Q3 2025 Digitalbridge Group Inc Earnings Call

Sensor session will follow the formal presentation, if anyone should require operator assistance during the matter during the conference. Please press star zero on your telephone keypad as.

As a reminder, this conference is being recorded it is now my pleasure to introduce your host Severin White managing director head of public Investor Relations. Thank you. Sir you may begin good morning, everyone and welcome to the digital bridges third quarter 2025 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 regarding our business operations and financial performance, maybe 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 October.

Speaker #3: Greetings and welcome to the DigitalBridge Group, Inc. third quarter earnings Conference Call 2025 . At this time , all participants are in a listen only mode .

32025, and digital bridge does not intend and undertakes no duty to update it for future events or circumstances for 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, 2024, and our Form 10-Q to be filed with the SEC for the quarter ending <unk>.

Speaker #3: A brief question and answer session will follow the formal presentation . If anyone should require operator assistance during the during the conference , please press star Zero on your telephone keypad .

Speaker #3: As a reminder , this conference is being recorded . It is now my pleasure to introduce your host Severin White Managing Director , Head of Public Investor Relations .

September 32025.

Speaker #3: Thank you sir . You may begin .

With that let's get started.

Speaker #4: Good morning , everyone , and welcome to Digital Bridges third Quarter 2025 conference Call . Speaking on the call today from the company's Marc Ganzi , our CEO and Thomas Mayrhofer , our CFO .

Turn the call over to Marc Ganzi, our CEO Mark.

Thanks, Kevin and welcome everyone to our third quarter 2025 business update.

We appreciate you joining us on the call and look forward to answering your questions.

Speaker #4: I'll quickly cover the safe harbor . Some of the statements that we make regarding our business operations and financial performance may be considered forward looking .

Let's get to the quarter.

So this quarter really exemplifies what we've been building towards etc.

Speaker #4: 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 , October 30th , 2025 and Digitalbridge does not intend and undertakes no duty to update it for future events or circumstances .

From our near term financial goals to our longer term strategic priorities.

Let's get started with the key highlights that align with our strategic roadmap first financial performance.

<unk> delivered another quarter of robust growth with fee revenues, reaching $94 million up 22% year over year.

Speaker #4: For 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 , 2024 , and our form 10-q to be filed with the SEC for the quarter ending September 30th , 2025 .

Our fee related earnings grew 43% to $37 million in the third quarter reflected continued margin improvement as revenue growth continues to outpace expenses.

Second capital formation.

Raised $1 6 billion of new capital during the quarter, bringing our year to date to.

Speaker #4: With that , let's get started . I'll turn the call over to Marc Ganzi , our CEO , Mark . Thanks , Erin , and welcome everyone to our third quarter 2025 .

$4 1 billion.

And look we're well positioned.

Thinking through the fourth quarter here as we remain on track to meet our full year objectives and as most of you know the fourth quarter is historically our strongest quarter.

Finally, and this is the most important story of the quarter.

The relevance and strategic value of our power bank was on full display.

We saw record data center leasing activity across our portfolio.

That will build and accrue significant value for you our investors over time.

Our portfolio company vantage data centers announced the frontier Mega campus in Texas at $25 billion one.

Speaker #5: Our fee Business related earnings grew 43% to 37 million in the third quarter , reflecting continued margin improvement as revenue growth continues to outpace expenses .

One four gigawatt development.

Serving the leading AI infrastructure buildout.

This was followed up by a second campus dubbed lighthouse in Wisconsin, a fifth.

Speaker #5: Second , capital formation raised 1.6 billion in new capital during the quarter , bringing our year to date to 4.1 billion . And look , we're well positioned , you know , thinking through the fourth quarter here as we remain on track to meet our full year objectives .

<unk> billion dollars plus development to support the expanding open AI and Oracle Star Gate project.

These landmark transactions demonstrate that our years of securing power across the portfolio are now translating into the largest leasing commitments in datacenter history.

Speaker #5: And as most of you know , the fourth quarter is historically our strongest quarter . Finally , and this is the most important story of the quarter , the relevance and strategic value of our power bank was on full display .

I talked about it last quarter.

Having a power bank that is ready to go for our customers.

Is comparative advantage.

Let me put this quarter's performance in a broader context.

Speaker #5: We saw record data center leasing activity across our portfolio that will build and accrue significant value for you . Our investors , over time .

Continued financial performance and capital formation that advances us towards exceeding our full year objectives.

But what makes this quarter truly distinctive as our.

Speaker #5: Our portfolio company , Vantage Data Centers , announced the Frontier Mega campus in Texas , a $25 billion , 1.4GW development serving the leading AI infrastructure build out .

Our strategic positioning around power is creating differentiated outcomes at the portfolio level.

For years, we've talked about the importance of power as the critical constraint in the AI era.

Speaker #5: This was followed up by a second campus dubbed lighthouse , in Wisconsin , a $15 billion plus development to support the expanding open AI and Oracle Stargate project .

Today, we're seeing that thesis play out in real time, and digital bridge is leading from the front.

Page please.

As I referenced year to date capital formation of $4 1 billion positions the firm to surpass our financial targets.

Speaker #5: These landmark transactions demonstrate that our years of securing power across the portfolio are now translating into the largest leasing commitments in data center history .

We achieved our 40 billion fee them target one quarter ahead of schedule, reaching.

Reaching 47 billion as of the third quarter.

Speaker #5: I talked about it last quarter , having a power bank that is ready to go for our customers is comparative advantage . Let me put this quarter's performance in a broader context .

This milestone that reflects both the strength of demand for digital infrastructure.

The execution capabilities of the digital bridge global platform.

Speaker #5: Continued financial performance and capital formation that advances us towards exceeding our full year objectives . But what makes this quarter truly distinctive is how our strategic positioning around power is creating differentiated outcomes at the portfolio level .

The record fee them today translates directly into revenue and earnings growth.

We're seeing particular robust activity and co invest where third quarter fee rates continued to expand relative to historic levels up to 70 basis points in Q3.

I talked about this earlier this year and multiple quarters, we're very focused on expanding margins in our co investment program and we're getting it done that's the key we're executing.

Speaker #5: For years , we've talked about the importance of power as the critical constraint in the AI era . Today , we're seeing that thesis play out in real time and Digitalbridge is leading from the front .

We're finalizing our flagship strategy capital formation targeting over $7 billion in the next few weeks as we head into the end of the year. Our focus has pivoted to the second credit strategy, and our new offerings and power stabilized data centers and private wealth that'll drive our 2026 capital formation.

Speaker #5: Next page , please . As I referenced your today capital formation of 4.1 billion positions , the firm to surpass our financial targets .

Speaker #5: We achieved our 40 billion target one quarter ahead of schedule , reaching 40.7 billion as of the third quarter . This milestone that reflects both the strength of demand for digital infrastructure and the execution capabilities of the Digitalbridge global platform .

Having a new product pipeline that sets you up for success is really what it's about in terms of being an alternative asset manager, where we have a multi strategy platform.

Speaker #5: The record featured today translates directly into revenue and earnings growth . We're seeing particularly robust activity in Co-invest , where third quarter few rates continued to expand relative to historic levels up to 70 basis points in Q3 .

This is the full effect of digital bridge as a full alternative asset manager. This is on display for all of our investors as we push forward into 2026.

Next slide please.

Now I want to talk about a key component of.

Speaker #5: I talked about this earlier this year in multiple quarters . We're very focused on expanding margins in our co-investment program , and we're getting it done .

Of our private wealth strategy, the partnership we announced with Franklin Templeton in the third quarter to launch our first programmatic private wealth distribution channels.

Speaker #5: That's the key . We're executing . We're finalizing our flagship strategy , capital formation targeting over 7 billion in the next few weeks .

At its heart the partnership is about democratizing access to institutional quality differentiated digital and energy infrastructure investments that were previously reserved for institutions.

Speaker #5: As we head into the end of the year . Our focus has pivoted to the second credit strategy in our new offerings in power stabilized data centers and private wealth that will drive our 2026 capital formation .

Franklin Templeton's of one six trillion global investment leader and their CEO Jenny Johnson has prioritized this initiative.

As growing alternative investment portfolios.

Speaker #5: Having a new product pipeline that sets you up for success is really what it's about in terms of being an alternative asset manager , where we have a multi-strategy platform .

Importantly, Franklin Templeton or building a diversified open ended infrastructure solution that have the ability to invest across all infrastructures subsectors.

Speaker #5: This is the full effect of Digitalbridge as a full alternative asset manager . This is on display for all of our investors as we push forward into 2026 .

They intend to compete head on with the mainstream supermarket asset managers on.

On our side, we're bringing our 100 billion plus in assets under management and our position as the leading digital infrastructure specialist across Datacenters cell towers fiber networks digital energy and edge infrastructure.

Speaker #5: Next slide please . Now I want to talk about a key component of our private wealth strategy . The partnership we announced with Franklin Templeton in the third quarter to launch our first programmatic private wealth distribution channel .

We're partnering with our friends at Copenhagen infrastructure partner world's largest dedicated Greenfield energy fund manager with $37 billion of EM.

Speaker #5: At its heart , the partnership is about democratizing access to institutional quality , differentiated digital and energy infrastructure investments that were previously reserved for institutions .

And Actavis backed by our friends at General Atlantic with their deep sustainable infrastructure expertise.

Speaker #5: Franklin Templeton is a 1.6 trillion global investment leader , and their CEO , Jenny Johnson , has prioritized this initiative as growing alternative investment portfolios .

And for their park Franklin will focus there a credit investor product on the mass affluent segment in the market a difficult segment to access without significant investment in sales infrastructure.

Speaker #5: Importantly , Franklin Templeton are building a diversified , open ended infrastructure solution that will have the ability to invest across all infrastructure subsectors .

They have a sales force of over 600 people.

Giving them strong distribution capabilities and reach.

The strategic rationale here is compelling together, we're focused on a massive investment opportunity.

Speaker #5: They intend to compete head on with the mainstream supermarket asset managers on our side . We're bringing our 100 billion plus in assets under management and our position as the leading digital infrastructure specialist across data centers , cell towers , fiber networks , digital energy and edge infrastructure .

Theres, a 94 trillion dollar global infrastructure need by 2040.

We're positioned at a pivotal inflection point is.

As AI electrification and connectivity mega trends accelerate infrastructure demand.

Now why does this matter for you our DIGIPASS shareholders look versus three reasons, one evergreen capital.

Speaker #5: We're partnering with our friends at Copenhagen Infrastructure Partner , the world's largest dedicated greenfield energy fund manager with 37 billion in Am and Actis backfire .

This is an incremental source of capital and feel that layers over time in a long duration structure.

Speaker #5: Friends at General Atlantic, with their deep, sustainable infrastructure expertise, and for their part, Franklin will focus their accredited investor product on the mass affluent segment in the market.

Second.

It's an earnings contributor.

<unk> revenues convert to fee related earnings as the platform scales.

Speaker #5: A difficult segment to access without significant investment in sales and infrastructure. They have a sales force of over 600 people, giving them strong distribution capabilities and reach. The strategic rationale here is compelling.

And then third.

Earlier carrier realization.

The potential private wealth carriers paid is accrued earlier than our traditional institutional structure.

This partnership launches exactly at the right time and it supports our strategy of building a multichannel approach to well sales.

Speaker #5: Together , we're focused on a massive investment opportunity . There's a $94 trillion global infrastructure need by 2040 . We're positioned at a pivotal inflection point as AI electrification and connectivity megatrends accelerate infrastructure demand .

It enables us to reach multiple client segments across the broader wealth universe.

There is a secular migration of wealth management allocations to private infrastructure. This is happening.

<unk> quality solutions were designed are meant to provide stable.

Speaker #5: Now , why does this matter for you ? Our digital shareholders . Look , first , it's three reasons . One , Evergreen Capital .

Ablation linked cash flows with resilience through economic cycles.

We're capturing what we believe is a massive opportunity and Franklin Templeton gives us distribution platform and private wealth client access to do it at scale and that's the key component that we're doing this at scale.

Speaker #5: This is an incremental source of capital and VM that layers over time in a long duration structure . Second , it's an earnings contributor fee revenues convert to fee related earnings as the platform scales .

Next slide please.

Let me bring this all together with what I believe is the defining characteristic of the Detroit portfolio today, our power bank.

Speaker #5: And then third earlier Carey realizations the potential private wealth carry is paid as accrued earlier than our traditional institutional structure . This partnership launches exactly at the right time , and it supports our strategy of building a multi-channel approach to wealth sales .

And to be credible and to be honest with our customers. Today. If you don't have a power bank you really can't have a conversation in terms of leasing megawatts in gigawatts.

Last quarter I highlighted this we have over 20 gigawatts of total secured power across our data center portfolio.

Speaker #5: It enables us to reach multiple client segments across the broader wealth universe. There's a secular migration of wealth management allocations to private infrastructure.

That's not a projection that's actual power that we can access.

Speaker #5: This is happening , and institutional quality solutions were designed are meant to provide stable , inflation linked cash flows with resilience through economic cycles .

That's critical to understand that this is not a hope dividend are something that we're trying to accomplish this is power that exists inside of existing land existing facilities existing campuses with our 11 existing platforms.

Speaker #5: We're capturing what we believe is a massive opportunity, and Franklin Templeton gives us a distribution platform and private wealth client access to do it at scale.

In the third quarter, we put that power bank to work and.

At least a record two six gigawatts across the <unk> portfolio.

Speaker #5: And that's the key component that we're doing this at scale . Next slide please . Let me bring this all together with what I believe is the defining characteristic of the portfolio .

To put that in perspective that represents one third.

Of total record U S hyperscale leasing for the quarter one third.

That's not market share that's market dominance and the most important segment of the datacenter Street today.

Speaker #5: Today . Our power bank . And to be credible and to be honest with our customers today , if you don't have a power bank , you really can't have a conversation in terms of leasing megawatts and gigawatts .

Here's what it means in practical terms when.

When the world's largest technology companies need to deploy a infrastructure at scale they come to our portfolio companies.

Speaker #5: Last quarter , I highlighted this . We have over 20GW of total secured power across our data center portfolio . That's not a projection .

They come because the portfolio of companies have a long track record of delivering for them.

Speaker #5: That's actual power that we can access . That's critical to understand that that this is not a hope dividend or something that we're trying to accomplish .

