DigitalBridge Group, Inc. Q1 FY2025 earnings call

Financial Performance - Strong fee revenues and FRE growth, with fee revenues at $90 million and FRE at $35 million, up 24% and almost 80% year-over-year respectively. - Fee-earning equity under management reached $37.3 billion as of March 31, a 15% increase from the previous year. - Distributable earnings were $55 million, including a $34 million gain from the DataBank investment. ### Fundraising - Raised $1.2 billion in Q1, led by commitments to the flagship DigitalBridge Partner strategy (over 70% of fundraising). - At $6.3 billion, the third flagship fund was at March 31st, with fundraising continuing through end of July. ### Investment - Supported Zayo's $4.5 billion acquisition of Crown Castle's fiber business, which is accretive, lowers effective entry multiple, and deleverages the business. ### Private Credit - Strong pipeline in private credit with over 100 accounts evaluating strategies, $650 million raised in the second credit strategy, and a $500 million debt facility led at ALLO Fiber.

In the first quarter, DigitalBridge delivered strong financial performance. Fee revenues were $90 million, a 24% increase year-over-year. FRE was $35 million, up almost 80% year-over-year. Fee-earning equity under management increased to $37.3 billion as of March 31, a 15% increase from the previous year. Distributable earnings were $55 million, including a $34 million gain from the partial realization of the DataBank investment. Fundraising in Q1 was $1.2 billion, led by commitments to the flagship DigitalBridge Partner strategy, which represented over 70% of fundraising.

- Reiterated guidance for total company FRE growth 10% to 20%, $40 billion FEEUM, and 34.5% FRE margins. - Confident in delivering against these goals, with front-loaded catch-up fees contributing to Q1 performance. - Expect FRE margin to remain higher in the first part of the year due to catch-up fees.

- Short-term delays in fundraising decisions by LPs monitoring uncertain market conditions. ### - Impact of financial market volatility and trade tariff policy on new business and incremental CapEx at portfolio companies, though challenges are manageable and portfolio companies are resilient.

Q: Reiterating guidance items, A: Yes, guidance is maintained with front-loaded performance expected.

Q: Impact of market volatility on carried interest, A: Dealmaking slowed in US but up globally, some carried interest expected but guidance doesn't include significant distributions.

Q: Closing discount to peer group, A: Focus on execution, scaling private credit, and strategic execution will help close the gap.

Q: LP decision-making delays, A: Investors still allocating, only two investors on pause in last 30 days.

Q: Carried interest mark-to-market, A: Marks were broadly flat, slightly below preferred return hurdle, conservative marking ensures premium when monetizing assets.

Q: LP interest shift to credit vs flagship, A: Uptick in credit interest, both credit and flagship strategies working, diverse fundraising approach.

Q: Committed capital vs fee earning, A: $4 billion of committed capital not yet fee earning, credit and co-investments will drive new FEEUM