Company: DBRG
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001679688-25-000043
Chunk: 51

Company: DigitalBridge Group, Inc.
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 1
Chunk 51
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 and $74.4 million in 2024. The decrease of $28.9 million was driven by a significantly higher reversal of unrealized carried interest in 2025, partially offset by a $17.2 million increase in fee revenue. 

The key components of revenue are discussed in more detail below. 

Fee Revenue

Three Months Ended March 31,(In thousands)20252024ChangeManagement fees $89,860 $71,844 $18,016 Incentive fees6 881 (875)Other fee revenue273 230 43 $90,139 $72,955 17,184 

Fee revenue increased $17.2 million or 24% to $90.1 million. The increase is attributable to higher capital raised for our third flagship fund, which contributed an additional $20.6 million of management fees, including $10.7 million of catch-up fees. This was partially offset by $4.0 million of lower fees from an InfraBridge fund following a change in fee basis from committed to invested capital effective December 2024.  

Year over year, FEEUM increased $4.8 billion or 15% to $37.3 billion at March 31, 2025 from $32.5 billion at March 31, 2024. 

Carried Interest Allocation 

Three Months Ended March 31,(In thousands)20252024ChangeCarried interest allocationDistributed$2,470 $— $2,470 Unrealized(57,934)(8,478)(49,456)$(55,464)$(8,478)(46,986)

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. 

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.

There was a higher net reversal of unrealized carried interest in 2025 compared to 2024. The carried interest reversals are generally a function of continuing accrual of preferred returns over time at a higher rate than the fair value increase for certain limited