DBRG

• Financial Performance: Fee revenues at $94 million (+22% YOY), fee-related earnings at $37 million (+43% YOY). FEEUM reached $40.7 billion, 1 quarter ahead of schedule to exceed the $40 billion target. • Capital Formation: Raised $1.6 billion in new capital during the quarter, year-to-date $4.1 billion. • Strategic Positioning: Power bank strategy on full display with record data center leasing activity. Vantage Data Centers announced $25 billion Frontier mega campus in Texas and $15 billion-plus Lighthouse campus in Wisconsin. • Partnerships: Launched programmatic private wealth distribution channel with Franklin Templeton, partnering with Copenhagen Infrastructure Partner and Actis for diversified infrastructure investments. • Investment Framework: DigitalBridge's 3-phase development model (establish platforms, transform and scale, follow the logos) driving value creation at portfolio companies.

• Year-to-date capital formation of $4.1 billion positions the firm to surpass financial targets. • On track to meet or exceed full-year objectives, with fourth quarter historically strongest. • Targeting over $7 billion in flagship strategy capital formation in the next few weeks. • Launching new digital Energy and stabilized data center strategies, and working to secure initial anchor commitments. • Building on private wealth momentum with targeted asset-specific opportunities and evaluating strategic M&A.

DigitalBridge delivered robust growth with fee revenues reaching $94 million, up 22% year-over-year. Fee-related earnings grew 43% to $37 million in the third quarter. Fee-earning equity under management (FEEUM) increased to $40.7 billion as of September 30, representing a 19% increase from the prior year, primarily driven by capital formation in the DBP series and co-investments as well as fees activated upon deployment of previously raised capital.

• Market uncertainties and competition could impact ability to realize carried interest and monetize assets. • Dependence on key portfolio companies and customer relationships; any disruption could affect performance. • Uncertainties in the timing and scale of monetization of certain fund products and projects.

Q: Congrats to you and the team, including Surrel on the massive leasing in the quarter. Great job. In the past, Marc, you've talked about $1.55 a share in carried interest for every gigawatt of data center leasing. Can you just help us understand when in the life cycle of the data center, that unrealized carried interest is recognized? Is it when it's leased? Or is it when it's delivered?

A: To fully realize that carry takes anywhere from 3 years to 5 years. Some of that carry is accrued when you get the entitlements and you get the power. Some of that carry gets accrued when you sign the lease. Some of that carry gets accrued when you deliver the first data hall. Some of that carry gets accrued when you deliver the final data hall. Then some of that carry -- well, all that carry gets realized if it ends up -- if the data center ends up getting purchased, put into a continuation fund, gets acquired as part of a portfolio deal.

Q: What's your overarching view on how the new data center projects achieve a stabilized capitalization given their size? Do you envision they will be owned long term by a combination perhaps of large REITs, infrastructure funds and hyperscalers themselves? It seems like the digital bridge structuring expertise could provide solutions to that eventuality.

A: We announced the formation of a strategy called the Data Center Income Fund. We're having great dialogue with real estate investors. Real estate allocators are eager to get allocation to these amazing stabilized data centers. It's an entirely new swim lane of capital. Every year, there's about $3 trillion of capital that's allocated to real estate. Real estate allocators today are looking at industrial properties, shopping centers, downtown office buildings. Along comes these 15-year investment-grade data centers, low incremental CapEx going forward. The tenants rarely call you. It's a pretty hands-off real estate product. Most importantly, 95% of the cash flows that we're seeing are investment grade.

Q: On the Franklin Templeton strategic partnership, in the deck, you outlined the $15 trillion opportunity through 2040, with wealth management allocations to private infrastructure. I was wondering if this strategic partnership is sort of a one-time partnership or if we could see more of these down the road?

A: For this particular product, alongside of Actis and CIP and it's a strategy that they've launched on their platform. We have other partners in private wealth. We did a fantastic product offering last year with Goldman. It was really successful. It was wildly oversubscribed. We do intend to be on other platforms and have other partnerships. That is something that we'll reveal in due course. We are not exclusive nor limited just to the Franklin Templeton platform. We are working with other allocators, and we agree with your arithmetic. It's a $15 trillion opportunity. It's really big, and there's a lot of great partnerships to be had, and we're excited about it. For right now, we love what we're doing with Jenny and her team. They're fantastic partners. So far, it's been a really successful launch.

Q: First, to follow-up on Michael's question a little bit. I mean, Marc, you guys as an all asset manager, but focused on digital infrastructure AI. Good to see you communicate numbers, hit numbers, achieve numbers, maybe exceed numbers. The piece that seems to be missing from the stock price is really recognition of carried interest. You touched on it a little bit to Michael's question, but help us understand the pacing as your portfolio companies now ballpark 50 companies or so, I guess, how should we think about a stable, consistent kind of monetization path into the future to try and get some of this value realized because clearly, AI is hot. power banks are hot, data centers are hot. You're not getting the credit for that.

A: I would say, what I said earlier with Michael, which is it's really important to note that we have certain fund products that have now turned the corner and they're entering into that phase where we begin to monetize. If you go back to a 2019 vintage fund, where we invested that fund in 2020 and 2021, it's logical to assume that realizations begin happening in '26, '27 and '28. That's really where our first flagship fund sits. Then logically, you can start thinking about how we exit some stuff in Fund II. I'm not going to, on a call, speculate which companies are going to have those realizations, but what I can tell you is we're now in a steady cadence where we have certain portfolio companies going through strategic reviews. I think that we believe just by the time line and nature of our original legacy flagship funds, you can begin to see a steady unwinding of those funds and return of capital. Along with that return of capital comes the realization of carried interest. Now, Fund II has a little more carried interest for investors. The third flagship fund has a little more carried interest for our investors. I think as time goes on, you're going to see not only more frequency in carried interest, but you'll see more carried interest. We're going to work on that pretty hard next year. I think that will be one of the differentiators about next year versus this year is that you are going to see more realizations next year than this year.