Company: DBRG
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001679688-25-000084
Chunk: 7

Company: DigitalBridge Group, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 2
Chunk 7
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20252024ChangeCarried interest allocationDistributed$— $118 $(118)$2,470 $118 $2,352 Unrealized(115,074)288,126 (403,200)(173,008)279,648 (452,656)$(115,074)$288,244 (403,318)$(170,538)$279,766 (450,304)

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 cumulative performance of the underlying investments of these vehicles that are measured at fair value, until such time as the carried interest is distributed. 

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.

Principal Investment Income

Three Months Ended June 30,Six Months Ended June 30,(In thousands)20252024Change20252024ChangePrincipal investment income (loss)Realized$(33,819)$8,169 $(41,988)$1,219 $10,546 $(9,327)Unrealized54,256 7,813 46,443 24,525 8,281 16,244 $20,437 $15,982 4,455 $25,744 $18,827 6,917 

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Principal investment income represents the Company's proportionate share of net income (loss) from investments in its sponsored investment vehicles, which is predominantly unrealized gain (loss) from changes in fair value of underlying fund investments.

Realized principal investment loss in the second quarter of 2025 was driven by a $40.3 million loss from a portfolio company in an InfraBridge fund. In the 2025 year-to-date period, this loss was partially offset by $34.0 million of income distribution in connection with our participation in a secondary sale of equity by our DataBank portfolio company in February 2025. These realizations are accompanied by a reversal of unrealized principal investment income (loss)