Q2 2024 DigitalBridge Group Inc Earnings Call

August 7, 2024

unknown: Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press the star key, then 1 on a touch-tone phone.

unknown: To withdraw your question, please press star, then 2. Please note, this event is being recorded. I would now like to turn the conference over to Severin White, head of IR. Please go ahead.

Unknown Executive: Please note, this event is being recorded. I would now like to turn the conference over to Severin White, head of IR. Please go ahead.

I would now like to turn the conference over to several white head of IR. Please go ahead. Good afternoon, everyone and welcome to the digital bridge's second quarter 2024 earnings Conference call speaking on the call today from the company as Marc Ganzi, our CEO and Tom Mair offer our CFO I'll quickly cover the safe Harbor some of the statements that we make today regarding our business.

Severin White: Good afternoon, everyone, and welcome to Digitalbridge's second quarter 2024 earnings conference call. Speaking on the call today from the company are Marc Ganzi, our CEO, and Tom Mayrhofer, our CFO. I'll quickly cover the safe harbor.

Severin White: Some of the statements that we make today regarding our business operations and financial performance may be considered forward-looking, and such statements involve a number of risks and uncertainties that could cause actual results to differ materially. All information discussed on this call is as of today, August 7, 2024, and Digitalbridge does not intend and undertakes no duty to update it for future events or circumstances. For more information, please refer to the risk factors discussed in our most recent Form 10-K filed with the SEC for the year ending December 31, 2021, and our Form 10-Q to be filed with the SEC for the quarter ending June 30, 2024.

Severin White: Some of the statements that we make today regarding our business operations and financial performance may be considered forward-looking, and such statements involve a number of risks and uncertainties that could cause actual results to differ materially. All information discussed on this call is as of today, August 7th, 2024, and Digitalbridge does not intend and undertakes no duty to update it for future events or circumstances. For more information, please refer to the risk factors discussed in our most recent Form 10-K filed with the SEC for the year ending December 31st, 2021, and our Form 10-Q to be filed with the SEC for the quarter ending June 30th, 2024. With that, let's get started, and I'll turn the call over to Marc Ganzi, our CEO. Marc?

Speaker Change: Operations and financial performance may be considered forward looking and such statements involve a number of risks and uncertainties that could cause actual results to differ materially.

All information discussed on this call is as of today August seven 2024 digital bridge does not intend and undertakes no duty to update for future events or circumstances for more information. Please refer to the risk factors discussed in our most recent Form 10-K filed with the SEC for the year ending December 31, 2021, and our Form 10-Q to be filed with.

Speaker Change: The FCC for the quarter ending June 32024.

Right.

Severin White: With that, let's get started, and I'll turn the call over to Marc Ganzi, our CEO. Thanks, Severin, and welcome, everyone, to our second quarter 2024 business update. I appreciate the opportunity to outline some of the compelling progress we've made year-to-date building and scaling Digitalbridge. As you'll see today, we've made tangible progress across many of our key 2024 priorities, particularly around capital formation linked to the AI infrastructure ecosystem. So let's get started.

Speaker Change: With that let's get started and I'll turn the call over to Marc Ganzi our CEO.

Mark.

Marc Ganzi: Thanks, Severin, and welcome, everyone, to our second quarter 2024 business update. I appreciate the opportunity to outline some of the compelling progress we've made year-to-date building and scaling Digitalbridge. As you'll see today, we've made tangible progress across many of our key 2024 priorities, particularly around capital formation linked to the AI infrastructure ecosystem. So let's get started.

Marc Ganzi: Thanks, Kevin and welcome everyone to our second quarter 2024 business update.

I appreciate the opportunity to outline some of the compelling progress we've made year to date.

Speaker Change: <unk> and scaling digital bridge.

Speaker Change: As you'll see today, we've made tangible progress across many of our key 2024 priorities, particularly around capital information linked to the AI infrastructure ecosystem.

Speaker Change: So let's get started.

Marc Ganzi: First and foremost, number one, financial performance. Delivering peer-leading revenue growth with expanding operating margins is central to the Digitalbridge investment thesis. We've delivered that growth this quarter, with management fee revenues up 18% over the prior year, along with growing margins. Tom will walk you through the financials later in this call. Second, as you know, the key driver of these management fees and fee-related earnings over time is new capital formation.

Speaker Change: First and foremost number one financial performance.

Speaker Change: Delivering pure leading revenue growth with expanding operating margins is central to the digital bridge investment thesis.

Speaker Change: We've delivered that growth this quarter with management fee revenues up 18% over the prior year, along with growing margins.

Speaker Change: Tom will walk you through the financials later in this call.

Tom: Second as you know the key driver of these management fees and fee related earnings overtime as new capital formation.

Marc Ganzi: Here, our AI-powered data center vertical is increasingly a key focus for our global limited partners. It's underpinning strong capital formation across debt and equity markets to support the growth of our portfolio, and it's catalyzing new investment solutions. This is where our position as the largest private manager of data centers globally really matters. I'll walk you through why this is important to us today. Number three.

Speaker Change: Here, our AI powered data center vertical is increasingly a key focus for our global limited partners.

Tom: It's underpinning strong capital formation across debt and equity markets to support the growth of our portfolio and its catalyzing new investment solutions.

Speaker Change: This is where our position as the largest private manager of data centers globally really matters.

Speaker Change: I'll walk you through why.

Marc Ganzi: This is important to us today. Number three. We're well positioned to meet our annual fundraising and financial goals for the year, with $3.4 billion in new C.M. raised through today, directly in line with where we were last year on our way to $7 billion in new capital formation. And we're heading into a seasonally strong final four months of the year.

Speaker Change: This is important to us today.

Speaker Change: Number three where.

Marc Ganzi: We're well positioned to meet our annual fundraising and financial goals for the year, with $3.4 billion in new C.M. raised through today, directly in line with where we were last year on our way to $7 billion in new capital formation, and we're heading into a seasonally strong final four months of the year. I have high conviction that we will meet and exceed our targets here. So let's begin by highlighting the capital formation across our portfolio year to date and how that drives value creation at Digitalbridge. Next slide, please.

Speaker Change: We're well positioned to meet our annual fundraising and financial goals for the year with $3 4 billion of New C. M raised through today <unk>.

Speaker Change: In line with where we were last year on our way to $7 billion in new capital formation.

Speaker Change: And we're heading into a seasonally strong final four months of the year.

Marc Ganzi: I have high conviction that we'll meet and exceed our targets here. So let's begin by highlighting the capital formation across our portfolio year-to-date and how that drives value creation at Digitalbridge. Next slide, please.

Speaker Change: I have high conviction, we will meet and exceed our targets here.

Speaker Change: So let's begin by highlighting the capital formation across our portfolio year to date, and how that drives value creation and digital rich next slide please.

Marc Ganzi: This slide highlights how capital formation in 2024 is being driven by strong limited partner demand for AI-levered data center platforms. When you look across the $14 billion in equity and credit we've raised so far this year, about 80% of that is earmarked for investment across our data center platform. That includes FreshVM to fuel investment in new platforms, anchor co-investments that boost our firepower and generate carried interest, and Credit Financing to support CAPEX, both in the form of long-term debt and ABS securitization, which we've historically used to drive down our barring costs over time.

Speaker Change: This slide highlights how capital formation in 'twenty 'twenty four is being driven by strong limited partner demand for AI Levered data center platforms when.

Speaker Change: When you look across the $14 billion in equity and credit we've raised so far this year about 80% of that is earmarked for investment across our data center platform.

Speaker Change: That includes fresh feed them to fuel investment in new platforms.

Speaker Change: Anchor co investments that boost our firepower and generates carried interest.

Speaker Change: In credit financings to support Capex, both in our in the form of long term debt and a b S. Securitizations.

Speaker Change: Which we've historically used to drive down our borrowing costs over time.

Marc Ganzi: Credit and equity markets want to partner with Digitalbridge to support the growth of our ecosystem. We've highlighted a few notable financings here to date, including Switch, Data Bank, and Vantage, which secured a $3 billion green loan earlier this year to fuel our North American expansion.

Marc Ganzi: Credit and equity markets want to partner with Digitalbridge to support the growth of our ecosystem. We've highlighted a few notable financings this year to date, including Switch, Data Bank, and Vantage, which secured a $3 billion green loan earlier this year to fuel our North American expansion.

Speaker Change: Credit and equity markets want to partner with digit ridge to support the growth of our ecosystem.

Speaker Change: We've highlighted a few notable financings year to date, including switch data bank and vantage.

Speaker Change: Which placed a 3 billion dollar green loan earlier this year are to fuel our north American expansion.

Marc Ganzi: We've also been very active in co-investment, supporting the growing equity needs of our platforms with Scala, Vantage, and Switch, all bringing in new investors to support their continued growth. Bottom line, we've got an incredibly dynamic portfolio that continues to grow and attracts capital. Next slide, please.

Speaker Change: We've also been very active in co investments supporting the growing equity needs of our platforms with scholar vantage and switch all bringing in new investors to support their continued growth.

Speaker Change: Bottom line, we've got an incredibly dynamic portfolio that continues to grow and attracts capital.

Speaker Change: Next slide please.

Marc Ganzi: To understand why limited partners, and more broadly, capital markets, are allocating to Digitalbridge, you have to understand our unique data center footprint and our differentiated vision for the evolution of AI infrastructure. First, let's start by profiling the largest global private data center portfolio today, diversified across six platforms with exposure to the fastest growing segments of the data center market. Today, we have four gigawatts of capacity available across 173 data centers. We cover 84 markets globally across 75 campuses.

Marc Ganzi: To understand why limited partners and, more broadly, capital markets are allocating to digital, you have to understand our unique data center footprint and our differentiated vision for the evolution of AI infrastructure. First, let's start by profiling the largest global private data center portfolio today, diversified across six platforms with exposure to the fastest growing segments of the data center market. Today, we have 4 gigawatts of capacity available across 173 data centers. We cover 84 markets globally across 75 campuses.

Speaker Change: To understand why limited partners and more broadly capital markets or allocate them to digit rich you have to understand our unique data center footprint and our differentiated vision for the evolution of AI infrastructure.

Marc Ganzi: That's over 20 million square feet of data center capacity. As you can see on the left, we own platforms that serve the largest public cloud hyperscale workloads. Private Cloud, where you also see significant AI training deployments today, and all the way to the edge, which will play an increasingly important role as generative AI applications proliferate to the edge. This is a diverse set of high-quality, market-leading platforms. And look, we're ready to expand to over 7.5 gigawatts within the next five years, nearly double where we stand today.

Speaker Change: First let's start by profiling, the largest global private data center portfolio today.

Speaker Change: Diversified across six platforms with exposure to the fastest growing segments of the data center market.

Speaker Change: Today, we have four gigawatts of capacity available across 173 data centers.

Speaker Change: Cover 84 markets globally across 75 campuses.

Speaker Change: That's over 20 million square feet of data center capacity.

Speaker Change: As you can see on the left we owned platforms that serve the largest public cloud hyperscale workloads.

Speaker Change: The private cloud, where you also see significant AI training deployments today and all the way to the edge, which will play an increasingly important role as generative AI applications proliferate to the edge.

Marc Ganzi: This is a diverse set of high-quality, market-leading platforms. And look, we're ready to significantly expand to over 7.5 gigawatts within the next five years, nearly double where we stand today. That's another 93 data centers in development, which equates to another $35 billion or so of development capex that Digitalbridge is going to deploy across these six powerful platforms. These are larger, highly densified data centers architected to serve the AI economy and AI workload. This portfolio and development pipeline uniquely positions Digitalbridge, serving AIs, CloudTrain. Edge, Delivered, Future. Next slide.

Speaker Change: This is a diverse set of high quality market leading platforms.

Speaker Change: And look we're ready to expand significantly to over seven five gigawatts within the next five years, nearly double where we stand today.

Marc Ganzi: That's another 93 data centers in development, which equates to another $35 billion or so of development capex that Digitalbridge is going to deploy across these six powerful platforms. These are larger, highly densified data centers architected to serve the AI economy and AI workload. This portfolio and development pipeline uniquely positions Digitalbridge to serve AIs, CloudTrain, and the Edge Delivered Future. Next slide.

Richard: That's another 93 Datacenters in development, which equates to another 35 billion or so of development capex that digital Richard's going to deploy across these six powerful platforms.

Richard: These are larger highly densify datacenters architected to serve the AI economy and AI workloads.

Richard: This portfolio and development pipeline uniquely positions digital bridge.

Speaker Change: <unk> AI cloud trained edge delivered future.

Speaker Change: Next slide please.

Marc Ganzi: Let's put that investment and opportunity into context. As many of you know, AI infrastructure investment is reaccelerating. After 10 years of cloud investment that took APEX from $25 billion to over $150 billion and created a market that generates over $300 billion in annual service revenues, generative AI has catalyzed an inflection, reaccelerating investment across leading hyperscale technology companies, upwards of $250 billion per annum.

Marc Ganzi: Let's put that investment and opportunity into context. As many of you know, AI infrastructure investment is re-accelerating. After 10 years of cloud investment that took APEX from $25 billion to over $150 billion and created a market that generates over $300 billion in annual service revenues, generative AI has catalyzed an inflection.

Speaker Change: Let's put that investment in opportunity into context.

Speaker Change: As many of you know our infrastructure investment is re accelerating.

Speaker Change: After 10 years of cloud investment that took capex from 25 billion to over $150 billion.

Speaker Change: And created a market that generates over 300 billion in annual service revenues generative AI has catalyzed to an inflection point.

Marc Ganzi: Re-accelerating investment across leading hyperscale technology companies, upwards of $250 billion per annum. This is up nearly $100 billion from last year. We believe generative AI will drive the next 10-year plus CAPEX cycle. So, as you see, while it's early days, we stick to our core thesis. You've heard this before, follow the logo.