Because they've got the power.

And in today's environment powers everything.

You cannot build a one gigawatt AI campus without one gigawatt of power, it's just that simple.

Speaker #5: This is power that exists inside of existing land , existing facilities , existing campuses . With our 11 existing platforms . And the third quarter , we put that power bank to work and leased a record 2.6GW across the Digitalbridge portfolio .

Ultimately the two six gigawatts of third quarter leasing translates directly into new capital formation BRAF.

Fee revenues and carried interest and long term value creation.

These are decade, plus contracts with investment grade Counterparties.

Speaker #5: To put that in perspective , that represents one third of total record US hyperscale leasing for the quarter , one third . That's not market share .

The revenue visibility is exceptional and the returns are improving relative to what we underwrote when the power was originally sourced.

So as you think about digital bridge's positioning today.

Speaker #5: That's market dominance in the most important segment of the data center industry today. Here's what it means in practical terms: when the world's largest technology companies need to deploy AI infrastructure at scale, they come to our portfolio companies.

About it this way.

One we have the power to we have the platforms three we have the customer relationships and four we are executing.

That combination is creating outcomes very few firms in the world can deliver I would.

Speaker #5: They come because the portfolio companies have a long track record of delivering for them. And because they've got the power. And in today's environment, power is everything.

Argue we're actually the only firm that can deliver it on a global basis.

And we're only in the early innings of this cycle.

Speaker #5: You cannot build a one gigawatt AI campus without one gigawatt of power . It's just that simple . Ultimately , the 2.6GW of third quarter leasing translates directly into new capital formation fee revenues and carried interest and long term value creation .

Cannot be more excited about this development.

Again this has been set up this has been our conversation with you our investors for the last three quarters, how would we translate this 20 plus gigawatt power bank.

In two comparative advantage there.

Speaker #5: These are a decade plus contracts with investment grade counterparties . The revenue visibility is exceptional , and the returns are improving relative to what we underwrote when the power was originally sourced .

This is as easy as you can see it for investors today, we have the capability, we have the advantage and we're executing.

Next slide please.

Now, let me put the power bank into broader context of what we're building across the entire digital rich portfolio.

Speaker #5: So as you think about digital positioning today , think about it this way . One , we have the power . Two , we have the platforms .

Look across our 11 data center platforms, we're deploying significant capital to support the growth of the ecosystem.

Speaker #5: Three , we have the customer relationships . And four , we are executing that combination is creating outcomes that very few firms in the world can deliver .

On a truly global scale.

<unk> development from Hyperscale to private cloud to the edge.

Spanning North America, Europe, Asia Pacific and Latin America.

Speaker #5: I would argue we are actually the only firm that can deliver it on a global basis , and we're only in the early innings of this cycle .

And the key to this is it's a customer driven investment model following the logos, where the Hyperscale enterprise and cloud customers are demanding capacity.

Speaker #5: I cannot be more excited about this development . Again , this has been set up . This has been our conversation with you , our investors , for the last three quarters .

In North America switch vantage data bank and expedient are each scaling to meet differentiated customer segments.

Speaker #5: How would we translate this 20 plus gigawatt power bank into comparative advantage ? This is as easy as you can see it for investors today .

From the largest hyperscale AI workloads to enterprise edge computing.

Speaker #5: We have the capability . We have the advantage , and we're executing . Next slide please . Now let me put the power bank in broader context of what we're building across the entire Digitalbridge portfolio .

And Europe vantage of me and Yonder, our newest platform is building out critical capacity across multiple markets.

Manage Asia Pac in Ames or positioning for rapid growth in Asia Pacific by scholar continues to lead in Latin America, and Atlas edge is capturing the emerging opportunities at the intersection of connectivity and compute in Europe, where inferencing will come into full focus in the next decade.

Speaker #5: Look across our 11 data center platforms . We're deploying significant capital to support the growth of the AI ecosystem on a truly global scale .

Speaker #5: Catalyzing development from hyperscale to private cloud to the edge , spanning North America , Europe , Asia Pacific and Latin America . And the key to this is it's a customer driven investment model .

We have the products with every type of workload and.

And we have the products for every type of workload in every geography. This is by far the most unique and differentiated data center platform in the world.

Speaker #5: Following the logos to where the hyperscale enterprise and cloud customers are demanding capacity in North America switch Vantage Data Bank and expedient are each scaling to meet differentiated customer segments from the largest hyperscale AI workloads to enterprise edge computing in Europe .

What makes us powerful is the diversity.

And complimentary of these platforms, we're not a one product shop.

We have the right platform for Hyperscale GPU compute.

For private cloud workloads for enterprise co location.

Edge infrastructure and of course, now we move to inferencing.

Speaker #5: Vantage , EMEA and Yonder . Our newest platform is building out critical capacity across multiple markets vantage , Asia-pac and aims are positioning for rapid growth in Asia Pacific by Scala .

That breadth means we can serve the full spectrum of AI infrastructure demands.

And it means our customer relationship deepen as their core requirements evolve and that's what I Love I love evolving with customers just like we did 30 years ago, when we evolve with towers from analog to digital and to multiple different technologies over the last few decades.

Speaker #5: Continues to lead in Latin America and Atlas Edge is capturing the emerging opportunities at the intersection of connectivity and compute in Europe , were inferencing will come into full focus in the next decade .

We're capturing that same business model with our customers today in data centers.

Speaker #5: We have the products for every type of workload , and we have the products for every type of workload and every geography . This is by far the most unique and differentiated data center platform in the world .

The capital we're deploying across these platforms is measured in tens of billions of dollars over the next several years. It is directly tied to contracted customer demand and secured power positions.

Speaker #5: What makes this powerful is the diversity and complementary of these platforms . We're not a one product shop . We have the right platform for hyperscale GPU compute for private cloud workloads , for enterprise co-location , edge infrastructure , and of course , now we move to inferencing that breadth means we can serve the full spectrum of AI infrastructure demands .

This is <unk> competitive advantage at scale.

Global platform with local expertise backed by institutional.

<unk> capital.

Owing customer demand and enabled by our market leading power bank.

So with that exciting overview, let me turn over the call to Tom to walk you through the financial details and I'll come back later to wrap it up.

Tom.

Speaker #5: It means our customer relationships deepen as their core requirements evolve . And that's what I love . I love evolving with customers . Just like we did 30 years ago when we evolved with towers from analog to digital and to multiple different technologies .

Thanks, Mark and good morning, everyone.

As a quick reminder, the full earnings presentation is available within the shareholders section of our website.

As Mark discussed we had an exceptionally strong third corner supported by continued capital formation in our flagship fund series, which generates high margin catch up fees.

Speaker #5: Over the last few decades . We're capturing that same business model with our customers today in data centers , the capital we're deploying across these platforms is measured in tens of billions of dollars over the next several years .

Throughout my remarks, I will highlight the impact of these catch up fees in order to provide a baseline for our perspective performance. Once we complete the fund raise for our current flagship funds in the fourth corner.

Speaker #5: It's directly tied to contracted customer demand and secured power positions . This is digital competitive advantage at scale . A global platform with local expertise backed by institutional capital , following customer demand and enabled by our market leading power bank .

Starting with the financial highlights.

In the third quarter, we recorded $93 million of fee revenue, representing an increase of 22% over the third corner of 'twenty 'twenty four.

Our fee revenue this quarter benefited from the cumulative effect of organic growth and our flagship fund series and co investments over the last 12 months.

Speaker #5: So with that exciting overview , let me turn over the call to Tom to walk you through the financial details , and I'll come back later to wrap it up .

Speaker #5: Tom . Thanks , Mark .

$8 million contribution from catch up fees in the third quarter.

Speaker #6: And good morning , everyone . As a quick reminder , the full earnings presentation is available within the shareholders section of our website as Mark discussed , we had an exceptionally strong third quarter supported by continued capital formation in our flagship fund series , which generates high margin catch up fees throughout my remarks , I'll highlight the impact of these catch up fees in order to provide a baseline for our perspective performance .

This growth in fee revenue resulted in a $37 million of FRE in the corner.

An increase of 43% over Q3 of last year.

And putting us on track to hit or potentially exceed the top end of the range for our 2025 full year FRE guidance.

Excluding catch up fees FRE for the quarter would've been $29 million, an increase of 36% year over year.

Speaker #6: Once we complete the fundraise for our current flagship fund in the fourth quarter . Starting with the financial highlights in the third quarter , we recorded $93 million of fee revenue , representing an increase of 22% over the third quarter of 2020 .

Growth have already resulted in distributable earnings of $22 million for the corner, representing a doubling year over year.

As a corner and are available corporate cash was $173 million.

Providing material liquidity and flexibility for us as we continue to evaluate our capital structure and opportunities to invest and grow our business.

Speaker #6: For our fee revenue this quarter benefited from the cumulative effect of organic growth in our flagship fund series and Co-investments over the last 12 months , with $1 million contribution from ketchup fees in the third quarter .

We also currently holds $54 million of warehouse investments on our balance sheet to support the launch of new power and private wealth strategies, which we expect to recycle over the next year as we raise third party capital for these products.

Speaker #6: This growth in fee revenue resulted in $37 million of free in the quarter . An increase of 43% over Q3 of last year and putting us on track to hit or potentially exceed the top end of the range for our 2025 full year free guidance .

Moving to the next page fee, earning equity under management increased to $47 million as of September 30th representing a 19% increase from last year.

Speaker #6: Excluding catchup fees . Free for the quarter would have been $29 million , an increase of 36% year over year . Growth in free resulted distributable earnings of $22 million for the quarter , representing a double year over year .

This growth is primarily driven by capital formation and a D V P series and co investments.

As well as fees activated upon deployment, our previously raised capital.

We closed $1 6 billion in new fee, earning commitments during the quarter led by strong co investment activity and new commitments to our latest EVP flagship fund.

Speaker #6: As of quarter end , our available corporate cash was $173 million , providing material liquidity and flexibility for us as we continue to evaluate both our capital structure and opportunities to invest in and grow our business .

Turning to the next stage, which summarizes our non-GAAP financial results.

As mentioned earlier, we reported $93 million of fee revenue in the corner.

Speaker #6: We also currently hold $54 million of warehouse investments on our balance sheet to support the launch of new power and private wealth strategies , which we expect to recycle over the next year .

Representing growth of 22% over the same corner in the prior year.

Our LTM FRE margin was 38% as of the third quarter.

Speaker #6: As we raise third party capital for these products . in earning equity under management increased to $40.7 billion as of September 30th , representing a 19% increase from last year .

We expect FRE margins to remain elevated through the final close of our flagship fund in the fourth quarter of 2025 supported by the continued contribution from catch up fees.

Moving to the next page, which summarizes our carried interest and principal investment income.

Speaker #6: This growth is primarily driven by capital formation in the DVP series and Co-investments , as well as fees activated upon deployment of previously raised capital .

We reported a $20 million reversal of carried interest during the quarter.

As a reminder, the company accrued carried interest based on quarterly changes in the fair value of our fund investments.

Speaker #6: We closed $1.6 billion in new fee-earning commitments during the quarter, led by strong co-investment activity and new commitments to our latest DVP flagship fund.

As discussed previously many of our vehicles are in the early to middle stages of their lifecycle and not fully worked their way through the J curve to be entirely clear of the preferred return.

Speaker #6: Turning to the next page , which summarizes our non-GAAP financial results . As mentioned earlier , we reported $93 million of fee revenue in the quarter , representing growth of 22% over the same quarter in the prior year .

So at this point in our lifecycle small changes in the fair value of the fund assets and have an outsized impact on the quarterly accrued carried interest that we report.

Including causing reversals as we've seen this corner and periods when the appreciation in the portfolio does not exceed the preferred return hurdle for the quarter.

Speaker #6: Our LTM free margin was 38% as of the third quarter. We expect free margins to remain elevated through the final close of our flagship fund in the fourth quarter of 2025, supported by the continued contribution from Ketchups.

As we've discussed in prior quarters carried interest compensation expense tracks. These changes and therefore, there was a commensurate reversal of a portion of the unrealized carried interest compensation this corner.

Speaker #6: Moving to the next page, which summarizes our carried interest and principal investment income. We reported a $20 million reversal of carried interest during the quarter.

Okay.

Principal investment income, which represents the mark to market on the company's GP investments in our various funds was $25 million.

Speaker #6: As a reminder , the company accrues carried interest based on quarterly changes in the fair value of our fund investments . As discussed previously , many of our vehicles are in the early to middle stages of their lifecycle and have not fully worked their way through the j-curve to be entirely clear of the preferred return .

Turning to the next page. This chart continues to highlight the stability and consistency in growth both in revenues and margins that we've experienced over the last two years.

We've included this quarter FRE metrics, both gross and net of catch up fees given the more meaningful contribution from catch up fees. This year as we close out the fundraising period for our most recent DCP fund.

Speaker #6: So at this point in their lifecycle , small changes in the fair value of the fund assets can have an outsized impact on the quarterly accrued carried interest that we report , including causing reversals .

LTM margin, excluding catch up fees has grown to 33% as of September 30.

Speaker #6: As we've seen this quarter , in periods when the appreciation in the portfolio does not exceed the preferred return hurdle for the quarter .

This quarter, we saw $1 1 billion of fee them in front of US a significant portion of which was related to the activation of fees and previously ran cognizant capital.

Speaker #6: As we've discussed in prior quarters , carried interest compensation expense tracks . These changes and therefore there was a commensurate reversal of a portion of the unrealized carried interest compensation this quarter .

These inflows were partially offset by approximately $100 million in outflows.

Finally, the company continues to maintain a strong balance sheet with approximately $1 7 billion of corporate assets, largely reflecting our material investments alongside our limited partners and available corporate cash.

Speaker #6: Principal investment income , which represents the mark to market on the company's GBP investments in our various funds , was $25 million . Turning to the next page .

Speaker #6: This chart continues to highlight the stability and consistency in growth , both in revenues and margin , that we've experienced over the last two years .

We're pleased with our results through the first three quarters of the year and we're very excited about the opportunity set that we see ahead of us both in our core business and some of the new initiatives that we're working on with that I'll turn the call back over to Mark.

Speaker #6: We've included this quarter for metrics both gross and net of catch up fees . Given the more meaningful contribution from ketchup fees this year , as we close out the fundraising period for our most recent DVP fund LTM margin , excluding ketchup fees , has grown to 33% as of September 30th .

