Company: DBRG
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001679688-25-000017
Chunk: 198

Company: DigitalBridge Group, Inc.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 198
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 operations. In March 2024, three of the five warrants were reclassified to equity at their prevailing fair value following an amendment to the terms of the warrants in connection with a sale of the three warrants by Wafra to a third party. The equity-classified warrants are no longer subject to fair value remeasurement. No warrants have been exercised to-date.At December 31, 2024, the two liability-classified warrants were carried at fair value, measured using a Black-Scholes option pricing model, applying the following inputs: (a) estimated volatility for DBRG's class A common stock of 34.7% (37.8% at December 31, 2023); (b) closing stock price of DBRG's class A common stock on the last trading day of the quarter; (c) the strike price for each warrant; (d) remaining term to expiration of the warrants; and (e) risk free rate of 4.21% per annum (4.11% per annum at December 31, 2023), derived from the daily U.S. Treasury yield curve rates to correspond to the remaining term to expiration of the warrants. Contingent ConsiderationIn connection with the acquisition of InfraBridge, contingent consideration is payable if prescribed fundraising targets are met. In measuring the contingent consideration at December 31, 2024 and December 31, 2023, the Company applied a probability-weighted approach to the likelihood of meeting various fundraising targets and discounted the estimated future contingent consideration payment at 7.3% and 4.9%, respectively, to derive a present value amount, classified as Level 3 of the fair value hierarchy. 

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Changes in Level 3 Fair Value  The following table presents changes in recurring Level 3 fair value assets held for investment. Realized and unrealized gains (losses) are included in other gain (loss).Level 3 AssetsLevel 3 LiabilitiesFair Value OptionEquity Investment of Consolidated FundsDBRG Stock WarrantsInfraBridge Contingent Consideration(In thousands)Loans Receivable (1)Equity Method InvestmentsFair value at December 31, 2022$133,307 $— $46,770 $(17,700)$— Contributions— 20,000 85,486 — — Consolidation of sponsored funds— — 393,614 — — Business combination— — — — (