Richard: Reaccelerate investment across leading Hyperscale technology companies upwards of $250 billion per annum. This.

Marc Ganzi: This is up nearly 100 billion from last year. This is up nearly 100 billion from last year. We believe generative AI will drive the next 10-year plus CAPEX cycle. So, as you see, while it's early days, we stick to our core thesis. You've heard this before.

Richard: This is up nearly 100 billion from last year.

Speaker Change: We believe generative AI will drive the next 10 year plus capex cycle.

Speaker Change: So as you see while it's early days, we stick to our core thesis you've heard this before follow the logos.

Marc Ganzi: Follow the logo. And it's the customers, the ones with the deepest insights into generative value breakthroughs and their implications, the demand trajectories they're seeing for new services and new markets. And ultimately, the investment and the return on that investment that they're seeing today across their investments with a principal focus on AI infrastructure. On the left, we pulled a few quotes from some of the companies in their 2Q earnings talking about their commitment to investing and the early results they're seeing in generative AI. We've seen this cycle play out before in the public cloud, so let's rewind the clock.

Marc Ganzi: And it's the customers, the ones with the deepest insights into generative value breakthroughs and their implications, the demand trajectories they're seeing for new services and new markets, and ultimately the investment and the return on that investment that they're seeing today across their investments with a principal focus on AI infrastructure. On the left, we pulled a few quotes from some of the companies in their 2Q earnings, talking about their commitment to investing and the early results they're seeing in generative AI. We've seen this cycle play out before in the public cloud. So let's rewind the clock.

Speaker Change: And it's the customers the ones with the deepest insights into degenerative breakthroughs and their implications the demand trajectories, they're seeing for new services and new markets.

Speaker Change: And ultimately the investment and the return on that investment that they're seeing today across their investments with a principal focus on AI infrastructure.

Speaker Change: On the left we pulled a few quotes from some of the companies from there to Q earnings talking about their commitment to invest and the early results, they're seeing in generative AI.

Speaker Change: We've seen this cycle play out before in public cloud.

Marc Ganzi: Was it a good idea for Amazon, Google, and Microsoft to invest in the public cloud 10 years ago? Next page, please. I highlighted the breadth of our platform earlier when I outlined our global data center footprint. This slide explains why that breadth is relevant to an evolving data center ecosystem. And this is truly why you need to have a diversified portfolio. A Portfolio of Assets that Meet the Critical Needs of Our Customers. You see, single-platform businesses don't address many key customer workloads.

Speaker Change: So lets rewind the clock was it a good idea for Amazon, Google and Microsoft to invest in public cloud 10 years ago.

Marc Ganzi: Was it a good idea for Amazon, Google, and Microsoft to invest in public cloud 10 years ago? Next page, please. I highlighted the breadth of our platform earlier when I outlined our global data center footprint. This slide captures why that breadth is relevant to an evolving data center ecosystem. And this is truly why you need to have a diversified portfolio.

Speaker Change: Page please.

Speaker Change: I highlighted the breadth of our platform earlier, when I outlined our global data center footprint.

Speaker Change: This slide captures why that breadth is relevant to an evolving datacenter ecosystem.

Speaker Change: And this is truly why you need to have a diversified portfolio.

Marc Ganzi: Portfolio of Assets that Meet the Critical Needs of Our Customers You see, single platform businesses don't address many key customer workloads. A diverse set of solutions is required, all the way from the public cloud to the private cloud that serves AI training to smaller workloads at the edge where AI inference happens. One of the interesting evolutions across our portfolio is that we're increasingly seeing some of the same customers that typically operate at immense scale or on a highly distributed basis look to add capacity across the ecosystem, whether that's hyperscalers, increasingly building capacity on the edge, or enterprises developing large-scale campuses to handle their generative AI workloads. Understanding how workflows and workloads evolve from the public cloud

Speaker Change: Our portfolio of assets that meet the critical needs of our customers.

Speaker Change: You see single platform businesses don't address many key customer workloads, a diverse set of solutions has required all the way from public cloud to the private cloud that Thursday, I training to swallow smaller workloads at the edge, where AI inference happens.

Marc Ganzi: A diverse set of solutions is required, all the way from the public cloud to the private cloud that serves AI training to smaller workloads at the edge where AI inference happens. One of the interesting evolutions across our portfolio is that we're increasingly seeing some of the same customers that typically operate at immense scale or on a highly distributed basis look to add capacity across the ecosystem, whether that's hyperscalers, increasingly building capacity on the edge, or enterprises developing large-scale campuses to handle their generative AI workloads. Understanding how workflows and workloads evolve from the public cloud

Speaker Change: One of the interesting evolutions across our portfolio is we're increasingly seeing some of the same customers that typically operate at immense scale or on a highly distributed basis look to add capacity across the ecosystem.

Speaker Change: That's hyperscale are increasingly building capacity of the edge.

Speaker Change: Or enterprises, developing large scale campuses to handle the regenerative add workloads.

Speaker Change: Understanding how workflows and workloads evolved from the public cloud.

Marc Ganzi: All the way through to the connected edge is another aspect of following the logo, where our customers are telling us exactly where they need to be. We have the facilities. We have the capacity. We have the platforms and the management teams to meet those demands on a global basis. This makes us extremely unique and very differentiated in terms of our approach to investing in AI infrastructure and data centers. Next slide, please.

Speaker Change: All the way through to the connected edge is another aspect of falling logos, where.

Speaker Change: Where our customers are telling us exactly where they need to be.

Speaker Change: We have the facilities, we have the capacity we have the platforms and the management teams to meet those demands on a global basis. This.

Speaker Change: This makes us extremely unique and very differentiated in terms of our approach to investing in AI infrastructure and data centers.

Speaker Change: Next slide please.

Marc Ganzi: By the way, when we talk about a vision for AI infrastructure, it's not just about architecting a diverse portfolio of data center businesses. AI infrastructure isn't just data centers. It also includes fiber.

Speaker Change: By the way when we talk about our vision for AI infrastructure, it's not just about art detecting a diverse portfolio of data center businesses.

Speaker Change: Our infrastructure isn't just datacenters.

Marc Ganzi: It includes mobile infrastructure like cell towers and small cells, and, in addition to that, RAN hubs like Edge Infrastructure. You're going to see a lot more attention paid to the middle and last mile of connectivity and compute over the next few years as those generative AI applications and workloads proliferate to the edge. When these trained LLMs and applications, which are embedded in AI, are deployed at scale across enterprise and consumer markets, the rest of the network becomes critical.

Speaker Change: It also includes fiber.

Speaker Change: <unk> mobile infrastructure like cell towers and small cells.

Speaker Change: And in addition to that ran hubs like edge infrastructure.

Speaker Change: You're going to see a lot more attention paid to the middle and last mile of connectivity and compute over the next few years as those generative AI applications and workloads proliferate to the edge.

Speaker Change: When these trained L O EMS and applications, which are embedded in AI are deployed at scale across enterprise and consumer markets. The rest of the network becomes critical.

Marc Ganzi: Owning the middle and last mile is going to become increasingly valuable. Another area where we are already a market leader, operating a top five independent global tower portfolio, including companies like Vertical Bridge, the largest private cell tower operator in the United States, European tower companies like GD Towers, and Belgian Tower Partners. Our global network spans to Latin America; we have Highline, ATP, MTP, and to Southeast Asia, we have EdgePoint, and Fiverr, which is AI's connective tissue. Companies like ZAO, one of the leading fiber providers here in the US, are helping hyperscalers stitch together their campuses, optimizing AI training and positioning them for inference when AI moves to that phase of generative AI.

Speaker Change: Owning the middle and last mile is going to be coming creasing. The valuable another area, where we are already a market leader.

Speaker Change: Operating a top five independent global tower portfolio, including companies like vertical bridge, the largest private cell tower, operator in the United States European Tower companies like Gd towers.

Speaker Change: In Belgium Tower partners, our global network spans to Latin America, we are highlighting AGP MTP and to southeast Asia, we have edge point.

Speaker Change: In fiber.

Marc Ganzi: Companies like Zayo, one of the leading fiber providers here in the U.S., are helping hyperscalers stitch together their campuses, optimizing AI training and positioning them for inference when AI moves to that phase of generative AI. These are just a few examples of why understanding how the AI ecosystem fits together and owning those assets is mission critical in terms of delivering for our customers. It's what makes the portfolio and our platforms that we are building even more unique and relevant. This is the benefit of being the Digital Infrastructure Specialist, knowing not just what's happening today but understanding what's coming next. Next page, please.

Speaker Change: Which is a ice connective tissue companies like sale one of the leading fiber providers here in the U S is helping hyperscale are stitched together their campuses optimizing AI training and positioning them for inference, when AI moves to that phase of generative AI.

Marc Ganzi: These are just a few examples of why understanding how the AI ecosystem fits together and owning those assets is mission critical in terms of delivering for our customers. It's what makes the portfolio and the platforms that we are building even more unique and relevant. This is the benefit of being the digital infrastructure specialist, knowing not just what's happening today but understanding what's coming next.

Speaker Change: These are just a few examples of why understanding how the AI ecosystem fits together and owning those assets is mission critical in terms of delivering for our customers.

Speaker Change: It's what makes the portfolio and our platforms that we are building, even more unique and relevant.

Speaker Change: This is the benefit of being the digital infrastructure specialist knowing not just what's happening today, but understanding what's coming around the curve.

Speaker Change: Next page please.

Marc Ganzi: Now that I've given you some perspective around our diversified global digital infrastructure portfolio, I'd like to cover how we ultimately fuel that growth, which is led by the formation of new newfiem across our multi-strategy asset management platform. We laid out an ambitious target this year for new capital formation, and I'm pleased to report we remain firmly on track to deliver, particularly as we head into the seasonally strong last four months of the year. Through today, we've raised $3.4 billion year-to-date.

Marc Ganzi: Now that I've given you some perspective around our diversified global digital infrastructure portfolio, I'd like to discuss how we ultimately fuel that growth, which is led by the formation of new capital, newfiem, across our multi-strategy asset management platform. We laid out an ambitious target this year for new capital formation, and I'm pleased to report we remain firmly on track to deliver, particularly as we head into the seasonally strong last four months of the year. Through today, we've raised $3.4 billion year-to-date.

Speaker Change: Now that I've, given you some perspective around our diversified global digital infrastructure portfolio I'd.

Speaker Change: I'd like to cover how we ultimately fueled that growth, which is led by the formation of new capital.

Speaker Change: Newfie them across our multi strategy asset management platform.

Speaker Change: We laid out an ambitious target this year around new capital formation and I'm pleased to report we remain firmly on track to deliver <unk>.

Speaker Change: Particularly as we head into the seasonally strong last four months of the year.

Speaker Change: Through today, we've raised $3 $4 billion year to date Interestingly, it's exactly in line with where we were last year. When we went on to deliver $6 9 billion in the calendar year.

Marc Ganzi: Interestingly, it's exactly in line with where we were last year when we went on to deliver $6.9 billion in the calendar year. Capital Formation has been balanced across our flagship strategy, co-investment, and new emerging strategies, particularly credit. We feel very positive about the rest of the year with a pipeline of over 400 plus engaged LPs with increasing granularity around where we expect the balance of our target to come from.

Speaker Change: Capital formation has been balanced across our flagship strategy co investment and new emerging strategies, particularly credit.

Speaker Change: We feel very positive about the rest of the year with a pipeline of over 400, plus engaged Lps with increasing granularity around where we expect the balance of our target to come from.

Marc Ganzi: A little over 50% should come from Digitalbridge Partners 3, our flagship fund product, where we have a programmatic capital formation process in place that I'm going to describe in a subsequent slide. Our emerging strategies, credit, core, and liquid, should constitute around 20% of the capital. And what we're seeing today is that credit has really strong momentum, and our liquid strategies are generating significant alpha. Co-investment should represent about 25% of our remaining capital formation, driven by strong investor intent around supporting the continued expansion of our data center platform. Next slide, please.

Speaker Change: A little over 50% should come from digital Bridge partners three our flagship fund product, where we have a programmatic capital formation process in place.

Speaker Change: I'm going to describe in a subsequent slide.

Speaker Change: Our emerging strategies credit core and liquid should constitute around 20% of the capital.

Speaker Change: And what we're seeing today is that credit has really strong momentum and our liquid strategies are generating significant alpha.

Speaker Change: Co investments should represent about 25% of our remaining capital formation driven by strong investor intent around supporting the continued expansion of our data center platforms.

Speaker Change: Next slide please.

Marc Ganzi: So, when we look at the strategies that are driving that path to meet and beat our capital formation targets, I want to highlight a new co-investment vehicle that sits at the intersection of two key pillars of our fundraising strategy: expanding our investor base and expanding our investor solution. At Investor Day, we outlined how building a multi-strategy asset manager meant creating new pathways to connect LPs that want exposure to digital infrastructure with the growing demand that we're seeing across our ecosystem.

Marc Ganzi: So when we look at the strategies that are driving that path to meet and beat our capital formation targets, I want to highlight a new co-investment vehicle that sits at the intersection of two key pillars of our fundraising strategy: expanding our investor base and expanding our investor solution. At Investor Day, we outlined how building a multi-strategy asset manager meant creating new pathways to connect LPs that want exposure to digital infrastructure with the growing demand that we're seeing across our ecosystem.

Speaker Change: So when we look at the strategies that are driving that path to meet and beat our capital formation targets I want to highlight a new co investment vehicle that sits at the intersection of two key pillars of our fund raising strategy.

Speaker Change: Expanding our investor base, and expanding our Investor solutions.

