Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 20, 2024 | Jun. 30, 2023 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-37980 | ||
Entity Registrant Name | DigitalBridge Group, Inc. | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 46-4591526 | ||
Entity Address, Address Line One | 750 Park of Commerce Drive | ||
Entity Address, Address Line Two | Suite 210 | ||
Entity Address, City or Town | Boca Raton | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 33487 | ||
City Area Code | 561 | ||
Local Phone Number | 570-4644 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2.4 | ||
Documents Incorporated by Reference | Portions of the Company’s Proxy Statement with respect to its 2024 Annual Meeting of Stockholders to be filed not later than 120 days after the end of the Company’s fiscal year ended December 31, 2023 are incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0001679688 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Class A Common Stock | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Class A Common Stock, $0.01 par value | ||
Trading Symbol | DBRG | ||
Security Exchange Name | NYSE | ||
Entity Common Stock, Shares Outstanding | 163,303,023 | ||
Series H | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Preferred Stock, 7.125% Series H Cumulative Redeemable, $0.01 par value | ||
Trading Symbol | DBRG.PRH | ||
Security Exchange Name | NYSE | ||
Series I | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Preferred Stock, 7.15% Series I Cumulative Redeemable, $0.01 par value | ||
Trading Symbol | DBRG.PRI | ||
Security Exchange Name | NYSE | ||
Series J | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Preferred Stock, 7.125% Series J Cumulative Redeemable, $0.01 par value | ||
Trading Symbol | DBRG.PRJ | ||
Security Exchange Name | NYSE | ||
Class B Common Stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 166,494 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Los Angeles, California |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 345,335 | $ 855,564 |
Restricted cash | 4,915 | 4,854 |
Investments ($572,749 and $421,393 at fair value) | 2,476,093 | 1,237,363 |
Goodwill | 465,991 | 298,248 |
Intangible assets | 103,750 | 85,698 |
Other assets ($0 and $11,793 at fair value) | 78,953 | 80,821 |
Due from affiliates | 85,815 | 45,360 |
Assets of discontinued operations | 1,698 | 8,420,595 |
Total assets | 3,562,550 | 11,028,503 |
Liabilities | ||
Debt | 371,783 | 569,375 |
Other liabilities ($124,019 and $183,628 at fair value) | 681,451 | 546,923 |
Liabilities of discontinued operations | 153 | 5,342,142 |
Total liabilities | 1,053,387 | 6,458,440 |
Commitments and contingencies (Note 18) | ||
Redeemable noncontrolling interests | 17,862 | 100,574 |
Stockholders’ equity: | ||
Preferred stock, $0.01 par value per share; $821,899 and $827,779 liquidation preference; 250,000 shares authorized; 32,876 and 33,111 shares issued and outstanding | 794,670 | 800,355 |
Additional paid-in capital | 7,855,842 | 7,818,068 |
Accumulated deficit | (6,842,502) | (6,962,613) |
Accumulated other comprehensive income (loss) | 1,411 | (1,509) |
Total stockholders’ equity | 1,811,055 | 1,660,698 |
Noncontrolling interests in investment entities | 605,311 | 2,743,896 |
Noncontrolling interests in Operating Company | 74,935 | 64,895 |
Total equity | 2,491,301 | 4,469,489 |
Total liabilities, redeemable noncontrolling interests and equity | 3,562,550 | 11,028,503 |
Class A Common Stock | ||
Stockholders’ equity: | ||
Common stock, $0.01 and $0.04 par value per share | 1,632 | 6,390 |
Class B Common Stock | ||
Stockholders’ equity: | ||
Common stock, $0.01 and $0.04 par value per share | $ 2 | $ 7 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Investments, fair value | $ 572,749 | $ 421,393 |
Other assets, fair value | 0 | 11,793 |
Other liabilities, fair value | $ 124,019 | $ 183,628 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, liquidation preference | $ 821,899 | $ 827,779 |
Preferred stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Preferred stock, shares issued (in shares) | 32,876,000 | 33,111,000 |
Preferred stock, shares outstanding (in shares) | 32,876,000 | 33,111,000 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.04 |
Common stock, shares authorized (in shares) | 237,250,000 | 237,250,000 |
Common stock, shares issued (in shares) | 163,209,000 | 159,763,000 |
Common stock, shares outstanding (in shares) | 163,209,000 | 159,763,000 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.04 |
Common stock, shares authorized (in shares) | 250,000 | 250,000 |
Common stock, shares issued (in shares) | 166,000 | 166,000 |
Common stock, shares outstanding (in shares) | 166,000 | 166,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues | |||
Fee revenue ($254,429, $167,733 and $170,929 from affiliates) | $ 264,117 | $ 172,673 | $ 180,826 |
Carried interest allocation | 363,075 | 378,342 | 99,207 |
Principal investment income | 145,448 | 56,731 | 86,023 |
Other income ($10,400, $4,337 and $10,185 from affiliates) | 48,743 | 87,025 | 21,774 |
Total revenues | 821,383 | 694,771 | 387,830 |
Expenses | |||
Interest expense | 24,540 | 42,926 | 63,244 |
Investment-related expense | 3,155 | 23,219 | 7,168 |
Transaction-related costs | 10,823 | 10,129 | 5,515 |
Depreciation and amortization | 36,651 | 44,271 | 44,353 |
Compensation expense—cash and equity-based | 206,892 | 154,752 | 159,772 |
Compensation expense—incentive fee and carried interest allocation | 186,030 | 202,286 | 65,890 |
Administrative expense | 83,782 | 94,122 | 77,768 |
Total expenses | 551,873 | 571,705 | 423,710 |
Other gain (loss), net | 96,119 | (169,747) | (20,119) |
Income (loss) from continuing operations before income taxes | 365,629 | (46,681) | (55,999) |
Income tax benefit (expense) | (6) | (13,132) | 21,463 |
Income (loss) from continuing operations | 365,623 | (59,813) | (34,536) |
Income (loss) from discontinued operations | (320,458) | (510,184) | (782,375) |
Net income (loss) | 45,165 | (569,997) | (816,911) |
Net income (loss) attributable to noncontrolling interests: | |||
Redeemable noncontrolling interests | 6,503 | (26,778) | 34,677 |
Investment entities | (155,756) | (189,053) | (500,980) |
Operating Company | 9,138 | (32,369) | (40,511) |
Net income (loss) attributable to DigitalBridge Group, Inc. | 185,280 | (321,797) | (310,097) |
Preferred stock dividends | 58,656 | 61,567 | 70,627 |
Preferred stock repurchases | (927) | (1,098) | 4,992 |
Net income (loss) attributable to common stockholders | $ 127,551 | $ (382,266) | $ (385,716) |
Income (loss) per share—basic | |||
Income (loss) from continuing operations per common share - basic (in dollars per share) | $ 1.13 | $ (1.23) | $ (1.27) |
Net income (loss) attributable to common stockholders per common share - basic (in dollars per share) | 0.78 | (2.47) | (3.14) |
Income (loss) per share—diluted | |||
Income (Loss) from continuing operations per common share - diluted (in dollars per share) | 1.10 | (1.23) | (1.27) |
Net income (loss) attributable to common stockholders per common share - diluted (in dollars per share) | $ 0.77 | $ (2.47) | $ (3.14) |
Weighted average number of shares | |||
Basic (in shares) | 159,868 | 154,495 | 122,864 |
Diluted (in shares) | 169,720 | 154,495 | 122,864 |
Dividends declared per common share (in dollars per share) | $ 0.04 | $ 0.02 | $ 0 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other income | $ 264,117 | $ 172,673 | $ 180,826 |
Fee Income | |||
Other income | 264,117 | 172,673 | 180,826 |
Affiliated Entity | Fee Income | |||
Other income | 254,429 | 167,733 | 170,929 |
Affiliated Entity | Other Income | |||
Other income | $ 10,400 | $ 4,337 | $ 10,185 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net income (loss) | $ 45,165 | $ (569,997) | $ (816,911) |
Changes in accumulated other comprehensive income (loss) related to: | |||
Equity method investments | 318 | (2,867) | (17,048) |
Available-for-sale debt securities | 0 | (6,373) | (331) |
Foreign currency translation | 2,279 | (44,232) | (94,560) |
Cash flow hedges | 0 | 0 | 1,285 |
Net investment hedges | 0 | (8,368) | (57,291) |
Other comprehensive income (loss) | 2,597 | (61,840) | (167,945) |
Comprehensive income (loss) | 47,762 | (631,837) | (984,856) |
Comprehensive income (loss) attributable to noncontrolling interests: | |||
Redeemable noncontrolling interests | 6,503 | (26,778) | 34,677 |
Comprehensive income (loss) attributable to stockholders | 187,234 | (365,818) | (389,210) |
Investment entities | |||
Comprehensive income (loss) attributable to noncontrolling interests: | |||
Comprehensive income (loss) attributable to noncontrolling interests | (155,340) | (203,125) | (581,540) |
Operating Company | |||
Comprehensive income (loss) attributable to noncontrolling interests: | |||
Comprehensive income (loss) attributable to noncontrolling interests | $ 9,365 | $ (36,116) | $ (48,783) |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Class A Common Stock | Total Stockholders’ Equity | Total Stockholders’ Equity Class A Common Stock | Preferred Stock | Common Stock | Common Stock Class A Common Stock | Additional Paid-in Capital | Additional Paid-in Capital Class A Common Stock | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests in Investment Entities | Noncontrolling Interests in Operating Company | Noncontrolling Interests in Operating Company Class A Common Stock |
Beginning balance at Dec. 31, 2020 | $ 6,984,590 | $ 2,501,471 | $ 999,490 | $ 4,841 | $ 7,570,473 | $ (6,195,456) | $ 122,123 | $ 4,327,372 | $ 155,747 | |||||
Net income (loss) | (851,588) | (310,097) | (310,097) | (500,980) | (40,511) | |||||||||
Other comprehensive income (loss) | (167,945) | (79,113) | (79,113) | (80,560) | (8,272) | |||||||||
Redemption of preferred stock (Note 8) | (150,250) | (150,250) | (145,258) | (4,992) | ||||||||||
Vantage SDC expansion capacity funded through equity, net of liability settlement (Note 9) | 0 | |||||||||||||
Exchange of notes for common stock (Note 8) | 182,207 | 182,207 | 734 | 181,473 | ||||||||||
Adjustment of redeemable noncontrolling interest and warrants to fair value (Note 9) | 0 | |||||||||||||
Shares issued pursuant to settlement liability | 47,042 | 47,042 | 60 | 46,982 | ||||||||||
Reclassification of carried interest allocated to redeemable noncontrolling interest to noncontrolling interest in investment entities (Note 9) | 0 | |||||||||||||
Deconsolidation of investment entities (Note 2 and 10) | (1,079,660) | 474 | 1,956 | (1,482) | (1,080,134) | |||||||||
Redemptions of stock | $ 0 | $ 4,647 | $ 20 | $ 4,627 | $ (4,647) | |||||||||
Equity-based compensation | 58,029 | 51,290 | 66 | 51,224 | 2,841 | 3,898 | ||||||||
Shares canceled for tax withholdings on vested equity awards | (19,360) | (19,360) | (29) | (19,331) | ||||||||||
Contributions from noncontrolling interests | 202,471 | 202,471 | ||||||||||||
Distributions to noncontrolling interests | (222,519) | (222,519) | ||||||||||||
Preferred stock dividends | (70,627) | (70,627) | (70,627) | |||||||||||
Reallocation of equity (Notes 2 and 9) | 0 | (10,750) | (11,605) | 855 | 4,682 | 6,068 | ||||||||
Ending balance at Dec. 31, 2021 | $ 4,912,390 | 2,146,934 | 854,232 | 5,692 | 7,820,807 | (6,576,180) | 42,383 | 2,653,173 | 112,283 | |||||
Dividends declared per common share (in dollars per share) | $ 0 | |||||||||||||
Net income (loss) | $ (543,219) | (321,797) | (321,797) | (189,053) | (32,369) | |||||||||
Other comprehensive income (loss) | (61,840) | (44,021) | (44,021) | (14,072) | (3,747) | |||||||||
Stock repurchases (Note 9) | (107,785) | (107,785) | (53,877) | (168) | (53,740) | |||||||||
Cost of DataBank recapitalization | (34,369) | (13,122) | (13,122) | (21,247) | ||||||||||
DataBank recapitalization (Note 9) | 0 | 230,238 | 230,238 | (230,238) | ||||||||||
Vantage SDC expansion capacity funded through equity, net of liability settlement (Note 9) | 0 | |||||||||||||
Exchange of notes for common stock (Note 8) | 177,818 | 177,818 | 256 | 177,562 | ||||||||||
Adjustment of redeemable noncontrolling interest and warrants to fair value (Note 9) | (725,026) | (725,026) | (725,026) | |||||||||||
Shares issued for redemption of redeemable noncontrolling interest (Note 9) | 348,759 | 348,759 | 577 | 348,182 | ||||||||||
Transaction costs incurred in connection with redemption of redeemable noncontrolling interest | (7,137) | (7,137) | (7,137) | |||||||||||
