Company: DBRG
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001679688-25-000043
Chunk: 109

Company: DigitalBridge Group, Inc.
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 2
Chunk 109
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 driven by net fair value loss in equity investments, primarily marketable equity securities of our consolidated funds ($4.5 million), largely offset by fair value decrease in the InfraBridge contingent consideration liability ($3.9 million).

The net loss in 2024 was driven by fair value increase in the DBRG stock warrant liability ($5.4 million) and write-down in value of an equity investment ($3.3 million), partially offset by net fair value gain on marketable equity securities of our consolidated liquid funds( $2.0 million). 

Income Tax Benefit (Expense)

Income tax expense was $0.3 million in 2025 and $1.2 million in 2024. The Company has operating losses and capital loss carryforwards that can be applied against current income tax expense for its domestic entities, and has established a full valuation allowance on the deferred tax assets of these entities, resulting in immaterial income tax effect for its domestic entities. 

Income (Loss) from Discontinued Operations

Loss from discontinued operations of $4.2 million in 2025 and $14.1 million in 2024 were driven by a merger related real estate transfer tax liability, and loss on a guarantee related to the previous bulk sale of the Company's real estate investments, respectively.

Operating Metrics 

Assets Under Management and Fee Earning Equity Under Management

We present below our AUM and FEEUM, which are key operating metrics in the alternative investment management industry. Our calculation of AUM and FEEUM may differ from other investment managers, and as a result, may not be directly comparable to similar measures presented by other investment managers.

Assets Under Management

AUM represents the total capital for which we provide investment management services and our general partner capital. AUM is generally composed of third party capital managed by the Company and its affiliates, including capital that is not yet fee earning, or not subject to fees and/or carried interest; and our general partner and general partner affiliate capital committed to our funds. AUM is largely determined based upon invested capital as of the reporting date, including capital funded through third party financing at the underlying portfolio companies; and committed capital for funds in their commitment stage. Our AUM is not based upon any definitions that may be set forth in the governing documents of our managed funds or other investment vehicles, and not calculated pursuant to any regulatory definitions.

Fee Earning Equity Under Management

FEEUM represents the total capital managed by the Company and its affiliates which earns management fees and