Speaker Change: At Investor Day, we outlined how building a multi strategy asset manager meant creating new pathways to connect El piece that want exposure to digital infrastructure with the growing demand that we're seeing across our ecosystem.

Marc Ganzi: Also, many of you asked us about our plans for the private wealth channel, given the intuitive appeal of digital infrastructure to that investor base. Well, earlier this year, we architected a co-investment vehicle to catalyze the private wealth channel with a new investment solution. It's a data center sidecar that deploys capital across multiple data center platforms managed by Digitalbridge, supporting Greenfield Data Center development at our portfolio company.

Marc Ganzi: Also, many of you asked us about our plans for the private wealth channel, giving the intuitive appeal of digital infrastructure to that investor base. Well, earlier this year, we architected a co-investment vehicle to catalyze the private wealth channel with a new investment solution. It's a data center sidecar that deploys capital across multiple data center platforms managed by Digitalbridge, supporting Greenfield Data Center development at our portfolio company. For the private wealth channel, it's a diversified data center exposure that the clients want. And for Digitalbridge, it's a new source of FIIAM growth. And for our portfolio companies, it's a new source of capital to fuel their build-out. We're very pleased with the velocity and traction around this vehicle.

Speaker Change: Also many of you asked us about our plans for the private wealth channel given the intuitive appeal of digital infrastructure to that Investor base.

Speaker Change: Well earlier this year, we architected a co investment vehicle to catalyze the private wealth channel with a new investment solution.

Speaker Change: It's a data center sidecar that deploys capital across multiple data center platforms managed by digital bridge supporting Greenfield data Center development at our portfolio companies.

Marc Ganzi: For the private wealth channel, it's a diversified data center exposure that the clients want. And for Digitalbridge, it's a new source of FIIAM growth. And for our portfolio companies, it's a new source of capital to fuel their build-out. We're very pleased with the velocity and traction around this vehicle.

Speaker Change: For the private wealth channel, it's a diversified data center exposure that the clients want and for digital rich, it's a new source of volume growth and for our portfolio companies, It's a new source of capital to fuel their buildout.

Speaker Change: We're very pleased with the velocity and traction around this vehicle, we think theres a lot more to do here both in the private wealth channel and within diversified data Center investment solutions.

Marc Ganzi: We think there's a lot more to do here, both in the private well channel and within diversified data center investment solutions. Bottom line, we're designing new investment solutions that give investors direct investment into AI-driven data center growth, which is what our private clients want and what LPs want today. Next slide, please.

Speaker Change: Bottom line we're.

Speaker Change: Architects, new investment solutions that give investors direct investment to AI, driven data center growth, which is what our private clients want and what lp's want today.

Speaker Change: Next slide please.

Marc Ganzi: Another factor that underpins our conviction around achieving and exceeding our year-end capital formation targets is our structured capital formation process. This slide looks specifically at DigitalBridge Partners 3, where we've closed on capital commitments exceeding $4 billion since its product launch. On the left-hand side, you can see we've had strong participation from existing LPs. These are the re-ups that represent around three quarters of capital committed to date as well as a little over a quarter coming from new logos.

Speaker Change: Another factor that underpins, our conviction around achieving and exceeding our yearend capital formation targets is our structured capital formation process.

Speaker Change: This slide looks specifically at digital rich partners three where.

Speaker Change: Where we've closed on capital commitments exceeding $4 billion since its product launch.

Speaker Change: On the left hand side, you can see we've had strong participation from existing Lps.

Speaker Change: These are the reps that represent around three quarters of capital committed to date as well as a little over a quarter coming from new logos.

Marc Ganzi: It's a ratio that's exactly in line with our initial strategic plan. As we continue forming additional capital, we expect new logo contributions to grow their share over time as we close in on our final target. We've also detailed the geographic composition of our LP base, which is anchored to date in North America and Middle Eastern capital.

Speaker Change: It's a ratio that's exactly in line with our initial strategic plan.

Speaker Change: As we continue forming additional capital we expect new logo contribution to grow their share over time as we close in on our final target.

Speaker Change: We have also detailed the geographic composition of our L. P base.

Speaker Change: Which is anchored to date in North America, and middle Eastern capital.

Marc Ganzi: Europe is starting to come back online, and Asia AsiaPAC is a growing part of our capital formation strategy going forward. On the right-hand side, you can see where we've got a very specific group of KLPs that we expect to anchor our fundraising as we progress through the end of this year and the beginning of next. This structured capital formation process and the interest we're seeing from LPs and exposure to Digitalbridge and the thematics that we've levered is what ultimately gives us conviction that we'll deliver on these targets. Next page, please.

Marc Ganzi: Europe is starting to come back online, and Asia AsiaPAC is a growing part of our capital formation strategy going forward. On the right-hand side, you can see where we've got a very specific group of key LPs that we expect to anchor our fundraising as we progress through the end of this year and the beginning of next. This structured capital formation process and the interest we're seeing from LPs and exposure to Digitalbridge and the thematics that we've levered is what ultimately gives us conviction that we'll deliver on these targets. Next page, please.

Speaker Change: Europe is starting to come back online.

Speaker Change: In Asia Asia Pac is a growing part of our capital formation strategy going forward.

Speaker Change: And the right hand side, you can see where we've got a very specific group of key L piece that we expect to anchor our fund raising as we progress through the end of this year and the beginning of next.

Speaker Change: This structured capital formation process and the interest we're seeing from Lps and exposure to digital bridge and informatics that we've levered is what ultimately gives us conviction that we will deliver on these targets.

Speaker Change: Next page please.

Marc Ganzi: Success in capital formation ultimately drives financial performance over time. For example, as we move closer to hitting our fundraising target, Our fee revenues and earnings continue to scale. Here, we have laid out an illustrative example of how we'll build on our year-to-date earnings into the second half of 2024, with higher fee income in the second half of the year, driven off of a higher capital base and contribution from catch-up fees, which structurally climb higher over the course of the year.

Marc Ganzi: Success in capital formation ultimately drives financial performance over time. For example, as we move closer to hitting our fundraising targets. Our fee revenues and earnings continue to scale. Here, we have laid out an illustrative example of how we'll build on our year-to-date earnings into the second half of 2024, with higher fee income in the second half of the year, driven off of a higher capital base and contribution from catch-up fees, which structurally climb higher over the course of the year.

Speaker Change: Success in capital formation, ultimately drives financial performance over time.

Speaker Change: As we move closer to hitting our fund raising targets.

Speaker Change: Our fee revenues and earnings continued to scale.

Speaker Change: Here, we have laid out an illustrative example of how we will build on our year to date earnings into the second half of 'twenty 'twenty four with higher fee income in the second half of the year driven off of a higher capital base and contribution from catch up fees, which structurally sure higher over the course of the year.

Marc Ganzi: I wanted to outline three factors that create a path for us to hit our 2024 FRE guidance. First, year-to-date, we've delivered 46 million FRE. Second, if you strip out the catch-up fees from Q2, about $3 million, and annualize them over the next two quarters, that's an additional $46 million of FRE. Really think of that as the second-half base of our earnings. Number three, on top of that, you'll see contribution from a higher fee base that drives higher revenues, which flows into FRE.

Marc Ganzi: I want to outline three factors that create a path for us to hit our 2024 FRE guidance. First, year-to-date, we've delivered $46 million in FRE. Second, if you strip out the catch-up fees from Q2, about $3 million, and annualize them over the next two quarters, that's an additional $46 million in FRE.

Speaker Change: I wanted to outline three factors that create a path for us to hit our 2024 FRE guidance.

Speaker Change: First year to date, we've delivered $46 million of FRE.

Speaker Change: Second if you strip out the catch up fees from Q2 about $3 million and annualize. It over the next few quarters. That's an additional $46 million of FRE really think of that as the second half base of earnings.

Marc Ganzi: Really think of that as the second-half base of our earnings. Number three, on top of that, you'll see contribution from a higher fee base that drives higher revenues, which flows into FRE. And, in addition, we'll earn catch-up fees on Digitalbridge Partners 3, which will increase materially as the year progresses. The later the commitment, the larger the catch-up fee. It's a simple algorithm.

Speaker Change: Number three on top of that you'll see contribution from our higher fee base that drives higher revenues, which flows into FRE.

Marc Ganzi: In addition, we'll earn catch-up fees on Digitalbridge Partners 3, which will increase materially as the year progresses. The later the commitment, the larger the catch-up fee. It's a simple algorithm. New capital formation drives higher fees and earnings. And for this year in 2024, it is a bit back and loaded. So for more financial detail on the quarter, let me turn it over to Tom.

Speaker Change: And in addition, we will earn catch up fees on gingerbread partners, three which will increase materially as the year progresses later the commitment the larger the catch up fee.

Marc Ganzi: New capital formation drives higher fees and earnings. And for this year in 2024, it is a bit back and loaded. So for more financial detail on the quarter, let me turn it over to Tom.

Tom: It's a simple algorithm new capital formation drives higher fees and earnings and for this year in 2024. It is a bit back end loaded so for more financial detail on the quarter, Let me turn it over to Tom.

Speaker Change: Tom.

Tom Mayrhofer: Thanks, Marc, and good afternoon, everyone. As a reminder, this earnings presentation is available in the shareholders section of our website. Starting with the second quarter highlights.

Tom: Thanks, Mark and good afternoon, everyone.

Tom: As a reminder, this earnings presentation is available within the shareholders section of our website.

Tom: Starting with the second quarter highlights our key operating and financial metrics have seen significant year over year growth fee revenues fee related earnings and distributable earnings have all increased meaningfully as compared to the second quarter of 2023.

Tom Mayrhofer: Our key operating and financial metrics have seen significant year-over-year growth. Fee revenues, fee-related earnings, and distributed earnings have all increased meaningfully as compared to the second quarter of 2023. We generated $26 million of fee-related earnings in the second quarter, which puts us at $46 million of FRE for the first half of the year. As Marc just walked through, the $1.2 billion of capital raised in the second quarter and continued fundraising success early in the third quarter provide us with a path to achieve $150 million of FRE for the full year, which would be within our guidance range, albeit at the low end of that range.

Speaker Change: We generated $26 million of fee related earnings in the second quarter, which puts us at $46 million of FRE for the first half of the year.

Tom Mayrhofer: As Marc just walked through, the $1.2 billion of capital raised in the second quarter and continued fundraising success early in the third quarter provide us with a path to achieve $150 million of FRE for the full year, which would be within our guidance range, albeit at the low end of that range. We also generated approximately $20 million of distributable earnings in Q2, which largely was a result of recurring asset management operations, with a contribution from principal investments, as well as a reduction in interest expense from the extinguishment of the 2025 senior notes.

Speaker Change: As Mark just walked through the $1 2 billion of capital raised in the second quarter and continued fundraising success early in the third quarter.

Speaker Change: Rides us with a path to achieve $150 million about sorry for the full year, which would it be within our guidance range, albeit at the low end of that range.

Tom Mayrhofer: We also generated approximately $20 million of distributable earnings in Q2, which largely was a result of recurring asset management operations, with a contribution from principal investments, as well as the reduction in interest expense from the extinguishment of the 2025 senior notes. Turning to the next page, our fee-earning equity under management was $32.7 billion as of June 30, a 12% increase from the same period last year. This growth is driven by capital formation in the DBP series, co-investments, and credit strategies.

Speaker Change: We also generated approximately $20 million of distributable earnings in Q2, which largely as a result of recurring asset management operations, but the contribution from principal investments as well as the reduction in interest expense from the extinguishment of the 2025 senior notes.

Tom Mayrhofer: Turning to the next page, our fee-earning equity under management was $32.7 billion as of June 30, a 12% increase from the same period last year. This growth is driven by capital formation in the DBP series, co-investments, and credit strategies. In the first half of 2024, we raised $2.3 billion of fee-paying commitments.

Speaker Change: Turning to the next page our fee, earning equity under management was $32 7 billion as of June 30% to 12% increase from the same period last year.

Speaker Change: This growth is driven by capital formation in the D V. P series co investments and credit strategies.

Tom Mayrhofer: In the first half of 2024, we raised $2.3 billion in fee-paying commitments. And, as Marc mentioned, we've already had a strong start to the third quarter and are confident in our near-term fundraising pipeline as we look forward to the rest of the year.

Speaker Change: In the first half of 'twenty 'twenty four we raised $2 3 billion of fee paying commitments.

Tom Mayrhofer: And, as Marc mentioned, we've already had a strong start to the third quarter and are confident in our near-term fundraising pipeline as we look forward to the rest of the year. Moving to the next page, which summarizes our non-GAAP financial results, the company reported $79 million of fee revenue in the second quarter, marking an 18% increase from the same period last year.

Speaker Change: And as Mark mentioned, we've already had a strong start to the third quarter and are confident in our near term fund raising pipeline as we look forward to the rest of the year.

Speaker Change: Yeah.

Tom Mayrhofer: Moving to the next page, which summarizes our non-GAAP financial results. The company reported $79 million in fee revenue in the second quarter, marking an 18% increase from the same period last year. As we look to the second half of 2024, we continue to anticipate additional fee revenue growth, including catch-up fees driven by fundraising for DBP3, which had its initial closing on November 1st of last year. The $26 million of fee-related earnings in the second quarter represent consistent and positive growth any way that you measure it.

Speaker Change: Moving to the next page, which summarizes our non-GAAP financial results.

Speaker Change: Company reported 79 million of fee revenue in the second quarter, marking an 18% increase from the same period last year.

Tom Mayrhofer: As we look to the second half of 2024, we continue to anticipate additional fee revenue growth, including catch-up fees driven by fundraising for DBP3, which had its initial closing on November 1st of last year. The $26 million of fee-related earnings in the second quarter represent consistent and positive growth any way that you measure it. It's a significant increase both year over year and sequentially over the first quarter of 2024. Additionally, this puts LTM fee-related earnings at $90 million, the highest that we've reported over any 12-month period.