Reclassification of carried interest allocated to redeemable noncontrolling interest to noncontrolling interest in investment entities (Note 9) | 4,087 | 4,087 | ||||||||||||
Assumption of deferred tax asset resulting from redemption of redeemable noncontrolling interest (Note 9) | 5,200 | 5,200 | 5,200 | |||||||||||
Deconsolidation of investment entities (Note 2 and 10) | (376,177) | (376,177) | ||||||||||||
Redemptions of stock | 32,076 | 0 | 341 | 4 | 337 | 32,076 | (341) | |||||||
Equity-based compensation | 55,328 | 39,996 | 63 | 39,933 | 12,834 | 2,498 | ||||||||
Shares canceled for tax withholdings on vested equity awards | (18,239) | (18,239) | (27) | (18,212) | ||||||||||
Issuance of OP Units in connection with business combinations | 0 | |||||||||||||
Contributions from noncontrolling interests | 2,613,962 | 2,613,962 | ||||||||||||
Distributions to noncontrolling interests | (1,677,551) | (1,677,297) | (254) | |||||||||||
Preferred stock dividends | (61,401) | (61,401) | (61,401) | |||||||||||
Common stock dividends declared | (3,235) | (3,235) | (3,235) | |||||||||||
Reallocation of equity (Notes 2 and 9) | 0 | 13,175 | 13,046 | 129 | (13,175) | |||||||||
Ending balance at Dec. 31, 2022 | $ 4,469,489 | 1,660,698 | 800,355 | 6,397 | 7,818,068 | (6,962,613) | (1,509) | 2,743,896 | 64,895 | |||||
Dividends declared per common share (in dollars per share) | $ 0.02 | |||||||||||||
Net income (loss) | $ 38,662 | 185,280 | 185,280 | (155,756) | 9,138 | |||||||||
Other comprehensive income (loss) | 2,597 | 1,954 | 1,954 | 416 | 227 | |||||||||
Stock repurchases (Note 9) | (4,758) | (4,758) | (5,685) | 927 | ||||||||||
Change in common stock par value (Note 8) | 0 | (4,862) | 4,862 | |||||||||||
DataBank recapitalization (Note 9) | 18,210 | (14,791) | (14,791) | 33,001 | ||||||||||
Vantage SDC expansion capacity funded through equity, net of liability settlement (Note 9) | 109,562 | 12,255 | 12,255 | 97,307 | ||||||||||
Adjustment of redeemable noncontrolling interest and warrants to fair value (Note 9) | 0 | |||||||||||||
Reclassification of carried interest allocated to redeemable noncontrolling interest to noncontrolling interest in investment entities (Note 9) | 0 | |||||||||||||
Deconsolidation of investment entities (Note 2 and 10) | (2,136,854) | 965 | 965 | (2,137,819) | ||||||||||
Redemptions of stock | $ 0 | $ 984 | $ 3 | $ 981 | $ (984) | |||||||||
Equity-based compensation | 67,639 | 53,465 | 122 | 53,343 | 14,010 | 164 | ||||||||
Shares canceled for tax withholdings on vested equity awards | (18,680) | (18,680) | (26) | (18,654) | ||||||||||
Contributions from noncontrolling interests | 115,781 | 115,781 | ||||||||||||
Distributions to noncontrolling interests | (105,178) | (104,681) | (497) | |||||||||||
Preferred stock dividends | (58,656) | (58,656) | (58,656) | |||||||||||
Common stock dividends declared | (6,513) | (6,513) | (6,513) | |||||||||||
Reallocation of equity (Notes 2 and 9) | 0 | (1,148) | (1,149) | 1 | (844) | 1,992 | ||||||||
Ending balance at Dec. 31, 2023 | $ 2,491,301 | $ 1,811,055 | $ 794,670 | $ 1,634 | $ 7,855,842 | $ (6,842,502) | $ 1,411 | $ 605,311 | $ 74,935 | |||||
Dividends declared per common share (in dollars per share) | $ 0.04 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock dividends declared (in dollars per share) | $ 0.01 | $ 0.04 | $ 0.02 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Cash Flows from Operating Activities | ||||
Net income (loss) | $ 45,165 | $ (569,997) | $ (816,911) | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
Amortization of discount and net origination fees on loans receivable and debt securities | 0 | 0 | 0 | |
Paid-in-kind interest added to loan principal | (948) | (7,144) | 8,398 | |
Straight-line rent income | (10,286) | (25,488) | 2,778 | |
Amortization of above- and below-market lease values, net | 1,664 | 208 | 5,042 | |
Amortization of deferred financing costs and debt discount and premium, net | 21,119 | 106,410 | 65,129 | |
Unrealized carried interest allocation | (334,672) | (253,447) | (100,800) | |
Unrealized principal investment income | (145,448) | (56,731) | (86,023) | |
Other equity method (earnings) losses | 15,188 | 45,489 | 194,071 | |
Distributions of income from equity method investments | 3,776 | 2,992 | 3,054 | |
Impairment of real estate and intangible assets | 0 | 35,985 | 319,263 | |
Allowance for doubtful accounts | 0 | 0 | 3,294 | |
Depreciation and amortization | 485,551 | 579,250 | 636,555 | |
Equity-based compensation | 67,639 | 54,710 | 59,416 | |
Gain on sales of real estate, net | 0 | 0 | (49,429) | |
Deferred income tax (benefit) expense | (69) | 11,572 | (68,454) | |
(Gain) Loss on debt extinguishment | 0 | 133,173 | (29,099) | |
Other (gain) loss, net | (101,209) | 22,245 | 114,418 | |
Other adjustments, net | 162 | (997) | (7,484) | |
(Increase) decrease in other assets and due from affiliates | (7,058) | 35,372 | (72,700) | |
Increase (decrease) in accrued and other liabilities and due to affiliates | 193,063 | 148,980 | 67,719 | |
Net cash provided by (used in) operating activities | 233,637 | 262,582 | 248,237 | |
Cash Flows from Investing Activities | ||||
Contributions to and acquisition of equity investments | (584,589) | (570,035) | (549,621) | |
Return of capital from equity method investments | 79,229 | 59,248 | 90,205 | |
Proceeds from sale of equity investments | 695,683 | 522,337 | 564,025 | |
Acquisition of loans receivable and debt securities | 0 | (164,815) | (147,498) | |
Proceeds from paydown and maturity of debt securities | 0 | 573 | 1,261 | |
Net disbursements on originated loans | 0 | (215,918) | (33,272) | |
Repayments of loans receivable | 6,804 | 23,956 | 485,613 | |
Proceeds from sales of loans receivable and debt securities | 0 | 401,002 | 146,004 | |
Acquisition of and additions to real estate, related intangibles and leasing commissions | (653,470) | (2,141,237) | (828,361) | |
Proceeds from sales of real estate investment holding entities | 0 | 162,268 | 408,391 | |
Investment deposits | (4,140) | 630 | (21,418) | |
Net receipt (payment) on settlement of derivatives | 3,401 | 9,352 | 17,123 | |
Acquisition of InfraBridge, net of cash acquired (Note 3) | (314,266) | 0 | 0 | |
Proceeds from sale of fixed assets | 0 | 0 | 14,946 | |
Cash and restricted cash derecognized in deconsolidation of investment entities | (229,183) | 0 | 0 | |
Proceeds from DataBank recapitalization, net of carried interest distribution | 21,487 | 0 | 0 | |
Other investing activities, net | 0 | (769) | (833) | |
Net cash provided by (used in) investing activities | (979,044) | (1,913,408) | 146,565 | |
Cash Flows from Financing Activities | ||||
Dividends paid to preferred stockholders | (58,761) | (62,395) | (73,384) | |
Dividends paid to common stockholders | (6,477) | (1,636) | 0 | |
Repurchases of common stock | 0 | (55,006) | 0 | |
Borrowings on corporate debt | 0 | 290,000 | 345,000 | |
Repayments of corporate debt, including senior notes | (200,000) | (304,237) | (76,502) | |
Borrowings from investment level debt | 1,722,443 | 872,726 | 2,094,722 | |
Repayments of investment level debt | (1,199,865) | (210,268) | (1,643,900) | |
Payment of deferred financing costs and prepayment penalties on investment level debt | (38,029) | (18,688) | (48,127) | |
Contributions from noncontrolling interests | 116,081 | 2,625,612 | 232,144 | |
Distributions to and redemptions of noncontrolling interests | (163,802) | (2,109,229) | (249,083) | |
Payment of contingent consideration to Wafra | (90,000) | 0 | 0 | |
Repurchases of preferred stock | (4,758) | (52,779) | (150,250) | |
Shares canceled for tax withholdings on vested equity awards | (18,680) | (18,239) | (19,360) | |
Acquisition of noncontrolling interest | 0 | (32,076) | 0 | |
Net cash provided by (used in) financing activities | 58,152 | 923,785 | 411,260 | |
Effect of exchange rates on cash, cash equivalents and restricted cash | 766 | (2,465) | (2,825) | |
Net increase (decrease) in cash, cash equivalents and restricted cash | (686,489) | (729,506) | 803,237 | |
Cash, cash equivalents and restricted cash—beginning of period | 1,036,739 | 1,766,245 | 963,008 | |
Cash, cash equivalents and restricted cash—end of period | 350,250 | 1,036,739 | 1,766,245 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Roll Forward] | ||||
Cash and cash equivalents, beginning balance | 855,564 | 1,226,897 | 703,544 | |
Restricted cash, beginning balance | 4,854 | 7,511 | 67,772 | |
Cash and cash equivalents included in assets held for disposition, begining balance | 62,690 | 375,205 | 0 | |
Restricted cash included in assets held for disposition, beginning balance | 113,631 | 156,632 | 191,692 | |
Cash and cash equivalents, ending balance | 345,335 | 855,564 | 1,226,897 | |
Restricted cash, ending balance | 4,915 | 4,854 | 7,511 | |
Cash and cash equivalents included in assets held for disposition, ending balance | 0 | 62,690 | 375,205 | |
Restricted cash included in assets held for disposition, ending balance | 0 | 113,631 | 156,632 | |
Total cash, cash equivalents, and restricted cash | 350,250 | 1,036,739 | 1,766,245 | |
Supplemental Disclosure of Cash Flow Information | ||||
Cash paid for interest, net of amounts capitalized of $5,433, $3,206 and $1,567 | 179,071 | 219,851 | 444,365 | |
Cash received (paid) for income taxes | 57 | 11,747 | 5,927 | |
Operating lease payments for corporate offices | 9,096 | 9,651 | 10,358 | |
Operating lease payments for TowerCo | 0 | 11,709 | 0 | |
Supplemental Disclosure of Cash Flows from Discontinued Operations | ||||
Net cash provided by (used in) operating activities of discontinued operations | 233,903 | 300,482 | 375,250 | |
Net cash provided by (used in) investing activities of discontinued operations | (600,050) | (1,377,005) | 336,102 | |
Supplemental Disclosure of Noncash Investing and Financing Activities | ||||
Dividends and distributions payable | 16,477 | 16,491 | 15,759 | |
Receivables from asset sales | 662 | 16,824 | 14,045 | |
Contingent consideration for acquisition of InfraBridge | 10,874 | 0 | 0 | |
Redemption of OP Units for common stock | 984 | 341 | 4,647 | |
Redemption of redeemable noncontrolling interest for common stock | 0 | 348,759 | 0 | |
Exchange of notes into shares of Class A common stock | 0 | 60,317 | 161,261 | |
Debt assumed by buyer in sale of real estate | 0 | 0 | 44,148 | |
Seller note received in sale of NRF Holdco equity (Note 2) | 0 | 154,992 | 0 | |
Loan receivable relieved in exchange for equity investment acquired | 0 | 20,676 | 0 | |
Vantage SDC capacity funded through equity, net of liability settlement (Note 9) | 109,562 | 0 | 0 | |
Operating lease ROU assets and lease liabilities established for corporate offices | 15,314 | 5,837 | 421 | |
Assets of investment entities disposed of in sale of equity and/or deconsolidated | [1] | 8,659,140 | 4,689,188 | 5,614,465 |
Liabilities of investment entities disposed of in sale of equity and/or deconsolidated | [1] | 5,941,332 | 3,948,016 | 4,291,557 |
Assets of investment entities deconsolidated | [1] | 0 | 0 | 0 |
Liabilities of investment entities deconsolidated | [1] | 0 | 0 | 0 |
Noncontrolling interests of investment entities disposed of in sale of equity and/or deconsolidated | [1] | $ 2,398,693 | $ 415,098 | $ 1,080,134 |
[1] Represents deconsolidation of Vantage SDC and DataBank in 2023, sale of Wellness Infrastructure business in 2022, and sale of non-digital investment portfolio and hospitality business in 2021 (Notes 9 and 2) |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Cash Flows [Abstract] | |||
Interest capitalized | $ 5,433 | $ 3,206 | $ 1,567 |
Business and Organization
