | 0.50% |
Interest Rate Derivatives - Eff
Interest Rate Derivatives - Effect on Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative [Roll Forward] | ||
Beginning balance | $ (55,801) | $ (82,190) |
Amount reclassified from accumulated other comprehensive income (loss) to interest expense | (4,200) | (4,600) |
Ending balance | (94,006) | (55,801) |
Derivative income (loss) at end of period, net | (19,820) | (25,710) |
Amount reclassified from AOCI to interest expense, tax | 2,600 | 2,600 |
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | ||
Derivative [Roll Forward] | ||
Beginning balance | (3,622) | (11,163) |
Amount recognized in other comprehensive income (loss)1 | 27,285 | 540 |
Amount reclassified from accumulated other comprehensive income (loss) to interest expense | 5,467 | 7,001 |
Ending balance | 29,130 | (3,622) |
Less: Loss attributable to noncontrolling interests in GCMH | 24,204 | (2,959) |
Derivative income (loss) at end of period, net | $ 4,926 | $ (663) |
Interest Rate Derivatives - Add
Interest Rate Derivatives - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Oct. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Nov. 01, 2022 | Jul. 01, 2021 | Mar. 01, 2021 | |
Derivative [Line Items] | ||||||
Amount reclassified from accumulated other comprehensive income (loss) to interest expense | $ 4,200,000 | $ 4,600,000 | ||||
Amount expected to be reclassified to interest expense in next twelve months | $ 8,300,000 | |||||
Interest Rate Contract | Other Nonoperating Income Expense | ||||||
Derivative [Line Items] | ||||||
Other income (expense) | 1,900,000 | |||||
Interest Rate Swap, 1.33% | ||||||
Derivative [Line Items] | ||||||
Notional Amount | $ 232,000,000 | $ 232,000,000 | ||||
Derivative, LIBOR floor | 0.50% | |||||
Fixed Rate Paid | 1.33% | |||||
Interest Rate Swap, 1.39% | ||||||
Derivative [Line Items] | ||||||
Notional Amount | $ 68,000,000 | $ 68,000,000 | ||||
Derivative, LIBOR floor | 0.50% | |||||
Fixed Rate Paid | 1.39% | |||||
Interest Rate Swap, 1.39% | London Interbank Offered Rate (LIBOR) | ||||||
Derivative [Line Items] | ||||||
Derivative, LIBOR floor | 0.50% | |||||
Interest Rate Swap, 1.33% and 1.39% | ||||||
Derivative [Line Items] | ||||||
Proceeds from derivative instrument | $ 40,300,000 | |||||
Interest Rate Swap, 4.37% | ||||||
Derivative [Line Items] | ||||||
Notional Amount | $ 300,000,000 | |||||
Derivative, LIBOR floor | 0.50% | |||||
Fixed Rate Paid | 4.37% | 4.37% | ||||
Interest Rate Swap, 4.37% | London Interbank Offered Rate (LIBOR) | ||||||
Derivative [Line Items] | ||||||
Derivative, LIBOR floor | 0.50% |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Carried interest payable | $ 250 | $ 1,510 |
Deferred revenue | 8,972 | 8,484 |
Deferred rent | 0 | 5,421 |
Clawback obligation | 200 | 600 |
Fair Value | 6,473 | 0 |
Other liabilities | 11,345 | 12,018 |
Total accrued expenses and other liabilities | $ 27,240 | $ 28,033 |
Commitments and Contingencies -
Commitments and Contingencies - Components of Operating Lease (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating lease cost | $ 7,514 |
Variable lease cost | 4,112 |
Less: sublease income | 193 |
Total lease cost | 11,433 |
Short-term lease (less than) | $ 300 |
Commitments and Contingencies_2
Commitments and Contingencies - Supplemental of Cash Flow (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 8,813 |
Non-cash ROU assets obtained in exchange for new operating leases | $ 693 |
Weighted average remaining lease term in years | 2 years 10 months 24 days |
Weighted average discount rate | 4.10% |
Commitments and Contingencies_3
Commitments and Contingencies - Operating Lease Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
2023 | $ 7,331 | |
2024 | 3,640 | |
2025 | 3,548 | |
2026 | 1,974 | |
2027 | 0 | |
Thereafter | 0 | |
Total lease payments | 16,493 | |
Less: imputed interest | (973) | |
Lease liabilities | $ 15,520 | $ 0 |
Commitments and Contingencies_4
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Mar. 11, 2021 | Mar. 10, 2021 | Jan. 01, 2020 | Mar. 31, 2021 | Aug. 31, 2019 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Loss Contingencies [Line Items] | ||||||||
