Company: DBRG
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001679688-25-000043
Chunk: 52

Company: DigitalBridge Group, Inc.
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 1
Chunk 52
---
 partners.

Principal Investment Income

Three Months Ended March 31,(In thousands)20252024ChangePrincipal investment incomeRealized$35,038 $2,377 $32,661 Unrealized(29,731)468 (30,199)$5,307 $2,845 2,462 

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.

In February 2025, we received $34.0 million of income distribution in connection with our participation in a secondary sale of equity by our DataBank portfolio company. This is reflected as reclassification from unrealized to realized principal investment income.

37

Additionally, realized principal investment income in both periods included distributions of interest income from our credit fund, while unrealized principal investment income in 2025 also reflects fair value increases in DBP II and InfraBridge funds (combined $5.5 million).

Other Income

Other income was $1.6 million lower at $5.5 million, driven by lower dividend income from equity securities of consolidated funds and lower interest income from money market deposits and our subordinated notes in a collateralized loan obligation ("CLO").

Expenses

Total expenses were $55.3 million in 2025 and $83.9 million in 2024, with the decrease attributable to higher reversal of unrealized carried interest compensation, and lower administrative costs.

Changes in the various expense items are discussed below.

Compensation Expense

Three Months Ended March 31,(In thousands)20252024ChangeCash and equity-based compensation Cash compensation$38,490 $41,970 $(3,480)Equity-based compensation7,620 9,214 (1,594)$46,110 $51,184 (5,074)Incentive fee and carried interest compensation allocation (reversal)$(22,304)$(6,714)(15,590)

Cash and equity-based compensation—Cash compensation was $3.5 million lower in 2025 as a result of an acquisition-related bonus in 2024 ($2.0 million) and lower severance costs in 2025 ($1.7 million), partially offset by the effect of increased headcount. 

Equity-based compensation was $1.6 million lower in 2025 due to awards that fully vested in 202