Speaker Change: As we look to the second half of 2024, we continue to anticipate additional fee revenue growth.

Speaker Change: I didn't catch up fees driven by fundraising for D. V. P. Three which had its initial closing I never remember first of last year.

Speaker Change: The 26 million of fee related earnings in the second quarter represented consistent and positive growth any way that you measure it it's a significant increase both year over year and sequentially over the first quarter of 2024.

Tom Mayrhofer: It's a significant increase both year-over-year and sequentially over the first quarter of 2024. Additionally, this puts LTM fee-related earnings at $90 million, the highest that we've reported over any 12-month period. We also continue to see steady and consistent improvement in operating margins as growth in revenue exceeds compensation and administrative expense growth.

Speaker Change: Additionally, this puts LTM fee related earnings at $90 million, the highest that we've reported over any 12 month period.

Tom Mayrhofer: We also continue to see steady and consistent improvement in operating margins as growth in revenue exceeds compensation and administrative expense growth. Our margins increased from 32% to 33% when compared to the second quarter of 2023, and from 24% to 31% on an LTM basis year over year. We expect this trend to continue as we raise additional capital over the next several quarters. Turning to the next page, which summarizes our carried interest and principal investment income.

Speaker Change: We also continue to see steady and consistent improvement in operating margins as growth in revenue exceeds compensation and administrative expense growth.

Tom Mayrhofer: Our margins increased from 32% to 33% when compared to the second quarter of 2023 and from 24% to 31% on an LTM basis year over year. We expect this trend to continue as we raise additional capital over the next several quarters. Turning to the next page, which summarizes our carried interest and principal investment income, we reported a carried interest allocation of $288 million in the second quarter, which, after associated compensation expense and non-controlling interest, resulted in net carried interest revenue to Digitalbridge of $75 million for the quarter.

Speaker Change: Our margins increased from 32% to 33% when compared to the second quarter of 2023 and.

Speaker Change: And from 24% to 31% on an LTM basis year over year.

Speaker Change: We expect this trend to continue as we raise additional capital over the next several quarters.

Speaker Change: Turning to the next page, which summarizes our carried interest and principal investment income.

Tom Mayrhofer: We reported a carried interest allocation of $288 million in the second quarter, which, after associated compensation expense and non-controlling interest, resulted in net carried interest revenue to Digitalbridge of $75 million for the quarter. As a reminder, the company accrues carried interest based on quarterly changes in the fair value, on a mark-to-market basis, of the investments held across our portfolio of funds. Principal Investment Income, which is primarily income earned on the capital invested alongside our limited partners, was $14 million in the second quarter.

Speaker Change: We reported a carried interest allocation of $288 million in the second quarter, which after associated compensation expense and Noncontrolling interests resulted in net carried interest revenue to digital bridge of $75 million for the quarter.

Tom Mayrhofer: As a reminder, the company accrues care interest based on quarterly changes in the fair value, on a mark-to-market basis, of the investments held across our portfolio of funds. Principal Investment Income, which is primarily income earned on the capital invested alongside our limited partners, was $14 million in the second quarter. Moving to the next page, fee revenue and fee-related earnings continue to grow, driven by new capital formation and deployments of existing fee-paying capital under management.

Speaker Change: As a reminder, the company accrued carried interest based on quarterly changes in the fair value on a mark to market basis of the investments held across our portfolio of bonds.

Speaker Change: Principal investment income, which is primarily income earned on the capital invested alongside our limited partners was $14 million in the second quarter.

Speaker Change: Yeah.

Tom Mayrhofer: Moving to the next page, fee revenue and fee-related earnings continue to grow, driven by new capital formation and deployments of existing fee-paying capital under management. The chart, I think, highlights the stability and consistency in growth, both in revenues and margin, as we present those here on an LTM basis. While the LTM margin has been flat for a few quarters, with the current quarter coming in at 33% and our belief in expanding margins over the remainder of the year, I expect that this chart will show continued growth in LTM revenues and LTM margin over the coming quarters.

Speaker Change: Moving to the next page fee revenue and fee related earnings continue to grow driven by new capital formation and deployments of existing fee paying capital under management.

Tom Mayrhofer: The chart, I think, highlights the stability and consistency in growth, both in revenues and margin, as we present those here on an LTM basis. While the LTM margin has been flat for a few quarters, with the current quarter coming in at 33% and our belief in expanding margins over the remainder of the year, I expect that this chart will show continued growth in LTM revenues and LTM margin over the coming quarters.

Speaker Change: The chart I think highlights the stability and consistency in growth both in revenues and margin as we present those here on an LTM basis.

Speaker Change: Well. They also have margin has been flat for a few quarters with the current quarter coming in at 33% and our belief and expanding margins over the remainder of the year I expect that this chart will show continued growth in LTM revenues and LTM margin over the coming quarters.

Tom Mayrhofer: We've also introduced a fee-earning equity under management role forward this quarter, further aligning our disclosures with our peers. The second quarter saw $1.2 billion of inflows, primarily capital raised in DBP funds and co-investments, offset by $1 billion of outflows, principally related to additional closings on our Vantage Data Center transaction as we continue to transition ownership of this asset from our legacy separately capitalized vehicle structure into our latest flagship fund, DBP3, and associated co-investors, which extends our exposure to Vantage Data Centers through its next phase of growth

Tom Mayrhofer: We've also introduced a fee earning equity under management role forward this quarter, further aligning our disclosures with our peers. The second quarter saw $1.2 billion of inflows, primarily capital raised in DBP funds and co-investments, offset by $1 billion of outflows, principally related to additional closings on our Vantage Data Center transaction, as we continue to transition ownership of this asset from our legacy separately capitalized vehicle structure into our latest flagship fund, DBP3, and associated co-investors, which extends our exposure to Vantage Data Centers through its next phase of growth. Turning to the final page of the financial section.

Speaker Change: We've also introduced a fee, earning equity under management role for this quarter further aligning our disclosures with our peers.

Speaker Change: The second quarter saw $1 2 billion of inflows, primarily capital raised and D. V. P funds and co investments offset by $1 million of outflows principally related to additional closings on our vantage data center transaction as we continue the transition of ownership of this asset from our legacy separately capitalized vehicle structure into our latest.

Speaker Change: <unk> chips on GBP, three and associated Codemasters, which extends our exposure to vantage data centers through its next phase of growth.

Speaker Change: Turning to the final page of the financial section.

Tom Mayrhofer: You'll see that the company continues to maintain a strong balance sheet with $1.3 billion of capital invested alongside our limited partners and ample liquidity while continuing to de-lever the balance sheet. As discussed on our Q1 call, the company completed the exchange and redemption of 100% of the outstanding 2025 exchangeable notes during the first quarter and early part of the second quarter, leaving the securitized notes at an interest rate of 3.9% as the only outstanding corporate debt. We continue to evaluate the appropriate capital structure for the business, including the preferred stock obligation. Corporate cash as of June 30 was $127 million, with total current liquidity at $427 million.

Tom Mayrhofer: Turning to the final page of the financial section, you'll see that the company continues to maintain a strong balance sheet with $1.3 billion of capital invested alongside our limited partners and ample liquidity while continuing to de-lever the balance sheet. As discussed on our Q1 call, the company completed the exchange and redemption of 100% of the outstanding 2025 exchangeable notes during the first quarter and early part of the second quarter, leaving the securitized notes at an interest rate of 3.9% as the only outstanding corporate debt.

Speaker Change: You'll see that the company continues to maintain a strong balance sheet with $1 3 billion of capital to invest alongside our limited partners and ample liquidity, while continuing to delever the balance sheet.

Speaker Change: As discussed on our Q1 call the company completed the exchange and redemption of 100% of the outstanding 2025 exchangeable notes during the first quarter and early part of the second quarter.

Speaker Change: Leaving the securitized notes at an interest rate of three 9% as the only outstanding corporate debt.

Tom Mayrhofer: We continue to evaluate the appropriate capital structure for the business, including the preferred stock obligation. Corporate cash as of June 30 was $127 million, with total current liquidity at $427 million. With that, I'll wrap up the financial results section of our presentation, and we'll turn it back to Marc for his final remarks. Thanks, Tom.

Speaker Change: We continue to evaluate the appropriate capital structure for the business, including the preferred stock obligations.

Speaker Change: Corporate cash as of June 30 was $127 million with total current liquidity at $427 million.

Tom Mayrhofer: With that, I'll wrap up the financial results section of our presentation, and we'll turn it back to Marc for his final remarks. Thanks, Tom. One of the items that Tom addressed on the Fiume Roll Forward was the DPI we generated by the Vantage Transaction, which drove realizations up in the first half of this year. This is a very important part of our job. And to be direct, it's our fiduciary duty to our limited partners globally.

Speaker Change: With that I'll wrap up the financial results section of our presentation, and we'll turn it back to Mark for his final remarks.

Mark: Thanks, Tom.

Marc Ganzi: One of the items that Tom addressed on the Fiume Roll Forward was the DPI we generated by the Vantage Transaction, which drove realizations up in the first half of this year. This is a very important part of our job.

Mark: What are the items that Tom addressed on the P. M. Roll forward was the DPI, we generated by the vantage transaction.

Mark: Which drove realizations up in the first half of this year.

Marc Ganzi: And to be direct, it's our fiduciary duty to our limited partners globally to return capital and create the right outcomes and great returns. In turn, this allows us to raise new capital around our best, high-conviction ideas, which are now materializing in our Digitalbridge Partners 3 flagship fund. The BANDAGE transaction not only created value for our pre-existing LPs in terms of DPI, but it created an opportunity for us to reinvest in Surreal and its best-in-class team side by side with our global limited partners and a seasoned investor in Silverlake for the AI Starting with some background.

Mark: This is a very important part of our job and to be direct it's our fiduciary duty to our limited partners globally.

Tom Mayrhofer: Returning Capital and Creating the Right Outcomes and Great Returns. In turn, this allows us to raise new capital around our best, high-conviction ideas, which are now materializing in our Digitalbridge Partners 3 flagship fund. The Vantage transaction not only created value for our pre-existing LPs in terms of DPI, but it created an opportunity for us to reinvest in Surreal and its best-in-class team side by side with our global limited partners and a seasoned investor in Silverlake for the AI opportunity ahead. Retaining the platform and focusing on long-term value creation. Starting with some background.

Mark: Turning capital and creating the right outcomes and great returns.

Mark: In turn this allows us to raise new capital around our best high conviction ideas.

Speaker Change: Which are now materializing in our digital rich partners three flagship fund.

Mark: The vantage transaction not only created value for our preexisting Lps in terms of DPI, but it created an opportunity for us to reinvest in surreal and is best in class team side by side with our global limited partners and a seasoned investor in Silverlake for the AI opportunity ahead.

Mark: Retaining the platform.

Mark: And focusing on long term value creation.

Marc Ganzi: As you can see here, over the past eight years, Digitalbridge has helped Vantage scale from three campuses on the West Coast of the United States with less than 100 megawatts to today with more than 1.5 gigawatts of in-place capacity across 30 plus campuses worldwide. This is an incredible growth story for a market leader in hyperscale data science. To achieve this, we've leveraged our operating DNA, our business building heritage. Scale, a global data center platform serving the world's largest technology companies. Next slide, please. As you can see here, the reality is we're just getting started. That was just stage one.

Marc Ganzi: As you can see here, over the past eight years, Digitalbridge has helped Vantage scale from three campuses on the West Coast of the United States with less than 100 megawatts to today with more than 1.5 gigawatts of in-place capacity across 30 plus campuses worldwide. This is an incredible growth story for a market leader in hyperscale data centers. To achieve this, we've leveraged our operating DNA, our business building heritage. Scale, a global data center platform serving the world's largest technology companies. Next slide, please. As you can see here, the reality is we're just getting started. That was just stage one.

Speaker Change: Starting with some background as you can see here over the past eight years digit bridges health vantage scale from three campuses on the west coast in the United States with less than 100 megawatts to.

Mark: So today with capacity over one five gigawatts of in place capacity across 30 plus campuses worldwide.

Mark: This is an incredible growth story for a market leader in Hyperscale data centers.

Mark: To achieve this we've leveraged our operating DNA.

Speaker Change: Our business building heritage scale, a global data center platform, serving the world's largest technology companies.

Speaker Change: Next slide please.

Speaker Change: As you can see here. The reality is we're just getting started that.

Speaker Change: That was just stage one.

Marc Ganzi: There is a $30 billion growth opportunity in AI data center infrastructure. To support that, Digitalbridge led a $9.2 billion equity investment in partnership with Silver Lake and our global LPs to support the company's next leg of AI-led growth. In fact, the transaction was upsized by 40% driven by strong investor interest and the Need for Customers to Solve a Persistent Industry-Wide Supply-Demand Gap. In stage two, we're going to build and scale another three gigawatts of capacity by 2030.

Marc Ganzi: There is a $30 billion growth opportunity in AI data center infrastructure. To support that, Digitalbridge led a $9.2 billion equity investment in partnership with Silverlake and our global LPs to support the company's next leg of AI-led growth. In fact, the transaction was upsized by 40% driven by strong investor interest and the Need for Customers to Solve a Persistent Industry-Wide Supply-Demand Gap. In stage two, we're going to build and scale another three gigawatts of capacity by 2030.

Speaker Change: A $30 billion growth opportunity in AI data center infrastructure to.

Speaker Change: To support that Digi, rich, let a $9 $2 billion equity investment and partnership with Silver Lake and our global LP to support the Companys next leg.

Speaker Change: AI led growth.

Speaker Change: In fact, the transaction was upsized by 40% driven by strong investor interest and.

