DigitalBridge Group (DBRG) Q3 2024 earnings summary

Executive summary

• Achieved $6.1 billion in capital formation year-to-date, on track to exceed the $7 billion annual fundraising target, with strong Q4 momentum and a robust pipeline across all core products and regions.

• Transitioned to a multi-strategy platform, with all fundraising channels—flagship, co-invest, credit, and private wealth—contributing, validated by strong investor demand and major investments in AI infrastructure.

• Notable investments include the $3.3 billion Vertical Bridge-Verizon tower deal, $2 billion DataBank equity raise, and new platforms in Japan (JTOWER) and global data centers (Yondr).

• Q3 2024 revenue was $76–$77 million, with a GAAP net loss attributable to common stockholders of $0.9 million and distributable earnings of $10.7 million.

• Management fee revenues and fee-related earnings (FRE) showed strong year-over-year growth, with FRE margin expanding to 34%.

Financial highlights

• Q3 fee revenue was $76.6–$77 million, up 16–17% year-over-year; FRE was $26.2 million, up 42% year-over-year, with margin rising from 28% to 34%.

• Fee-earning equity under management (FEEUM) grew to $34.1 billion, a 14% increase from the prior year, with $1.8 billion in new capital formation in Q3.

• LTM fee revenue at $303 million, expected to end 2024 between $305–$320 million, representing 14–20% growth over 2023.

• LTM FRE at $98 million, with 2024 expected between $100–$110 million, over 20% growth versus 2023.

• Liquidity stood at $427 million, including $127 million in corporate cash and full availability of a $300 million variable funding note.

Outlook and guidance

• Expect to exceed $7 billion fundraising target for 2024, with Q4 anticipated as the strongest quarter.

• Revised FEEUM year-end target to $35–$37 billion (from $36–$38 billion) due to realizations and capital mix.

• 2024 fee revenue and FRE to fall short of original guidance due to higher co-investment mix and timing, but strong growth expected in 2025 as new capital is deployed.

• Long-term plan to double FEEUM in five years and expand margins to mid-40s.

• Management expects continued growth in FEEUM and fee revenue, supported by strong capital raising and new fund launches.