Company: DBRG
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001679688-25-000084
Chunk: 87

Company: DigitalBridge Group, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 1
Chunk 87
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)(35,644)(815)Administrative and other expenses (1)(16,937)(17,076)139 Fee-Related Earnings—attributable to Operating Company31,975 25,968 6,007 Realized principal investment income (loss)(33,957)7,551 (41,508)Distributed carried interest and incentive fees subject to realization events, net of associated expense allocation— 186 (186)Interest, dividend and other income3,369 3,094 275 Interest expense and preferred dividends(18,093)(17,177)(916)Placement fees and other expenses(1,159)— (1,159)Income tax benefit (expense)(753)7 (760)Distributable Earnings, after tax—attributable to Operating Company$(18,618)$19,629 (38,247)________

(1)    These amounts are determined based upon the definition of FRE as described above and therefore, differ from those presented on the consolidated statements of operations.

Fee-Related Earnings

FRE was $6.0 million or 23% higher at $32.0 million in the second quarter of 2025 compared to $26.0 million in the same period in 2024. FRE margin in the second quarter of 2025 improved to 37% from 33% a year ago. 

44

Fee revenue increased $6.7 million or 8%, partially offset by higher operating cost. The increase in fee revenue is attributable to capital raised for our third flagship fund, which contributed an additional $8.5 million of fees, and new co-investment vehicles. This was partially offset by a fee decrease for an InfraBridge fund following a change in fee basis from committed to invested capital effective late December 2024. Operating cost was $0.7 million higher, which included fund formation and offering costs for potential new products. 

Distributable Earnings 

DE was a negative $18.6 million in the second quarter of 2025 compared to a positive $19.6 million in the same period in 2024. The negative DE was driven by a $40 million realized principal investment loss from a portfolio company of an InfraBridge fund. This loss pertained to invested capital funded in prior years and the realization did not affect cash flows in the current quarter.

Distributable Earnings and Fee-Related Earnings Reconciliation

Three Months Ended June