GCM Grosvenor Inc.GCMG
GCM Grosvenor Inc. Commitments Disclosure
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. The leases contain rent escalation clauses based on increases in base rent, real estate taxes and operating expenses. Some leases offer the option to extend for an additional term or terminate early. The Company generally does not include options to renew when determining the lease term 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. The Company’s leases have remaining lease terms of less than one year to 14 years.
Operating lease costs are recorded within general, administrative and other and sublease income is recorded within other income (expense) in the Consolidated Statements of Income (Loss). The lease cost and sublease income components were as follows:
| Years Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
Operating lease cost(1) | $ | 7,466 | $ | 9,904 | $ | 8,874 | ||||||||||||||
Variable lease cost(2) | 4,414 | 3,878 | 4,458 | |||||||||||||||||
| Less: sublease income | 208 | 215 | 179 | |||||||||||||||||
| Total lease cost | $ | 11,672 | $ | 13,567 | $ | 13,153 | ||||||||||||||
(1)Includes $0.3 million of short term lease expense for each of the years ended December 31, 2025, 2024, and 2023. For the years ended December 31, 2024 and 2023 includes lease cost for two offices in New York due to the build out of new office space.
(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:
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
Cash paid for amounts included in the measurement of operating lease liabilities(1) | $ | 7,979 | $ | 5,132 | $ | 8,613 | |||||||||||
| Non-cash ROU assets obtained in exchange for new and extended operating leases | $ | 2,967 | $ | 9,075 | $ | 34,116 | |||||||||||
| Weighted average remaining lease term in years | 12.8 years | 13.7 years | 13.1 years | ||||||||||||||
| Weighted average discount rate | 6.3 | % | 6.3 | % | 6.1 | % | |||||||||||
___________
(1)Excludes $6.3 million of cash received during the year ended December 31, 2024 for lease incentives received related to the New York office lease. Also excludes $0.2 million of cash paid during the year ended December 31, 2025 for lease termination payments related to the Chicago office lease.
As of December 31, 2025 the maturities of operating lease liabilities were as follows:
| Year Ended December 31, | ||||||||
| 2026 | $ | 6,127 | ||||||
| 2027 | 7,474 | |||||||
| 2028 | 7,371 | |||||||
| 2029 | 6,140 | |||||||
| 2030 | 6,497 | |||||||
| Thereafter | 56,391 | |||||||
| Total lease payments | $ | 90,000 | ||||||
| Less: tenant improvement allowance | (9,680) | |||||||
| Less: imputed interest | (28,526) | |||||||
| Total operating lease liabilities | $ | 51,794 | ||||||
Commitments
The Company owns a 6.25% interest in an aircraft and was required to pay a fixed management fee of $0.3 million per year until 2024. On September 3, 2024, the Company extended its contract for a 6.25% interest in an aircraft until September 3, 2029, and will continue to pay a fixed management fee of $0.3 million per year.
The Company had $140.6 million and $90.5 million of unfunded investment commitments as of December 31, 2025 and 2024, respectively, representing general partner capital funding commitments to several of the GCM Funds and other commitments to our equity method investments.
Employee Investment Loan Program
Beginning in the year ended December 31, 2025, eligible employees may apply for loans from a third-party lender, which may, at its discretion, extend loans directly to such employees for purposes of funding capital calls to specified Company-managed investment vehicles. The loans are collateralized by the employees’ related investment interests and return-of-capital distributions from those investments are applied to reduce outstanding loan balances.
In connection with the loan program, the Company entered into a separate arrangement with the third-party lender that includes a buyback provision, which represents a performance guarantee under applicable accounting guidance. Under the buyback provision, the Company may be required, upon an employee’s failure to perform under a loan agreement, to make a payment to the lender and acquire the pledged investment interests. The Company’s obligation is limited to an amount equal to the lesser of the outstanding loan balance or the fair value of the pledged investment interests at the time the guarantee is triggered. As of December 31, 2025, no loans were outstanding subject to the buyback provision. As of December 31, 2025, no defaults or repurchases have occurred under the EIP.
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.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Mar 1, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Mar 12, 2021 | |
About Commitments Disclosures
Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.
Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.