Business and Organization | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Organization | 1. Business and Organization DigitalBridge Group, Inc. ("DBRG," and together with its consolidated subsidiaries, the "Company") is a leading global digital infrastructure investment manager. The Company deploys and manages capital on behalf of its investors and shareholders across the digital infrastructure ecosystem, including data centers, cell towers, fiber networks, small cells, and edge infrastructure. The Company's investment management platform is anchored by its flagship value-add digital infrastructure equity offerings, and has expanded to include offerings in core equity, credit, liquid securities, and mid-market global infrastructure equity through InfraBridge (Note 3). On December 31, 2023, t he Operating segment was discontinued following full deconsolidation of the portfolio companies in the Operating segment , as discussed in Note 9, at which time, the activities thereof qualified as discontinued operations (Note 2). All prior periods presented have been reclassified to conform to current period presentation as discontinued operations. Organization The Company operates as a taxable C Corporation commencing with the taxable year ended December 31, 2022. The Company conducts all of its activities and holds substantially all of its assets and liabilities through its operating subsidiary, DigitalBridge Operating Company, LLC (the "Operating Company" or the "OP") . At December 31, 2023, the Company owned 93% of the OP , |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies The significant accounting policies of the Company are described below. Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company and its controlled subsidiaries. All significant intercompany accounts and transactions have been eliminated. The portions of equity, net income and other comprehensive income of consolidated subsidiaries that are not attributable to the parent are presented separately as amounts attributable to noncontrolling interests in the consolidated financial statements. Noncontrolling interests represents predominantly the majority ownership held by third party investors in the Company's former Operating segment, carried interest allocation to certain senior executives of the Company (Note 16), and membership interests in OP held by certain current and former employees of the Company. To the extent the Company consolidates a subsidiary that is subject to industry-specific guidance such as investment company accounting applied by the Company's consolidated funds, the Company retains the industry-specific guidance applied by that subsidiary in its consolidated financial statements. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates and assumptions. Principles of Consolidation The Company consolidates entities in which it has a controlling financial interest by first considering if an entity meets the definition of a variable interest entity ("VIE") for which the Company is deemed to be the primary beneficiary, or if the Company has the power to control an entity through a majority of voting interest or through other arrangements. Variable Interest Entities —A VIE is an entity that either (i) lacks sufficient equity to finance its activities without additional subordinated financial support from other parties; (ii) whose equity holders lack the characteristics of a controlling financial interest; and/or (iii) is established with non-substantive voting rights. A VIE is consolidated by its primary beneficiary, which is defined as the party who has a controlling financial interest in the VIE through (a) power to direct the activities of the VIE that most significantly affect the VIE’s economic performance, and (b) obligation to absorb losses or right to receive benefits of the VIE that could be significant to the VIE. This assessment may involve subjectivity in the determination of which activities most significantly affect the VIE’s performance, and estimates about current and future fair value of the assets held by the VIE and financial performance of the VIE. In assessing its interests in the VIE, the Company also considers interests held by its related parties, including de facto agents. Additionally, the Company assesses whether it is a member of a related party group that collectively meets the power and benefits criteria and, if so, whether the Company is most closely associated with the VIE. In performing the related party analysis, the Company considers both qualitative and quantitative factors, including, but not limited to: the characteristics and size of its investment relative to the related party; the Company’s and the related party's ability to control or significantly influence key decisions of the VIE including consideration of involvement by de facto agents; the obligation or likelihood for the Company or the related party to fund operating losses of the VIE; and the similarity and significance of the VIE’s business activities to those of the Company and the related party. The determination of whether an entity is a VIE, and whether the Company is the primary beneficiary, may involve significant judgment, and depends upon facts and circumstances specific to an entity at the time of the assessment. Voting Interest Entities —Unlike VIEs, voting interest entities have sufficient equity to finance their activities and equity investors exhibit the characteristics of a controlling financial interest through their voting rights. The Company consolidates such entities when it has the power to control these entities through ownership of a majority of the entities' voting interests or through other arrangements. At each reporting period, the Company reassesses whether changes in facts and circumstances cause a change in the status of an entity as a VIE or voting interest entity, and/or a change in the Company's consolidation assessment. Changes in consolidation status are applied prospectively. An entity may be consolidated as a result of this reassessment, in which case, the assets, liabilities and noncontrolling interest in the entity are recorded at fair value upon initial consolidation. Any existing equity interest held by the Company in the entity prior to the Company obtaining control will be remeasured at fair value, which may result in a gain or loss recognized upon initial consolidation. However, if the consolidation represents an asset acquisition of a voting interest entity, the Company's existing interest in the acquired assets, if any, is not remeasured to fair value but continues to be carried at historical cost. The Company may also deconsolidate a subsidiary as a result of this reassessment, which may result in a gain or loss recognized upon deconsolidation depending on the carrying values of deconsolidated assets and liabilities compared to the fair value of any interests retained. Noncontrolling Interests Redeemable Noncontrolling Interests —This represents noncontrolling interests in sponsored open-end funds in the Liquid Strategies that are consolidated by the Company. The limited partners of these funds have the ability to withdraw all or a portion of their interests from the funds in cash with advance notice. Redeemable noncontrolling interests is presented outside of permanent equity. Allocation of net income or loss to redeemable noncontrolling interests is based upon their ownership percentage during the period. The carrying amount of redeemable noncontrolling interests is adjusted to its redemption value at the end of each reporting period to an amount not less than its initial carrying value, except for amounts contingently redeemable which will be adjusted to redemption value only when redemption is probable. Such adjustments will be recognized in additional paid-in capital. Prior to full redemption in May 2022, there was also redeemable noncontrolling interests in the Company's investment management business, as discussed in Note 9. Noncontrolling Interests in Investment Entities —This represents predominantly carried interest allocation to certain senior executives of the Company (Note 16). Excluding carried interests, allocation of net income or loss is generally based upon relative ownership interests. Noncontrolling Interests in Operating Company —This represents membership interests in OP held primarily by certain current and former employees of the Company. Noncontrolling interests in OP are allocated a share of net income or loss in OP based upon their weighted average ownership interest in OP during the period. Noncontrolling interests in OP have the right to require OP to redeem part or all of such member’s membership units in OP ("OP Units") for cash based on the market value of an equivalent number of shares of class A common stock at the time of redemption, or at the Company's election as managing member of OP, through issuance of shares of class A common stock (registered or unregistered) on a one-for-one basis. At the end of each reporting period, noncontrolling interests in OP is adjusted to reflect their ownership percentage in OP at the end of the period, through a reallocation between controlling and noncontrolling interests in OP, as applicable. Foreign Currency Assets and liabilities denominated in a foreign currency for which the functional currency is a foreign currency are translated using the exchange rate in effect at the balance sheet date and the corresponding results of operations for such entities are translated using the average exchange rate in effect during the period. The resulting foreign currency translation adjustments are recorded as a component of accumulated other comprehensive income or loss in stockholders’ equity. Upon sale, complete or substantially complete liquidation of a foreign subsidiary, or upon partial sale of a foreign equity method investment, the translation adjustment associated with the foreign subsidiary or investment, or a proportionate share related to the portion of equity method investment sold, is reclassified from accumulated other comprehensive income or loss into earnings. Financial assets and liabilities denominated in a foreign currency for which the functional currency is the U.S. dollar are remeasured using the exchange rate in effect at the balance sheet date, whereas non-financial assets and liabilities are remeasured using the exchange rate on the date the item was initially recognized (i.e., the historical rate), and the corresponding results of operations for such entities are remeasured using the average exchange rate in effect during the period. The resulting foreign currency remeasurement adjustments are recorded in other gain (loss) on the consolidated statements of operations. Disclosures of non-U.S. dollar amounts to be recorded in the future are translated using exchange rates in effect at the date of the most recent balance sheet presented. Fair Value Measurement Fair value is based on an exit price, defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Where appropriate, the Company makes adjustments to estimated fair values to appropriately reflect counterparty credit risk as well as the Company's own credit-worthiness. The estimated fair value of financial assets and financial liabilities are categorized into a three tier hierarchy, prioritized based on the level of transparency in inputs used in the valuation techniques, as follows: Level 1 —Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 —Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in non-active markets, or valuation techniques utilizing inputs that are derived principally from or corroborated by observable data directly or indirectly for substantially the full term of the financial instrument. Level 3 —At least one assumption or input is unobservable and it is significant to the fair value measurement, requiring significant management judgment or estimate. Where the inputs used to measure the fair value of a financial instrument falls into different levels of the fair value hierarchy, the financial instrument is categorized within the hierarchy based on the lowest level of input that is significant to its fair value measurement. Due to the inherently judgmental nature of Level 3 fair value, changes in assumptions or inputs applied as of reporting date could result in a higher or lower fair value, and realized value may differ from the estimated unrealized fair value. Fair Value Option The fair value option provides an option to elect fair value as a measurement alternative for selected financial instruments. The fair value option may be elected only upon the occurrence of certain specified events, including when the Company enters into an eligible firm commitment, at initial recognition of the financial instrument, as well as upon a business combination or consolidation of a subsidiary. The election is irrevocable unless a new election event occurs. The Company has elected fair value option to account for certain equity method investments and loans receivable. Business Combinations Definition of a Business —The Company evaluates each purchase transaction to determine whether the acquired assets meet the definition of a business. If substantially all of the fair value of gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, then the set of transferred assets and activities is not a business. If not, for an acquisition to be considered a business, it