Thanks, Tom.

Now I want to shift gears and talk about our investment activity and how we're creating value of our portfolio of companies.

As a reminder of the framework, we outlined last quarter.

Our competitive advantage is built on a three decade operational framework that delivers repeatable value creation.

Speaker #6: This quarter , we saw $1.1 billion of inflows , a significant portion of which was related to the activation of fees on previously raised co-investment capital .

The Desert Ridge development model has three phases.

Phase one <unk>.

We established platforms, we've got great Ceos, we build great companies, we identify and acquire the right platform.

Speaker #6: These inflows were partially offset by approximately $100 million of outflows . Finally , the company continues to maintain a strong balance sheet with approximately 1.7 billion of corporate assets , largely reflecting our material investments alongside our limited partners and available corporate cash .

And the team to capitalize on unique digital infrastructure opportunities.

This is about pairing capital.

And operating expertise with the right strategic business plan around both Greenfield development and strategic M&A.

Speaker #6: We're pleased with our results through the first three quarters of the year , and we're very excited about the opportunity set that we see ahead of us , both in our core business and some of the new initiatives that we're working on .

You've heard me call before this is the build and buy.

We moved to the second phase, which is about transforming and scaling.

Once we have that platform, we have the right team.

Speaker #6: With that , I'll turn the call back over to Mark .

We execute operational transformation to improve margins.

Speaker #5: Thanks , John . Now , I want to shift gears and talk about our investment activity and how we're creating value to our portfolio companies .

Grow the business and scaled efficient.

And then phase III all the logos.

Speaker #5: As a reminder of the framework we outlined last quarter, our competitive advantage is built on a three-decade operational framework that delivers repeatable value creation.

This is our customer driven investment framework.

We allocate capital and resources to support network growth, where our customers are demanding that capacity.

We don't build datacenters or cell towers or fiber networks on spec never have I haven't done it in 32 years, we wouldnt start now.

Speaker #5: The digital development model has three phases . Phase one , we establish platforms . We backed great CEOs . We build great companies .

We follow the logos, we go to where Microsoft Oracle any of the Hyperscale are telling us they need capacity and we show up for that.

Speaker #5: We identify and acquire the right platform and the team to capitalize on unique digital infrastructure opportunities . This is about pairing capital and operating expertise with the right strategic business plan around both greenfield development and strategic M&A .

With strong intention and execution.

This framework has delivered repeatable value creation for three decades.

It's driving the results Youre seeing advantage databank switch and our other platforms today.

Speaker #5: You've heard me call it before . This is the build and buy . We move to the second phase , which is about transforming and scaling .

Applying this playbook consistently and it works it's worked for a long time now.

Speaker #5: Once we have that platform , we have the right team . We execute operational transformation to improve margins , grow the business and scale efficiently .

Let me take you through several new initiatives and transactions that demonstrate this model in action next slide please.

Speaker #5: And then phase three follow the logos . This is our customer driven investment framework . We allocate capital and resources to support network growth where our customers are demanding that capacity .

In September we announced that GIC and audio both existing vantage partners are investing $1 6 billion to scale Vantage Asia Pacific platform to one gigawatt of capacity.

Speaker #5: We don't build data centers, cell towers, or fiber networks on spec. Never have, and we haven't done it in 32 years. We wouldn't start now.

This investment supports the Joe Whore campus acquisition and.

And broader regional expansion across five markets.

So let me unpack that for you and why it really matters.

Speaker #5: We follow the logos. We go to where Microsoft or Oracle, any of the hyperscalers, are telling us they need capacity, and we show up for them with strong intention and execution.

Singapore used to be a traditional data center hub in South East Asia.

But land power and regulatory constraints.

It led to a moratorium at one point.

And that leads to limited growth.

Speaker #5: This framework has delivered repeatable value creation for three decades , and it's what's driving the results you're seeing . Advantage databank , switch and our other platforms today .

Now along comes Joe Horton just across the border in Malaysia as emerge as a natural overflow market.

<unk> like we executed that strategy in Reno, Nevada, when it became clear to us that Santa Clara had the same type of issues.

Speaker #5: We've been applying this playbook consistently and it works . It's worked for a long time now . Let me take you through several new initiatives and transactions that demonstrate this model in action .

So.

It offers lower cost proximity to Singapore less than one millisecond and dark fiber connectivity to the Singapore hub. So from a customer's perspective, it functions almost like an extension of Singapore, but with better economics and available power.

Speaker #5: Next slide please . In September , we announced that GIC and both existing Vantage Partners are investing 1.6 billion to scale Vantage Asia Pacific platform to one gigawatt of capacity .

It sounds really familiar doesn't isn't exactly what we did with switch in Reno.

Speaker #5: This investment supports the Johor campus acquisition and broader regional expansion across five markets . So let me unpack that for you and why it really matters .

Today over one eight gigawatts of compute available for our customers in Reno.

We're running that same playbook here and Joe Hart.

Speaker #5: Singapore used to be a traditional data center hub in Southeast Asia , but land power and regulatory constraints have led to a moratorium at one point .

The APAC datacenter market is growing at double digit growth rates is expected to reach $77 billion by 2030.

72% of organizations tied their data strategy directly to AI initiatives, which means the demand for data center capacity in the region is only going to accelerate.

Speaker #5: And that leads to limited growth . Now , along comes Johor , just across the border in Malaysia has emerged as a natural overflow market , much like we executed that strategy in Reno , Nevada when it became clear to us that Santa Clara had the same type of issues .

So again using the same playbook, we brought in new leadership last year to position the region for growth journey.

Jeremy George joined as the President of APAC in October 2024.

Speaker #5: So it offers lower cost proximity to Singapore , less than one millisecond , and dark fiber connectivity to the Singapore hub . So from a customer's perspective , it functions almost like an extension of Singapore .

He previously served as the president of APAC at Equinix and organization that we have a lot of respect for with.

With over 20 years of operating experience.

Spaniard Equinix in a five countries. During his tenure and was the inaugural chair of the Asia Pacific Datacenter Association, Jeremy is exactly the kind of World class, Operator, I love partnering with and I'm looking forward to building this platform with him he's doing a great job for us.

Speaker #5: But with better economics and available power . This sounds really familiar , doesn't it ? This is exactly what we did with Switch and Reno , where we have today over 1.8GW of compute available for our customers in Reno .

Speaker #5: We're running that same playbook here in Johor . The APAC data center market is growing at double digit growth rates and is expected to reach 77 billion by 2030 , 72% of organizations tie their data strategy directly to AI initiatives , which means the demand for data center capacity in the region is only going to accelerate .

The strategic growth drivers here are clear, Singapore spillover demand creates a natural customer base.

Fuel demand is accelerating across the region, we're positioned with the right platform. The right leadership, the right capital partners and GIC in audio.

The investment is expected to close in the fourth quarter of 2025 and it represents another example of how we're following the logos in the key markets.

Speaker #5: So again , using the same playbook , we brought in new leadership last year to position the region for growth . Jeremy Deutsch joined as the president of APAC in October 2024 .

Not only are Joe horn, but of course, Kuala Lumpur, Melbourne Sydney.

These are the growth markets for AI in Asia, our hyperscale customers are telling us they need capacity in the region.

Speaker #5: He previously served as the president of APAC at Equinix , an organization that we have a lot of respect for . With over 20 years of operating experience .

And we're getting ready to set to deliver it to that at scale.

Speaker #5: He expanded Equinix into five countries during his tenure and was the inaugural chair of the Asia Pacific Data Center Association . Jeremy is exactly the kind of world class operator I love partnering with , and I'm looking forward to building this platform with him .

Next slide please.

So let me talk about two landmark developments that demonstrate the power of our strategic positioning.

Vantages frontier and lighthouse Mega campuses, representing a combined 40 billion investment.

Speaker #5: He's doing a great job for us . The strategic growth drivers here are clear . Singapore spillover demand creates a natural customer base .

Number 2.4, gigawatts of GPU compute capacity.

What you're seeing here in <unk> backing the build out of an entirely new generation of compute infrastructure.

Speaker #5: AI fuel demand is accelerating across the region , and we're positioned with the right platform , the right leadership , the right capital partners and GIC and India .

Yeah Revolution requires fundamentally different infrastructure, what the Clowder demanded.

Speaker #5: The investments expected to close in the fourth quarter of 2025 . And it represents another example of how we're following the logos in the key markets , not only in Johor , but of course , Kuala Lumpur , Melbourne , Sydney , Osaka .

Our power density differ.

Different cooling technologies, most importantly access to power at Giga scale.

These campuses represent our response to that transformation.

Both are long term contracted pre.

Pre leased facilities not speculative development.

Speaker #5: These are the growth markets for AI in Asia . Our hyperscale customers are telling us they need capacity in the region , and we're getting ready to set to deliver to that at scale .

We have long term commitments from Oracle open AI and leading cloud providers.

The revenue visibility is exceptional the returns are attractive and the.

Speaker #5: Next slide, please. So let me talk about two landmark developments that demonstrate the power of our strategic positioning: the Managed Frontier and Lighthouse mega campuses, representing a combined $40 billion investment in over 2.4 GW of GPU compute capacity.

Strategic importance to our customers is undeniable this.

This is did originate willing the infrastructure backbone for the most advanced AI workloads in the world.

Frontiers in Texas, 25 billion across 1200 acres and Shackleford County.

<unk> one four gigawatts of ultra high density racks, supporting 250 kilowatts and above.

Speaker #5: What you're seeing here in Digitalbridge backing the build out of an entirely new generation of compute infrastructure , the AI revolution requires fundamentally different infrastructure , and what the cloud are demanded .

Lighthouse of Northern Wisconsin represents 15 billion delivering one gigawatt.

With potential for more with the Star Gate program distinguished by the development of new renewable capacity.

Speaker #5: Higher power density , different cooling technologies , and most importantly , access to power at giga scale . These campuses represent our response to that transformation .

The largest behind the meter renewable commitment in the United States today.

Together these projects create over 9000 jobs represents billions in regional economic impact, but more importantly to our investors.

Speaker #5: Both are long term contracted release facilities , not speculative development . We have long term commitments from Oracle , OpenAI and leading cloud providers .

To demonstrate the Digirad has the capital expertise.

Customer relationships and the power positions to support infrastructure development at scale with very few platforms in the world can match.

Speaker #5: The revenue visibility is exceptional. The returns are attractive, and the strategic importance to our customers is undeniable. This is enabling the infrastructure backbone for the most advanced AI workloads in the world.

Construction is underway with the first deliverables beginning in the second half of 2026.

These are mission critical facilities for some of the most important AI initiatives in the world. They.

Speaker #5: Frontiers in Texas 25 billion across 1200 acres in Shackelford County , delivering 1.4GW of ultra high density racks supporting 250kW and above lighthouse up north in Wisconsin , represents 15 billion , delivering one gigawatt with potential for more for the Stargate program , distinguished by the development of new renewable capacity .

They validate our thesis that controlling power and.

And backing World class operators creates.

Differentiation.

And creates value in the area.

We're very excited about these two developments and it really catalyze there's a lot of hard work.

Gratulation sits around the team advantage next slide please.

Speaker #5: The largest behind the meter renewable commitment in the United States today . Together , these projects create over 9000 jobs , represents billions in regional economic impact , but more importantly to our investors , they demonstrate the digital which has the capital , the expertise , the customer relationships and the power positions to support infrastructure development at scale that very few platforms in the world can match .

So what's your frontier lighthouse means for <unk> shareholders, well, let me spell it out because this is where the value creation happens first higher fee co invest.

<unk> development economics of these projects enabled us to raise additional co invest capital at advantage fee rates were.

We're deploying in activating that co invest capital S. P. M over the next two plus years, which means growing fee streams for the projects and for you our shareholders.

Speaker #5: Construction is underway with the first deliverables beginning in the second half of 2026 . These are mission critical facilities for some of the most important AI initiatives in the world .

Second.

Carried interest generation.

We're expected to create significant value through carried interest as these developments stabilize over the next three to five years.

Speaker #5: They validate our thesis that controlling power and backing world class operators creates differentiation and creates value in the AI area . We're very excited about these two developments , and it really catalyzes a lot of hard work .

Think about the math, we're investing in these project development yields they're going to stabilize at much higher valuations.

Depreciation flows is carried interest to <unk> and our shareholders over the next few years.

Speaker #5: Congratulations to the team at vantage . Next slide please . So what do Frontier and Lighthouse mean for shareholders ? Well let me spell it out because this is where the value creation happens .

Third developing our LP base.

These projects position our platform to attract institutional capital specifically targeting a infrastructure exposure.

This broadens our LP base beyond traditional infrastructure allocators to include technology focused investors sovereign wealth funds focused on AI and other pools of capital that are specifically interested in this sector that have not yet entered.

Speaker #5: First . Higher fee co-invest the attractive development economics of these projects enabled us to raise additional co-invest capital at advantaged fee rates . We're deploying an activating that co-invest capital as theme over the next two plus years , which means growing fee streams for the projects and for you .

Now, let me talk about the key strategic considerations.

Because that's what creates our competitive advantage.

First scale advantage off.

Speaker #5: Our shareholders . Second , carried interest generation . We're expected to create significant value through carried interest as these developments stabilize . Over the next 3 to 5 years , think about the math we're investing in these projects at development yields .

Operating in gigawatt scale generate structural advantages superior unit economics access to constraint power and exclusive positioning for multi gigawatt hyperscale requirements are.

Our customers cannot get this kind of scale from anybody else.

Speaker #5: They're going to stabilize at much higher valuation and appreciation flows as carried interest to DBG . And our shareholders . Over the next few years , third , developing our LP base , these projects position our platform to institutional capital , specifically targeting AI infrastructure exposure .

Second premium workloads. These campuses are built for the most advanced AI applications.

That means higher average pricing in investment grade Hyperscale counterpart.

This is the best risk adjusted business you can do in real estate today.

Third power differentiation.

Distributed power delivery at scale is a critical advantage.

Speaker #5: This broadens our LP base beyond traditional infrastructure allocators to include technology focused investors , sovereign wealth funds focused on AI and other pools of capital that are specifically interested in the sector that have not yet entered .

Frontier represents the largest behind the meter power developer in the United States today that didn't happen by accident.

