Latest news with #managementfees
Bloomberg
21-05-2025
- Business
- Bloomberg
Hong Kong Ramps Up Tax Checks on Private Equity, Venture Funds
Hong Kong authorities are intensifying tax checks of private equity and venture funds as the Asian financial hub faces pressure to plug deficits. Over the past 12 to 24 months, the Inland Revenue Department has stepped up reviews on management fees and so-called carried interest to managers in Hong Kong. Some tax advisers said they have seen a jump of as much as 50% in funds seeking guidance on how to respond to inquiries from the authorities during that period.
Yahoo
08-05-2025
- Business
- Yahoo
GCM Grosvenor Inc (GCMG) Q1 2025 Earnings Call Highlights: Record Fundraising and Strategic ...
Q : Can you discuss the factors affecting the 5% to 8% growth in private markets management fees for 2025 and what could drive it back to 10%+ in the long term? A : Michael Sacks, CEO, explained that short-term factors include how much of the funds raised go directly to fee-paying AUM versus contracted not yet fee-paying AUM, and the speed of deployment from the latter. Long-term, the outlook remains strong, with significant fundraising increases and a robust pipeline. The ability to meet FRE goals by 2028 remains solid. Incentive fee levels for the industry and GCM Grosvenor Inc ( NASDAQ:GCMG ) are unlikely to reach the levels experienced last year due to challenging equity markets. Market volatility and uncertainty related to trade and tax policy are expected to keep deployment and transaction levels depressed. GCM Grosvenor Inc ( NASDAQ:GCMG ) announced two strategic initiatives: a joint venture called Grove Lane and a strategic partnership in Japan, both expected to contribute significantly to future revenue and profit. The company achieved its highest quarterly fundraising level in over two years, with a total of $2.9 billion. For the complete transcript of the earnings call, please refer to the full earnings call transcript . Story continues Q: What are the biggest opportunities for international fundraising, and how do you see the trend evolving? A: Michael Sacks noted that opportunities are significant globally, with strong demand in all investor channels. The individual investor opportunity, both in the US and internationally, is seen as a tremendous opportunity. Jonathan Levin added that while the business has been about 60%-65% Americas-based, the individual investor channel is expected to grow significantly. Q: Can you elaborate on the SuMi Trust partnership and its potential impact? A: Michael Sacks stated that SuMi Trust is a significant player in Japan, and while the initial capital raise target is modest, the potential is much greater. The partnership is non-exclusive, allowing for other collaborations. There are no current plans for SuMi Trust to increase its stake in GCMG. Q: How does the current market volatility affect your deployment strategy, especially given your strong SMA growth? A: Michael Sacks clarified that while there's less visibility due to policy volatility, the long-term structure of the business remains unchanged. The current slowdown in transaction levels is seen as short-term, with expectations for improvement as policy uncertainties clear. Q: What is the rationale behind the Grove Lane joint venture, and where will initial efforts focus? A: Michael Sacks explained that the JV structure allows for attracting top talent with ownership incentives. The individual investor channel is under-allocated to alternatives, presenting a significant growth opportunity despite current market uncertainties. The JV is structured to mature over time, enhancing distribution capabilities. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
