Company: DBRG
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001679688-25-000017
Chunk: 193

Company: DigitalBridge Group, Inc.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 193
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(364)(89,515)(20,784)Net income (loss) 2,458 6,503 (26,778)Adjustment of Wafra's interest to redemption value and DBRG stock warrants held by Wafra to fair value— — 725,026 Redemption of Wafra's interest— — (862,276)Reclassification of DBRG stock warrants held by Wafra to liability in May 2022 — — (81,400)Reclassification of Wafra's carried interest allocation to noncontrolling interests in investment entities in May 2022— — (4,087)Ending balance$24,356 $17,862 $100,574 Redeemable Noncontrolling Interest in Investment Management in 2022On May 23, 2022, the Company redeemed the 31.5% noncontrolling interest in its investment management business held by a private investment firm, Wafra, pursuant to a purchase and sale agreement ("PSA") entered into in April 2022. In connection with Wafra's initial investment in the Company's investment management business in July 2020, Wafra had assumed directly and also indirectly through a participation interest $124.9 million of the Company's commitments to DBP I, and has a $125.0 million commitment to DBP II that has been partially funded to-date. These are the Company'sflagship value-add funds within the DigitalBridge Partners ("DBP") infrastructure equity series. Wafra had also agreed to make commitments to the Company's future funds and investment vehicles on a pro rata basis with the Company based on Wafra's percentage interest in the investment management business, subject to certain caps.Pursuant to the PSA, Wafra’s entitlement to carried interest in DBP II was reduced from 12.6% to 7%, and with certain limited exceptions, Wafra sold or gave up its right to invest in, or receive carried interest from, future investment management products, but except as otherwise provided, retained its investment in and its allocation of carried interest from existing investment management products. Consideration for the redemption of Wafra's interest consisted of: (i) an upfront payment of $388.5 million in cash and 14,435,399 shares of the Company's class A common stock valued at $348.8 million based upon the closing price of the