would have to include an input and a substantive process that together significantly contribute to the ability to create outputs (i.e., there is a continuation of revenue before and after the transaction). A substantive process is not ancillary or minor, cannot be replaced without significant costs, effort or delay or is otherwise considered unique or scarce. To qualify as a business without outputs, the acquired assets would require an organized workforce with the necessary skills, knowledge and experience to perform a substantive process. Business Combinations —The Company accounts for acquisitions that qualify as business combinations by applying the acquisition method. Transaction costs related to acquisition of a business are expensed as incurred and excluded from the fair value of consideration transferred. The identifiable assets acquired, liabilities assumed and noncontrolling interests in an acquired entity are recognized and measured at their estimated fair values, except as discussed below. The excess of the consideration transferred over the value of identifiable assets acquired, liabilities assumed and noncontrolling interests in an acquired entity, net of fair value of any previously held interest in the acquired entity, is recorded as goodwill. Such valuations require management to make significant estimates and assumptions. With respect to contract assets and contract liabilities acquired in a business combination, these are not accounted for under the fair value basis at the time of acquisition. Instead, the Company determines the value of these revenue contracts as if it had originated the acquired contracts by evaluating the associated performance obligations, transaction price and relative stand-alone selling price at the original contract inception date or subsequent modification dates. The estimated fair values and allocation of consideration are subject to adjustments during the measurement period, not to exceed one year, based upon new information obtained about facts and circumstances that existed at time of acquisition. Contingent Consideration —Contingent consideration is classified as a liability or equity, as applicable. Contingent consideration in connection with the acquisition of a business or a VIE is measured at fair value on acquisition date, and unless classified as equity, is remeasured at fair value each reporting period thereafter until the consideration is settled, with changes in fair value included in earnings. Cash and Cash Equivalents Short-term, highly liquid investments with original maturities of three months or less are considered to be cash equivalents. The Company's cash and cash equivalents are held with major financial institutions and may at times exceed federally insured limits. Restricted Cash Restricted cash consists primarily of cash reserves maintained pursuant to the governing agreement of the securitized debt of the Company and prior to December 31, 2023, securitized debt of portfolio companies in the Operating segment. Investments Equity Investments A noncontrolling, unconsolidated ownership interest in an entity may be accounted for using one of: (i) equity method where applicable; (ii) fair value option if elected; (iii) fair value through earnings if fair value is readily determinable, including election of net asset value ("NAV") practical expedient where applicable; or (iv) for equity investments without readily determinable fair values, the measurement alternative to measure at cost adjusted for any impairment and observable price changes, as applicable. Marketable equity securities are recorded as of trade date. Dividend income is recognized on the ex-dividend date and is included in other income. The Company's share of earnings (losses) from equity method investments in its sponsored funds and fair value changes of equity method investments under the fair value option are recorded in principal investment income (loss). Fair value changes of other equity investments, including adjustments for observable price changes under the measurement alternative, are recorded in other gain (loss). Equity Method Investments —The Company accounts for investments under the equity method of accounting if it has the ability to exercise significant influence over the operating and financial policies of an entity, but does not have a controlling financial interest. The equity method investment is initially recorded at cost and adjusted each period for capital contributions, distributions and the Company's share of the entity’s net income or loss as well as other comprehensive income or loss. The Company's share of net income or loss may differ from the stated ownership percentage interest in an entity if the governing documents prescribe a substantive non-proportionate earnings allocation formula or a preferred return to certain investors. For certain equity method investments, the Company may record its proportionate share of income (loss) on a one to three month lag. Distributions of operating profits from equity method investments are reported as operating activities, while distributions in excess of operating profits are reported as investing activities in the statement of cash flows under the cumulative earnings approach. Carried Interest —The Company's equity method investments include its interests as general partner or equivalent in investment vehicles that it sponsors. The Company recognizes earnings based on its proportionate share of results from these investment vehicles and a disproportionate allocation of returns based on the extent to which cumulative performance exceeds minimum return hurdles pursuant to terms of their respective governing agreements (“carried interests”). Carried interest is discussed further in Note 4. Impairment —Evaluation of impairment applies to equity method investments for which fair value option has not been elected and equity investments under the measurement alternative. If indicators of impairment exist, the Company will first estimate the fair value of its investment. In assessing fair value, the Company generally considers, among others, the estimated enterprise value of the investee or fair value of the investee's underlying net assets, including net cash flows to be generated by the investee as applicable, and for equity method investees with publicly traded equity, the traded price of the equity securities in an active market. For investments under the measurement alternative, if carrying value of the investment exceeds its fair value, an impairment is deemed to have occurred. For equity method investments, further consideration is made if a decrease in value of the investment is other-than-temporary to determine if impairment loss should be recognized. Assessment of other-than-temporary impairment involves management judgment, including, but not limited to, consideration of the investee’s financial condition, operating results, business prospects and creditworthiness, the Company's ability and intent to hold the investment until recovery of its carrying value, or a significant and prolonged decline in traded price of the investee’s equity security. If management is unable to reasonably assert that an impairment is temporary or believes that the Company may not fully recover the carrying value of its investment, then the impairment is considered to be other-than-temporary. Investments that are other-than-temporarily impaired are written down to their estimated fair value. Impairment loss is recorded in equity method earnings for equity method investments and in other gain (loss) for investments under the measurement alternative. Debt Securities Debt securities are recorded as of the trade date. Debt securities designated as available-for-sale (“AFS”) are carried at fair value with unrealized gains or losses included as a component of other comprehensive income. Upon disposition of AFS debt securities, the cumulative gains or losses in other comprehensive income (loss) that are realized are recognized in other gain (loss), net, on the statement of operations based on specific identification. Interest Income —Interest income from debt securities, including stated coupon interest payments and amortization of purchase premiums or discounts, is recognized using the effective interest method over the expected life of the debt securities. For beneficial interests in debt securities that are not of high credit quality (generally credit rating below AA) or that can be contractually settled such that the Company would not recover substantially all of its recorded investment, interest income is recognized as the accretable yield over the life of the securities using the effective yield method. The accretable yield is the excess of current expected cash flows to be collected over the net investment in the security, including the yield accreted to date. The Company evaluates estimated future cash flows expected to be collected on a quarterly basis, starting with the first full quarter after acquisition, or earlier if conditions indicating impairment are present. If the cash flows expected to be collected cannot be reasonably estimated, either at acquisition or in subsequent evaluation, the Company may consider placing the securities on nonaccrual, with interest income recognized using the cost recovery method. Impairment —The Company performs an assessment, at least quarterly, to determine whether its AFS debt securities are considered to be impaired; that is, if their fair value is less than their amortized cost basis. If the Company intends to sell the impaired debt security or is more likely than not will be required to sell the debt security before recovery of its amortized cost, the entire impairment amount is recognized in earnings within other gain (loss) as a write-off of the amortized cost basis of the debt security. If the Company does not intend to sell or is not more likely than not required to sell the debt security before recovery of its amortized cost, the credit component of the loss is recognized in earnings within other gain (loss) as an allowance for credit loss, which may be subject to reversal for subsequent recoveries in fair value. The non-credit loss component is recognized in other comprehensive income or loss ("OCI"). The allowance is charged off against the amortized cost basis of the security if in a subsequent period, the Company intends to or more likely than not will be required to sell the security, or if the Company deems the security to be uncollectible. In assessing impairment and estimating future expected cash flows, factors considered include, but are not limited to, credit rating of the security, financial condition of the issuer, defaults for similar securities, performance and value of assets underlying an asset-backed security. Loans Receivable Loans that the Company has the intent and ability to hold for the foreseeable future are classified as held for investment. Loans that the Company intends to sell or liquidate in the foreseeable future are classified as held for disposition. Interest income is recognized based upon contractual interest rate and unpaid principal balance of the loans. Loans that are past due 90 days or more as to principal or interest, or where reasonable doubt exists as to timely collection, are generally considered nonperforming, with reversal of interest income and suspension of interest income recognition. Recognition of interest income may be restored when all principal and interest are current and full repayment of the remaining contractual principal and interest are reasonably assured. The Company had elected the fair value option for all loans receivable. Loan fair values are generally determined either: by comparing the current yield to the estimated yield of newly originated loans with similar credit risk or the market yield at which a third party might expect to purchase such investment; or based upon discounted cash flow projections of principal and interest expected to be collected, which projections include, but are not limited to, consideration of the financial standing of the borrower or sponsor as well as operating results and/or value of the underlying collateral. For loans that are nonperforming where recognition of interest income is suspended, any interest subsequently collected is recognized on a cash basis by crediting income when received. Origination and other fees charged to the borrower are recognized immediately as interest income when earned. Costs to