Constructive Update Reinforces "Top Pick" Status; Target to $14.00

Research evidence excerpt

Constructive Update Reinforces "Top Pick" Status; Target to $14.00

TD Cowen GCM Grosvenor, Class A

Global Research May 26, 2026

VALUATION METHODOLOGY AND RISKS

Valuation Methodology

Alternative Asset Managers:

Due to the industry's evolution toward "Gen IV" models, ongoing index inclusion, and still

sizeable TAMs, we migrate our valuation methodology toward P/E multiples and implied PEG

ratios vs. former SOTP methodology. To arrive at our P/E multiple, we leverage our proprietary

regression work against '26E long term (LT) net new asset (NNA) annualized organic growth

rate(s), AOGR. We then overlay two analyst adjustments, depending on respective positioning,

including retail and SPX inclusion gross up factors. We then apply this combined P/E multiple

against our 2026E earnings (per share) expectations, including Distributable Earnings (DE),

Realized Income (RI) and/or Adjusted Net Income, depending on the company's disclosure.

From here, we also triangulate to '26E PEG ratio – both absolute and relative to the SPX (500).

For selected companies that have provided LT financial guidance, we may also use a blended

methodology, including a sliding weighting between '26E, or the base year and the "out year",

which can range from '28E to '30E+ depending on circumstance(s).

Investment Risks

Key investment risks include: 1) major decline in capital markets; 2) rising/falling interest rates,

and attendant yield curve, reflecting the difference between US Treasury 10 Year Yield and

the Federal Funds Rate; 3) widening credit spreads; 4) delayed LP allocation trends; 5) shifting

competitive landscape; and 6) changes in regulatory backdrop. Rising interest rates tends to

slow the sector’s flywheel, notably asset gathering, deployment and monetization cycles, and