Operating lease, expense | $ 7,500 | $ 7,200 | $ 7,300 | |||||
Management fee duration | 5 years | |||||||
Percent of asset acquired | 12.50% | |||||||
Consideration received from assignment to partner | $ 1,300 | 0 | (1,337) | $ 0 | ||||
Proceeds received to fund future investment commitments | $ 48,000 | |||||||
Fixed Management Fee | ||||||||
Loss Contingencies [Line Items] | ||||||||
Annual management fee | $ 500 | 300 | ||||||
Unfunded Commitments | ||||||||
Loss Contingencies [Line Items] | ||||||||
Commitment amount | $ 88,900 | $ 83,500 | ||||||
Aircraft | ||||||||
Loss Contingencies [Line Items] | ||||||||
Percent of asset acquired | 12.50% | 12.50% | ||||||
Aircraft | Grosvenor Capital Management Holdings, LLLP | ||||||||
Loss Contingencies [Line Items] | ||||||||
Percent of asset ownership assigned to partner | 50% | |||||||
Consideration received from assignment to partner | $ 1,300 |
Related Parties (Details)
Related Parties (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Net receivables from related parties | $ 13.1 | $ 11.7 | |
Management | |||
Related Party Transaction [Line Items] | |||
Investment balance of related party | 366.2 | 441.8 | |
Affiliated Entity | Aircraft Utilization | Grosvenor Capital Management Holdings, LLLP | |||
Related Party Transaction [Line Items] | |||
Amounts of transaction | $ 2.4 | $ 1 | $ 0.5 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
Federal | $ (206) | $ 1,970 | $ 1,118 |
State and local | 2,137 | 2,155 | 1,771 |
Foreign | 1,837 | 1,176 | 988 |
Total current provision for income taxes | 3,768 | 5,301 | 3,877 |
Deferred: | |||
Federal | 4,208 | 4,428 | 937 |
State and local | 1,838 | 1,364 | (301) |
Foreign | (203) | (100) | (7) |
Total deferred income taxes expense | 5,843 | 5,692 | 629 |
Total provision for income taxes | $ 9,611 | $ 10,993 | $ 4,506 |
Income Taxes - Income Tax Recon
Income Taxes - Income Tax Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal income tax rate | 21% | 21% | 21% |
State and local income taxes | 3% | 2% | (2.00%) |
Impact of noncontrolling interests | (15.00%) | (17.00%) | (24.00%) |
Income passed through to members | 0% | 0% | 1% |
Foreign income taxes | 2% | 1% | (1.00%) |
Other | 0% | 0% | (1.00%) |
Effective income tax rate | 11% | 7% | (6.00%) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Investment in GCMH | $ 92,695 | $ 105,331 |
Unrealized gains and losses | 2,041 | 0 |
Intangibles and other | 934 | 683 |
Total deferred tax assets (before valuation allowance) | 95,670 | 106,014 |
Valuation allowance | (35,229) | (37,472) |
Total deferred tax assets | 60,441 | 68,542 |
Right-of-use asset | (121) | 0 |
Total deferred tax liabilities | (121) | 0 |
Deferred tax assets, net | $ 60,320 | $ 68,542 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Business Acquisition [Line Items] | ||
Valuation allowance | $ 35,229,000 | $ 37,472,000 |
Unrecognized tax benefits | 0 | |
Deferred tax asset | 60,441,000 | 68,542,000 |
Payable to related parties pursuant to the tax receivable agreement | $ 55,366,000 | $ 59,366,000 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Numerator for earnings (loss) per share calculation: | |||||||
Net income attributable to GCM Grosvenor Inc., basic | $ 4,049 | $ 19,820 | $ 21,482 | $ 4,049 | |||
Assumed vesting of RSUs | 0 | 0 | 0 | ||||
Net income (loss) attributable to common stockholders, diluted | $ (106,993) | $ 53,029 | $ 53,226 | ||||
Denominator for earnings (loss) per share calculation: | |||||||
Weighted-average shares, basic (in shares) | 39,984,515 | 43,872,300 | [1] | 43,765,651 | [1] | 39,984,515 | [1] |
Exchange of partnership units (in shares) | 144,235,246 | 144,235,246 | 144,235,246 | ||||
Assumed vesting of RSUs - incremental shares under the treasury stock method (in shares) | 0 | 460,446 | 277,019 | ||||
Weighted-average shares, diluted (in shares) | 184,219,761 | 188,567,992 | [1] | 189,059,374 | [1] | 184,219,761 | [1] |
Basic EPS | |||||||