originate or purchase loans are expensed as incurred. Goodwill Goodwill is an unidentifiable intangible asset and is recognized as a residual, generally measured as the excess of consideration transferred in a business combination over the identifiable assets acquired, liabilities assumed and noncontrolling interests in the acquiree. Goodwill is assigned to reporting units that are expected to benefit from the synergies of the business combination. Goodwill is tested for impairment at the reporting units to which it is assigned at least on an annual basis in the fourth quarter of each year, or more frequently if events or changes in circumstances occur that would more likely than not reduce the fair value of a reporting unit below its carrying value, including goodwill. The assessment of goodwill for impairment may initially be performed based on qualitative factors to determine if it is more likely than not that the fair value of the reporting unit to which the goodwill is assigned is less than its carrying value, including goodwill. If so, a quantitative assessment is performed to identify both the existence of impairment and the amount of impairment loss. The Company may bypass the qualitative assessment and proceed directly to performing a quantitative assessment to compare the fair value of a reporting unit with its carrying value, including goodwill. Impairment is measured as the excess of carrying value over fair value of the reporting unit, with the loss recognized limited to the amount of goodwill assigned to that reporting unit. An impairment establishes a new basis for goodwill and any impairment loss recognized is not subject to subsequent reversal. Goodwill impairment tests require judgment, including identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. Identifiable Intangibles In a business combination or asset acquisition, the Company may recognize identifiable intangibles that meet either or both the contractual legal criterion or the separability criterion. An indefinite-lived intangible is not subject to amortization until such time that its useful life is determined to no longer be indefinite, at which point, it will be assessed for impairment and its adjusted carrying amount amortized over its remaining useful life. Finite-lived intangibles are amortized over their useful life in a manner that reflects the pattern in which the intangible is being consumed if readily determinable, such as based upon expected cash flows; otherwise they are amortized on a straight-line basis. The useful life of all identified intangibles will be periodically reassessed and if useful life changes, the carrying amount of the intangible will be amortized prospectively over the revised useful life. The Company's identifiable intangible assets are generally valued under the income approach, using an estimate of future net cash flows, discounted based upon risk-adjusted returns for similar underlying assets. Identifiable intangibles recognized in acquisition of an investment management business generally include management contracts, which represent contractual rights to future fee revenue from in-place management contracts that are amortized based upon expected cash flows over the remaining term of the contracts; and investor relationships, which represent potential fee revenue generated from future reinvestment by existing investors that is amortized on a straight-line basis over its estimated useful life. Other intangible assets include trade names, which are recognized as a separate identifiable intangible asset to the extent the Company intends to continue using the trade name post-acquisition. Trade names are valued as the savings from royalty fees that would have otherwise been incurred. Trade names are amortized on a straight-line basis over the estimated useful life, or not amortized if they are determined to have an indefinite useful life. Impairment Identifiable intangible assets are reviewed periodically to determine if circumstances exist which may indicate a potential impairment. If such circumstances are considered to exist, the Company evaluates if carrying value of the intangible asset is recoverable based upon an undiscounted cash flow analysis. Impairment loss is recognized for the excess, if any, of carrying value over estimated fair value of the intangible asset. An impairment establishes a new basis for the intangible asset and any impairment loss recognized is not subject to subsequent reversal. In evaluating investment management intangibles for impairment, such as management contracts and investor relationships, the Company considers various factors that may affect future fee revenue, including but not limited to, changes in fee basis, amendments to contractual fee terms, and projected capital raising for future investment vehicles. Indefinite life trade names are impaired if the Company determines that it no longer intends to use the trade name. Accounts Receivable and Related Allowance Cost Reimbursements and Recoverable Expenses —The Company is entitled to reimbursements and/or recovers certain costs paid on behalf of investment vehicles sponsored by the Company, which include: (i) organization and offering costs associated with the formation and capital raising of the investment vehicles up to specified thresholds; (ii) costs incurred in performing investment due diligence; and (iii) direct and indirect operating costs associated with managing the operations of certain investment vehicles. Indirect operating costs are recorded as expenses of the Company when incurred and amounts allocated and reimbursable are recorded as other income in the consolidated statements of operations on a gross basis to the extent the Company determines that it acts in the capacity of a principal in the incurrence of such costs. The Company facilitates the payments of organization and offering costs, due diligence costs to the extent the related investments are consummated and direct operating costs, all of which are recorded as due from affiliates on the consolidated balance sheets, until such amounts are repaid. Due diligence costs related to unconsummated investments that are borne by the Company are expensed as transaction-related costs in the consolidated statement of operations. The Company assesses the collectability of such receivables and establishes an allowance for any balances considered not collectable. Fixed Assets Fixed assets of the Company are presented within other assets and carried at cost less accumulated depreciation and amortization. Ordinary repairs and maintenance are expensed as incurred. Major replacements and betterments which improve or extend the life of assets are capitalized and depreciated over their useful life. Depreciation and amortization is recognized on a straight-line basis over the estimated useful life of the assets, which range between 3 and 7 years for furniture, fixtures, equipment and capitalized software, and over the shorter of the lease term or useful life for leasehold improvements. Derivative Instruments and Hedging Activities The Company may use derivative instruments to manage its interest rate risk and foreign currency risk. The Company does not use derivative instruments for speculative or trading purposes. All derivative instruments are recorded at fair value and included in other assets or other liabilities on a gross basis on the balance sheet. The accounting for changes in fair value of derivatives depends upon whether the derivative has been des |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | 3. Business Combinations InfraBridge In February 2023, the Company acquired the global infrastructure equity investment management business of AMP Capital Investors International Holdings Limited, which was rebranded as InfraBridge at closing. Consideration for the acquisition consisted of $314.3 million cash consideration (net of cash assumed), subject to customary post-closing working capital adjustments, plus a contingent amount based upon achievement of future fundraising targets for InfraBridge's new global infrastructure funds. The estimated fair value of the contingent consideration is subject to remeasurement each reporting period, as discussed in Note 10. The following table summarizes the total consideration and allocation to assets acquired and liabilities assumed. The initial cash consideration was determined, in part, based upon estimated net working capital of the acquired entities at closing. The purchase price allocation is provisional and will be finalized through the one year measurement period. Subsequent to the acquisition, certain adjustments were identified that affected the provisional accounting, as presented below. These were adjustments to net working capital and to the value of acquired interest in an InfraBridge fund based upon a revised NAV of the fund, applying new information about facts and circumstances that existed at the time of acquisition. (In thousands) As Reported Measurement Period Adjustments As Revised At December 31, 2023 Consideration Cash $ 364,338 $ 1,102 $ 365,440 Estimated fair value of contingent consideration 10,874 — 10,874 $ 375,212 $ 376,314 Assets acquired and liabilities assumed Cash 51,174 — 51,174 Principal investments 130,810 (18,500) 112,310 Intangible assets 50,800 — 50,800 Other assets 27,682 7,017 34,699 Deferred tax liabilities (10,198) — (10,198) Other liabilities (21,625) (8,589) (30,214) Fair value of net assets acquired 228,643 208,571 Goodwill 146,569 21,174 167,743 $ 375,212 $ 376,314 • Principal investments represent acquired interests in InfraBridge funds, valued at their most recent NAV at closing. • The investment management intangible assets of InfraBridge were composed of the following: • Management contracts were valued based upon estimated net cash flows expected to be generated from the contracts, with remaining term of the contracts ranging between 1 and 4 years, discounted at 8.0%. • Investor relationships represent the fair value of potential future investment management fees, net of operating costs, to be generated from repeat InfraBridge investors in future sponsored vehicles, with a weighted average estimated useful life of 12 years, discounted at 14.0%. • Deferred tax liabilities were recognized for the book-to-tax basis difference of identifiable intangible assets acquired, net of deferred tax assets assumed. • Other assets acquired and liabilities assumed include management fee receivable and compensation payable associated with the pre-acquisition period, amounts due to InfraBridge funds and receivable from seller. • Goodwill is the value of the business acquired that is not already captured in identifiable assets, largely represented by the potential synergies from combining the capital raising resources of DBRG and the mid-market infrastructure specialization of the InfraBridge team. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | 4. Investments The Company's equity and debt investments are represented by the following: (In thousands) December 31, 2023 December 31, 2022 Equity method investments (1) Principal investments $ 1,194,417 $ 410,511 Carried interest allocation 676,421 341,749 Other equity investments 71,417 115,024 CLO subordinated notes 50,927 50,927 Loans receivable — 133,307 1,993,182 1,051,518 Equity investments of consolidated funds Marketable equity securities 66,297 139,076 Other investments 416,614 46,769 $ 2,476,093 $ 1,237,363 __________ (1) Equity method investments in the Investment Management segment are $726.1 million at December 31, 2023 and $393.4 million at December 31, 2022.. Equity Method Investments Principal Investments Principal investments represent investments in the Company's sponsored investment vehicles, accounted for as equity method investments as the Company exerts significant influence in its role as general partner. The Company typically has a small percentage interest in its sponsored funds as general partner or special limited partner (presented in the Investment Management segment). The Company also has additional investment as general partner affiliate alongside the funds' limited partners, primarily with respect to the Company's flagship value-add funds, InfraBridge funds and funds invested in DataBank (presented within Corporate and Other). The Company's proportionate share of net income (loss) from investments in its sponsored investment vehicles, primarily unrealized gain (loss) from changes in fair value of the underlying fund investments, is recorded in principal investment income on the consolidated statements of operations. Carried Interest Allocation Carried interest allocation represents a disproportionate allocation of returns to the Company, as general partner or special limited partner (which may be paid to the special limited partner entity owned by the Company in place of the general partner entity), based upon the extent to which cumulative performance of a sponsored fund exceeds minimum return hurdles. Carried interest allocation generally arises when appreciation in value of the underlying investments of the fund exceeds the minimum return hurdles, after factoring in a return of invested capital and a return of certain costs of the fund pursuant to terms of the governing documents of the fund. The amount of carried interest allocation recognized is based upon the cumulative performance of the fund if it were liquidated as of the reporting date. Unrealized carried interest allocation is driven primarily by changes in fair value of the underlying investments of the fund, which may be affected by various factors, including but not limited to: the financial performance of the portfolio company, economic conditions, foreign exchange rates, comparable transactions in the market, and equity prices for publicly traded securities. For funds that have exceeded the minimum return hurdle but have not returned all capital to the limited partners, unrealized carried interest allocation may be subject to reversal over time as preferred returns continue to accrue on unreturned capital. Realization of carried interest allocation occurs upon disposition of all underlying investments of the fund, or in part with each disposition. Generally, carried interest allocation is distributed upon profitable disposition of an investment if at the time of distribution, cumulative returns of the fund exceed minimum return hurdles. Depending on the final realized value of all investments at the end of the life of a fund (and, with respect to certain funds, periodically during the life of the fund), if it is determined that cumulative carried interest allocation distributed has exceeded the final carried interest allocation amount earned (or amount earned as of the calculation date), the Company is obligated to return the excess carried interest allocation received. Therefore, carried interest allocation distributed may be subject to clawback if decline in investment values results in cumulative performance of the fund falling below minimum return hurdles in the interim period. If it is determined that the Company has a clawback obligation, a liability would be established based upon a hypothetical liquidation of the net assets of the fund at reporting date. The actual determination and required payment of any clawback obligation would generally occur after final disposition of the investments of the fund or otherwise as set forth in the governing documents of the fund. Carried interest allocation on the balance sheet date represents unrealized carried interest allocation in connection with sponsored funds that are currently in the early stage of their lifecycle. Carried interest allocation is presented gross of management allocation. Carried Interest Distributed Carried interest of $28.4 million in 2023 and $152.5 million in 2022 was distributed and recognized in carried interest allocation on the consolidated statement of operations. Of the distributed carried interest, $0.8 million in 2023 and $119.8 million in 2022 was allocated to current and former employees and to Wafra (Note 9), recorded as either carried interest compensation, other loss, or amounts attributable to noncontrolling interests (Note 16). There was no carried interest distribution in 2021. Clawback Obligation The Company did not have a liability for clawback obligations on carried interest allocation distributed as of December 31, 2023 and 2022. With respect to funds that have distributed carried interest, if in the event all of their investments are deemed to have no value, the likelihood of which is remote, all of the carried interest distributed to-date of $180.9 million would be subject to clawback as of December 31, 2023, of which $120.6 million would be the responsibility of the employee/former employee recipients and Wafra. For this purpose, a portion of carried interest distributed is generally held back from employees and former employees at the time of distribution. The amount withheld resides in entities outside of the Company. Generally, the Company, through the OP, has guaranteed the clawback obligation of its subsidiaries that act as general partner or special limited partner of its respective sponsored funds, for the benefit of these funds and their limited partners. Other Equity Investments Other equity investments include investments warehoused potentially for future sponsored funds, a marketable equity security and equity interest in a non-traded REIT (Note 10), as well as an investment in a managed account. These investments are generally carried at fair value or under the measurement alternative, which is at cost, adjusted for impairment and observable price changes. Dividends or other distributions from these investments are recorded in other income, while changes in the value of these investments are recorded in other gain (loss) on the consolidated statements of operations. Debt Investments Debt investments are composed of subordinated notes in a third party collateralized loan obligation ("CLO") and at December 31, 2022, loans receivable. Interest income from debt investments are recorded in other income. CLO Subordinated Notes In the third quarter of 2022, bank syndicated loans that the Company previously warehoused were transferred into a third party warehouse entity at their acquisition price totaling $232.7 million, and securitized through the issuance of CLO securities. The corresponding warehouse facility of $172.5 million was concurrently repaid. The CLO is sponsored and managed by the third party. The Company acquired all of the subordinated notes of the CLO, which are classified as AFS debt securities. The CLO has a stated legal final maturity of 2035. Following the end of the non-call period in October 2024, the subordinated notes may be redeemed by the Company (in whole, not in part) upon redemption of the secured notes by secured noteholders (in whole, not in part), if there is sufficient proceeds from sale of collateral assets, including payment of expenses therewith. The redemption price for the subordinated notes is equal to its share of excess interest and principal proceeds payable. The balance of the CLO subordinated notes is summarized as follows: Amortized Cost without Allowance for Credit Loss Allowance for Credit Loss Gross Cumulative Unrealized (in thousands) Gains Losses Fair Value At December 31, 2023 and 2022 $ 50,927 $ — $ — $ — $ 50,927 In estimating fair value of the CLO subordinated notes, the Company used a benchmarking approach by looking to the implied credit spreads derived from observed prices on recent comparable CLO issuances, and also considering the current size and diversification of the CLO collateral pool, and projected return on the subordinated notes. Based upon these data points, the Company determined that the issued price of the subordinated notes in September 2022 was a reasonable representation of its fair value at December 31, 2023 and 2022 , classified as Level 3 of the fair value hierarchy. Loans Receivable At December 31, 2023, there was no outstanding balance on loans receivable. Activities in the loans receivable balance is discussed in Note 10. Equity Investments of Consolidated Funds The Company consolidates sponsored funds in which it has more than an insignificant equity interest in the fund as general partner, as discussed in Note 15. Equity investments of consolidated funds are composed primarily of marketable equity securities held by funds in the liquid securities strategy and investment in Vantage SDC post-deconsolidation. Equity investments of consolidated funds are carried at fair value with changes in fair value recorded in other gain (loss) on the consolidated statements of operations. Combined Financial Information of Equity Method Investees The following tables present selected combined financial information of the Company's equity method investees, excluding investees classified as discontinued operations. Amounts presented represent combined totals at the investee level and not the Company's proportionate share. Selected Combined Balance Sheet Information (In thousands) December 31, 2023 December 31, 2022 Total assets $ 38,062,830 $ 22,507,463 Total liabilities 413,270 79,053 Owners' equity 37,649,560 22,428,410 Selected Combined Statements of Operations Information Year Ended December 31, (In thousands) 2023 2022 2021 Total revenues $ 117,846 $ 23,232 $ 39,760 Net income (loss) 2,976,972 2,150,989 771,962 |
Goodwill and Intangibles Assets
Goodwill and Intangibles Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles Assets | 5. Goodwill and Intangible Assets Goodwill The following table presents changes in goodwill assigned to the Investment Management reportable segment. Year Ended December 31, (In thousands) 2023 2022 Beginning balance $ 298,248 $ 298,248 Business combination (Note 3) 167,743 — Ending balance (1) $ 465,991 $ 298,248 __________ (1) Remaining goodwill deductible for income tax purposes was $111.8 million at December 31, 2023 and $122.4 million at December 31, 2022. Based on its qualitative assessment, the Company determined that there were no indicators of impairment to goodwill in 2023 and 2022. Intangible Assets Investment management intangible assets are composed of the following: December 31, 2023 December 31, 2022 (In thousands) Carrying Amount (1)(2) Accumulated Amortization (1)(2) Net Carrying Amount (1) Carrying Amount (1) Accumulated Amortization (1) Net Carrying Amount (1) Investment management contracts $ 150,835 $ (84,824) $ 66,011 $ 126,868 $ (68,739) $ 58,129 Investor relationships 53,572 (19,190) 34,382 37,321 (13,693) 23,628 Trade name 4,300 (1,907) 2,393 4,300 (1,476) 2,824 Other (3) 1,518 (554) 964 1,518 (401) 1,117 $ 210,225 $ (106,475) $ 103,750 $ 170,007 $ (84,309) $ 85,698 __________ (1) Presented net of impairments and write-offs, if any. (2) Exclude intangible assets that were fully amortized in prior years. (3) Represents primarily the value of an acquired domain name. The following table summarizes amortization of finite-lived intangible assets: Year Ended December 31, (In thousands) 2023 2022 2021 Investment management contracts $ 28,512 $ 16,741 $ 21,773 Investor relationships 5,474 4,256 4,256 Trade name 430 430 15,904 Other 152 152 114 $ 34,568 $ 21,579 $ 42,047 There was no impairment on identifiable intangible assets in the periods presented. Future Amortization of Intangible Assets The following table presents the expected future amortization of finite-lived intangible assets . Year Ending December 31, (In thousands) 2024 2025 2026 2027 2028 2029 and thereafter Total Investment management contracts $ 24,739 $ 19,049 $ 11,449 $ 6,460 $ 3,480 $ 834 $ 66,011 Investor relationships 5,610 5,610 5,610 4,945 3,830 8,777 34,382 Trade name 430 430 430 430 430 243 2,393 Other 152 152 152 152 152 204 964 $ 30,931 $ 25,241 $ 17,641 $ 11,987 $ 7,892 $ 10,058 $ 103,750 |
Restricted Cash, Other Assets a
Restricted Cash, Other Assets and Other Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Restricted Cash, Other Assets And Other Liabilities [Abstract] | |