That happened because we've been working on power for years, we've talked about in our last earnings call. The power of our partnership with Arclight, our digital power strategy.

Speaker #5: Now , let me talk about the key strategic considerations , because that's what creates our competitive advantage . First , scale advantage operating in gigawatt scale generates structural advantages .

What we're doing to ultimately put power back into the grid and baseless.

Together these $40 billion developments represent watershed investments for vantage.

Speaker #5: Superior unit economics access to constrained power and exclusive positioning for multi gigawatt hyperscale requirements . Our customers cannot get this kind of scale from anybody else .

And for digital rich they deliver unprecedented scale for the build out of cornerstone AI hubs, serving hyperscale demand and they demonstrate better than anything.

Speaker #5: Second , premium workloads . These campuses are built for the most advanced AI applications . That means higher average pricing and investment grade hyperscale counterparties .

I can say in our prepared remark about our power bank strategy is working I don't need to talk about it. This is the evidence this is on display.

Speaker #5: This is the best risk adjusted business you can do in real estate today . Third , power differentiation , distributed power Delivery Scale is our critical advantage .

Next slide please.

So let me close by putting it altogether.

In terms of our context for our 2025 priorities and where we stand heading into the final quarter of the year.

Speaker #5: Frontier represents the largest behind the meter power development in the United States today . That didn't happen by accident . That happened because we've been working on power for years .

And what we delivered year to date, we're achieving organic growth with management revenue and fee related earnings both up 20% year over year.

Speaker #5: We talked about it in our last earnings call . The power of our partnership with Arclight , our digital power strategy , and what we're doing to ultimately power back into the grid in baseload .

Even excluding the impact of catch up fees.

We achieved our <unk> target one quarter early.

Beating our 2025 target in the third quarter.

We're tracking to meet or exceed our 2025 metrics on FRE margins.

Speaker #5: Together , these $40 billion developments represent watershed investments for vantage . And for Digitalbridge . They deliver unprecedented scale for the build out of cornerstone AI hubs serving hyperscale demand .

We launched new investment strategies and channels, specifically, our programmatic private wealth strategy at Franklin Templeton.

Continued to maintain a strong balance sheet and liquidity with over $170 million in corporate cash and a growing asset base.

Speaker #5: And they demonstrate better than anything I could say in a prepared remark about our power bank strategy is working . I don't need to talk about it .

And we've delivered a breakthrough record leasing across our global data center portfolio with two six gigawatts in the third quarter and $40 billion in new development contract.

Speaker #5: This is the evidence . This is on display . Next slide please . So let me close by putting it all together in terms of our context for our 2025 priorities and where we stand heading into the final quarter of the year and what we delivered year to date .

Looking ahead towards your priorities for the fourth quarter again, we're focused on delivering and exceeding our 2025 financial metrics.

FRE, achieving or exceeding our guidance.

Speaker #5: We're achieving organic growth with management revenue . And related earnings , both up 20% year over year . Even excluding the impact of catch up fees , we achieved our target one quarter early , exceeding our 2025 target in the third quarter , and we're tracking to meet or exceed our 2025 metrics on free and margins .

We're formally launching our new general energy and stabilized data center strategies and were working to secure initial anchor commitments for one or both.

We're building on our early private wealth momentum with targeted asset specific investment opportunities and we continue to evaluate strategic accretive M&A opportunities centered on adjacent asset managers.

Speaker #5: We launched new investment strategies and channels , specifically our programmatic private wealth strategy of Franklin Templeton . We've continued to maintain a strong balance sheet and liquidity with over $170 million in corporate cash and a growing asset base .

So let me wrap it up with a final thoughts before we go into Q&A.

This has been an exceptional quarter for Digirad bridge, what it changing your mix from where we were a year ago in terms of our inability to meet our guidance for where we are today, which is to be to be honest, a little bit on the front foot versus our backward yes.

Speaker #5: And we delivered breakthrough record leasing across our global data center portfolio with 2.6GW in the third quarter and $40 billion in new development , contracted .

Yes, we delivered the strong financial results, but this is beyond the numbers you have to look through what we're doing here.

Speaker #5: Looking ahead to our year end priorities for the fourth quarter . Again , we're focused on delivering and exceeding our 2025 financial metrics with free achieving or exceeding our guidance .

The quarter really proves out.

My strategic positioning around power.

And AI infrastructure and what it's doing is it's creating real substantial differentiated value for our portfolio their customers and our investor base.

Speaker #5: We're formally launching our new digital energy and Stabilized Data Center strategies, and we're working to secure initial anchor commitments for one or both.

Vantage announcements frontier and lighthouse represent over $40 billion of committed developments.

Speaker #5: We're building on our early private wealth momentum with targeted asset specific investment opportunities , and we continue to evaluate strategic , accretive M&A opportunities centered on adjacent asset managers .

These are not speculative projects. These are contracted pre leased facilities with the world's leading technology companies.

They are generating fee streams today.

Speaker #5: So let me wrap it up with a final thoughts before we go into Q&A . This has been an exceptional quarter for Digitalbridge .

Generate carried interest tomorrow.

And they will demonstrate that we are having and we've created capabilities that cannot be replicated.

Speaker #5: What a change a year makes from where we were a year ago . In terms of our inability to meet our guidance to where we are today , which is to be , to be honest , a little bit on the front foot versus our back foot .

The Franklin Templeton partnership opens up a new distribution channel.

Evergreen capital.

APAC investment positions us to be one of the fastest growing global data center markets, where we can grow in Asia Pacific with our key customers.

Speaker #5: Yes , we delivered the strong financial results , but this is beyond the numbers . You have to look through what we're doing here .

Look I've been in this business for three decades and I've seen.

Speaker #5: The quarter really proves out my strategic positioning around power and AI infrastructure , and what it's doing is it's creating real , substantial , differentiated value for our portfolio .

I've never seen a more compelling structural advantage in controlling power in the a era.

The demand is massive.

The supply is constrained.

Speaker #5: Their customers and our investor base . Vantage announcements , frontier and lighthouse represent a $40 billion of committed developments . These are not speculative projects .

And we're positioned better than anyone in the world to capitalize on this dynamic.

The value that will accrue to our shareholders from this positioning over the next five to 10 years will be substantial.

Speaker #5: These are contracted pre-release facilities with the world's leading technology companies. They're generating fee streams today. They'll generate carried interest tomorrow, and they will demonstrate that we are having, and we've created capabilities that cannot be replicated.

And I want to preface this by saying we're literally in the early innings.

So, let's wrap it up super simple quarter strong financial performance.

Record leasing driven by our power bank advantage.

Continued capital formation momentum.

Speaker #5: The Franklin Templeton Partnership opens up a new distribution channel to Evergreen Capital , the APAC investment positions us to be one of the fastest growing global data center markets , where we can grow in Asia Pacific with our key customers .

Strategic expansion of our distribution channels and.

And a clear path.

Delivering on our long term value objectives.

We're executing our plan.

Excited about what's ahead and I look forward to updating you on our continued progress so with that let's open up the line for questions. Thank you very much.

Speaker #5: Look , I've been in this business for three decades , and I've seen and I've never seen a more compelling structural advantage than controlling power in the era .

Thank you we will now be conducting a question and answer session.

Speaker #5: The demand is massive . The supply is constrained , and we're positioned better than anyone in the world to capitalize on this dynamic .

To ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate that your line is in the question queue. You May Press Star two if you would like to remove your question from the queue.

Speaker #5: The value that will accrue to our shareholders from this positioning over the next 5 to 10 years will be substantial . And I want to preface this by saying we're literally in the early innings .

Vince using speaker equipment, it may be necessary to pick up your handset before pressing the star keys, one moment, please while we poll for questions.

Speaker #5: So let's wrap it up . Super simple , quarter strong financial performance , record leasing driven by our power bank advantage , continued capital formation momentum , strategic expansion of our distribution channels , and a clear path to delivering on our long term value objectives .

Our first question comes from Michael <unk> TD Cowen. Please proceed with your question.

Great. Thanks for taking the questions and congrats to you and the team, including cereal, although massively figure in the quarter great job in the past Marc you've talked about $1.55 a share count interest forever gigawatt of datacenter leasing can you just help us understand when in the lifecycle of the data center that unrealized carried interest was recognized.

Speaker #5: We're executing our plan . I'm excited about what's ahead . And I look forward to updating you on our continued progress . So with that , let's open up the line for questions .

Speaker #5: Thank you very much .

Lease stores that what it can deliver and then also I'm seeing more of these gigawatt scale deals on the market I'm curious if you think of your power back how would you describe your ability to take on more of these massive projects. Thanks.

Speaker #3: Thank you . We will now be conducting a question and answer session . If you would like to ask a question , please press star one on your telephone keypad .

Speaker #3: A confirmation tone will indicate that your line is in the question queue . You may press star two . If you would like to remove your question from the queue .

Yeah. Good morning, Michael Thank you.

Speaker #3: For participants using speaker equipment , it may be necessary to pick up your handset before pressing the star keys . One moment please , while we pull for questions .

Let's let's let's start with the last part of your question then will come around to the front part.

These gigawatt projects are really tough Michael and.

Speaker #3: Our first question comes from Michael Elias with TD . Please proceed with your question .

I don't think youre going to see tons and tons of them going forward I think youre going to see more more workloads kind of in that $3 50 to 800 megawatt more bespoke a bit more tailored.

Speaker #7: Great . Thanks for taking the questions and congrats to you and the team , including Cyril , on the massive leasing in the quarter .

Speaker #7: Great job in the past . Mark , you've talked about $1.55 a share in carried interest for every gigawatt of datacenter leasing . Can you just help us understand when the life of the data center that unrealized carried interest is recognized is that when it's leased , or is it when it's delivered ?

Building. These one plus gigawatt campuses are really really tough I think it's tough from a capital information perspective, I think it's tough from a resource perspective.

I think a lot of the big gigawatt campuses for L ends are being delivered now and will be delivered over the next three to five years because remember these things take about 24 to <unk>.

Speaker #7: And then also I'm seeing more of these gigawatt scale deals on the market . I'm curious , as you think of your power bank , how would you describe your ability to take on more of these massive projects ?

To 48 months to fully build them.

Speaker #7: Thanks .

What we are seeing an uptake in is in across all of our portfolio.

Speaker #5: Yeah . Good morning Michael . Thank you . Let's , let's let's start with the last part of your question . Then we'll come around to the to the front part .

Is this what I would call kind of 250 megawatt to 500 megawatt workloads.

Our sales funnel is has gotten a lot bigger in this quarter, we have over seven gigawatt sale funnel right now.

Speaker #5: These gigawatt projects are really tough , Michael . And you know , I don't think you're going to see tons and tons of them going forward .

And so when you when you deliver too when you leased two six gigawatts in the quarter and your sales funnel grows by seven.

Speaker #5: I think you're going to see more more workloads kind of in that . 350 to 800 megawatt more bespoke , a bit more tailored .

You, obviously, you can start putting that math together that theres a lot of big <unk>.

Speaker #5: I think building these OnePlus gigawatt campuses are really , really tough . I think it's tough from a capital formation perspective . I think it's tough from a resource perspective .

Trunking deals sitting in the pipeline so our pipeline has gotten bigger.

We delivered over a third of the leasing for the industry in terms of actual power delivered against our power Bank.

Speaker #5: And I think a lot of the big , you know , gigawatt campuses for LMS are being delivered now and will be delivered over the next 3 to 5 years , because remember , these things take about 24 to , you know , to 48 months to fully build them .

Was actually delivered by the industry, we probably delivered about 50% of actual delivery capacity in the quarter. So these these metrics are important because we keep talking about the power bank and that 21 gigawatts of power and so reaching another $2 six delivering another two I mean this is hard to do but again when you start.

Speaker #5: What we are seeing an uptake in is in across all of our portfolio . Is this what I would call kind of 250 megawatt to , to sort of 500 megawatt workloads , you know , our sales funnel is has gotten a lot bigger in this quarter .

We started over 10 years ago in doing this and so we've been able to really keep our pipeline moving and keep our delivery schedules moving and Thats whats, giving us massive comparative advantage. So I think youll see other really good quarters for us from a leasing perspective, I, just think youre going to see more distributed compute.

Speaker #5: We have over a seven gigawatt sales funnel right now . And so when you when you deliver to , you know , when you lease 2.6GW in a quarter and your sales funnel grows by seven , you obviously you can start putting that math together , that there's a lot of big , you know , chunky deals sitting in the pipeline .

And as we move to Inferencing, I think youre going to see then youre going to see a whole generation of deals that are going to get done and that kind of 20% to 200 megawatt range, which will be in the sort of secondary markets, which follows what happened in public cloud and.

Speaker #5: So our pipeline has gotten bigger . We delivered over a third of the leasing for the industry in terms of actual power delivered against our power bank .

Speaker #5: You know , what was actually delivered by the industry . We probably delivered about 50% of actual delivered capacity in the quarter . So these these metrics are important because we keep talking about the power bank and that 21GW of power .

In printing will really kick in in kind of 27% through 2032, as we're still building kind of a big LLM. So.

Nothing kind of slows down.

Actually this quarter, we saw acceleration so kind of a third time I told you. This is here just when everyone thinks maybe there's a bit of a breather, we're not getting a breather.

Speaker #5: And so , you know , leasing another 2.6 , delivering another two I mean , this is hard to do . But again , when you start , you know , we started over ten years ago doing this .

Largely because we have this enormous power.

Power Bank at these 11 portfolio companies that allows us to keep going so.

Speaker #5: And so we've been able to really keep our pipeline moving and keep our delivery schedules moving . And that's what's giving us massive competitive advantage .

For example, later last year earlier this year, we were talking about some of the big deals that switch was doing now we're talking about some of the big deals advantage is doing.

Speaker #5: So I think you'll see , you know , other , you know , really good quarters from us from a leasing perspective . I just think you're going to see more distributed compute .

Next quarter may be we're talking about data banker yonder or Scala so.

Speaker #5: And as we move to inferencing , I think you're going to see then you're going to see a whole generation of deals that are going to get done in that kind of 20 to 200 megawatt range , which will be in the sort of secondary markets , which follows what happened in public cloud and will really kick in and kind of , you know , 27 through 20 , 32 as we're still building kind of big LMS .