Net income attributable to common stockholders, basic | $ 4,049 | $ 19,820 | $ 21,482 | ||||
Weighted-average shares, basic (in shares) | 39,984,515 | 43,872,300 | [1] | 43,765,651 | [1] | 39,984,515 | [1] |
Net income per share attributable to common stockholders, basic (in dollars per share) | $ 0.10 | $ 0.45 | [1] | $ 0.49 | [1] | $ 0.10 | [1] |
Diluted EPS | |||||||
Net income (loss) attributable to common stockholders, diluted | $ (106,993) | $ 53,029 | $ 53,226 | ||||
Weighted-average shares, diluted (in shares) | 184,219,761 | 188,567,992 | [1] | 189,059,374 | [1] | 184,219,761 | [1] |
Net income per share attributable to common stockholders, diluted (in dollars per share) | $ (0.58) | $ 0.28 | [1] | $ 0.28 | [1] | $ (0.58) | [1] |
Private warrants | |||||||
Numerator for earnings (loss) per share calculation: | |||||||
Exercise | $ 0 | $ 0 | $ (382) | ||||
Denominator for earnings (loss) per share calculation: | |||||||
Exercise of warrants- incremental shares under treasury stock method (in shares) | 0 | 0 | 90,062 | ||||
Public warrants | |||||||
Numerator for earnings (loss) per share calculation: | |||||||
Exercise | $ 0 | $ 0 | $ (1,126) | ||||
Denominator for earnings (loss) per share calculation: | |||||||
Exercise of warrants- incremental shares under treasury stock method (in shares) | 0 | 0 | 691,396 | ||||
Partnership Units | |||||||
Numerator for earnings (loss) per share calculation: | |||||||
Exercise | $ (111,042) | $ 33,209 | $ 33,252 | ||||
[1]There were no shares of Class A common stock outstanding prior to November 17, 2020. For the year ended December 31, 2020, represents earnings (loss) per share of Class A common stock and weighted-average shares of Class A common stock outstanding for the period following the Transaction, as defined in Note 3, from November 17, 2020 through December 31, 2020. |
Earnings (Loss) Per Share - Pot
Earnings (Loss) Per Share - Potentially Dilutive Securities Excluded from Calculation of EPS (Details) - Warrant - shares | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Public warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of EPS (in shares) | 20,273,567 | 16,784,970 | 0 |
Private warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of EPS (in shares) | 2,700,000 | 900,000 | 0 |
Regulatory and Net Capital Re_2
Regulatory and Net Capital Requirements (Details) - GRV Securities LLC $ in Millions | Dec. 31, 2022 USD ($) |
Regulatory Assets [Line Items] | |
Net capital | $ 1.2 |
Excess net capital | $ 1.2 |
Aggregate indebtedness ratio | 0.13 |
Subsequent Events (Details)
Subsequent Events (Details) - Class A Common Stock - $ / shares | 12 Months Ended | ||||||||||
Feb. 09, 2023 | Nov. 07, 2022 | Aug. 08, 2022 | May 05, 2022 | Feb. 10, 2022 | Nov. 08, 2021 | Aug. 06, 2021 | Feb. 25, 2021 | Jan. 04, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Subsequent Event [Line Items] | |||||||||||
Common stock, dividends declared (in dollars per share) | $ 0.11 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.09 | $ 0.08 | $ 0.06 | $ 0.33 | $ 0.41 | |
Subsequent Event | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Common stock, dividends declared (in dollars per share) | $ 0.11 |
Uncategorized Items - gcm-20221
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2017-12 [Member] |
Stockholders' Equity, Recapitalization | gcm_StockholdersEquityRecapitalization | $ (142,849,000) |
Temporary Equity, Net Income | us-gaap_TemporaryEquityNetIncome | 8,125,000 |
Temporary Equity, Net Income | us-gaap_TemporaryEquityNetIncome | 5,944,000 |
Temporary Equity, Reallocation To (From) Temporary Equity | gcm_TemporaryEquityReallocationToFromTemporaryEquity | (60,935,000) |
Temporary Equity, Reallocation To (From) Temporary Equity | gcm_TemporaryEquityReallocationToFromTemporaryEquity | 4,900,000 |
Partners' Capital Account, Deemed Contributions | gcm_PartnersCapitalAccountDeemedContributions | 42,410,000 |
Noncontrolling Interest, Increase Deemed Contributions | gcm_NoncontrollingInterestIncreaseDeemedContributions | 129,948,000 |