Speaker Change: And the need for customers to solve a persistent industry wide supply demand gap.

Speaker Change: In stage two we're gonna building scale in other three gigawatts of capacity by 2030.

Marc Ganzi: This represents something on the order of about 5% of the total global capacity expansion over that period. However, we believe this demand forecast will prove to be conservative based on the conversations that we in Vantage are having with our customers.

Speaker Change: This represents something on the order of about 5% of the total global capacity expansion over that period.

Mark: We believe this demand forecast will prove to be conservative based on the conversations that we in vantage are having with our customers.

Marc Ganzi: Look, it's an incredible opportunity. Catalyzed by the track record that Surreal and the Vantage team have built, delivering for the world's largest hyperscale, and the key phrase there is delivering for our customers. There is massive growth ahead, and we want Digitalbridge shareholders to continue to participate in the next phase of value creation. And that we're going to drive together.

Speaker Change: Look it's an incredible opportunity.

Marc Ganzi: Catalyzed by the track record that Surreal and the Vantage team have built, delivering for the world's largest hyperscale, and the key phrase there is delivering for our customers. There is massive growth ahead, and we want Digitalbridge shareholders to continue to participate in the next phase of value creation. And that we're going to drive together.

Speaker Change: Catalyzed by the track record that is real and the vantage team have built delivering for the world's largest hyperscale.

Mark: And the key phrase there is delivering for our customers.

Speaker Change: There is massive growth ahead, and we want digital shareholders to continue to participate in.

Speaker Change: And the next phase of value creation advantage.

Speaker Change: And that we're going to drive together next page please.

Marc Ganzi: Next page, please. So, in addition to supporting the next leg of Vantage's growth with fresh capital. The transaction also has a number of strategic creation benefits for the Digitalbridge shareholder, particularly those with a long-term view. If you take the short-term view, the transaction resulted in a $1.2 billion reduction in our FIIM in the first half of this year as the asset moved from a separately capitalized portfolio company where we earned management fees into DP3, where we are already accruing management fees. So, there was no corresponding increase in committed capital.

Speaker Change: So in addition to supporting the next leg advantages growth with fresh capital. The transaction also has a number of strategic accretion benefits for the digital grid shareholders, particularly those with a long term view.

Speaker Change: If you take the short term view the transaction resulted in a 1.2 billion reduction in our field and.

Speaker Change: In the first half of this year as the asset moved from a separately capitalized portfolio company, where we earn management fees into D. P. Three.

Speaker Change: Where we already are accruing management fees. So there was no corresponding increase in committed capital.

Marc Ganzi: For investors with a long-term view, consistent with Digitalbridge's focus on maximizing value, there are three key strategic benefits to this transaction. First, We extended our ownership and fee stream tied to the premier global hyperscale data center platform. Vantage is a global leader and the partner of choice for the world's largest global technology platform. Second, this transaction supports capital formation in two ways. First, it generated DPI, returning capital to LPs, freeing them to unlock new commitments.

Speaker Change: For investors with a long term view consistent with the gingerbread focus on maximizing value. There are three key strategic benefits to this transaction.

Marc Ganzi: Second, new LPs that participate in the $2.2 billion of co-investment get to see the best AI-levered assets being populated into our new flagship. It's really a double win on this front, and lastly, Carried In. In the previous ownership structure advantage, our public shareholders did not participate in the carried interest.

Marc Ganzi: Second, new LPs that participated in the $2.2 billion of co-investment get to see the best AI-levered assets being populated into our new flagship. It's really a double win on this front, and lastly, Carried In. In the previous ownership structure of Vantage, our public shareholders did not participate in the carried interest.

Speaker Change: First we extended our ownership and fee stream tied to the Premier Global Hyperscale data Center platform.

Speaker Change: Vantage is the global leader and a partner of choice for the world's largest global technology platforms.

Speaker Change: Second this transaction supports capital formation in two ways first it generated DPI returning capital trial piece freeing them to unlock new commitments.

Speaker Change: Second new Lps that participated in $2 2 billion of co investment get to see the best AI Levered assets are being populated into a new flagship funds, it's really a double win on this front.

Speaker Change: And lastly carried interest.

Speaker Change: The previous ownership structure advantage, our public shareholders did not participate in the carried interest.

Marc Ganzi: It was in a legacy Digitalbridge vehicle that predated our public format. Now Digitalbridge shareholders will participate in the carry as we scale Vantage three times from 1.5 gigawatts to over 4.5 gigawatts by 2030. If you share that long-term perspective that we take at Digitalbridge, you understand that this transaction results ultimately in executing a unique asset management trifecta. Happy Legacy LPs!

Speaker Change: It was in our legacy digital rich vehicle that predated our public format.

Speaker Change: Now digital which shareholders will participate in the carry as we scale vantage three times from one five gigawatts to over four five gigawatts by 2030.

Speaker Change: If you share that long term perspective that we take a digital rich you understand that this transaction result, ultimately in executing a unique asset management trifecta.

Speaker Change: Happy legacy L PS.

Marc Ganzi: Happy new LPs and happy DigitalBridge shareholders, as we accrue value from new management fees and carried interest contribution over time. Next slide, please. I'd like to finish today outlining some of the key priorities that we've delivered year-to-date and look forward to five key focus areas for us over the course of the rest of the year. First, in terms of what we've delivered. Management fee revenue and fee-related earnings are both up over 20% year-over-year with an expanding margin.

Speaker Change: Happy New Lps and happy digital REIT shareholders.

Speaker Change: As we accrue value from new management fees and carried interest contribution overtime.

Speaker Change: Next slide please.

Speaker Change: I'd like to finish today outlining some of the key priorities that we've delivered year to date and look forward to five key focus areas for us over the course of the rest of the year.

Speaker Change: First in terms of what we've delivered.

Speaker Change: Management fee revenue and fee related earnings are both up over 20% year over year with expanding margins delivering.

Marc Ganzi: Delivering financial performance for shareholders is critical. Number two, we raised over $14 billion in capital to support AI infrastructure growth across our platforms, including $3.4 billion in new FIIM. This was a tremendous achievement in the current environment.

Marc Ganzi: Delivering financial performance for shareholders is critical. Number two, we raised over $14 billion in capital to support AI infrastructure growth across our platforms, including $3.4 billion in new FIIAMs. This was a tremendous achievement in the current environment.

Speaker Change: Financial performance for shareholders is critical.

Speaker Change: Number two we formed over 14 billion in capital to support our infrastructure growth across our platforms, including $3 4 billion of new film.

Speaker Change: This was a tremendous achievement in the current environment.

Marc Ganzi: Number three, we launched a new private wealth product to invest directly in AI data. This is what LPs want, and we're delivering for our shareholders with new innovative ideas, new products, and FIEM. Number four.

Speaker Change: Three we launched a new private wealth product to invest directly in AI data centers. This is what lp's, one and we're delivering for our shareholders with new innovative ideas new products and see them.

Speaker Change: Number four.

Marc Ganzi: Corporate governance advances with a new board member, Ian Shapiro, who's got deep power sector and investment management experience that supports our focus on the data center alternative power opportunity. I want to continue to remind shareholders that we remain committed to rotating our board. Fresh governance and ideas in the boardroom are critical to our plan and commitment to you, our shareholders. Finally, we've reinforced our position as the leading global asset manager in AI and digital infrastructure, with portfolio AUM up 17% year-over-year to $84.5 billion.

Speaker Change: Governance advances with a new board member and Ian Shapiro, who has got deep power sector and investment management experience.

Speaker Change: It supports our focus on the datacenter alternative power opportunity.

Speaker Change: I continue to remind shareholders that we remain committed to rotating our governance fresh.

Speaker Change: Fresh governance and ideas in the boardroom are critical to our plan and commitment to you our shareholders.

Speaker Change: Finally, we reinforced our position as the leading global asset manager in AI and digital infrastructure with portfolio AUM up 17% year over year to $84 5 billion.

Marc Ganzi: So let's look ahead and what I'm committed to delivering for you, our shareholders, in the second half of 2024. First, we want to continue to deliver peer-leading management fee revenue growth and operating margin expansion. This is what you'll hear from me first and foremost in the back half of this year. Next, we want to successfully meet or exceed our $7 billion in new FIEM target across our multi-strategy asset management platform this year.

Speaker Change: So, let's look ahead, and what I'm committed to delivering for you our shareholders in the second half of 2024.

Speaker Change: First we want to continue to deliver peer leading management fee revenue growth and operating margin expansion.

Speaker Change: This is what you'll hear from me first and foremost in the back half of this year.

Speaker Change: Next we want to successfully meet or exceed our $7 billion in newfield target across our multi strategy asset management platform. This year.

Marc Ganzi: We delivered a solid number in the first half. We're poised for success in the back half of 2024 with a deep pipeline of active accounts pursuing our investment management products from flagship to credit, to new ideas, to co-investments. The key here is that the multi-strat approach to fundraising is working at Digitalbridge.

Speaker Change: We delivered a solid number in the first half we're poised for success in the back half of 'twenty 'twenty four with a deep pipeline of active accounts pursuing our investment management products from flagship.

Marc Ganzi: We're poised for success in the back half of 2024 with a deep pipeline of active accounts pursuing our investment management products from flagship to credit, to new ideas, to co-investments. The key here is that the multi-strat approach to fundraising is working at Digitalbridge. Third, we want to accelerate FRE growth into the back half of 2024, as new equity commitments and investment solutions take effect. And, number four, as always, we want to continue to maintain a strong balance sheet and liquidity position.

Speaker Change: Credit to new ideas to co investments. The key here is the multi strat approach to fund raising is working at digital bridge.

Marc Ganzi: Third, we want to accelerate FRE growth into the back half of 2024 as new equity commitments and investment solutions take effect. And, number four, as always, we want to continue to maintain a strong balance sheet and liquidity position. And finally, we're continuing to evaluate strategic M&A opportunities centered around adjacent asset managers that would show immediate per share accretion to our platform. So that's what I'm focused on as we head into the back half of this year.

Speaker Change: Third we want to accelerate FRE growth into the back half of 'twenty 'twenty four is new equity commitments and investment solutions take effect.

Speaker Change: And number four as always we want to continue to maintain a strong balance sheet and liquidity position. This has always been a core focus of mine.

Marc Ganzi: This has always been a core focus of, and finally, we're continuing to evaluate strategic M&A opportunities centered around adjacent asset managers that would show immediate per share accretion to our platform. So that's what I'm focused on as we head into the back half of this year. We've accomplished a lot in 2024, but we have a lot in front of us, and it's all there for us to execute successfully.

Speaker Change: And finally, we're continuing to evaluate strategic M&A opportunities centered around adjacent asset managers that would show immediate per share accretion to our platform.

Speaker Change: So that's what I'm focused on as we head into the back half of this year.

Marc Ganzi: We've accomplished a lot in 2024, but we have a lot in front of us, and it's all there for us to execute successfully. We remain confident as a team in achieving these goals and targets for you, our shareholders. I look forward to sharing our progress next quarter as we maintain our market position as the global leader in this dynamic sector. With that, I'll turn over the call to the operator for Q&A. Thank you. I will now begin.

Speaker Change: We've accomplished a lot in 2024, but we have a lot in front of us and it's all there for us to execute successfully.

Marc Ganzi: We remain confident as a team in executing these goals and targets for you, our shareholders. I look forward to sharing our progress next quarter as we maintain our market position as a global leader in this dynamic sector. With that, I'll turn over the call to the operator for Q&A. Thank you. We will now begin the question and answer session. To ask a question, you may press star, then 1 on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys.

Speaker Change: We remain confident as a team in executing these goals and targets for you our shareholders.

Speaker Change: I look forward to sharing our progress next quarter as we maintain our market position as the global leader in this dynamic sector.

Speaker Change: With that I'll turn it over to the call to the operator for Q&A.

Speaker Change: <unk>.

Unknown Executive: We will now begin the question and answer session. To ask a question, you may press star, then 1 on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been answered and you would like to withdraw your question, please press star then 2. At this time, we will pause momentarily to assemble our roster. The first question comes from Rick Prentiss with Raymond James. Please go ahead. Hi everyone.

Speaker Change: Well now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone. If you are using a speakerphone. Please pick up your handset before pressing the keys.

Speaker Change: If at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.

Speaker Change: At this time, we will pause momentarily to assemble our roster.

Operator: If at any time your question has been addressed, and you would like to withdraw your question, please press star then 2. At this time, we will pause momentarily to assemble our roster. The first question comes from Rick Prentiss with Raymond James. Please go ahead. Hey, everybody. Hey Rick, how are you?

Speaker Change: The first question comes from Ric Prentiss with Raymond James. Please go ahead.

Speaker Change: Suddenly everybody.

Speaker Change: Hey, Rick how are you.

Rick Prentiss: Good, thanks. Hey, two quick ones on a very busy earnings day. On slide 22, it shows obviously the inflows, the outflows, and the end-of-period balance. As we think about DPI, and I appreciate Vantage obviously has been a good opportunity to fulfill your commitment to the LPs on the important job of returning capital to them, but how do we think of where the inflows are? It sounds like we're headed towards seven billion if we think of a 24-column row Where are DPIs headed, and where's the ending balance at year-end 24, do we think, for that slide, as we think about year-end?

Rick Prentiss: Good, thanks. Hey, two quick ones on a very busy earnings day. On slide 22, it obviously shows the inflows, the outflows, and the end-of-period balance.

Ric Prentiss: Okay. Thanks, Hey, two quick ones on a very busy earnings day.

Speaker Change: On slide 22.

Speaker Change: Chose obviously the inflows the outflows in end of period balance.

Speaker Change: As we think about D. P. I appreciate vantage, obviously has been a good opportunity to.

