Company: DBRG
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001679688-25-000100
Chunk: 7

Company: DigitalBridge Group, Inc.
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 2
Chunk 7
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6 billion or 19% to $40.7 billion at September 30, 2025 from $34.1 billion at September 30, 2024. 

Incentive fees in all periods were attributed to our liquid securities strategy.

Carried Interest Allocation 

Three Months Ended September 30,Nine Months Ended September 30,(In thousands)20252024Change20252024ChangeCarried interest allocationDistributed$— $— $— $2,470 $118 $2,352 Unrealized(120,213)(15,799)(104,414)(293,221)263,849 (557,070)$(120,213)$(15,799)(104,414)$(290,751)$263,967 (554,718)

Carried interest allocation represents gross carried interest from our general partner interests in sponsored investment vehicles prior to allocations to management and a third party participation interest. Unrealized carried interest is subject to adjustments each period, including reversals, based upon the extent to which cumulative performance of the funds, which are driven by underlying investments that are measured at fair value, exceed their minimum return hurdles. See Note 3 to the consolidated financial statements. 

In 2025, distributed carried interest arose from a secondary equity offering by our DataBank portfolio company in February 2025, of which our share net of management allocation was $0.9 million.

Unrealized carried interest reversals are generally a function of continuing accrual of preferred returns over time outpacing changes in investment fair values and the resulting effects are exacerbated given the early lifecycle of our funds.

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Principal Investment Income

Three Months Ended September 30,Nine Months Ended September 30,(In thousands)20252024Change20252024ChangePrincipal investment income (loss)Realized$645 $2,647 $(2,002)$1,864 $13,193 $(11,329)Unrealized24,680 7,308 17,372 49,205 15,589 33,616 $25,325 $9,955 15,370 $51,069 $28,782 22,287 

Principal investment income represents the Company's proportionate share of net income (loss) from investments in its sponsored investment vehicles. Changes each period are driven predominantly by unrealized gain (loss) from changes in fair value of underlying fund investments.

Realized principal investment