We don't rely on one platform I think that's what makes us pretty unique and why investors need to own. Our stock is really simple because you don't have to hang your hat on one story and Theres a great look we have enormous respect for DLR and Equinix are great businesses, but those are you relying on one management team in Europe.

Speaker #5: So nothing kind of slows down . Actually , this quarter we saw acceleration . So kind of the third time I've told you this this year , just when everyone thinks maybe there's a bit of a breather , we're not getting a breather , largely because we have this enormous , you know , power bank at these 11 portfolio companies that allows us to keep going .

Relying on one pipeline.

When you buy our shares you got 11 teams crisscrossing the globe focused on different types of work was different types of customer requirements and most importantly different designs and different locations.

I like our best when you play with 11, guys on the field versus one and kind of gives you a really big leg up and so that's why when you're looking at this 21 gigawatts in the two six that we delivered theres nobody even close and AI data centers to <unk> right now we're playing the game, it's just a very different speed and at a very different scale in this.

Speaker #5: So , you know , for example , later last year , earlier this year , we were talking about some of the big deals that switch was doing .

Speaker #5: Now we're talking about some of the big deals , advantages , doing , you know , next quarter . Maybe we're talking about data Bank or yonder or Scala .

Speaker #5: So you know , we don't rely on one platform . I think that's what makes us pretty unique . And why investors need to own our stock is really simple because you don't have to hang your hat on .

Quarter really manifest in that and then we'll continue I think youll continue to see that out of US now to your question around carried interest around me.

About 55 per gigawatt.

Speaker #5: One story and there's a great , you know , look , we have enormous respect for for DLR and Equinix . Are great businesses , but those are you're relying on one management team and you're relying on one pipeline .

Do you realize that carry.

To fully realize that carry takes anywhere from three years to five years.

So.

Some of that carry is accrued when you get the entitlements and you get the power.

Speaker #5: When you buy our shares , you got 11 teams crisscrossing the globe focused on different types of workloads , different types of customer requirements , and most importantly , different designs and different locations .

Some of that carry gets accrued when you sign the lease some of that carry against accrued we can deliver the first data haul some of that carry gets approved and you deliver the final data Hall and then some of that carry while all that carry it gets realized if it ends up at the datacenter and that ends up getting purchased put into a continuation fun.

Speaker #5: I like our bets when you play it with 11 guys on the field versus one , it kind of gives you a really big leg up .

Speaker #5: And so that's why when you're looking at this 21GW in the 2.6 that we delivered , there's nobody even close in AI data centers to Digitalbridge right now , we're playing the game at just a very different speed .

Gets acquired as part of a portfolio deal and generally speaking our monetization and our DPI track record in data centers.

It goes back over four years ago, we started returning capital back to investors.

Speaker #5: And at a very different scale . And this quarter really manifested that . And it will continue . I think you'll continue to see that out of us .

Four or five years ago, where there was our our data bank continuation fun with life, whether it was the north American stabilized datacenter co. Our valkyrie the European stabilized data Center co. We've been a consistent return of capital to our investors, which then triggers carried interest now the problem with Databank advantage with those vehicles for <unk>.

Speaker #5: Now to your question around carried interest around the , you know , buck 55 per gigawatt , you know , how do you realize that carry to fully realize that carry takes anywhere from three years to five years .

Speaker #5: So you know , some of that carry is accrued when you get the entitlements and you get the power . Some of that carry gets accrued when you sign the lease .

Out of our funds and predated the colony merger. So now as we get these other companies growing up whether it's scholar whether its switch whether it's vantage Asia Pac. These are now vehicles that sit in our funds.

Speaker #5: Some of that carry gets accrued when you deliver the first data hall. Some of that carry gets accrued when you deliver the final data hall.

Speaker #5: And then some of that carry , well , all that carry gets realized . If it ends up , if the data center ends up getting purchased , put into a continuation fund , gets acquired as part of a portfolio deal , and generally speaking , our monetization and our DPI track record and data centers , you know , goes back over four years ago .

And as you know Michael roughly about 28% of the carry across our fund product sits with public investors. So the episodic nature of carried interest.

We deliver these new facilities don't accrue just to the management teams and now starts accruing a public shareholders. So all of this hard work that we're doing now.

Speaker #5: We started returning capital back to investors , you know , 4 or 5 years ago , whether it was our our data bank continuation fund with Swiss Life , whether it was the North American Stabilized Data Center , Co or Valkyrie , the European Stabilized Data Center Co , we've been a consistent returner of capital to our investors , which then triggers carried interest .

Brewing that carry we're building it but ultimately we anticipate in the next 24 to 36 months to start delivering that carried interest out to our shareholders. In the meantime, the math is holding up I think thats one of the key things that you can you can say with a straight face today is the arithmetic that we put in front of investors a year ago in terms of what a megawatt means what.

Speaker #5: Now the problem with data bank advantage was those vehicles were outside of our funds . And predated the colony merger . So now as we get these other companies growing up , whether it's scholar , whether it's switch , whether it's vantage , Asia-pac , these are now vehicles that sit in our funds .

A gigawatt means.

That flowed through to investors now is really quite clear.

Really helpful color Congrats again guys.

Thank you. Thank you we're very happy.

Speaker #5: And as you know , Michael , roughly about 28% of the carry across our fund products sits with public investors . So that episodic nature of carried as we deliver these new facilities don't accrue just to the management teams .

But not content.

Our next question comes from Jade Rahmani with <unk>. Please proceed with your question.

Thank you very much.

What's your overarching view on how the new data center projects achieve a stabilized capitalization given their size do you envision there.

Speaker #5: It now starts accruing to public shareholders . So all this hard work that we're doing now , we're accruing that carry , we're building it .

Speaker #5: But ultimately , you know , we anticipate in the next 24 to 36 months to interest start delivering that carried interest out to our shareholders .

It will be one long term by a combination perhaps of large REIT infrastructure funds and hyperscale or themselves.

Speaker #5: In the meantime , the math is holding up . I think that's one of the key things that you could you could say with a straight face today is the arithmetic that we put in front of investors .

It seems like the digital branch structuring expertise could provide solutions to that eventuality.

Speaker #5: A year ago in terms of what a megawatt means , what a gigawatt means that flow through to investors now is really quite clear .

Yes, Thanks, Greg.

Great Great to hear from you, but how are you.

Hmm.

Look we announced last quarter the formation of a strategy called the datacenter income fund.

Speaker #7: Really helpful color . Congrats again guys .

Speaker #5: Thank you . Thank you . We're very happy . But not content .

And now that strategy is in flight and we're having a.

A lot of great dialogue with with a new set of investors Jade that are different from our investors that we had before so remember in our flagship funds, we're talking to infrastructure allocators.

Speaker #3: Our next question comes from Jade Rahmani with KBW . Please proceed with your question .

Speaker #8: Thank you very much. What's your overarching view on how the new data center projects achieve stabilized capitalization, given their size?

We're sitting down on the diesel product you were talking to real estate Allocators. So for example last week was the pre conference in Boston.

Speaker #8: Do you envision they will be owned long term by a combination ? Perhaps , of large REITs , infrastructure funds and hyperscalers themselves ?

Our new head of capital formation to the decent product when your prices up there with Renault Marseilles, we had over 60 meetings of real estate investors.

And real estate investors are really eager to get allocation J. Two these amazing stabilized data centers that we have a deep pipeline and so we're excited about that because for us. It's an entirely new swim lane of capital every year Theres about three trillion dollars of capital that's allocated to real estate Jade.

Speaker #8: It seems like the digital bridge structuring expertise could provide solutions to that eventuality .

Speaker #5: Yeah . Thanks . Jade . Great . Great to hear from you , buddy . How are you ? Look , we we announced last quarter the formation of a strategy called the data Center Income Fund .

Bigger than the $1 seven trillion, that's allocated infrastructure. So when you think about swimming pools, that's actually a bigger swimming pool than we swim in today in terms of general infrastructure. So we get kind of excited about that and so real estate allocators today are looking at industrial properties are looking at shopping centers Theyre looking at downtown office buildings, which as you know we're kind of a.

Speaker #5: And now that strategy is in flight . And we're having , you know , a lot of great dialogue with with a new set of investors .

Speaker #5: Jade , that are different from our investors that we had before . So remember , in our flagship funds , we're talking to infrastructure allocators when we're sitting down on the product , Jade , we're talking to real estate allocators .

Is it tough asset class and along comes these 15 year investment grade data centers.

Speaker #5: So for example , last week was the pre conference in Boston . You know our new head of capital formation for the product Wendy Price is up there with Rommel .

Low incremental capex going forward the tenants really call you had some pretty hands off real estate products and most importantly, 95% of the cash flows that we're seeing are investment grade. So this is a really hot new development for us and so as we've launched that strategy and we're really delighted to bring Wendy on the team, we've got <unk> and John <unk>.

Speaker #5: Marcel . We had over 60 meetings with real estate investors and real estate investors are really eager to get allocation . Jade to these amazing stabilized data centers that we have a deep pipeline in .

Speaker #5: And so we're excited about that because for us , it's an entirely new swim lane of capital . Every year there's about $3 trillion of capital that's allocated to real estate .

Help running the strategy, we've got a big team working on it it's an entirely new opportunity for us.

Speaker #5: Jade . That's bigger than the 1.7 trillion that's allocated infrastructure . So if we think about swimming pools , that's actually a bigger swimming pool than we swim in today .

And it's a new set of investors and it's another way that we're growing our <unk> that we're growing our FRE and we're growing our AUM at the same time.

Speaker #5: In terms of general infrastructure . So we get kind of excited about that . And so real estate allocators today are looking at industrial properties .

And a discipline that we know incredibly well.

And we have the advantage we know all the developers out there we know all the other GPS that need liquidity and we're pretty we're pretty we're pretty excited about it. So I think the key to that is we do have the solution.

Speaker #5: So looking at shopping centers , they're looking at downtown office buildings , which as you know are kind of a is a tough asset class .

Speaker #5: And along comes these 15 year investment grade data centers , you know , low incremental CapEx going forward . The tenants rarely call you .

We do have the team we have the right pipeline of ideas and products and we've already identified the right set of investors and so everything is lining up to be really successful.

Speaker #5: It's a pretty hands-off real estate product. And, most importantly, 95% of the cash flows that we're seeing are investment grade.

Similar to kind of what we've done in digital power Jane a very similar type of approach very focused very surgical and not competing with what we're doing so as we look to the future.

Speaker #5: So this is a really hot new development for us . And so as we've launched that strategy and we're really delighted to bring Wendy on the team , we've got John and John .

Speaker #5: Mock help running the strategy . We got a big team working on it . It's an entirely new opportunity for us and it's a new set of investors and it's another way that we're growing our firm , that we're growing our free and we're growing our AUM .

2026 will be driven by this real estate products.

Our digital power strategy and private wealth, we've lined up three new products for next year and at the same time as you can see we'll always be in the market with some sort of co invest vehicle.

Speaker #5: At the same time , in a discipline that we know incredibly well and we have the advantage . We know all the developers out there .

So everything is setting up quite well for next year and we love the we love the product set.

Speaker #5: We know all the other GPS that need liquidity , and we're pretty , you know , we're pretty . We're pretty excited about it .

Thank you can you as a follow up give some insight into what fund outflows look like for D. V. P. One two and infra bridge.

Speaker #5: So I think the key to that is we do have the solution . We do have the team . We have the right pipeline of ideas and product .

Perhaps in 2026.

I'm sorry repeat the question again.

Speaker #5: And we've already identified the right set of investors . And so everything is lining up to be really successful , similar to kind of what we've done in digital power .

What do fund outflows look like for D. B P. One two and infra bridge in other words, how much legacy fund runoff should we expect in 2026.

Speaker #5: Jade , a very similar type of approach , very focused , very surgical and not competing with what we're doing . So as we look to the future , 2026 will be driven by this real estate product .

Yes, Thanks, Jade, we don't get into that exactly we don't give guidance specifically on how.

How we're realizing are monetizing assets I think as we monetize those assets, we'll report them in our normal cadence.

Speaker #5: Our digital power strategy and private wealth . We've lined up three new products for next year , and at the same time , as you can see , we'll we'll always be in the market with some sort of co-invest vehicle .

I think obviously.

Fund one is starting to tenure as its natural turning point, where you begin to think about monetization. So we're thinking through that pretty carefully and at the right time and the right speed.

Speaker #5: So everything is setting up quite well for next year . And we love the we love the product set .

Speaker #8: Thank you . Can you , as a follow up , give some insight into what fun outflows look like for DBP one two and infra bridge ?

Speed will do that.

Credit is constantly turning over that that turnover is loans.

Speaker #8: Perhaps in 2026 .

Loans typically have a 24 to 36 months lifespan. So as we're turning over loans in returning capital were booking new loans and the and the second fund and our SMA strategy and inform bridge continues to do exactly what we think it should do and in due course, we will continue to monetize the asset.

Speaker #5: I'm sorry . Repeat the question again .

Speaker #8: What do fund outflows look like for DBP one two and infra bridge ? In other words , how much legacy fund runoff should we expect in 2026 .

Speaker #5: Yeah . Thanks , Jade . We don't get into that . Exactly . We don't give guidance specifically on how we're realizing or monetizing assets .

And then for <unk> one.

And then as we look forward in the coming years, we'll look at it from Brazil, but again as we monetize stuff, we'll share that with you in the quarter.

Speaker #5: I think as we monetize those assets , we'll report them in our normal cadence . You know , I think obviously fund one is is starting to to near its , its natural turning point where you begin to think about monetization .

But all of those fund products are moving at the speed at which you would expect them to move and so we feel we feel good about the speed and the cadence at which we're delivering DPI.

Speaker #5: So we're thinking through that pretty carefully . And at the right time in the right speed . We'll do that . Credit is constantly turning over that that turnover is , you know , loans typically have a 24 to 36 month lifespan .

Okay. Thanks, a lot.

Our next question comes from Timothy.

D'agostino with B Riley Securities. Please proceed with your question.

Good morning, Thanks for taking the question.

On the Franklin Templeton strategic partnership in the deck you outline the 15 trillion dollars opportunity through 2024 2014, sorry.

With wealth management allocations to private infrastructure I was wondering if this strategic partnership is sort of a one time, one time partnership or if we could see more of these down the road.

Speaker #5: And , you know , in due course , we will continue to monetize assets in infra bridge . One . And then as we look forward in the coming years , we'll look at bridge two .

