Bridge Investment Group Holdings Inc. (BRDG)·Q4 2024 Earnings Summary

Executive Summary

• Q4 2024 printed solid top-line and fee metrics: Total revenues were $103.4M (+10% YoY), Fee Related Earnings (FRE) to the Operating Company were $34.4M (+21% YoY), and Distributable Earnings (DE) to the Operating Company were $32.6M (+29% YoY); After-tax DE per share was $0.18 (+29% YoY). Quarter-over-quarter, FRE rose ~6% and DE rose ~15%, driven by lower fee-related expenses and higher net realized performance fees .
• GAAP diluted EPS fell to a loss of $(0.15) vs $0.04 in Q3 2024, primarily reflecting higher compensation (merit/variable/performance-fee comp) and a ~$2.0M large insurance claim plus higher IBNR reserves (net insurance loss of $2.5M in Q4 vs a gain in Q3) .
• Dividend raised to $0.11 per share (from $0.10 in Q3), payable March 28, 2025; Bridge reported ~$50B AUM, $3.5B dry powder, and 73% of FEAUM with >5 years duration, supporting fee visibility .
• Strategic catalyst: Apollo agreed to acquire Bridge in an all-stock deal (0.07081 APO shares per BRDG, implying $11.50 per BRDG share); Bridge canceled the scheduled Q4 earnings call due to the pending transaction. Close anticipated in Q3 2025, subject to approvals; Bridge will operate as a standalone platform within Apollo .
• Carry monetization pipeline remains sizable: net accrued performance allocations were $339.6M at quarter-end, with 81% tied to Multifamily IV and Workforce I; management expects substantial carry-driven DE in late 2025–2026 as those funds monetize .

What Went Well and What Went Wrong

• What Went Well

  • Capital formation and fee base: Q4 capital raised was $821M (97% institutional), FEAUM increased 2% QoQ, and long-duration FEAUM (weighted-average ~6.3 years) supports fee stability .
  • Credit markets reopening: Management highlighted a resurgent debt market, including 15 loans totaling ~$720M in originations, a $638M CRE CLO, and anchoring Freddie Mac’s first multi-contributor Q deal—improving liquidity and execution .
  • Logistics buildout positioning: “We have invested $22 million to build these capabilities… we believe… will result in one of the best positioned specialized logistics businesses and a major profit contributor in the future.” (Executive Chairman) .

• What Went Wrong

  • EPS pressure: GAAP diluted EPS declined to $(0.15), driven by higher compensation (merit, variable, and performance fee comp) and a one-time large captive insurance claim plus higher reserves (net insurance loss of $2.5M in Q4) .
  • Transaction fees subdued and mix shift: Management reiterated transaction-related revenues will be a smaller percentage over time with a greater institutional mix and product mix shift; office-related property operator earnings continue to shrink .
  • Call canceled due to M&A: The planned Q4 call was canceled amid the Apollo agreement, limiting incremental guidance/disclosures this quarter .

Financial Results

• YoY Q4 vs Q4 2023 highlights: Revenues +10%, FRE +21%, DE +29%, After-tax DE/share +29% .
• QoQ Q4 vs Q3 highlights: FRE +6% QoQ; DE +15% QoQ, aided by lower fee-related expenses and higher net realized performance fees .

Segment/KPIs

• AUM and Fee-Earning AUM, Capital Activity, Carry

  • Gross AUM: $49.8B (Q4) vs $47.7B (Q4’23); FEAUM: $22.3B (Q4) vs $21.7B (Q4’23) .
  • Capital raised: $821M (Q4); Deployment: $562M (Q4); Dry powder: $3.5B (Q4) .
  • Realized performance allocations & incentive fees: $17.578M (Q4); $5.398M (Q3); $7.063M (Q2) .
  • Net accrued performance allocations: $339.6M (Q4) .

• FEAUM by Strategy (as of Dec 31, 2024)

  • Secondaries 18%; Multifamily 17%; Workforce & Affordable Housing 10%; Debt 21%; Logistics 4%; Seniors 6%; SFR 2%; Net Lease Income 2%; Development 18%; Office 1%; Agency MBS 1% .

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “We believe that the long winter of real estate declines has bottomed and the sector has begun to re-emerge… we are seeing more substantive dialogue with investors, more deals to evaluate and generally more activities.” (Executive Chairman) .
• “This improving liquidity in the market provides the foundation for greater transaction activity… deployment for the quarter totaled $617 million led by debt strategies.” (CEO) .
• “We have begun reinvesting in the growth of our platform… positioning the company for this upcycle… compensation expense to grow off of the adjusted $42 million in Q3.” (CFO) .
• “81% of the carry is related to Multifamily Fund IV and Workforce one… expected to drive substantial distributable earnings in the latter part of 2025 through 2026.” (CFO) .

Q&A Highlights

• Fundraising/retail: Management expects the retail accredited product to break escrow, with ongoing buildout of distribution across RIAs and independent broker-dealers; 11 new institutional accounts in 2024, with broader global penetration (U.S., Middle East, Europe, Asia) .
• Compensation/investment in people: Elevated comp reflects reinvestment ahead of the cycle upturn to retain/motivate teams across distribution and investing; “now is the time to invest in them” (CFO) .
• Transaction fees and fee rates: Mix shifting toward institutional lowers transaction fee contribution and slightly lowers fee rates; recurring management fees remain the focus .
• Deployment/multifamily: Management sees stabilizing valuations, strong absorption versus deliveries, and favorable supply/demand as starts decline; expects volumes to build as short-end rates normalize and liquidity improves .

Estimates Context

• We attempted to retrieve S&P Global consensus (EPS, revenue, EBITDA, target price) for Q4 2024 and prior quarters, but the S&P Global mapping for BRDG was unavailable in the tool at this time; therefore, estimate comparisons are not shown (consensus unavailable).

Key Takeaways for Investors

• The Apollo takeout (0.07081 APO shares per BRDG; $11.50 implied) is the dominant stock catalyst near term; expected close in Q3 2025, pending approvals, with Bridge operating standalone within Apollo’s platform .
• Q4 fundamentals were resilient: revenue up 10% YoY, FRE and DE improved YoY and QoQ, and FRE margin rebounded to 45% as expenses normalized—supportive into a cyclical recovery .
• GAAP EPS weakness stems from transitory items (captive insurance loss/reserves) and reinvestment in people; management is leaning into the cycle to capture operating leverage as volumes and fees scale .
• Durable fee base: 73% of FEAUM has >5 years of duration; dividend increased to $0.11, signaling confidence in cash generation .
• Carry monetization represents a medium-term earnings lever (late 2025–2026) with $339.6M in net accrued performance allocations concentrated in funds actively monetizing .
• Mix is shifting toward institutional and long-duration products (lower transaction fee contribution) while retail channels are being built—stabilizes revenue but may dampen episodic fee upside; investors should calibrate margin expectations accordingly .
• Near-term trading set-up is dominated by merger spread dynamics; medium-term thesis hinges on Apollo synergy realization and Bridge’s positioning across multifamily, logistics, and credit as CRE transaction volumes recover .

Appendices (Selected KPI Tables)

AUM/FEAUM/Capital Activity

Realized/Accrued Performance Fees

Dividend History (Recent)

Deal Terms (Apollo)