Financial Data and Key Metrics Changes - The company reported fee-related earnings (FRE) of $0.24 per share and distributable earnings (DE) of $0.22 per share for Q3 2025, with a dividend declared at $0.225 per share [4][21] - Management fees increased by 29% over the last 12 months, with 86% coming from permanent capital vehicles [22] - FRE was up 19%, and DE was up 15% year-over-year [22] Business Line Data and Key Metrics Changes - In direct lending, gross origination in Q3 was approximately $11 billion, with net deployment increasing to $3 billion, bringing last 12-month gross and net originations to $47 billion and $12 billion, respectively [10][25] - The alternative credit strategy demonstrated scale benefits, deploying approximately $5 billion over the last 12 months, primarily focused on small business equipment leasing, aviation, and consumer transactions [10][11] - The company raised over $14 billion in new capital commitments during the quarter, achieving a record $57 billion in capital raised over the last 12 months [9][22] Market Data and Key Metrics Changes - The company noted a shift in investor focus towards credit and digital infrastructure, which are gaining market share from legacy categories [6] - The health of the private credit markets remains strong, with an average annual realized loss of just 13 basis points and no signs of meaningful stress in direct lending [7][8] Company Strategy and Development Direction - The company is strategically positioned to benefit from ongoing investments in institutional and private wealth distribution channels and new product expansion [5][6] - A substantial strategic partnership was announced with Qatar Investment Authority to scale and expand the digital infrastructure business [17] - The company aims for continued growth in management fees and earnings, with expectations of 20% growth in FRE per share by 2026 and 2027 [36][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of their credit portfolios and the ongoing health of underlying borrowers [8][32] - The company anticipates continued growth in Part 1 fees in 2026, despite recent rate cuts [26] - Management emphasized the importance of performance and duration of capital in achieving positive investment outcomes over time [19][20] Other Important Information - The company has an installed base of over 160,000 individual investors and is adding new products in digital infrastructure and alternative credit [18] - The company completed its largest strip sale to date, selling about 18% of the assets in Fund 4 for proceeds of over $2.5 billion, delivering a 3.2x gross return [18] Q&A Session Summary Question: Summary of growth investments and future metrics - Management expects margin expansion and meaningful acceleration in FRE and DE per share growth as they move into 2026 and 2027 [34][35] Question: Impact of credit volatility on retail flows - Management reported strong flows and continued momentum in wealth-focused products, indicating resilience in the channel [46][47] Question: Understanding stock price perceptions - Management is focused on execution and communication to address market misunderstandings and believes the current valuations do not reflect the underlying business strength [52][55] Question: Digital infrastructure business and lease structures - Management clarified that leases are designed for long durations with built-in flexibility, ensuring strong returns even in case of early termination [61][62] Question: Absorption of recent fundraising and fund performance - Management noted that while there was short-term noise in fund performance, the underlying projects are strong, and they expect to absorb new capital quickly [68][70]

Financial Data and Key Metrics Changes - The company reported Fee-Related Earnings (FRE) of $0.24 per share and Distributable Earnings (DE) of $0.22 per share for Q3 2025, with a declared dividend of $0.225 per share [4][22] - Management fees increased by 29% over the last 12 months, with 86% coming from permanent capital vehicles [21][22] - FRE was up 19% and DE was up 15% year-over-year [22] Business Line Data and Key Metrics Changes - In direct lending, gross origination was approximately $11 billion in Q3, with net deployment increasing to $3 billion [10][25] - The alternative credit strategy demonstrated scale benefits, deploying approximately $5 billion over the last 12 months [10][25] - The company raised $5.6 billion in credit during Q3, with $3 billion from direct lending [22][24] Market Data and Key Metrics Changes - The company raised over $1 billion in the Digital Infrastructure Fund, reflecting strong investor interest [16][17] - The installed base of individual investors in Blue Owl products exceeded 160,000, with significant growth in private wealth fundraising [17][18] Company Strategy and Development Direction - The company is strategically positioned to benefit from the shift towards credit and digital infrastructure, capitalizing on ongoing investments across institutional and private wealth distribution channels [5][6] - Blue Owl aims to continue expanding its digital infrastructure business, highlighted by a substantial partnership with QIA [17][19] - The focus remains on delivering exceptional returns per unit of risk while maintaining a vigilant approach to market changes [20][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health of the credit portfolios, with an average annual realized loss of just 13 basis points [7][8] - The company anticipates continued growth in FRE and DE per share, aiming for 20% growth in management fees and revenues by 2026 [36][37] - Management emphasized the importance of execution and communication to address market perceptions and enhance stock performance [55][56] Other Important Information - The company has a growing base of AUM Not Yet Paying Fees, amounting to $28 billion, which is expected to drive over $360 million in management fees upon deployment [9] - The company has closed on two investments in GP stakes during Q3, with a significant focus on delivering liquidity to investors [18][19] Q&A Session Summary Question: Summary of growth investments and future metrics - Management expects margin expansion and meaningful acceleration in FRE and DE per share growth from 2026 onwards, aligning with their long-term goals [34][35] Question: Impact of credit volatility on retail flows - Management reported strong flows and continued momentum in wealth-focused products, indicating resilience despite market volatility [46][47] Question: Understanding stock performance relative to fundamentals - Management acknowledged the disconnect between strong fundamentals and stock performance, emphasizing execution and communication as key strategies to address this [52][55] Question: Digital infrastructure business and lease structures - Management clarified that leases are designed for long durations with built-in flexibility, ensuring strong returns regardless of early termination scenarios [61][62] Question: Fund performance and absorption of recent fundraising - Management noted that recent performance fluctuations are short-term noise, with strong underlying performance expected to continue [68][69]