Restricted Cash, Other Assets and Other Liabilities | 6. Restricted Cash, Other Assets and Other Liabilities Restricted Cash Restricted cash represents principally cash reserves that are maintained pursuant to the governing agreements of the various securitized debt of the Company. Other Assets The following table summarizes the Company's other assets. (In thousands) December 31, 2023 December 31, 2022 Prepaid taxes and deferred tax assets, net $ 14,059 $ 8,642 Derivative assets — 11,793 Receivables from resolution of investment 662 14,923 Operating lease right-of-use asset for corporate offices 33,898 23,689 Accounts receivable, net 8,919 6,263 Prepaid expenses 2,952 2,514 Other assets 11,231 4,063 Fixed assets, net (1) 7,232 8,934 Total other assets $ 78,953 $ 80,821 __________ (1) Net of accumulated depreciation of $7.3 million at December 31, 2023 and $9.8 million at December 31, 2022 . Other Liabilities The following table summarizes the Company's other liabilities: (In thousands) December 31, 2023 December 31, 2022 Deferred investment management fees (1) $ 10,250 $ 6,265 Interest payable on corporate debt 2,293 4,376 Common and preferred stock dividends payable 16,477 16,491 Securities sold short—consolidated funds 38,481 40,928 Due to custodians—consolidated funds 9,415 35,457 Current and deferred income tax liability 8,403 42 Contingent consideration payable—InfraBridge (Note 10) 11,338 — Contingent consideration payable—Wafra (Note 9) 35,000 125,000 Warrants issued to Wafra (Note 9) 39,200 17,700 Operating lease liability for corporate offices 49,035 40,497 Accrued compensation 63,761 46,303 Accrued incentive fee and carried interest compensation 356,316 171,086 Accounts payable and accrued expenses 13,844 25,175 Due to affiliates (Note 16) 10,664 12,451 Other liabilities 16,974 5,152 Other liabilities $ 681,451 $ 546,923 __________ (1) Deferred investment management fees are expected to be recognized as fee revenue over a weighted average period of 3.0 years as of December 31, 2023 and 2.9 years as of December 31, 2022. Deferred investment management fees recognized as income of $3.3 million and $3.4 million in the year ended December 31, 2023 and 2022, respectively, pertain to the deferred management fee balance at the beginning of each respective period. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | 7. Debt The Company's corporate debt is composed of a securitized financing facility and senior notes issued by DigitalBridge Group, Inc. or the OP that are recourse to the Company, as discussed further below. The Company may also have investment level financings that are non-recourse to DBRG such as debt within consolidated funds and secured debt on warehoused investments. There was no investment-level debt at December 31, 2023. December 31, 2023 December 31, 2022 (In thousands) Principal Premium (Discount), net Deferred Financing Cost Amortized Cost Principal Premium (Discount), net Deferred Financing Cost Amortized Cost Corporate debt Securitized financing facility $ 300,000 — (5,733) $ 294,267 $ 300,000 — (7,829) $ 292,171 Convertible and exchangeable senior notes 78,422 (810) (96) 77,516 278,422 (1,293) (388) 276,741 378,422 (810) (5,829) 371,783 578,422 (1,293) (8,217) 568,912 Investment-level debt — — — — 500 — (35) 465 $ 378,422 $ (810) $ (5,829) $ 371,783 $ 578,922 $ (1,293) $ (8,252) $ 569,377 Securitized Financing Facility In July 2021, special-purpose subsidiaries of the OP (the "Co-Issuers") issued Series 2021-1 Secured Fund Fee Revenue Notes, composed of: (i) $300 million aggregate principal amount of 3.933% Secured Fund Fee Revenue Notes, Series 2021-1, Class A-2 (the “Class A-2 Notes”); and (ii) up to $300 million (following a $100 million increase in April 2022) Secured Fund Fee Revenue Variable Funding Notes, Series 2021-1, Class A-1 (the “VFN” and, together with the Class A-2 Notes, the “Series 2021-1 Notes”). The VFN allow the Co-Issuers to borrow on a revolving basis. The Series 2021-1 Notes were issued under an Indenture dated July 2021, as amended in April 2022, that allows the Co-Issuers to issue additional series of notes in the future, subject to certain conditions. The Series 2021-1 Notes replaced the Company's previous corporate credit facility. The Series 2021-1 Notes represent obligations of the Co-Issuers and certain other special-purpose subsidiaries of DBRG, and neither DBRG, the OP nor any of its other subsidiaries are liable for the obligations of the Co-Issuers. The Series 2021-1 Notes are secured by net investment management fees earned by subsidiaries of DBRG, equity interests in portfolio companies in the Operating segment and limited partnership interests in certain sponsored funds held by subsidiaries of DBRG, as collateral. The Class A-2 Notes bear interest at a rate of 3.933% per annum, payable quarterly. The VFN bear interest generally based upon 1-month Adjusted Term Secured Overnight Financing Rate or SOFR (prior to April 2022, 3-month LIBOR) or an alternate benchmark as set forth in the purchase agreement of the VFN plus 3%. Unused capacity under the VFN facility is subject to a commitment fee of 0.5% per annum. The final maturity date of the Class A-2 Notes is in September 2051, with an anticipated repayment date in September 2026. The anticipated repayment date of the VFN is in September 2024, subject to two one-year extensions at the option of the Co-Issuers. If the Series 2021-1 Notes are not repaid or refinanced prior to their anticipated repayment date, or such date is not extended for the VFN, interest will accrue at a higher rate and the Series 2021-1 Notes will begin to amortize quarterly. The Series 2021-1 Notes may be optionally prepaid, in whole or in part, prior to their anticipated repayment dates. There is no prepayment penalty on the VFN. However, prepayment of the Class A-2 Notes will be subject to additional consideration based upon the difference between the present value of future payments of principal and interest and the outstanding principal of such Class A-2 Note that is being prepaid; or 1% of the outstanding principal of such Class A-2 Note that is being prepaid in connection with a disposition of collateral. The Indenture of the Series 2021-1 Notes contains various covenants, including financial covenants that require the maintenance of minimum thresholds for debt service coverage ratio and maximum loan-to-value ratio, as defined. As of the date of this filing, the Co-Issuers are in compliance with all of the financial covenants, and the full $300 million under the VFN is available to be drawn. Convertible and Exchangeable Senior Notes Convertible and exchangeable senior notes (collectively, the senior notes) are composed of the following, representing senior unsecured obligations of DigitalBridge Group, Inc. or the OP as issuers of the senior notes: Description Issuance Date Due Date Interest Rate (per annum) Conversion or Exchange Price (per share of common stock) Conversion or Exchange Ratio (in shares) (1) Conversion or Exchange Shares (in thousands) Earliest Redemption Date Outstanding Principal December 31, 2023 December 31, 2022 Issued by DigitalBridge Group, Inc. 5.00% Convertible Senior Notes (2) April 2013 April 15, 2023 5.00 % $ 63.02 15.8675 3,174 April 22, 2020 $ — $ 200,000 Issued by DigitalBridge Operating Company, LLC 5.75% Exchangeable Senior Notes July 2020 July 15, 2025 5.75 % 9.20 108.6956 8,524 July 21, 2023 78,422 78,422 $ 78,422 $ 278,422 __________ (1) The conversion or exchange ratio for the senior notes is subject to periodic adjustments to reflect certain carried-forward adjustments relating to common stock splits, reverse stock splits, common stock adjustments in connection with spin-offs and cumulative cash dividends paid on the Company's common stock since the issuances of the senior notes. The ratios are presented in shares of common stock per $1,000 principal of each senior note. (2) Fully repaid in April 2023. The senior notes mature on their due dates, unless earlier redeemed, repurchased, or exchanged. The outstanding senior notes are exchangeable at any time by holders of such notes into shares of the Company’s common stock at the applicable exchange rate, which is subject to adjustment upon occurrence of certain events. To the extent certain trading conditions of the Company’s common stock are met, the senior notes are redeemable by the issuer in whole or in part for cash at any time on or after their earliest redemption dates at a redemption price equal to 100% of the principal amount of such senior notes being redeemed, plus accrued and unpaid interest (if any) up to, but excluding, the redemption date. In the event of certain change in control transactions, holders of the senior notes have the right to require the issuer to purchase all or part of such holder's senior notes for cash in accordance with terms of the governing documents of the senior notes. Exchange of Senior Notes For Common Stock and Cash There were no exchange transactions in 2023. In March 2022, DBRG and the OP completed separate privately negotiated exchange transactions with certain noteholders of the 5.75% exchangeable notes. The Company exchanged in aggregate $60.3 million of outstanding principal of the 5.75% exchangeable notes into 6,389,366 shares of the Company's class A common stock and paid $13.9 million of cash. The exchanges resulted in a debt extinguishment loss of $133.2 million, calculated as the excess of consideration paid over the carrying value of the notes exchanged, and recorded in other loss on the consolidated statement of operations. Consideration was measured at fair value based upon the closing price of the Company's class A common stock on the date of the respective exchanges, and cash paid, net of transaction costs. The exchanges did not qualify as debt conversion and were treated as debt extinguishment as the Company issued less than the number of shares issuable under the stated exchange ratio of 108.696 shares per $1,000 of note principal exchanged. Future Minimum Principal Payments The following table summarizes future scheduled minimum principal payments of debt at December 31, 2023 . Future debt principal payments are presented based upon anticipated repayment dates for notes issued under securitization financing. (In thousands) 2024 2025 2026 2027 2028 Total Corporate debt Securitized financing facility $ — $ — $ 300,000 $ — $ — $ 300,000 Exchangeable senior notes — 78,422 — — — 78,422 $ — $ 78,422 $ 300,000 $ — $ — $ 378,422 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | 8. Stockholders' Equity The table below summarizes the share activities of the Company's preferred stock and common stock. Number of Shares (In thousands) Preferred Stock Class A Common Stock Class B Common Stock Shares outstanding at December 31, 2020 41,350 120,851 183 Redemption of preferred stock (6,010) — — Exchange of notes for class A common stock — 18,341 — Shares issued upon redemption of OP Units — 501 — Conversion of class B to class A common stock — 17 (17) Shares issued pursuant to settlement liability (1) — 1,488 — Equity-based compensation, net of forfeitures — 1,645 — Shares canceled for tax withholding on vested stock awards — (699) — Shares outstanding at December 31, 2021 35,340 142,144 166 Stock repurchases (2,229) (4,195) — Exchange of notes for class A common stock — 6,389 — Shares issued upon redemption of OP Units — 100 — Shares issued for redemption of redeemable noncontrolling interest (Note 9) — 14,435 — Equity awards issued, net of forfeitures — 1,589 — Shares canceled for tax withholding on vested equity awards — (699) — Shares outstanding at December 31, 2022 33,111 159,763 166 Stock repurchases (235) — — Shares issued upon redemption of OP Units — 253 — Equity awards issued, net of forfeitures — 4,835 — Shares canceled for tax withholding on vested equity awards — (1,642) — Shares outstanding at December 31, 2023 32,876 163,209 166 __________ (1) In 2021, the settlement liability was settled through the reissuance of some of the shares previously repurchased and held in a subsidiary. Shares of class A common stock repurchased and not reissued in the settlement of the liability were subsequently cancelled. Preferred Stock In the event of a liquidation or dissolution of the Company, preferred stockholders have priority over common stockholders for payment of dividends and distribution of net assets. The table below summarizes the preferred stock issued and outstanding at December 31, 2023: Description Dividend Rate Per Annum Initial Issuance Date Shares Outstanding (in thousands) Par Value (in thousands) Liquidation Preference (in thousands) Earliest Redemption Date Series H 7.125 % April 2015 8,395 $ 84 $ 209,870 Currently redeemable Series I 7.15 % June 2017 12,867 129 321,668 Currently redeemable Series J 7.125 % September 2017 11,614 116 290,361 Currently redeemable 32,876 $ 329 $ 821,899 All series of preferred stock are at parity with respect to dividends and distributions, including distributions upon liquidation, dissolution or winding up of the Company. Dividends are payable quarterly in arrears in January, April, July and October. Each series of preferred stock is redeemable on or after the earliest redemption date for that series at $25.00 per share plus accrued and unpaid dividends (whether or not declared) prorated to their redemption dates, exclusively at the Company’s option. The redemption period