Financial Performance - DigitalBridge reported fee revenues of $94 million for Q3 2025, representing a 22% year-over-year increase [4][26] - Fee-related earnings (FRE) grew by 43% to $37 million, indicating continued margin improvement as revenue growth outpaced expenses [4][29] - The company raised $1.6 billion in new capital during the quarter, bringing the year-to-date total to $4.1 billion [4][34] Business Line Performance - The company achieved a record 2.6 gigawatts of data center leasing in Q3, which accounted for one-third of total U.S. hyperscale leasing for the quarter [17][18] - DigitalBridge's fee-earning equity under management (FEEUM) increased to $40.7 billion, a 19% increase from the previous year [33] Market Data - The APAC data center market is projected to grow at double-digit rates, expected to reach $77 billion by 2030, driven by AI initiatives [47] - The company is positioned to capture significant market share in Asia Pacific, with strategic investments in key markets like Johor, Kuala Lumpur, and Sydney [50][56] Company Strategy and Industry Competition - DigitalBridge's strategy focuses on leveraging its power bank, which consists of over 20 gigawatts of secured power across its data center portfolio, to gain a competitive advantage in the AI infrastructure market [17][19] - The partnership with Franklin Templeton aims to democratize access to institutional-quality digital and energy infrastructure investments, targeting a $94 trillion global infrastructure need by 2040 [11][12] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in meeting or exceeding full-year objectives, highlighting the strong demand for digital infrastructure and the execution capabilities of the DigitalBridge platform [4][5] - The company anticipates continued robust leasing activity and capital formation, with a focus on expanding margins in co-investment programs [9][10] Other Important Information - DigitalBridge is launching new investment strategies, including a programmatic private wealth distribution channel in partnership with Franklin Templeton [10][11] - The company maintains a strong balance sheet with $173 million in available corporate cash, providing liquidity for future investments [32][34] Q&A Session Summary Question: Can you help us understand when unrealized carried interest is recognized? - Management indicated that carried interest is recognized at various stages, including when leases are signed and when data halls are delivered, with full realization taking three to five years [71][77] Question: What is your view on how new data center projects achieve stabilized capitalization? - Management noted that there is significant interest from real estate allocators in stabilized data centers, which are seen as low-risk investments with predictable cash flows [85][86] Question: Is the Franklin Templeton partnership a one-time initiative? - Management clarified that while the partnership is currently focused on a specific product, there are plans for additional partnerships in the future [108][109]

Compensation Structure - Carried interest is a compensation form rewarding employees based on investment returns, typically seen in private equity firms [1] - Abu Dhabi entities are increasingly adopting carry to attract top global talent [4] - Mubadala Capital, Lunate, and Mubadala Investment Company offer compensation tied to investment performance [3] Sovereign Wealth Fund Trends - Implementing carry in sovereign wealth funds has been challenging due to the lack of third-party capital raising [2] - Newer sovereign-linked entities in Abu Dhabi and some sovereign wealth funds are starting to incorporate carry-like compensation [2][3] - Compensation tied to investment performance is becoming more important for sovereign wealth funds [3]

Today in Bloomberg Deals: Carried interest arrives in the Middle East, it's a sizzling summer for US IPOs and Citigroup makes another big hire from JPMorgan https://t.co/a9WtxHjDGg ...

Talent Acquisition Trends - Job candidates increasingly desire carried interest awards from Middle Eastern sovereign wealth funds before accepting job offers [1]