Core Insights - DigitalBridge Group, Inc. is a leading global alternative asset manager focused on investing in digital infrastructure [1] Financial Results - The company announced its financial results for the third quarter of 2025 [1] - An earnings presentation is available on the company's website for shareholders [1] Conference Call - DigitalBridge will conduct an earnings conference call to discuss the results [1]

Financial Data and Key Metrics Changes - The company reported fee-related earnings (FRE) of $0.23 per share and distributable earnings (DE) of $0.21 per share for the second quarter [3] - FRE revenues grew by 29%, FRE increased by 23%, and DE rose by 20% year over year on a last twelve months basis [6] - The company raised $14 billion of new capital during the quarter, totaling a record $55 billion over the last twelve months, which is 28% of assets under management a year ago [5][6] Business Line Data and Key Metrics Changes - In alternative credit, the company closed a private offering of $850 million for a new interval fund, reflecting strong investor confidence [7] - The digital infrastructure strategy saw a final close of its third flagship fund at a $7 billion hard cap, with over half the capital already soft circled for investment [8] - The real estate credit strategy deployed over $3 billion year to date, with significant activity in the insurance channel [8] Market Data and Key Metrics Changes - Capital raised from EMEA and APAC investors increased to 23% from 14% two years ago, indicating ongoing globalization of the business [11] - The company raised $5.8 billion of equity in credit during the second quarter, marking a record quarter for the credit platform [21] - The net lease strategy raised over $2.1 billion ahead of schedule, with total commitments in the net lease business reaching $12 billion [10] Company Strategy and Development Direction - The company aims to grow FRE management fees to over $5 billion and FRE to over $3 billion, feeling on track with these long-term goals [30] - A new strategic partnership with Voya was announced to deliver private market strategies tailored for defined contribution retirement plans, reflecting a focus on broadening access to alternative investments [19] - The company is positioned to leverage its scale and incumbency in respective markets to drive differentiated results and create bespoke solutions for capital users [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the fundraising and deployment activities, despite market disruptions [6] - The company noted that the investments made over the past year are beginning to bear fruit, with a steady and predictable financial profile [30] - Management highlighted the exceptional credit quality in direct lending and the positive outlook for deployment opportunities in the current macro environment [12][78] Other Important Information - The company completed the listing of its technology-focused BDC, OTF, which is now the second largest publicly traded BDC by net assets [20] - The company has raised $3.5 billion across strategies that did not exist two years ago, indicating strong reception for new offerings [9] - The company maintained a leadership position in CMBS deals, anchoring roughly 40% of single asset single borrower deals priced during the period [27] Q&A Session Summary Question: Can you discuss the asset origination channel and the scaling opportunity in asset-backed finance? - Management highlighted the significant opportunity in asset-backed finance and the integration of their asset-backed business with direct lending, emphasizing their strong pipeline and expertise in the market [33][36] Question: What are the thoughts on the build-out of a target date fund with Voya? - Management expressed optimism about bringing alternative investment solutions to the 401(k) market, emphasizing the importance of democratizing access to these products [41][44] Question: What should be expected regarding the integration and scaling of recently acquired businesses? - Management indicated that integration benefits are already being realized, with strong fundraising numbers and a diversified business model [52][58] Question: Can you comment on the competitive environment in the triple net lease market? - Management noted that their leadership in the net lease market has accelerated, with a growing pipeline and strong trust built with partners [67][70] Question: What is the outlook for direct lending activity and spreads on incremental capital deployed? - Management reported high credit quality and a positive outlook for direct lending, with signs of increased activity in the market [74][78]