Speaker #5: But again , as we monetize stuff , we'll share that with you in the quarter . But all of those fund products are moving at the speed at which you'd expect them to move .

Certainly last the beginning of what you said could you repeat the beginning of your question. Thanks.

Okay, Yes, sorry.

Speaker #5: And so we feel we feel good about the speed and the cadence at which we're delivering DPI .

So it's not wealth management allocations to private infrastructure estimate at 15 trillion.

2040.

I was wondering if the Franklin Templeton strategic partnership is sort of a like a onetime thing or if we could see more partnerships like this down the road.

Speaker #8: Okay . Thanks a lot .

Speaker #3: Our next question comes from Timothy D'Agostino with B Riley Securities . Please proceed with your question .

Yes look I mean for for this particular product.

Alongside of Actavis and CIP and.

Speaker #9: Good morning . Thanks for taking the question on the Franklin Templeton Strategic Partnership in the deck . You outline the $15 trillion opportunity through 2024 2040 .

It's.

It's a strategy that they've launched on their platform.

We have other partners in private wealth, we did.

Speaker #9: Sorry . With wealth management allocations to private infrastructure , I was wondering if this strategic partnership is sort of a one time , one time partnership or if we could see more of these down the road .

A fantastic product offering last year with Goldman and was really successful it was.

Wildly oversubscribed, and we do intend to be on other platforms and have other partnerships.

That is something that.

Speaker #5: Sorry , we lost the beginning of what you said . Could you repeat the beginning of your question ? Thanks .

We will reveal in due course, but we are not exclusive nor limited just to the Franklin Templeton platform.

Speaker #9: Okay . Yeah , sure . Sorry . So with wealth management allocations to private infrastructure estimated at 15 trillion through 2040 , I was wondering if the Franklin Templeton Strategic Partnership is sort of like a one time thing , or if we could see more partnerships like this down the road ?

We are working with other allocators.

We agree with your arithmetic is the 15 trillion dollars opportunity, it's really big and Theres a lot of great partnerships to be had.

We're excited about it but for right now.

We love, what we're doing with Jenny and her team they're fantastic partners.

Speaker #5: Yeah . Look , I mean , for for this particular product alongside of actus and SIP and , you know , it's it's , it's a , a strategy that they've launched on their platform .

So far it's been a it's been a really successful launch so.

Great question, and we will reveal more next year, but right now my focus is supporting Franklin Templeton, and making sure that that product as well.

Speaker #5: We have other partners in private wealth . We did a fantastic product offering last year with Goldman that was really successful . It was wildly oversubscribed .

Wildly successful and oversubscribed.

Great and then as a quick follow up could you provide a little bit more color on the evergreen capital.

Speaker #5: And we do intend to be on other platforms and have other partnerships . That is something that , you know , we'll reveal in due course , but we are not exclusive nor limited just to the Franklin Templeton platform .

On the long term on the long duration, and then kind of what the structure is so attractive to you all.

Well look I think we have both types of structures across our product set. So we don't believe that you have to be all permanent capital nor do we believe you have to have.

Speaker #5: We are working with other allocators and and we agree with your arithmetic . It's a $15 trillion opportunity . It's really big and there's a lot of great partnerships to be had .

At 10, 11 year closed end funds.

Speaker #5: And you know , we're excited about it . But for right now we love what we're doing with with with Jenny and her team .

Mingled funds work well for certain allocators.

Particularly pension funds and other types of sovereign wealth funds, they like that because there's a finite end of what theyre doing I think other allocators.

Speaker #5: They're fantastic partners . And so far it's been a it's been a really successful launch . So great question . And and you know , we'll reveal more next year .

The open ended structure.

For example, like real estate investors said, something they are quite familiar with and private wealth clients. They are very familiar with that structure as well so.

Speaker #5: But right now my focus is supporting Franklin Templeton and making sure that that product is , you know , wildly successful and oversubscribed .

Our continuation funds the things that we're doing around.

Speaker #9: Great . And then as a quick follow up , could you provide a little bit more color on the evergreen Capital on the long term , on the long duration , and then kind of why the structure is so attractive to you ?

The real estate asset class the stuff, we're doing around private wealth can be open ended and be permanent in nature, and then our flagship vehicles tend to be closed and in nature, along with our digital power strategy that tends to be a.

Speaker #9: All ? Thanks .

Speaker #5: Well , look , I think , you know , we have both types of structures across our product set . So we don't believe that you have to be all permanent capital , nor do we believe you have to have , you know , ten , 11 year closed end funds , commingled funds work well for certain allocators , particularly pension funds and other types of sovereign wealth funds .

A strategy that you would would lend itself to being closed and so I think that the great thing about <unk> is that we're a multi strat platform.

We have multiple strategies.

Really focused on allocators, very specifically and then pairing that allocation with the right products the products that investors want.

Whether it's a data center platform of tower platform.

Speaker #5: They like that because there's a a finite end to what they're doing . I think other allocators , like the open ended structure , for example , like real estate investors , that's something they're quite familiar with .

On a stabilized asset and energy project, that's tethered to the AI economy. These are the things that investors really want today, and we have the right products and the right structures. So having that multi strategy capability is really what differentiates digit rich today.

Speaker #5: And private wealth clients , they're very familiar with that structure as well . So our continuation funds the things that we're doing around , you know , the real estate asset class , the stuff we're doing around private wealth , can be open ended and be permanent in nature .

Great. Thank you so much.

Thank you our next question comes from.

Our next question comes from Ric Prentiss.

Speaker #5: And then our flagship vehicles tend to be closed end in nature , along with our digital power strategy . That tends to be a , you know , a strategy that you would would lend itself to being closed end .

Raymond James. Please proceed with your question.

Great. Thanks, good morning, everybody.

Hey, Rick couple of them.

First of all I have a follow up on Michael's question, a little bit Mark you guys is on all of the asset manager.

Speaker #5: So I think that the great thing about Digital Bridge today is that we're a multi platform . We have multiple strategies really focused on allocators , very specifically .

Focus on digital infrastructure AI.

Speaker #5: And then pairing that allocation with the right products , the products that investors want , you know , whether it's a , you know , a data center platform , a tower platform , a stabilized asset , an energy project that's tethered to the AI economy , these are the things that investors really want today .

Good to see you communicated numbers hit numbers achieved numbers maybe exceed numbers.

The piece that seems to be missing from the stock prices really recognition of carried interest.

You touched on it a little bit to Michael's question, but help us understand the pacing.

Speaker #5: And we have the right products and the right structures . So having that multi strategy capability is really what differentiates Digital Bridge today .

Our portfolio companies now ballpark 50 companies are so I guess, how should we think about a stable consistent kind of monetization path.

Speaker #9: Great . Thank you so much .

Into the future to try and get some of this value realized because clearly AI is hot power banks are hot datacenters or hot Youre not getting the credit for that so just trying to think through how do we see that monetization path play out to help the realization of that and I'll come back with a question for Tom on that book impact.

Speaker #10: Thank you . Our next question .

Speaker #3: Comes from our next question comes from Ric Prentiss with Raymond James . Please proceed with your question .

Speaker #11: Hey thanks everybody . Hey , Rick . Hey , first I want to follow up on Michael's question a little bit . I mean , Mark , you guys , as an asset manager , but focused on digital infrastructure , AI , good to see you communicate .

Yeah, I'll, let Tom handle the bookends.

So I'll just stick to 50000 feet and then flip it over to him. So he gets the hard part I guess to answer the easy part is smiling at me right now so.

Speaker #11: Numbers , hit numbers , achieve numbers . Maybe exceed numbers . The piece that seems to be missing from the stock price is really recognition of carried interest .

Look I would say.

Rick when I said earlier with Michael which is.

Speaker #11: You touched on it a little bit to Michael's question , but help us understand the pacing as your portfolio companies . Now ballpark 50 companies or so , I guess .

It's really important to note that we have certain fund products that have now turned the corner and they're entering into that phase, where we begin to monetize. So you go back to a 2019 vintage fund, where we invest in that fund in 2020 in 2021.

Speaker #11: How should we think about a stable , consistent kind of monetization path into the future to try and get some of this value realized ?

A logical to assume that realizations began happening in 'twenty six 'twenty, seven and 28, and that's really where our first flagship funds says.

Speaker #11: Because clearly AI is hot , power banks are hot , data centers are hot . You're not getting the credit for that . So just trying to think through , how do we see that monetization path play out to help the realization that and I'll come back with a question for Tom on that .

And then logically.

You can start thinking about how we exit some stuff and fun too.

On our call speculate which companies are going to have those realizations, but what I can tell you is we're now in a steady cadence, where we have certain portfolio of companies going through strategic reviews. So I think that we believe just by the timeline and nature of our original legacy flagship.

Speaker #11: The book impact .

Speaker #5: Yeah , I'll let Tom handle the the bookend piece . I'll just stick to 50,000ft and then flip it over to him so he gets the hard part .

Speaker #5: I get to answer the easy part . He's smiling at me right now . So look , I would say , you know , Rick , what I said earlier with Michael , which is it's really important to note that we have certain fund products that have now turned the corner and they're entering into that phase where we begin to monetize .

Funds.

You can begin to see a steady.

Winding of those funds and return of capital and along with that return of capital comes the realization of carried interest now on two has a little more carried interest for investors. The third flagship fund has a little more carried interest for our for our investors and so I think as time goes on you're going to see not only more frequency in carried interest, but youll see more care.

Speaker #5: So you go back to a 2019 vintage fund where we invested that fund in 2020 and 2021 . It's logical to assume that realizations begin happening in , you know , 26 , 27 , and 28 .

Speaker #5: And that's really where our first flagship fund sits . And then logically , you know , you can start thinking about how we exit some stuff in fund two .

And interest.

So we're going to work on that pretty hard next year, I think that'll be one of the differentiators.

About next year versus this year is that you are going to see.

Speaker #5: I'm not going to on a call , speculate which companies are going to have those realizations . But what I can tell you is we're now in a steady cadence where we have certain portfolio companies going through strategic reviews .

More realizations next.

Next year than this year. The other thing that I would say is you know on our on our datacenter business across the 11 platforms, we have been pretty creative around creating DPI and creating carried interests. So when you've got great vehicles that are in permanent capital vehicles. Like Databank are now managed North America and some of these some of the <unk>.

Speaker #5: So I think that we believe just by the timeline and nature of our original legacy flagship funds , you can begin to see a steady , you know , unwinding of those funds and return of capital .

Both metrics around some of these other businesses.

Speaker #5: And along with that return of capital comes , you know , the realization of carried interest . Now , fund two has a little more carried interest for investors .

We have to recycle capital and returned capital and when we do that that also triggers carried interest as well. So data centers is an area, where we think we can do quite well and I think stay tuned, but we do believe that.

Speaker #5: The third flagship fund has a little more carried interest for our for our investors . And so I think as time goes on , you're going to see not only more frequency in carried interest , but you'll see more carried interest .

It's reasonable to assume that given the age and vintage of some of these fund products that you can begin to count on carried interest instead of it being episodic or one time.

Speaker #5: And so , you know , we'll , we'll , we'll we're going to work on that pretty hard next year . I think that'll be one of the differentiators about next year versus this year .

Tom if you want to add anything to that.

Speaker #5: Is that you are going to see more realizations next year than this year . The other thing that I would say is , you know , on our on our data center business across the 11 platforms , we have been pretty creative around creating DPI and creating carried interest .

I mean, you really covered it yeah. The only I guess, the only thing I'd add is sort of on the margins. If you had to sort of backed up four years ago.

And projected a bell curve of where we would be distribution wise I.

I would say probably over the last few years theres been a more.

Speaker #5: So when you've got great vehicles that are in permanent capital vehicles like databank or now managed North America and some of these , some of the growth metrics around some of these other businesses , we have to recycle capital , return capital .

Significant an extraordinary opportunity to continue investing in some of our portfolio companies.

Then maybe you would have thought four or five years ago and so.

That may have pushed out exits that you.

Speaker #5: When we do that , that also triggers carried interest as well . So data centers is an area where we think we can do quite well .

Several years ago would've thought were happening in 'twenty five maybe we've continued to invest in some of those companies because the opportunity there is extraordinary but.

Speaker #5: And I think , you know , stay tuned . But we do believe that it's reasonable to assume that given the the age and vintage of some of these fund products , that you can begin to count on carried interest , instead of it being episodic .

I wouldn't add anything different than what Mark said in terms of the bell curve and the vintages.

And the way the book or so I think you touched on that in your prepared remarks, a little bit about the J curve and where youre at on it because it does confused sometimes when they look at the book carrying value you're not marketing it to market on transactions that are occurring or things in the marketplace, you're really looking at your asset by asset, but some people I think looking to go from there.

Speaker #5: I don't know , Tom , if you want to add anything to that .

Speaker #6: No , I mean , you really covered it . You know , the only , I guess the only thing I'd add is , is sort of on the margins if you had sort of backed up four years ago , you know , and projected a bell curve of where we would be distribution wise , you know , I would say probably over the last few years , there's been a more , you know , significant and extraordinary opportunity to continue investing in some of our portfolio companies than maybe you would have thought 4 or 5 years ago .

Book doesn't show more but maybe just elaborate a little bit more on that.

Yeah look I think there's sort of two main components to the performance and how we mark things Mark.

Speaker #6: And so , you know , that may have pushed out exits that you , you know , several years ago would have thought were happening in 25 .

Mark talked a bit about kind of our investment playbook, making sure we make the right <unk>.

Speaker #6: Maybe , you know , we've continued to invest in some of those companies because the opportunity there is is extraordinary . But , you know , I wouldn't add anything different than what Mark said in terms of the the bell curve and the vintages .

<unk> that we are focused on our customers deliver for the customers drive operating performance of the companies and that is one significant contributor to the performance and you've seen some of that today.

Speaker #11: And the way the book works . I think you touched on that in your prepared remarks . A little bit about the J-curve and where you're at on it , because it does confuse people .

And then I would say the second.

Material contributor to performance and accrued carry or realized carry is the exit process and selling the company as well and that's where you capture kind of the second stage of value and so I would say, we're sort of in between those two kind of step functions right now where we have achieved.

Speaker #11: I think sometimes when they look at the . Book carrying value , you're not marketing it to market on transactions that are occurring or things in the marketplace .