Speaker Change: Fulfilling our commitment to the L. P as an important job of returning capital to them.

Rick Prentiss: As we think about DPI, and I appreciate Vantage obviously has been a good opportunity to fulfill your commitment to the LPs on the important job of returning capital to them, but how do we think of where the inflows are coming from? It sounds like we're headed towards seven billion if we think of a 24-column on that slide. Where are DPIs headed and where's the ending balance at year-end 24, do we think, for that slide as we think about year-end? So you had two questions. I'll answer that one, and I don't know if there's one behind it, Rick, but, of course, Marc.

Speaker Change: How do we think of where.

Speaker Change: That the inflows it sounds like we're headed towards 7 billion, if we think of.

Speaker Change: 24 column on that slide.

Speaker Change: We're a DPI is headed and where is the ending balance at year end 'twenty four do we think for that that slides as we think about year end.

Marc Ganzi: So you had two questions. I'll answer that one, and I don't know if there's one behind it, Rick, but there is, Marc.

Rick: So you had two questions I'll answer that one I don't know if there's a one behind it Rick but they're all smart of course.

Marc Ganzi: Of course. Good, good, good. So we were delighted to get the Vantage transaction done. You know, it was a real seminal transaction for us. We're not at liberty to describe exactly which portfolio companies might be involved in a strategic transaction.

Speaker Change: Good good so we were delighted to get the vantage transaction done.

Speaker Change: It was a real seminal transaction for us.

Speaker Change: We're not at Liberty to describe exactly which portfolio companies might be involved in a strategic transaction.

Marc Ganzi: But what I would say is, you know, we feel reasonably reasonably good about our fundraising. In fact, we feel very good about it. And we do feel good about perhaps returning a little more capital back to investors this year. But DPI has been exactly where we'd like it to be.

Marc Ganzi: But what I would say is, you know, we feel reasonably good about our fundraising. In fact, we feel very good about it. And we do feel good about perhaps returning, you know, a little more capital back to investors this year, but DPI has been exactly where we'd like it to be. But I think if you look at the beginning period balance and, you know, the end-of-period balance, I think where we're sort of guiding you to based on the 150 target is somewhere between, you know, $34 billion to $35 billion, in that range So, perhaps a little bit more outflows, but certainly, Rick, in the back end, a lot more inflows would be my, you know, would be my sort of conservative prediction to you.

Speaker Change: But what I would say is you know we feel.

Speaker Change: Reasonably reasonably good about our fund raising.

Speaker Change: In fact, we feel very good about it and we do feel good about perhaps returning a little more capital back to investors. This year, but DPI has been exactly where we'd like it to be but I think if you look at the beginning period balance and end of period balance I think we're we're sort of guiding you to base.

Marc Ganzi: But I think if you look at the beginning period balance and, you know, the end-period balance, I think where we're sort of guiding you to based on the 150 target is somewhere between, you know, $34 billion to $35 billion in that range in terms of an ending balance on FIIAM rolling forward. So perhaps a little bit more outflows, but certainly, Rick, in the back end, a lot more inflows would be my, you know, would be my sort of conservative prediction to you. Okay, cool.

Speaker Change: On the the $1 50 target is somewhere between 34 billion.

Speaker Change: <unk> to 35 billion in that range in terms of an ending balance on see them rolling forward.

Speaker Change: So, perhaps a little bit more outflows, but certainly Rick in the backend of lot more inflows would be my right.

Speaker Change: It would be my sort of conservative prediction to you.

Rick Prentiss: Okay, cool. And then, of course, there was a follow-up on slide 12, where you hit home the kind of where the AI infrastructure is going, and it's not just data centers. Fiber's on there as well. First data center, second fiber, third tower, small cells. There's been a lot of discussion this earnings season about convergence.

Rick: Okay cool.

Rick Prentiss: And then, of course, there was the follow-up on slide 12, where you hit home the kind of where the AI infrastructure is going, and it's not just data centers. There are fibers on there as well, first data center, second fiber, third tower, small cells. There's been a lot of discussion this earnings season about convergence, wireless with fiber. There's been a lot of private equity involvement between mobile carriers and fiber operators, and a lot of discussion about fiber to the home. Update us, Mark, on your insightful wisdom on how's fiber gonna play out here. Is fiber to the home important?

Speaker Change: Then of course, there was a follow up on slide 12.

Speaker Change: It hit home.

Speaker Change: Worthy AI infrastructure is going in it's not just <unk>.

Speaker Change: Data centers fiber.

Speaker Change: <unk> fibers on there as well first data center second five or third towers small cells theres been a lot of discussion. This earnings season about convergence wireless with fiber there's been a lot of.

Rick Prentiss: Wireless with fiber, there's been a lot of private equity involvement between mobile carriers and fiber operators, a lot of discussion on fiber to the home. Update us, Marc, on your insightful wisdom on how fiber is going to play out here. Is fiber to the home important? Is it really enterprise fiber? And what is private equity's role in this space?

Mark: Private equity involvement between mobile carriers and fiber operators a lot of discussion on fiber to the home update us Mark on your insightful wisdom on how fiber going to play out here as fiber to the home important is it really enterprise fiber and what is private equity is kind of role.

Marc Ganzi: Is it really enterprise fiber? And what is private equity's role in this space? Well, look, I would just say that, you know, our conviction call as a firm is that we believe all fiber is an important part of the ecosystem and is the connective tissue that binds it all. And if you believe that a tower or a small cell or an in-house Wi-Fi 6 node is the ultimate delivery mechanism, you know, for generative AI to the edge, on the other end of every antenna, Rick, you know, is a fiber connection.

Speaker Change: In this space.

Marc Ganzi: Well, look, I would just say that, you know, our conviction call as a firm is that we believe all fiber is an important part of the ecosystem and is the connective tissue that binds it all. And if you believe that a tower or a small cell or an in-house Wi-Fi 6 node is the ultimate delivery mechanism, you know, for generative AI to the edge, on the other end of every antenna, Rick, you know, is a fiber connection.

Mark: Well look I would just say that you know are our conviction call as a firm is that we believe.

Speaker Change: All fiber is an important part of the ecosystem and as the connective tissue that binds at all.

Speaker Change: And if you believe that a tower or small cell.

Speaker Change: Or an in house Wi Fi six node is the ultimate delivery mechanism.

Speaker Change: You know for generative AI to the edge.

Speaker Change: On the other end of every antenna Rick you know is a fiber connection so whether it's home whether it's <unk>.

Marc Ganzi: So whether it's home, whether it's enterprise, whether it's what I would call metro or what I call long-haul, sub-oceanic cables, and transport, what we're seeing is we're seeing strong growth across all of the aspects of fiber. We own all of those kinds of businesses. We own businesses that deliver fiber to the home. We have wholesale businesses that stand up, you know, cable operators and provide transport for them for their fiber to the home services. Certainly, we're quite strong in enterprise. We're really strong in transport and long-haul.

Marc Ganzi: So whether it's home, whether it's enterprise, whether it's what I would call metro or what I call long-haul sub-oceanic cables, or transport, what we're seeing is we're seeing strong growth across all of the aspects of fiber. And we own all of those kinds of businesses. We own businesses that deliver fiber to the home. We have wholesale businesses that stand up, you know, cable operators and provide transport for them for their fiber to the home services. Certainly, we're quite strong in enterprise. We're really strong in transport and long-haul.

Rick: Enterprise whether it's.

Rick: What I would call metro or what I call long haul so bush unit cables transport.

Speaker Change: What we're seeing is we're seeing strong growth across all of the aspects of fiber and we own all of those kinds of businesses, we own businesses that deliver fiber to the home we have wholesale businesses that stand up.

Rick: Cable operators and provide transport for them for their fiber to the home services certainly were quite strong in enterprise, we're really strong in transport and and long haul.

Speaker Change: And datacenter connectivity is really important as we highlighted earlier in the call today.

Marc Ganzi: And data center connectivity is really important. As we highlighted earlier in the call today, we're really busy in terms of building data centers, Rick. I think you understand, you know, how many data centers we have in flight today. All of those data centers need multiple redundant paths of fiber and dark fiber. So, as you can imagine, we are seeing that convergence, of course, because when you own six data center companies and you own multiple fiber companies, it really provides you with the opportunity to have multiple conversations with your customers.

Speaker Change: We're really busy in terms of building data centers, Rick I think you understand you know how many data centers, we have in flight today.

Rick: All of those data centers need multiple redundant paths of fiber dark fiber. So as you can imagine we are seeing that convergence of course, because when you own six data center companies you know multiple fiber companies. It really provides you with the opportunity to have multiple conversations with your customers.

Marc Ganzi: So, as you can imagine, we are seeing that convergence, of course, because when you own six data center companies and you own multiple fiber companies, it really provides you with the opportunity to have multiple conversations with your customers. So this is really where Switch and Data Bank and Vantage really have a competitive advantage because they're building so fast and at such a huge scale; we have enormous control over what fiber goes in and out of our data centers. So, I mean, I think I can't be a little more surgical than that.

Marc Ganzi: So this is really where Switch and Data Bank and Vantage really have a competitive advantage because they're building so fast and at such a huge scale; we have enormous control over what fiber goes in and out of our data center. So, I mean, I think I can't be a little more surgical than that. I mean, certainly, we can continue the conversation as the year goes on, but as much as AI data centers are growing, the connective tissue that binds all of that is also growing. So we're seeing an uptick in fiber demand, and I think that's pretty consistent with what you're hearing in this earnings season. Great. I appreciate it, guys.

Speaker Change: So this is really where switch and data bank.

Speaker Change: And vantage really have a competitive advantage because they're they're building so fast and it's such a huge scale, we have enormous control over what fiber goes in and out of our data centers.

Speaker Change: I mean, I think I can't be a little more surgical than that I mean, certainly we can.

Marc Ganzi: I mean, certainly, we can continue the conversation as the year goes on, but as much as AI data centers are growing, the connective tissue that binds all of that is also growing. So we're seeing an uptick in fiber demand, and I think that's pretty consistent with what you're hearing in this earnings season. Great. I appreciate it, guys. Thanks, Rick. Again, if you have a question, please press star then 1. The next question comes from Richard Choe with J.P. Morgan. Please go ahead.

Speaker Change: The conversation as the year goes on but as much as AI data centers are growing the connected tissue that binds all of that is also growing so we're seeing an uptick in <unk> and fiber demand and.

Speaker Change: And I think that's pretty consistent with what youre hearing in this earning season.

Speaker Change: Great I appreciate it guys.

Speaker Change: Yeah.

Rick: Thanks, Rick.

Speaker Change: Yes.

Speaker Change: Again, if you have a question. Please press Star then one.

Unknown Executive: Again, if you have a question, please press star then 1. The next question comes from Richard Choe with J.P. Morgan. Please go ahead.

Speaker Change: The next question comes from Richard Choe with Jpmorgan. Please go ahead.

Richard Choe: Hi, thank you. Just wanted to ask. I mean, there's a lot of demand for data centers, and you're building a lot. I think there are some concerns that maybe the demand won't last as long as some people think. How far or how long do you see the demand cycle kind of going on, and are you worried that there might be a level of overbuilding going on in the next few years? So I think, hey, Richard, it's Marc. How are you?

Richard Choe: Hi. Thank you. I just wanted to ask you, I mean, there's a lot of demand for data centers, and you're building a lot. I think there are some concerns that maybe the demand won't last as long as some people think. How far or how long do you see the demand cycle kind of going on, and are you worried that there might be a level of overbuilding going on in the next few years?

Richard Choe: Alright. Thank you just wanted to ask I mean, there's a lot of.

Richard Choe: Demand for data centers and are building a lot I think there are some concerns that maybe the demand wall.

Speaker Change: As long as.

Speaker Change: Some people think.

Speaker Change: How far or how long do you see the demand cycle kind of going on and are you worried that there might be a level of overbuilding going on.

Speaker Change: The next few years.

Marc Ganzi: So I think, hey, Richard, it's Marc. How are you?

Richard Choe: So I think hey, Richard it's Mark how are you.

Marc Ganzi: I think what we did see inside of this particular quarter, Richard, and what we've seen through six months of activity is, and I think we highlighted this on page 10, CapEx is up. It's not down. So a leading indicator when, you know, whether it's a data center development, tower development, or fiber development, is when CAPEX starts trending down at our core customer. Instead, we've seen the converse of that. We've seen CapEx accelerate.

Marc Ganzi: I think what we did see inside of this particular quarter, Richard, and what we've seen through six months of activity is, and I think we highlighted this on page 10, CapEx is up. It's not down. So a leading indicator when, you know, whether it's a data center development, tower development, or fiber development, is when CAPEX starts trending down at our core customers. Instead, we've seen the converse of that. We've seen CapEx accelerate.

Richard Choe: I think what we did see inside of this particular quarter, Richard and what we've seen through six months of activity.

Speaker Change: Is and I think we highlighted this on page 10, Capex is up it's not down.

Richard Choe: So a leading indicator win.

Speaker Change: Whether it's the data center development Tower development fiber development is when Capex starts trending down at our core customers. Instead, we've seen actually the converse of that we've seen capex accelerate I think what's different about this data center cycle versus the last time. The industry was overbuilt is I know for.

Marc Ganzi: I think what's different about this data center cycle versus the last time the industry was overbuilt is I know for just, you know, I can only speak for the six platforms that we own and the 93 data centers that I have in construction. I've got leases on the end of every one of those data centers. That was not the case when we had the last data center recession, Richard. If you recall back in 2009 and 2011, when people were speculatively building data centers, and they got caught with inventory that wasn't leased. Everything we're building, Richard, has a customer. That's for Digitalbridge.

Richard Choe: Sure.

Speaker Change: You know I can only speak for the six platforms that we own and the 93 data centers that I haven't construction I've got leases on the end of every one of those data centers.

