GCM Grosvenor Inc.GCMG
GCM Grosvenor Inc. Fair Value Disclosure
Fair Value Measurements
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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, 2025 and 2024:
Fair Value as of December 31, 2025 | |||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| Assets | |||||||||||||||||||||||
Money market funds | $ | 202,553 | $ | — | $ | — | $ | 202,553 | |||||||||||||||
| Other investments | — | — | 19,462 | 19,462 | |||||||||||||||||||
| Total assets | $ | 202,553 | $ | — | $ | 19,462 | $ | 222,015 | |||||||||||||||
| Liabilities | |||||||||||||||||||||||
| Interest rate derivatives | $ | — | $ | 10,694 | $ | — | $ | 10,694 | |||||||||||||||
| Total liabilities | $ | — | $ | 10,694 | $ | — | $ | 10,694 | |||||||||||||||
Fair Value as of December 31, 2024 | |||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| Assets | |||||||||||||||||||||||
Money market funds | $ | 43,804 | $ | — | $ | — | $ | 43,804 | |||||||||||||||
| Other investments | — | — | 11,993 | 11,993 | |||||||||||||||||||
| Total assets | $ | 43,804 | $ | — | $ | 11,993 | $ | 55,797 | |||||||||||||||
| Liabilities | |||||||||||||||||||||||
| Public warrants | $ | 21,149 | $ | — | $ | — | $ | 21,149 | |||||||||||||||
| Private warrants | — | — | 1,361 | 1,361 | |||||||||||||||||||
| Interest rate derivatives | — | 3,532 | — | 3,532 | |||||||||||||||||||
| Total liabilities | $ | 21,149 | $ | 3,532 | $ | 1,361 | $ | 26,042 | |||||||||||||||
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 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 14 for additional information regarding interest rate derivatives.
Other Investments
Investments in the subordinated notes of structured alternatives investment solutions 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”), which includes assumptions regarding the expected deployment and realization timing of private investments. These positions were classified as Level 3 as of December 31, 2025 and 2024 because of the use of significant unobservable inputs in the Cash Flow Analysis as follows:
| December 31, 2025 | December 31, 2024 | Impact to Valuation from an Increase in Input(2) | ||||||||||||||||||||||||||||||
Significant Unobservable Inputs(1) | Range | Weighted Average | Range | Weighted Average | ||||||||||||||||||||||||||||
Discount rate(3) | 25.3% - 30.8% | 26.9 | % | 25.8% - 27.8% | 26.8 | % | Decrease | |||||||||||||||||||||||||
| Expected remaining term (years) | 4 – 11 | N/A | 8 – 12 | N/A | Decrease | |||||||||||||||||||||||||||
Expected total value to paid in capital – private assets(4) | 1.44x – 2.18x | 1.78x | 1.55x – 2.13x | 1.87x | 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 commitments to the respective private asset investments included in the range.
The resulting fair values of $19.5 million and $12.0 million were recorded within investments in the Consolidated Statements of Financial Condition as of December 31, 2025 and 2024, respectively.
The following table presents changes in Level 3 assets measured at fair value for the years ended December 31, 2025 and 2024.
| Year Ended December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| Balance at beginning of period | $ | 11,993 | $ | 11,192 | ||||||||||
| Purchases | 3,601 | — | ||||||||||||
| 3,868 | 801 | |||||||||||||
| Balance at end of period | $ | 19,462 | $ | 11,993 | ||||||||||
Public Warrants
All outstanding public warrants were exercised or expired unexercised during the year ended December 31, 2025. Prior to exercise, the public warrants were valued using quoted market prices on the Nasdaq Stock Market LLC under the ticker GCMGW. See Note 8 for additional information regarding the warrant activity.
Private Warrants
All outstanding private warrants were exercised during the year ended December 31, 2025. Prior to exercise, the private warrants were classified as Level 3 as of December 31, 2024 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 $1.51 per unit as of December 31 2024. The resulting fair value of $1.4 million was recorded within warrant liabilities in the Consolidated Statements of Financial Condition as of December 31, 2024. As no private warrants remained outstanding as of December 31, 2025, no liability was recorded. See Note 8 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, 2025 and 2024:
| Year Ended December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| Balance at beginning of period | $ | 1,361 | $ | 389 | ||||||||||
| Exercise of warrants | (81) | — | ||||||||||||
| (1,280) | 972 | |||||||||||||
| Balance at end of period | $ | — | $ | 1,361 | ||||||||||
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 Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.