Adjustments to Additional Paid in Capital, Warrant Issued | us-gaap_AdjustmentsToAdditionalPaidInCapitalWarrantIssued | 12,314,000 |
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | us-gaap_AdjustmentsToAdditionalPaidInCapitalStockIssuedIssuanceCosts | 45,567,000 |
Partners' Capital Account, Distributions | us-gaap_PartnersCapitalAccountDistributions | 153,670,000 |
Adjustments to Additional Paid in Capital, Deferred Tax Adjustment | gcm_AdjustmentsToAdditionalPaidInCapitalDeferredTaxAdjustment | 14,140,000 |
Temporary Equity, Capital Distributions | gcm_TemporaryEquityCapitalDistributions | 16,710,000 |
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | us-gaap_MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders | 23,102,000 |
Noncontrolling Interest, Increase from Sale of Parent Equity Interest | us-gaap_NoncontrollingInterestIncreaseFromSaleOfParentEquityInterest | 4,035,000 |
Temporary Equity, Capital Contributions | gcm_TemporaryEquityCapitalContributions | 173,797,000 |
Limited Partner [Member] | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | (6,990,000) |
Stockholders' Equity, Recapitalization | gcm_StockholdersEquityRecapitalization | 366,192,000 |
Partners' Capital Account, Deemed Contributions | gcm_PartnersCapitalAccountDeemedContributions | 42,410,000 |
Stockholders' Equity, Reallocation From (To) Temporary Equity | gcm_StockholdersEquityReallocationFromToTemporaryEquity | 60,935,000 |
Partners' Capital Account, Distributions | us-gaap_PartnersCapitalAccountDistributions | 153,524,000 |
Noncontrolling Interest, Other Noncontrolling Interests [Member] | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | 7,744,000 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | 3,873,000 |
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | us-gaap_MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders | 23,102,000 |
Noncontrolling Interest, Increase from Sale of Parent Equity Interest | us-gaap_NoncontrollingInterestIncreaseFromSaleOfParentEquityInterest | 4,035,000 |
Member Units [Member] | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | 67,000 |
Stockholders' Equity, Recapitalization | gcm_StockholdersEquityRecapitalization | 145,000 |
Partners' Capital Account, Distributions | us-gaap_PartnersCapitalAccountDistributions | 146,000 |
Noncontrolling Interest, Limited Partnerships [Member] | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | (106,014,000) |
Stockholders' Equity, Recapitalization | gcm_StockholdersEquityRecapitalization | (141,905,000) |
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 |
Adjustments to Additional Paid in Capital, Warrant Issued | us-gaap_AdjustmentsToAdditionalPaidInCapitalWarrantIssued | 9,609,000 |
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | us-gaap_AdjustmentsToAdditionalPaidInCapitalStockIssuedIssuanceCosts | 35,689,000 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | us-gaap_OtherComprehensiveIncomeLossCashFlowHedgeGainLossAfterReclassificationAndTax | 596,000 |
Adjustments to Additional Paid in Capital, Deferred Tax Adjustment | gcm_AdjustmentsToAdditionalPaidInCapitalDeferredTaxAdjustment | 129,000 |
Retained Earnings [Member] | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | 4,049,000 |
Stockholders' Equity, Recapitalization | gcm_StockholdersEquityRecapitalization | (32,817,000) |
Stockholders' Equity, Reallocation From (To) Temporary Equity | gcm_StockholdersEquityReallocationFromToTemporaryEquity | (1,064,000) |
Additional Paid-in Capital [Member] | ||
Stockholders' Equity, Recapitalization | gcm_StockholdersEquityRecapitalization | (343,434,000) |
Adjustments to Additional Paid in Capital, Warrant Issued | us-gaap_AdjustmentsToAdditionalPaidInCapitalWarrantIssued | 2,705,000 |
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | us-gaap_AdjustmentsToAdditionalPaidInCapitalStockIssuedIssuanceCosts | 9,878,000 |
Adjustments to Additional Paid in Capital, Deferred Tax Adjustment | gcm_AdjustmentsToAdditionalPaidInCapitalDeferredTaxAdjustment | 14,011,000 |
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) |
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 |