Marc Ganzi: That was not the case when we had the last data center recession, Richard, if you recall back in 2009 and 2011, when people were speculatively building data centers, and they got caught with inventory that wasn't leased. Everything we're building, Richard, has a customer. That's for Digitalbridge.

Richard: That was not the case when we had the last data center recession, Richard If you recall back in 2009 and 2011 when people respectively building data centers when they got caught with inventory that wasn't leased everything we're building Richard has a customer that's for digital rich. That's the 90 plus data centers that we're building.

Marc Ganzi: That's the 90 plus data centers that we're building. And that's the, you know, $35 billion of AUM that we're adding. And the incremental, you know, three and a half gigawatts of power we're lighting. I would say one other factor, Richard, you got to keep your eye on is, do you actually have the power attached to those data centers?

Marc Ganzi: That's the 90 plus data centers that we're building. And that's the $35 billion of AUM that we're adding and the incremental three and a half gigawatts of power that we're lighting. I would say one other factor, Richard, you got to keep your eye on is whether you actually have the power attached to those data centers. That, to me, is actually a more interesting topic of discussion that you and I can explore when we spend some time together next, is that every one of the 90-plus data centers I'm building has a WillServe letter and has power attached.

Speaker Change: And that's the $35 billion of AUM that we're adding.

Speaker Change: And the incremental three five gigawatts of power lighting I would say one other factor Richard you've got to keep your eye on is do you actually have the power attached to those data centers.

Marc Ganzi: That, to me, is actually a more interesting topic of discussion that you and I can explore when we spend some time together next: every one of the 90-plus data centers I'm building has a WillServe letter and has power attached. Whether it's direct power into the grid, whether it's renewable power through the various partnerships we have, you know, everything that we're lighting has a lease and has power, and has a building permit. And if you've got those three things going for you, a will serve letter, a customer lease, and a building permit, you're in pretty good shape.

Richard Choe: That to me is actually a more interesting topic of discussion that you and I can explore when we spent some time together next is every one of the 90 plus data centers on building has a will serve letter and has power attached to it.

Marc Ganzi: Whether it's direct power into the grid, whether it's renewable power through the various partnerships we have, you know, everything that we're lighting has a lease and has power and has a building permit. And if you've got those three things going for you, a will serve letter, a customer lease, and a building permit, you're in pretty good shape.

Speaker Change: Whether it's direct power into the grid, whether it's renewable power through the various partnerships we have.

Richard: You know everything that were lighting has a lease and as power and has a building permit.

Speaker Change: And if you've got those three things going for you or will serve letter a customer lease in a building permit.

Speaker Change: You're in pretty good shape. So that's what we're doing again I can't speak to what QTS is doing and Blackstone is doing I can't speak to what.

Marc Ganzi: So that's what we're doing. Again, I can't speak to what QTS is doing and what Blackstone is doing. I can't speak to what Cyrus One is doing with KKR and GIP.

Richard: Cyrusone is doing with KKR and JP I'll I can worry about or DLR and Equinix is what we're doing and we're doing it at a very tremendous amount of scale I think we've demonstrated that on this call today in terms of our market leading position as the leader in global AI data centers.

Marc Ganzi: All I can worry about DLR and Equinix is what we're doing. And, you know, we're doing it at a very tremendous amount of scale. I think we've demonstrated that on this call today in terms of our market-leading position as the leader in global AI data centers. And I think the important thing is just learning from the lessons of the past. And having been in the sector for over 30 years, I think you will see this company has taken a very disciplined approach to capital allocation and, most importantly, who we transact with and who we have counterparties with. And then the power companies that we've partnered with. That's great.

Richard: And I.

Speaker Change: I think the important thing is just learning from the lessons of the past and having been in this sector for over 30 years. I think you see this company has taken a very disciplined approach to capital allocation and most importantly, who we transact with and who we have counterparties with and then the power companies that we partnered with.

Richard Choe: And I'd love to follow up with you later on on the power side, because it seems like that's a real potential strategic advantage that other players might not have. Just a final quick one for me: it seems like the M&A environment might be getting more conducive with rates kind of stabilizing, falling down, and maybe asking prices kind of coming down. I know most of your investment has been on the Greenfield kind of organic side. Are you seeing, I guess, a better potential inorganic environment?

Richard Choe: That's great. And I'd love to follow up with you later on on the power side, because it seems like that's a real potential strategic advantage that other players might not have. Just a final quick one for me.

Speaker Change: No that's great and I'd love to follow up with you later on on the power side and it seems like Thats, a real potential strategic advantage that other.

Richard: Players might not have.

Speaker Change: Just a final quick one for me.

Speaker Change: It seems like the M&A environment might be getting more conducive.

Richard Choe: It seems like the M&A environment might be getting more conducive with rates kind of stabilizing, falling down, and maybe asking prices kind of coming down. I know most of your investment has been on the greenfield kind of organic side. Are you seeing, I guess, better potential in the organic environment? It's interesting.

Speaker Change: With rates kind of stabilizing falling down and maybe asking prices kind of coming down I know most of your.

Richard: Investment has been on the Greenfield kind of the organic side.

Speaker Change: Are you seeing.

Speaker Change: I guess, a better potential and organic environment.

Richard Choe: You know, it's interesting; there are air pockets of situations where we've seen multiples retreat a little bit. But if you look at, you know, recent transaction comps. Certainly, for example, if you look at the Cable 1 deal that was done with T-Mobile and KKR, that was done at a mid-to-low 20s multiple for fiber. That sort of raised some eyebrows around here.

Speaker Change: You know its interesting there there are air pockets of situations, where we've seen multiples retreat a little bit.

Marc Ganzi: It's interesting, there are air pockets of situations where we've seen multiples retreat a little bit. But if you look at, you know, recent transaction comps. Certainly, for example, if you look at the Cable One deal that was done with T-Mobile and KKR, that was done at a mid to low 20s multiple for fiber. That sort of raised some eyebrows around here.

Speaker Change: But if you look at you know recent transaction comps.

Speaker Change: Certainly for example, if you look at the.

Speaker Change: Cable one deal that was done with T mobile and KKR.

Speaker Change: That was done in a mid to low twenty's multiple for fiber.

Speaker Change: That sort of raised some eyebrows around here.

Marc Ganzi: So that was a pretty good marker. Towers is continuing to hang in. We're still seeing domestic private M&A multiples between 28 and 40 times for towers. We've certainly seen some data centers trade recently, and those are still trading at, effectively, you know, if it's a development platform, trading in the, you know, mid to high five cap rates. If it's more stabilized, trading in the, you know, sort of six to seven cap rate, or if it's an enterprise data center trading at an eight to nine cap. But really, we haven't seen any demonstrative degradation in multiples.

Marc Ganzi: So that was a pretty good marker. Towers is continuing to hang in. We're still seeing domestic private M&A multiples between 28 and 40 times for towers. We've certainly seen some data centers trade recently, and those are still trading at, effectively, you know, if it's a development platform, trading in the, you know, mid-to-high 5 cap rates. If it's more stabilized, trading at the, you know, sort of 6 to 7 cap rate, or if it's an enterprise data center, trading at an 8 to 9 cap. But really, we haven't seen any demonstrative degradation in multiples.

Speaker Change: So that was a pretty good marker.

Speaker Change: Towers are continuing to hang in we're still seeing domestic private M&A multiples between 28 and 40 times for towers.

Speaker Change: We've certainly seen some data centers trade recently.

Speaker Change: And those are still trading at effectively if it's a development platform trading in the mid to high five cap rates, if its more stabilized trading in the <unk>.

Speaker Change: Six to seven cap rate or if it's an enterprise data center trading at an eight to nine cap, but really we haven't seen a demonstrative degradation and multiples in fact I would offer to you that multiples have kind of hung up.

Marc Ganzi: In fact, I would offer to you that multiples have kind of hung up, you know, and held up provided it's a quality asset. Interest rates are still high. We haven't seen the cuts that we're looking for.

Speaker Change: And held up provide it's a quality asset.

Richard Choe: Interest rates are still high we haven't seen the cuts that were looking for as we mentioned in the quarter. We did raise a lot of debt Richard in the quarter and we did raise them at pretty attractive prices, but those were securitizations, where we built the book to eight to 12 times oversubscribed. So whether it was you know extranet or vertical bridge.

Marc Ganzi: As we mentioned in the quarter, we did raise a lot of debt, Richard, in the quarter, and we did raise it at pretty attractive prices. But those were securitizations where we built the book to 8 to 12 times oversubscribed. So whether it was, you know, extinent or, you know, vertical bridge, we had some really successful securitizations at Switch. We had another successful securitization at Data Bank. And we had a really successful green securitization for Vantage and an ABS transaction in Europe for Vantage EMEA, so we've been able to access the debt markets. I would say those coupons have hung in pretty steady.

Marc Ganzi: As we mentioned in the quarter, we did raise a lot of debt, Richard, in the quarter, and we did raise it at pretty attractive prices. But those were securitizations where we built the book to eight to 12 times oversubscribed. So whether it was, you know, extinent or, you know, vertical bridge, we had some really successful securitizations at Switch. We had another successful securitization at Data Bank. And we had a really successful green securitization for Vantage and an ABS transaction in Europe for Vantage EMEA.

Speaker Change: We had some really successful securitization that switch.

Speaker Change: We had another successful securitization at Databank.

Speaker Change: And we had a really successful green securitization.

Speaker Change: Hum.

Richard Choe: For vantage and our ABS transaction in Europe for vantage EMEA. So we've been able to access the debt markets I would say those coupons of hung in pretty steady, but certainly as you know being a veteran in the sector. It would be great. If we would have a couple of rate cuts that certainly does help.

Marc Ganzi: So we've been able to access the debt markets. I would say those coupons have hung in pretty steady. But certainly, as you know, being a veteran of the sector, it'd be great if we'd have a couple rate cuts. That certainly does help our ability to buy things, and it certainly helps our ability to finance new construction as well.

Marc Ganzi: But certainly, as you know, being a veteran of the sector, it'd be great if we had a couple rate cuts. That certainly does help our ability to buy things, and it certainly helps our ability to finance new construction as well. Great. Thank you. Thanks, Richard. The next question comes from Jade Rahmani with KBW. Please go ahead. Thank you very much.

Speaker Change: Our ability to buy things and it certainly helps our ability to finance new construction as well.

Speaker Change: Great. Thank you.

Richard Choe: Thanks Richard.

Speaker Change: Yeah.

Jade Rahmani: The next question comes from Jade Rahmani with KBW. Please go ahead.

Speaker Change: The next question comes from Jade Rahmani with <unk> W. Please go ahead.

Jade Rahmani: The cumulative catch-up fee dynamic, I think we're beginning to understand that, and hopefully the market will as well. But does that become a headwind next year? Or will this phenomenon, you know, persist through DBRG's earnings so long as, you know, FEM growth picks up? I look, I mean, catch-up fees are always going to be a part of the fundraising process. They're a little bit larger this year, given we have a large fund in the market. But there will always be catch-up fees when you're doing, you know, this kind of fundraising.

Jade Rahmani: Thank you very much. The cumulative catch-up fee dynamic, I think we're beginning to understand that. Hopefully, the market will as well. But does that become a headwind next year, or will this phenomenon persist through DBRG's earnings so long as FEM growth picks up?

Jade Rahmani: Thank you very much.

Jade Rahmani: Cumulative catch up dynamic I think we are beginning to understand that hopefully the market does as well, but does that become a headwind next year or will this phenom.

Speaker Change: On persist through <unk> earnings so long as.

Speaker Change: AUM growth.

Speaker Change: <unk> picks up.

Marc Ganzi: I look, catch-up fees are always going to be a part of the fundraising process. They're a little bit larger this year, given we have a large fund in the market. But there will always be catch-up fees when you're doing, you know, this kind of fundraising.

Speaker Change: Look I mean catch up fees are always going to be a part of the fundraising process.

Speaker Change: They are a little bit.

Speaker Change: Larger this year, given we have a large fund in the market.

Speaker Change: But there will always be typically catch up fees, when youre doing kind of fundraising.

Marc Ganzi: And I would also say to that, Jade, one of the things that we've really been emphasizing is that this firm is not a one-trick pony anymore. We have multiple teams and multiple products. And, you know, as evidenced this year, between our data center sidecar vehicle, our expansion of our credit strategy, Digitalbridge Partners 3, and co-investments, we actually have multiple products in the market at the same time. And as we look around the corner to next year, I'll give you the spoiler alert: we're going to have more products in the market focused on AI infrastructure, focused on power, and focused on the things that really matter for what we're doing to power the digital economy.

Marc Ganzi: And I would also say to Jade, one of the things that we've really been emphasizing is that this firm is not a one-trick pony anymore. We have multiple teams, multiple products. And, you know, as evidenced this year, between our data center sidecar vehicle, our expansion of our credit strategy, Digitalbridge Partners 3, and co-investments, we actually have multiple products in the market at the same time. And as we look around the corner to next year, I'll give you the spoiler alert.

Jade Rahmani: And I would also say to that Jade.

Jade Rahmani: One of the things that we've really been emphasizing is that this firm is not a one trick pony anymore.

Jade Rahmani: We have multiple teams multiple products and as evidenced this year.

Jade Rahmani: Between our datacenter sidecar vehicle.

Jade Rahmani: Our expansion of our credit strategy did reach partners III and co investments, we actually have multiple products in the market at the same time and as we look around the corner to next year.

Marc Ganzi: We're going to have more products in the market focused on AI infrastructure, focused on power, and focused on the things that really matter for what we're doing to power the digital economy. We see no slowing down. We see no abatement, Jade, in the opportunities set out at Digitalbridge today.