Speaker #11: You're literally looking at your asset by asset because some people , I think , look at it and go , well , how come the book doesn't show more , but maybe just elaborate a little bit more on that ?

Real value and real performance at the company level.

Speaker #6: Yeah . Look , I there's , you know , there's sort of two main components to the performance and how we mark things .

And we will capture.

The second step of value as we create distributions and liquidity and realize the full value of the companys if that makes sense.

Speaker #6: Mark talked a bit about , you know , kind of our investment playbook , making sure we make the right investments that we are think focused on .

So you're not marketing to what transactions might be you're not marketing to comps until you actually achieve a sale basically.

Speaker #6: The customers deliver for the customers , drive operating performance of the companies . And that , you know , is one significant contributor to the performance .

Look if you think the valuations and performance are 100% quantitative and theres always a bit of qualitative to them. So we do our best to Mark to where we think well we think the assets worth, but theres always a bit of uncertainty and how much of that will you actually realize on a sale and so youre always.

Speaker #6: And you've seen some of that to date , you know , and then I would say the second material contributor to performance and accrued carry or realized carry is the exit process .

Speaker #6: And , you know , selling the companies well , and that's where you capture kind of the second stage of value . And so I would say we're sort of in between those two kind of step functions .

Including some sort of contingency.

Contingency too.

Got that.

Speaker #6: Right now where we've achieved , you know , real value and real performance at the company level . And we will capture kind of , you know , the second step of value , you know , as we create distributions and liquidity and realize kind of the full value of the companies , if that makes sense .

Alright, Mark more interesting things we saw this quarter was.

The story that Elon Musk is now following you can you give us a little background color.

Did that happened how did it happen, what's your kind of relationship with Elon.

Yeah, Thanks, Rick I don't comment about social media stuff.

Stuff, that's just kind of unfortunately becomes like water water cooler vanguard.

Speaker #11: So you're not marking to what transactions might be . You're not marking to comps until you actually achieve a sale . Basically .

What I will say is I've got a lot of respect for him.

Yes, I do not.

Speaker #6: Look , if there's , you know , you think that valuations and performance are 100% quantitative and there's always a bit of qualitative to them .

Not particularly well, but we know each other and he is an important customer is a very important customer so.

Speaker #6: So , you know , we do our best to mark to where we think what we think the assets worth . But there's always a bit of uncertainty and how much of that will you actually realize in a sale .

He uses a lot of our different portfolio companies and we serve Sterling we serve Spacex.

We serve Tesla, we serve X AI.

Speaker #6: And so , you know , you're always including some sort of a contingency to address that .

And we use as batteries at some of our data centers for storage and it's a really super important customer that we think can get bigger over time and there can be a lot more strategic so anything we can do to work with him and support what he's doing.

Speaker #11: And Mark , one interesting things . We saw this quarter was , you know , the story that Elon Musk is now following you .

Speaker #11: Can you give us a little background color ? You know , did that happen ? How did it happen ? What's your kind of relationship with with Elon .

I am very supportive of him and I'm always happy to put capital in.

His businesses through infrastructure, we're side by side with them so lot of deep respect there.

Speaker #5: Yeah . Thanks , Rick I don't comment about social media stuff . It's just kind of unfortunately becomes like water . Water cooler banter .

I think he is one of the great great minds of our generation so.

Speaker #5: What I will say is I've got a lot of respect for him . Yes , I do know him . Not particularly well , but we know each other and he's an important customer .

If you chose to follow me Thats, great but.

Super focused on servicing him and trying to figure out how we can help enable his businesses to go faster.

Speaker #5: He's a very important customer . So he he uses a lot of our different portfolio companies and we serve , you know , Starlink , we serve SpaceX .

Makes sense thanks, guys.

Thank you.

Our next question comes from Richard Choe with Jpmorgan. Please proceed with your question.

Speaker #5: We serve Tesla , we serve X , and we use his batteries at some of our data centers for storage . And it's a really super important customer that we think can get bigger over time .

Hi, I know you've spent a decent amount of time on it but I think it's important to kind of go through it a little bit more with vantage and these the frontier campus and lighthouse campuses. These.

Or two really big deals in over the past few months, we've seen a lot of companies come out and say that they have a lot of power and.

Speaker #5: And and there can be a lot more strategic . So anything we can do to work with him and support what he's doing , I'm very supportive of him and I'm always happy to put capital into his businesses through infrastructure or side by side with him .

They have a lot of capacity deliverable, but you've actually won these leases can you take us through the process, a little bit and what Gabe.

Speaker #5: So a lot of deep respect there , and I think he's he's one of the great , great minds of our generation . So , you know , if he chose to follow me , that's great .

Average advantage the advert.

I guess the advantage over the other companies and winning the steel.

Speaker #5: But super focused on servicing him and trying to figure out how we can help enable his businesses to go faster .

Yeah look I think that.

Speaker #11: Makes sense . Thanks , guys .

We continue to believe that.

Speaker #5: Thank you .

Speaker #3: Our next question comes from Richard Cho with JP Morgan . Please proceed with your question .

This industry will be unfortunately marked by.

A lot of amateurs in a lot of tourists in the next 24 to 36 months.

Speaker #12: Hi . I know you spent a decent amount of time on it , but I think it's important to kind of go through it a little bit more with vantage in these , the frontier campus and Lighthouse campuses .

People that do.

You certainly know how to buy land and how to get entitlements and certainly how too.

Speaker #12: These are two really big deals . And over the past few months we've seen a lot of companies come out and say that they have a lot of power and that they have a lot of capacity .

Reflect that they have some source of power.

I think it's a different level up.

When you actually build a data center and you're responsible for delivering something out of tier three tier four tier five standard and.

And that you've done it for a decade plus.

Speaker #12: Deliverable . But you've actually won these leases . Can you take us through the process a little bit ? And what gave Digitalbridge and the advantage , the I guess , advantage over the other companies and winning this deal .

Customers know the difference between peak.

People that are new to the sector and someone that's a trusted set of hands that has over 400 datacenters in 11 different companies.

Differentiation isn't about press releases differentiation is about execution.

Speaker #5: Yeah . Look , I think that , you know , we we continue to believe that this industry will be unfortunately marked by a lot of amateurs and a lot of tourists in the next 24 to 36 months , you know , people that do certainly know how to buy land and how to get entitlements and certainly how to reflect that .

And the ability to show up for our customer and deliver on time.

Again, we don't get a lot of credit in our share price from being around for 30 plus years is executed.

And so what we have to do is we have to go out and we have to deliver a quarter like this.

We have to deliver a quarter, where we clearly demonstrated.

Construction.

Leasing volumes that are differentiated.

Speaker #5: They have some source of power . I think it's a different level up when you actually build a data center and you're responsible for delivering something at a tier three , tier four , tier five standard , and that you've done it for a decade plus , customers know the difference between , you know , people that are new to the sector and someone that's a trusted set of hands that knows , you know , has over 400 data centers and 11 different companies .

Power ranked us differentiated, but most importantly to the metrics Richard that you now know that we're judged on which is FRE.

Jim.

Distributable earnings AUM all of the things that we're being judged on and we know who our peer set is now where an alternative asset manager and.

The most important thing that we now need to do is just like we've been executing for customers, we need now need to execute for our public shareholders.

And the framework and the prism that Tom and I are judged on is by other alternative asset managers. So when I said on the earnings call when a difference a year makes.

Speaker #5: Differentiation isn't about press releases . Differentiation is about execution and the ability to show up for a customer and deliver on time again , you know , we don't get a lot of credit in our share price for being around for 30 plus years as executors .

We had a very tough last year third quarter, Tom and I thought long and hard about it and what we tried to do this year was deliver something that is.

Speaker #5: And so what we have to do is we have to go out and we have to deliver a quarter like this , you know , we have to deliver a quarter where we clearly demonstrate leasing volumes that are differentiated .

<unk>.

That we can investors know they can count on us and that we're credible around the numbers that really matter.

So I think execution is critical so executing for our public shareholders critical executing for our customers like like Oracle and open AI is important and.

Speaker #5: A power bank that's differentiated , but most importantly to the metrics , Richard , that you now know that we're judged on , which is free FM , you know , distributed learnings , AUM , all of the things that we're being judged on , we know who our peer set is .

And we're executing for.

Hundreds of other customers. This quarter, we just don't have enough time or pages, and a and a desk Tom has sort of share all of those wins for all of those customers, but we.

Speaker #5: Now we're an alternative asset manager . And the most important thing that we now need to do is just like we've been executing for customers , we now need to execute for our public shareholders .

We're delivering dark fiber routes, we're delivering towers.

We're delivering small cell infrastructure, we're delivering Wifi offload.

Speaker #5: And the framework and the prism that Tom and I are judged on is by other alternative asset managers . So , you know , when I said in the earnings call , what a difference a year makes , you know , we we had a very tough last year , third quarter .

There are so many things that we're delivering right now that we don't have time to talk about we just got to keep delivering for our logos. That's really what is differentiating about us right now and I think at the end of the day.

Speaker #5: Tom and I thought long and hard about it . And what we tried to do this year was deliver something that is , you know , that we can investors know they can count on us and that we're credible around the numbers that really matter .

Customers not only vote with their wallet, but.

Vote with their the integrity of their network and I think one thing that we've proven to be for a long time is a very trusted set of hands.

Speaker #5: And so I think execution is critical . So executing for our public shareholders is critical . Executing for our customers . Like like Oracle and OpenAI is important .

And hopefully that will work out well and.

I think thats a.

Few people are actually turning on capacity right now.

Speaker #5: And and we're executing for hundreds of other customers this quarter . We just don't have enough time or pages in a in a deck , Tom , to sort of share all of those wins for all those customers .

And we are we're turning on capacity and that's because we started planning this 810 years ago.

We didn't start we didn't say a year ago, an investment committee because we thought it was a hot idea to get into data centers. That's not how were built were built differently.

Speaker #5: But , you know , we're delivering dark fiber . We're delivering towers , we're delivering small cell infrastructure , we're delivering Wi-Fi offload .

And we'll be here will be here tomorrow will be here in 10 years. When we're here 20 years ago. So I think it's that consistency is what customers really like it when it gets down to choosing having great teams like surreal who knows how to deliver for our customer.

Speaker #5: There's so many things that we're delivering right now that we don't have time to talk about . We just got to keep delivering for our logos .

Speaker #5: That's really what is differentiating about us right now . And I think at the end of the day , you customers not only vote with their wallet , but they vote with their , you know , the integrity of their network .

That's what it is and we're very fortunate to have.

Speaker #5: know , centers . That's not how we're built . We're built differently . And and we'll be here . We'll be here tomorrow .

Surreal and Jeff tense and Dana Adams that entire team is just a bunch of pros adults that have been there have been doing it for a long time and that is thankfully.

Speaker #5: And I think one thing that we've proven to be for a long time is a very trusted set of hands and hopefully that will work out well .

<unk> is our partner and so we're fortunate to have a great management team that was able to deliver for the customer.

Speaker #5: And , you know , I think that's , you know , a few people are actually turning on capacity right now . And we are we're turning on capacity .

And you mentioned it a little bit but will these projects be meaningfully contributing to feed them early in 'twenty six or is it more later in 'twenty six Amanda Tony.

No, 100% there'll be a big contributor in two years, we took in a lot of new capital co invest capital specifically to these two projects.

Speaker #5: We'll be here in ten years . We were here 20 years ago . So I think it's that consistency is what customers really like .

We get we get paid on that capital.

Speaker #5: And when it gets down to choosing , having great teams , you know , like Cyril who deliver for a customer . That's that's what it is .

On that committed capital and so there will be an immediate impact when you have really good co invest.

Look Tom said it earlier in the year.

Speaker #5: And we're very fortunate to have , you know , surreal . And Jeff Tench and Dana Adams , that entire team is just a bunch of pros , adults that have been there , been doing it for a long into data time .

Got to improve our margins and so both Tom and I committed to that Tom has been working on the cost I've been working on making sure we get our fees up and co invest and I think we can look at each other and items that we've delivered you know Tom has done a great job on the cost side, we've done a great job of improving our margins on co invest and so when you put those two things together you get a result like this in the third quarter, which is improved margins.

Speaker #5: And that is thankfully , Cyril is our partner . And so we're fortunate to have a great management team . That was able to deliver for for the customer .

<unk>.

Speaker #12: And you mentioned it a little bit , but will these projects be meaningfully contributing to film early in 26 , or is it more later in 26 and into 27 ?

Incredible year over year growth as you can see I mean, just looking at fee related earnings rub, 43% year over year.

I don't think Theres, another publicly traded alternative asset manager, that's up 43% year over year. So.

Speaker #5: No . 100% . It'll be a big contributor in two years . We took in a lot of new capital , Co-invest Capital , specifically to these two projects .

This has been a lot of hard work and we're not done I think there is a sharp focus on what we got to keep doing and the fees billed as we build so as we keep leasing megawatts when we keep deploying capital.

Speaker #5: You know , we get we knows how to get paid on that capital on that committed capital . And so there will be an immediate impact when you have really good co-invest and and look , Tom said it earlier in the year , you know , we've got to improve our margins .

It is our fee rates go up incentives or after you go up and we're heading into a historically strong fourth quarter and I think Tom and I are excited to continue to work hard between now and the end of the year I don't know Tom if you have any voice over on that.

Speaker #5: And so both Tom and I committed to that . Tom's been working on the cost . I've been working on making sure we get our fees up and co-invest .

No I think you covered it all.

Speaker #5: And I think we can look each other in the eye and say we've delivered. You know, Tom's done a great job on the cost side, and we've done a great job in improving our margins on co-invest.

Great. Thank you.

Thank you Richard we will see you soon.

Speaker #5: And so when you put those two things together , you get a result like this in the third quarter , which is improved margins , incredible year over year growth .

Our next question comes from Eric <unk> with Wells Fargo. Please proceed with your question.

Oh, great. Thanks for squeezing me in so.

Speaker #5: As you can see . I mean , just looking at fee related earnings , up 43% year over year , I don't think there's another publicly traded alternative asset manager that's up 43% year over year .

Mark I'm curious about your datacenter power bank that you've been highlighting the last few quarters, maybe you could talk about the split you're seeing.

Speaker #5: So this has been a lot of hard work . And we're not done . I think there's a sharp focus on what we got to keep doing .

