Grosvenor Capital Management, L.P. (NASDAQ:GCMG) Q1 2024 Earnings Call Transcript

Michael Sacks: Yes, so that’s actually a great question and very glad that you asked that. As you know we believe that we have a lot of earnings power in that line. I think I said in my comments the only thing that wasn’t like a bright spot in the first quarter was we didn’t see the carry revenue grow. Good that we’ve got announced transactions up, but we need to see them close. And we need to see distributions and we know that it will come, we are waiting for it. As the carry revenue grows and as our percentage of the gross carry revenue grows because the firm’s ownership percentage of carry 2014 forward is much higher than it was prior to 2014. And you can see that in the presentation. As that grows, we do think we have real margin opportunity in that line.

Obviously, when we have very low levels of revenue we will have a lower margin there. And as we get to more normal levels of revenue and we get some of the growth that we believe is a question of when not if, we would hope to have higher margin there in the future and have the ability to be smart about that. So I appreciate the question and I think your suspicions in effect are correct. And hope that answer was clear.

Bill Katz: Thanks for taking the extra questions, and very helpful. Thank you.

Operator: And it appears there are no further questions at this time. I’d like to turn the conference back to our presenters for any additional or closing comments.

Stacie Selinger: Thank you for joining us today. We appreciate the interest and we look forward to speaking with you next quarter if not beforehand. Have a great day.

Operator: Ladies and gentlemen, thank you for your participating in today’s conference. This concludes today’s program. We hope everyone has a great day. You may all disconnect.