Jade Rahmani: The spoiler alert, we're going to have more products in the market.

Speaker Change: Focused on AI infrastructure focused on power and focused on the things that really matter for what we're doing to power. The digital economy, we see no slowing down we see no abatement Jade and the opportunity set a <unk> date in fact.

Marc Ganzi: We see no slowing down, we see no abatement, Jade, in the opportunity set at Digitalbridge today. In fact, we're just coming out of our strategic summit with our senior leadership team, and we have more ideas to execute, more products to launch, and when you look at the amount of CapEx that's going into AI, AI-related infrastructure, and AI-related adjacent power, our swim lane has never been bigger. In fact, I'll be really clear with you, our swim lane is growing and growing really fast.

Marc Ganzi: In fact, we're just coming out of our strategic summit with our senior leadership team, and we have more ideas to execute, more products to launch. And, you know, when you look at the amount of CapEx that's going into AI, AI-related infrastructure, AI-related adjacent power, our swim lane, Jade, has never been bigger. In fact, I'll be really clear with you, our swim lane is growing and growing really fast.

Speaker Change: We're just coming out of our strategic summit with our senior leadership team and we have more ideas to execute more products to launch and when you look at the amount of Capex, that's going into AI AI related infrastructure.

Jade Rahmani: Related adjacent power, our swim Lane Jayde has never been bigger in fact.

Speaker Change: Be really clear with you our swim lane is growing and growing really fast so.

Marc Ganzi: So this is a good quarter because it's kind of a launch point for us. It's the first time we've had more than four products in the market at the same time from a fundraising perspective. And this is really the new rhythm that Tom and myself and Liam and Ben and the entire team are on now. So this is a big inflection point for Digitalbridge this quarter. And just on that note, go ahead. As you know, the longer a fund stays in the market, the sort of bigger the catch-up fees accumulate.

Marc Ganzi: So this is a good quarter because it's kind of a launch point for us. It's the first time we've had more than four products in the market at the same time from a fundraising perspective, and this is really the new rhythm that Tom and myself and Liam and Ben and the entire team are on now. So this is a big inflection point for Digitalbridge.

Tom: This is a good quarter, because it's kind of a launch point for us. It's the first time, we've had more than four products in the market at the same time from a fundraising perspective and this is really the new cadence that Tom and myself and Liam had been in.

Speaker Change: And the entire team are on now so this is a big inflection point for digital rich this quarter.

Jade Rahmani: And just on that note, go ahead. As you know, the longer a fund stays in the market, the sort of bigger the catch-up fees accumulate. So we've got a little bit of that going on in the second half of this year.

Speaker Change: And just on China.

Speaker Change: Go ahead.

Jade Rahmani: So we've got a little bit of that going on in the second half of this year. On the July fundraising that looked to accelerate, was that a seasonal factor that you had expected all along, or is there something changing in the market in terms of gaining steam, gaining more traction, and LPs being more willing to commit capital? It's a really insightful question. Thank you, Jade, for asking it. It's actually all three of those things.

Speaker Change: You have a longer <unk> stays in the market the sort of the bigger the catch up you accumulate so we've got a little bit of that going on in the second half of this year.

Marc Ganzi: On the July fundraising that looked to accelerate, was that a seasonal factor that you had expected all along? Or is there something changing in the market in terms of gaining steam, gaining more traction, and LPs being more willing to commit capital? It's a really insightful question. Thank you, Jade, for asking it.

Speaker Change: On the July fundraising that look to accelerate.

Speaker Change: Is that a seasonal factor that you had expected all along or is there something changing in the market in terms of gaining seen gaining more traction L. P as being more willing to commit capital.

Marc Ganzi: And let me sort of unpack that for you. One, the second half of the year is always stronger for us, Q3 and Q4. And the reason for that is people set their investment calendar, usually, as I've told you before, in April and May, and allocations start moving, you know, in June, July, August, and September. So we're really beginning to see our LPs, particularly our smaller ones, are returning, and they're allocating. And the second half of the year is always stronger than the first half of the year.

Marc Ganzi: It's a really insightful question. Thank you, Jade, for asking it.

Marc Ganzi: It's actually all three of those things. And let me sort of unpack that for you. One, the second half of the year is always stronger for us, Q3 and Q4. And the reason for that is people set their investment calendar, usually, as I've told you before, in April and May, and allocations start moving, you know, in June, July, August, and September. So we're really beginning to see our LPs, particularly our early stage LPs, returning, and they're allocating. And the back half of the year is always stronger than the front half of the year.

Speaker Change: It's a really insightful question. Thank you Jade for asking it.

Speaker Change: It's actually all three of those things and let me sort of unpack that for you one the second half of the year is always stronger for US Q3, and Q4 and the reason for that is people set their investment calendar, usually as I've told you before in April and May and allocation start moving in June July August and September. So, we're really beginning to see our particularly our Lps.

Speaker Change: <unk> are returning and they're allocating in the back half of the year is always stronger than the front half of the year and that's what you're beginning to see and hence while you're here the very strong conviction in my voice and Tom's voice around our fund raising for the rest of the year.

Marc Ganzi: And that's what you're beginning to see. And hence why you hear the very strong conviction of my voice and Tom's voice around our fundraising for the rest of the year. The second thing I would say is that LPs are very excited to be allocating to AI and AI data centers, where you've got, you know, incredible platforms, long-term leases with investment grade counterparties, and you're building the data centers of the future.

Jade Rahmani: And that's what you're beginning to see. And hence why you hear the very strong conviction of my voice and Tom's voice around our fundraising for the rest of the year. The second thing I would say is that LPs are very excited to be allocating to AI and AI data centers, where you've got, you know, incredible platforms, long-term leases with investment grade counterparties, and you're building the data centers of the future.

Speaker Change: The second thing I would say is that.

Speaker Change: <unk> are very excited to be allocating to AI and AI data centers, where you have got.

Speaker Change: Incredible platforms long term leases with investment grade Counterparties and Youre building the data centers of the future.

Jade Rahmani: So when we highlighted our datacenter sidecar vehicle that's been that's a product that really has gone incredibly well, it's what investors want Jade they want exposure to investment grade digital AI infrastructure and digital bridge has that in spades in fact again I'll say it again, we are the largest owner of private operator of AI infrastructure.

Marc Ganzi: And so when we highlighted our data center sidecar vehicle, that's been a product that really has gone incredibly well. It's what investors want, Jade, they want exposure to investment grade, digital AI infrastructure, and DigitalBridge has that in spades.

Jade Rahmani: And so when we highlighted our data center sidecar vehicle, that's been a product that really has gone incredibly well. It's what investors want, Jade, they want exposure to investment grade, digital AI infrastructure, and DigitalBridge has that in spades. In fact, again, I'll say it again, we are the largest owner and private operator of AI infrastructure in the world. And that's really important when you're the market leader, and you have those opportunities.

Speaker Change: <unk> in the world.

Speaker Change: And that's really important when you are the market leader and you have those opportunities.

Speaker Change: Really exciting.

Speaker Change: Third thing I would say Jay Thats really manifesting itself in the back half of this year is again, our diverse set of products.

Marc Ganzi: In fact, again, I'll say it again, we are the largest owner and private operator of AI infrastructure in the world. And that's really important when you're the market leader, and you have those opportunities. It's really exciting. The third thing I would say Jade that's really manifesting itself in the back half of this year is, again, our diverse set of products. We're more than just one platform now, and you're going to keep seeing this.

Jade Rahmani: It's really exciting. The third thing I would say Jade that's really manifesting itself in the back half of this year is, again, our diverse set of products. We're more than just one platform now, and you're going to keep seeing this. You'll see it in the numbers. You're going to see it, whether it's in our credit strategy, our private wealth channel that we've now launched, our flagship product, our co-investment products, and other investment management products that we've been telegraphing to you that are coming.

Speaker Change: We're more than just one platform now and youre going to keep seeing this youre going to see it in the numbers youre going to see it whether it's in our credit strategy, our private wealth channel that we've now launched our flagship product our co investment products and other investment management products that we've been telegraphing to you that are coming out.

Marc Ganzi: You're going to see it in the numbers. You're going to see it whether it's our credit strategy, our private wealth channel that we've now launched, our flagship product, our co-investment products, and other investment management products that we've been telegraphing to you that are coming, everything revolving around the AI infrastructure economy, including power.

Jade Rahmani: Everything revolving around the AI infrastructure economy, including power. So this is a really exciting moment for the company, and we're starting to really hit our stride. And so hence why I think you hear a lot of enthusiasm in our voices.

Speaker Change: Everything revolving around the AI infrastructure economy, including power. So this is a really exciting moment for the company and we're starting to really hit our stride and so hence why I think you hear a lot of enthusiasm in our voices.

Marc Ganzi: So this is a really exciting moment for the company, and we're starting to really hit our stride. And so that's why I think you hear a lot of enthusiasm in our voices. Thanks very much.

Speaker Change: Thanks very much.

Jade Rahmani: Thanks Jade.

Jade Rahmani: Yeah.

Unknown Executive: This concludes our question and answer session. I would like to turn the conference back over to Marc Ganzi for any closing remarks.

Operator: Thank you, that concludes our question and answer session. I would like to turn the conference back over to Marc Ganzi for any closing remarks. Well, thank you.

Jade Rahmani: This concludes our question and answer session I would like to turn the conference back over to Marc Ganzi for any closing remarks.

Marc Ganzi: It's been a terrific quarter. I first and foremost want to thank my team. We've been working really hard to deliver these results, and we're going to continue to work even harder through the back half of this year. As I told my team recently, we have a huge opportunity in front of us, and no one is better positioned to take advantage of the AI economy and AI infrastructure than Digitalbridge.

Marc Ganzi: Well, thank you. It's been a terrific quarter. First and foremost, I want to thank my team. We've been working really hard to deliver these results, and we're going to continue to work even harder through the back half of this year. As I told the team recently, we have a huge opportunity in front of us, and no one is better positioned to take advantage of the AI economy and AI infrastructure than Digitalbridge. We've got the biggest team, we've got the best platforms, we've got the most assets under management, over $84 billion today and growing.

Speaker Change: Well. Thank you it's been a terrific quarter at first and foremost want to thank my team.

Speaker Change: We've been working really hard to deliver these results.

Speaker Change: And we're going to continue to work even harder for the back half of this year.

Speaker Change: As I told the team recently.

Speaker Change: We have a huge opportunity in front of us.

Speaker Change: And no one is better positioned to take advantage of the AI economy, and AI infrastructure than digital rich got the biggest team got the best platforms. We've got the most assets under management of $84 billion today, and growing and that opportunity sits at our at our feet and it's on us to execute it.

Marc Ganzi: We've got the biggest team, we've got the best platforms, we've got the most assets under management of 84 billion today and growing, and that opportunity sits at our feet, and it's on us to execute it. What we promise to you, our shareholders, is we will do that. We will go forward through the back half of this year and into next year, executing against what we think is the most exciting secular opportunity that we've seen in our lives, which is the opportunity to build and be a trusted set of hands for the best brands, the best hyperscalers, and deliver AI infrastructure for the future.

Unknown Executive: And that opportunity sits at our feet, and it's on us to execute it. What we promise to you, our shareholders, is that we will do that. We will go forward through the back half of this year and into next year, executing against what we think is the most exciting secular opportunity that we've seen in our lives, which is the opportunity to build and be a trusted set of hands for the best brands, the best hyperscalers, and deliver AI infrastructure for the future.

Speaker Change: Promise to you our shareholders is we will do that we will go forward through the back half of this year and into next year executing against what we think is the most exciting secular opportunity that we've seen in our lives which is the opportunity to build.

Speaker Change: Can be a trusted set of hands to the best logos the best hyper scaler.

Speaker Change: Delivering a infrastructure for the future.

Unknown Executive: I want to thank you for your interest. I want to thank everyone for tuning in. And we'll look forward to spending more time with you this year. And, as always, we remain open to our investors and engage with them. So thank you again and wishing everyone a great evening. Take care. The conference is now concluded.

Marc Ganzi: I want to thank you for your interest. I want to thank everyone for tuning in, and we'll look forward to spending more time with you this year. And, as always, we remain open to our investors and engage with them.

Speaker Change: Want to thank you for your interest I want to thank everyone for tuning in and we'll look forward to spending more time with you this year and as always.

Operator: So thank you again and wishing everyone a great evening. Take care. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Speaker Change: We remain open to our investors and engaging with them. So thank you again and wishing everyone a great evening take care.

Speaker Change: Okay.

Unknown Executive: The conference is now concluded. Thank you for attending today's presentation.

Speaker Change: Conference has now concluded. Thank you for attending today's presentation you may now disconnect.

Speaker Change: [music].

unknown: music playing music playing E. E. E. E. E. E. L.O.O.O.O.O.O.O.O.O.O.O.O.O.O, E. E. E. E. The New Year's Eve, E. E. E. E. E. E. E. E. John, [inaudible] Michael, Thomas Mayrhofer, Thomas Mayrhofer, Drone, Drone, Drone, Drone, Drone, The New Year's Eve. [inaudible] John John John John John David, A.C. E. E. E. John, Drone, Drone, Drone Dr. Martin, Dr. Martin Criares, [inaudible] St. Louis, Michael Jackson, John [inaudible] St. Louis, Thomas Mayrhofer, Thomas Mayrhofer, Thomas [inaudible] John, E. E. E. E. E. E. E. E. E. [inaudible] E. E. E. E. E. E. E. E. E. E. E. [inaudible] John John, Good day, and welcome to the Digitalbridge Group, Inc. second quarter 2024 earnings call. All participants will be in a listen only mode.

Q2 2024 DigitalBridge Group Inc Earnings Call

Request a DemoDemo

DBRG

Digitalbridge

Earnings