GCM Grosvenor: Low Carry Could Signal Latent Growth On PE Thaw

Valkyrie Trading SocietyInvesting Group LeaderFollow5ShareSavePlay(7min)CommentsSummaryGCM Grosvenor remains attractively valued, trading at a 2.6% EV/AUM versus peers like Partners Group at 15%.Fundraising is at record levels, driven by successful cross-selling and a strong hedge fund performance.Carried interest recovery is expected to be a latent driver, benefiting 2026 figures as market liquidity and sponsor activity normalize.Capital allocation is constructive, with a $91M buyback program, $3M in interest savings from refinancing, and a solid dividend yield supporting shareholder returns.With strong fundraising and likely a better realisation environment, we expect more recognised carry. ARS should also have opportunities during the Q1 market volatility.Looking for a helping hand in the market? Members of The Value Lab get exclusive ideas and guidance to navigate any climate. Learn More » Hanizam/iStock via Getty Images We covered GCM Grosvenor (GCMG) previously on the basis of a private markets thawing thesis. The concept simply was that with a few rate cuts in, and making their way through the digestive system ofThis article was written byValkyrie Trading Society5.52K FollowersFollowThe Valkyrie Trading Society is a team of analysts sharing high conviction and obscure developed market ideas that are downside limited and likely to generate non-correlated and outsized returns in the context of the current economic environment and forces. They are long-only investors.They lead the investing group The Value Lab where they offer members a portfolio with real time updates, chat to answer questions 24/7, regular global market news reports, feedback on member stock ideas, new trades monthly, quarterly earnings write-ups, and daily macro opinions.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.