Between kind of behind the meter power solutions versus more direct grid connected power and perhaps how that behind the meter opportunity seems to be much bigger today kind of ties into the size and scope of the energy Fund your fund raising for.

Speaker #5: And the fees build as we build . So as we keep leasing megawatts and we keep deploying capital , so does our firm raise go up and so does our free go up .

Speaker #5: And you know , we're heading into a historically strong fourth quarter . And I think Tom and I are excited to to continue to work hard between now and the end of the year .

So look the energy strategy is super important and it's a big part of what we're doing in the back half of this year, but more importantly, Eric what we're doing next year. So.

Speaker #5: I don't know , Tom , if you have any voice over on that .

Speaker #6: No , I think you covered it all .

We've already closed a couple of deals in that strategy.

Speaker #12: Great . Thank you .

Speaker #5: Thank you Richard . We'll see you soon .

<unk> is one of them, where we provide digital power solutions for our customers and the other data center developers.

Speaker #10: Our next question .

Speaker #3: Comes from Eric Luca with Wells Fargo . Please proceed with your question .

We've got another project, where we're tailoring.

Some some specific power solution to an existing digital rich data center, where we're adding 500 megawatts of power. So.

Speaker #13: Great . Thanks for squeezing me in . So , Mark , I'm curious about your your data center power bank that you've been highlighting the last few quarters .

Speaker #13: Maybe you could talk about the split you're seeing between kind of behind the meter power solutions versus more direct grid connected power , and perhaps how that behind the meter opportunity seems to be much bigger today .

What I love about what we're doing in digital power Eric is.

These are ideas. These are very very focused solution and very specific locations.

There are two very specific outcomes for customers.

Speaker #13: Kind of ties into the size and scope of the energy fund. You're fundraising for.

And so that's what makes it so unique.

A lot like what we're doing in the data center space, we're doing in the power space, we're not taking risk.

Speaker #5: So look , the energy strategy is super important , and it's a big part of what we're doing in the back half of this year .

So we're entering into long term contracts with Counterparties investment grade Counterparties and so we know that the offtake is in place I think what's interesting Eric is as we've as we've been doing this for about two years. We've also learned that the grid doesn't go away.

Speaker #5: But more importantly , Eric , what we're doing next year . So , you know , we've we've already closed a couple of deals in that strategy .

Speaker #5: Technique is one of them where we provide digital power solutions for our customers . And other data center developers . We've got another project where we're tethering , you know , some some , some a specific power solution to an existing digital rich data center where we're adding , you know , 500MW of power .

And you have to learn how to use the grid you got to learn how to work with the grid you have got to have battery storage capabilities inside your micro grids, you've got to be able to build up that power during the day sell some of that into the grid. So youre basically an off taker into the grid and putting power back into Baseload, Eric and then during the nighttime win when Baseload is more available.

Speaker #5: So what I love about what we're doing in Digital Power , Eric , is these aren't ideas . These are very , very focused solutions .

All you can buy back from the grid and so it's a very fluid relationship and a micro grid and the key to that is interconnection and.

Speaker #5: And very specific locations tethered to very specific outcomes for customers . And so that's what makes it so unique is that a lot like what we're doing in the data center space , we're doing in the power space .

Being interconnected into the that state public utility Commission grid, and having an active relationship with the utilities. So what we're doing is not.

Speaker #5: We're not taking risk . So we're entering into long term contracts with counterparties . Investment grade counterparties . And so we know that the offtake is in place .

In contrast, or in competition with our utility partners in each state in fact, we are a trading partner with those utilities and so a lot of like what we do in interconnection and fiber. We're doing the same thing and actually empower is a really interesting business model and we've got a lot of good early success so far.

Speaker #5: I think what's interesting , Eric , is as we've as we've been doing this for about two years , we've also learned that the grid doesn't go away .

Speaker #5: And you have to learn how to use the grid . You got to learn how to work with the grid . You've got to have battery storage capabilities inside your microgrids .

Once told me I think it was I was listening to another alternative asset manager Brookfield that Senate, but theres $7 trillion in AI.

Speaker #5: You've got to be able to build up that power during the day , sell some of that into the grid . So you're basically an off taker into the grid and putting power back into baseload .

There is a $700 million capex AI spin if.

If you if you think about the power of this required the incremental power to deliver 300 Gigawatts, Eric there's another $1 three trillion in power to be built so we look at that again that swimming pool. It's one three trillion and we look at the opportunity. There investors are really excited about it I've been on the road talking about digital power talking about.

Speaker #5: Eric . And then during the nighttime when when baseload is more available , you can buy back from the grid . And so it's a very fluid relationship in a micro grid .

Speaker #5: And the key to that is interconnection, and being interconnected into that state's Public Utility Commission grid, and having an active relationship with utilities.

Micro grids and how we're delivering these power solutions to customers and as you can probably imagine lp's get really excited.

Speaker #5: So , you know , what we're doing is not in contrast or in competition with our utility partners in each state . In fact , we are a trading partner with those utilities .

And if you look at.

The fundraising this year in infrastructure, Eric infrastructure is having a record year in fundraising.

Speaker #5: And so a lot of like what we do in interconnection and fiber , we're doing the same thing actually , in power . It's a really interesting business model .

I think there'll be over $200 billion of capital ample reason to believe.

And if you take a look at that.

Speaker #5: And we've had a lot of good early success so far . You know , someone once told me I think it was I was listening to another alternative asset manager .

Thank you.

Yes.

They're microcode onto needs to turn it off our number that is less.

Speaker #5: It was Brookfield that said it , but there's 7 trillion in AI . There's a $7 trillion CapEx AI spend . If you if you think about the power that's required , the incremental power to deliver 300GW , Eric , there's another 1.3 trillion in power to be built .

That's 1818 anyway.

Okay.

Yes.

Got it.

Perfect.

Yes.

Okay.

Speaker #5: So we look at that again , that swimming pool is 1.3 trillion . And we look at the opportunity there . Investors are really excited about it .

No.

Okay.

Okay.

Speaker #5: I've been on the road talking about digital power , talking about microgrids and how we're delivering these power solutions to customers . And as you can probably imagine , LPs get really excited .

Okay.

Hello.

Eric in Europe.

Yeah, I've got you Mark.

Okay. Thank you sorry about that.

Speaker #5: And if you look at the fundraising this year in infrastructure , Eric , infrastructure is having a record year in fund . I think there'll be over $200 billion of capital raised in infrastructure .

Technical glitch.

But anyway.

When you look at the total 200 plus billion dollars of fundraising and infrastructure this year.

Over 50% of that is the energy transition not data centers not digital it's really interesting to me that allocators are really focused on this issue of power.

Speaker #5: . And if you take a look at that .

Speaker #14: That . Someone has their microphone on and needs to turn it off . I don't know who that is . Plus one eight anyway .

So we really see that as a big opportunity because.

If we think about building large scale campuses.

Speaker #14: Wait , that's good . It's kind of .

And if youre going to spend $11 million to $12 million per megawatt building a data center you can end up spending $3 million to $5 million in grid independent power to that data center.

So we really look at this as a 30 to 50 incremental spend on power because we're taking that risk and building. The data center, we know how to build our micro grid infrastructure, we know how to source LNG best solar wind hydro and most importantly use the grid I think everyone gets.

Speaker #5: Hello ?

Speaker #15: Yep .

Speaker #5: Eric , can you .

Speaker #15: Hear us ?

Speaker #13: Yeah , I've got you , Mark .

Speaker #5: Okay . Thank you . Sorry about .

Speaker #15: That .

Speaker #5: Technical glitch . But anyway , you know , when you look at the total 200 plus billion dollars of fundraising and infrastructure this .

Obsessed alumina, Eric with Oh, you're either on the greater your off the grid, it's not that way actually.

Speaker #15: Year .

Speaker #5: , over 50% of that is to energy transition , not data centers , not digital . It's really interesting to me that allocators are really focused on this issue of power .

Its that if youre going to really build and scale and you look for example at the last two big projects that we've done.

We do use the grid and at certain points of the day, we're putting power back into the grid and then at certain points of the day, we are taking power from the grid, it's a fairly dynamic and fluid relationship between.

Speaker #5: And so we really see that as a big opportunity because if we think about building large scale campuses and if you're going to spend 11 to $12 million per megawatt , you know , building a data center , you could end up spending 3 to 5 million in grid independent power to that data .

Our micro grid and the actual grid itself and so I think other people are finally figuring out what we're doing it makes a lot of sense. We've got great Industrial partners. We've got a big pipeline of projects that we're building and we're excited to talk more about it next year I mean, it'll be a big part of what we're doing in 2026 and as I said three new strategies for next year and Thats.

Speaker #15: Center .

Speaker #5: And so we really look at this as a $0.30 to $0.50 incremental spend . on power . Because we're taking that risk and building the data center .

Speaker #5: We know how to . build our microgrid infrastructure . We know how to source LNG .

Digital power is one of those strategies so.

Speaker #15: Best .

You would not get together next time in person Erica will do a little bit of additional power teaching whenever you're ready.

Speaker #5: Solar , wind , hydro , and most importantly , use the grid . I think everyone gets obsessed a little bit . Eric , with , oh , you're either on the grid or you're off the grid .

[laughter] that'd be great I appreciate it and I guess, just one follow up Mark some of these mega deals we've seen including the ones advantage did obviously theres a lot of kind of newer hyperscale task like <unk> that are.

Speaker #5: It's not that way , actually . It's that if you're going to really build at scale and you look , for example , at the last two big projects that we've done , we do use the grid and at certain points of the day , we're putting power back into the grid .

Directly or indirectly backing some of these new builds so how do you think about kind of the pricing the lease terms the credit risk of some of these newer players that are obviously not profitable today, but growing incredibly fast.

Speaker #5: And then, at certain points of the day, we're taking power from the grid. It's a fairly dynamic and fluid relationship between a microgrid and the grid itself.

Certainly been a lot of industry chatter about some of the <unk> ability to pay for some of the future commitments they've made and just curious how you guys think about it up at the infrastructure level.

Speaker #5: And so I think other people are finally figuring out what we're doing. It makes a lot of sense. We've got great industrial partners.

Speaker #5: We've got a big pipeline of projects that we're building , and we're excited to talk more about it next year . I mean , it'll be a big part of what we're doing in 2026 .

Yes look I think that the.

There's different types of Ellen's, Eric right, and so and there is different types of quality of credit tenants and so.

Speaker #5: As I said , three new strategies for next year . And that's , you know , digital power is one of those strategies .

Speaker #5: So when you and I get together next time in person , Eric , I'll we'll do a little bit of a digital power teaching whenever you're ready .

We look at some of the Neo cloud business models, and we've chosen not to put our equity capital to work there.

Speaker #13: That would be great . I appreciate it . And I guess Mark . You know , some of these mega deals we've seen , including the ones that vantage did , obviously there's a lot of kind of newer hyperscale tech like Llms that are directly or indirectly backing some of these new builds .

We've been very selective about those those types of credits.

I think again, when you've got a really substantial power bank and you've got.

On demand capacity ready to go it does allow you to be a little selective.

Speaker #13: So how do you think about kind of the pricing , the lease terms , the credit risk of some of these newer players that are obviously not profitable today , but growing incredibly fast ?

Speaker #13: So how do you think about kind of the pricing , the lease terms , the credit risk of some of these newer players that just one follow up for some of the future made , and just curious how you guys commitments they've it at the at the infrastructure level .

About what we can do and so I think it's pretty unique.

Our ability to choose customers, we want to work with.

And I do get a little worried about some of the credit profile risk around Neil cloud versus.

AI providers versus the Hyperscale and so we've been very cautious about not over weighting, one particular customer or one particular story.

Speaker #5: Yeah . Look , I think that the , you know , there's different types of Llms . Eric . And so and there's different types of quality of credit tenants .

What's unique about our platform is given that the scale of our platform. We are invested across all of these customers and all across these workloads. So that we're not beholden to one customer or one technology or one LLM.

Speaker #5: And so , you know , we look at some of the cloud business models and we've chosen not to put our equity capital to work there .

I think that's where scale matters, Eric we talk a lot about scale in the alternative asset management space, well and our specifics when when we have a lot of scale.

Speaker #5: We've been very selective about those those types of credits . I think again , you know , when you've got a really substantial power bank and you've got , you know , on demand capacity ready to go , it does allow you to be a little selective about , you know , what we can do .

And we have a lot of customers and so that diversity and customers is what's really important and we've been able to demonstrate that we can lease to a lot of different logos at the same time. So I think at the end of the day.

Speaker #5: And so I think it's pretty unique , our ability to choose customers , we want to work with . And , you know , I do get a little worried about some of the credit profile risk around Neo Cloud versus , you know , AI providers versus the hyperscalers .

Having a diverse set of cash flows and a diverse set of customers and a diverse set of data centers is really where you want to put your capital today again same thing we talked about buying.

Buying our stock as a proxy for that right youre not making one bet on one specific datacenter platform you are making a bet on a global portfolio of 11 platforms 21, Gigawatts and record leasing and that that flow through will will come through in a function of FRE VM and carried interest.

I appreciate it mark thank you.

Yes, Thanks, Eric.

There are no further questions at this time, so I would now like to turn the floor back over to Mark <unk> for closing comments.

Well. Thank you I appreciate all the thoughtful questions from the analyst community.

We look forward to engaging with all of you over the next couple of days to bring more clarity to the quarter, but let me, finishing and thanking our team.

We have an incredible team.

I want to bring focus back to third quarter last year against third quarter. This year.

I, specifically want to thank my CFO, Tom Mair offer for delivering a very clean quarter and delivering on the promises that we that we made to you our public investors and.

And again, our fee revenue up 22% FRE up 43% distributable earnings up 102%.

And C equity under management team up 19% this was a clean quarter.

This was a quarter that we.

To be candid, we sell capable of delivering and we owe it to our investors to deliver result.

Like this in a quarter like this.

Our strong liquidity, we're allocating capital raising money, we've got a great suite of new products that will come to market with here in 2006, and we are well positioned to be the leader in digital infrastructure and the power that's required to fuel it.

Really looking forward to the end of this year and looking forward to catching up with all of you on the road as we hit different investor conferences. Please follow up with <unk> and our team to get access to the team. We're always happy to have a conversation with you and thank you for your continued interest and your ownership in Detroit shares. We appreciate it have a great day.

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.