for each series of preferred stock is subject to the Company’s right under limited circumstances to redeem the preferred stock upon the occurrence of a change of control (as defined in the articles supplementary relating to each series of preferred stock). Preferred stock generally does not have any voting rights, except if the Company fails to pay the preferred dividends for six or more quarterly periods (whether or not consecutive). Under such circumstances, the preferred stock will be entitled to vote, together as a single class with any other series of parity stock upon which like voting rights have been conferred and are exercisable, to elect two additional directors to the Company’s board of directors, until all unpaid dividends have been paid or declared and set aside for payment. In addition, certain changes to the terms of any series of preferred stock cannot be made without the affirmative vote of holders of at least two-thirds of the outstanding shares of each such series of preferred stock voting separately as a class for each series of preferred stock. Common Stock Except with respect to voting rights, class A common stock and class B common stock have the same rights and privileges and rank equally, share ratably in dividends and distributions, and are identical in all respects as to all matters. Class A common stock has one vote per share and class B common stock has thirty-six and one-half votes per share. This gives the holders of class B common stock a right to vote that reflects the aggregate outstanding non-voting economic interest in the Company (in the form of OP Units) attributable to class B common stock holders and therefore, does not provide any disproportionate voting rights. Class B common stock was issued as consideration in the Company's acquisition in April 2015 of the investment management business and operations of its former manager, which was previously controlled by the Company's former Executive Chairman. Each share of class B common stock shall convert automatically into one share of class A common stock if the former Executive Chairman or his beneficiaries directly or indirectly transfer beneficial ownership of class B common stock or OP Units held by them, other than to certain qualified transferees, which generally includes affiliates and employees. In addition, each holder of class B common stock has the right, at the holder’s option, to convert all or a portion of such holder’s class B common stock into an equal number of shares of class A common stock. The Company reinstated quarterly common stock dividends at $0.01 per share beginning the third quarter of 2022, having previously suspended common stock dividends from the second quarter of 2020 through the second quarter of 2022. Dividend Reinvestment and Direct Stock Purchase Plan The Company's Dividend Reinvestment and Direct Stock Purchase Plan (the “DRIP Plan”) provides existing common stockholders and other investors the opportunity to purchase shares (or additional shares, as applicable) of the Company's class A common stock by reinvesting some or all of the cash dividends received on their shares of the Company's class A common stock or making optional cash purchases within specified parameters. The DRIP Plan involves the acquisition of the Company's class A common stock either in the open market, directly from the Company as newly issued common stock, or in privately negotiated transactions with third parties. No shares of class A common stock have been acquired under the DRIP Plan in the form of new issuances in the last three years. Reverse Stock Split In August 2022, the Company effectuated a one-for-four reverse stock split of its outstanding shares of class A and class B common stock. At that time, t he number of authorized shares of common stock was not concurrently adjusted and p ar value of common stock was proportionately increased from $0.01 to $0.04 per share. Following stockholder approval in May 2023, the number of authorized shares of class A and class B common stock was proportionally decreased to 237,250,000 shares and 250,000 shares, respectively and p ar value of common stock was proportionately decreased from $0.04 to $0.01 per share, resulting in approximately $4.9 million increase in additional paid-in capital. Stock Repurchases Pursuant to a $200 million stock repurchase program announced in July 2022 that expired in June 2023: • In 2023, the Company repurchased 235,223 shares in aggregate across Series H, I and J preferred stock for approximately $4.7 million, or a weighted average price of $20.18 per share. • In 2022, the Company repurchased (i) 2,228,805 shares in aggregate across Series H, I and J preferred stock for $52.6 million, or a weighted average price of $23.62 per share; and (ii) 4,195,020 shares of class A common stock for $54.9 million, or a weighted average price of $13.09 per share. • In 2021, the Company redeemed all outstanding 7.5% Series G preferred stock in August for $86.8 million using proceeds from the securitized financing facility and 2,560,000 shares of 7.125% Series H preferred stock in November for approximately $64.4 million. All redemptions were made at the liquidation preference of $25.00 per share. The excess or deficit of the repurchase price over the carrying value of the preferred stock results in a decrease or increase to net income attributable to common stockholders, respectively. Accumulated Other Comprehensive Income (Loss) The following tables present the changes in each component of AOCI attributable to stockholders and noncontrolling interests in investment entities, net of immaterial tax effect. AOCI attributable to noncontrolling interests in Operating Company is immaterial. Changes in Components of AOCI—Stockholders (In thousands) Company's Share in AOCI of Equity Method Investments Unrealized Gain (Loss) on AFS Debt Securities Unrealized Gain (Loss) on Cash Flow Hedges Foreign Currency Translation Gain (Loss) Unrealized Gain (Loss) on Net Investment Hedges Total AOCI at December 31, 2020 $ 17,718 $ 6,072 $ (233) $ 52,832 $ 45,734 $ 122,123 Other comprehensive income (loss) before reclassifications (12,386) (211) — (35,001) 1,731 (45,867) Amounts reclassified from AOCI (2,998) — 233 10,153 (39,779) (32,391) Deconsolidation of investment entities — — — (1,482) — (1,482) AOCI at December 31, 2021 2,334 5,861 — 26,502 7,686 42,383 Other comprehensive income (loss) before reclassifications (2,429) — — (10,923) 8,396 (4,956) Amounts reclassified from AOCI (200) (5,861) — (16,793) (16,082) (38,936) AOCI at December 31, 2022 (295) — — (1,214) — (1,509) Other comprehensive income (loss) before reclassifications (1) — — 2,906 — 2,905 Amounts reclassified from AOCI 296 — — (1,246) — (950) Deconsolidation of investment entities — — — 965 — 965 AOCI at December 31, 2023 $ — $ — $ — $ 1,411 $ — $ 1,411 Changes in Components of AOCI—Noncontrolling Interests in Investment Entities (In thousands) Unrealized Gain (Loss) on Cash Flow Hedges Foreign Currency Translation Gain (Loss) Unrealized Gain (Loss) on Net Investment Hedges Total AOCI at December 31, 2020 $ (1,030) $ 83,845 $ 15,099 $ 97,914 Other comprehensive income (loss) before reclassifications — (65,127) — (65,127) Amounts reclassified from AOCI 1,030 (1,364) (15,099) (15,433) Deconsolidation of investment entities — (6,297) — (6,297) AOCI at December 31, 2021 — 11,057 — 11,057 Other comprehensive income (loss) before reclassifications — (4,571) — (4,571) Amounts reclassified from AOCI — (9,501) — (9,501) AOCI at December 31, 2022 — (3,015) — (3,015) Other comprehensive income (loss) before reclassifications — 884 — 884 Amounts reclassified from AOCI — (468) — (468) Deconsolidation of investment entities — 2,550 — 2,550 AOCI at December 31, 2023 $ — $ (49) $ — $ (49) Reclassifications out of AOCI—Stockholders Information about amounts reclassified out of AOCI attributable to stockholders by component is presented below. Such amounts are included in other gain (loss) in continuing and discontinued operations on the consolidated statements of operations, as applicable, except for amounts related to equity method investments, which are included in equity method losses in discontinued operations. (In thousands) Year Ended December 31, Affected Line Item in the Component of AOCI reclassified into earnings 2023 2022 2021 Relief of basis of AFS debt securities $ — $ 5,861 $ — Income (loss) from discontinued operations Release of foreign currency cumulative translation adjustments 1,246 16,793 (10,153) Other gain (loss), net Income (loss) from discontinued operations Realized gain on net investment hedges — 16,082 39,779 Other gain (loss), net Income (loss) from discontinued operations Realized loss on cash flow hedges — — (233) Income (loss) from discontinued operations Deconsolidation of investment entities (965) — 1,482 Income (loss) from discontinued operations Release of AOCI of equity method investments (296) 200 2,998 Income (loss) from discontinued operations |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2023 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | 9. Noncontrolling Interests Redeemable Noncontrolling Interests The following table presents the activities in redeemable noncontrolling interests in the Company's investment management business through its redemption in May 2022 as discussed below, and in open-end funds in the liquid securities strategy consolidated by the Company. Year Ended December 31, (In thousands) 2023 2022 2021 Redeemable noncontrolling interests Beginning balance $ 100,574 $ 359,223 $ 305,278 Contributions 300 11,650 42,514 Distributions paid and payable, including redemptions by limited partners in consolidated funds (89,515) (20,784) (23,246) Net income (loss) 6,503 (26,778) 34,677 Adjustment of Wafra's interest to redemption value and warrants held by Wafra to fair value — 725,026 — Redemption of Wafra's interest — (862,276) — Reclassification of warrants held by Wafra to liability in May 2022 (Note 6) — (81,400) — Reclassification of Wafra's carried interest allocation to noncontrolling interests in investment entities in May 2022 — (4,087) — Ending balance $ 17,862 $ 100,574 $ 359,223 Redeemable Noncontrolling Interest in Investment Management On May 23, 2022, the Company redeemed the 31.5% noncontrolling interest in its investment management business held by Wafra pursuant to a purchase and sale agreement ("PSA") entered into in April 2022. In connection with Wafra's initial investment in the Company's investment management business in July 2020, Wafra had assumed directly and also indirectly through a participation interest $124.9 million of the Company's commitments to DBP I, and has a $125.0 million commitment to DBP II that has been partially funded to-date. These are the Company's flagship value-add equity infrastructure funds. Wafra had also agreed to make commitments to the Company's future funds and investment vehicles on a pro rata basis with the Company based on Wafra's percentage interest in the investment management business, subject to certain caps. Pursuant to the PSA, Wafra’s entitlement to carried interest in DBP II was reduced from 12.6% to 7%, and with certain limited exceptions, Wafra sold or gave up its right to invest in, or receive carried interest from, future investment management products, but except as otherwise provided, retained its investment in and its allocation of carried interest from existing investment management products. Consideration for the redemption of Wafra's interest consisted of: (i) an upfront payment of $388.5 million in cash and 14,435,399 shares of the Company's Class A common stock valued at $348.8 million based upon the closing price of the Company's class A common stock on May 23, 2022; and (ii) Wafra's right to earn a contingent amount up to $125 million if the Company raises fee earning equity under management (as defined in the PSA) up to $6 billion during the period from December 31, 2021 to December 31, 2023, payable in March 2023 for portion earned in 2022 and March 2024 for any remaining portion earned in 2023, with up to 50% payable in shares of the Company's Class A common stock at the Company's election. The Company paid Wafra in cash $90 million of the contingent amount in March 2023. The carrying value of Wafra's redeemable noncontrolling interest was adjusted to fair value prior to redemption, initially based upon an estimate of consideration payable at March 31, 2022 when redemption was deemed to be probable, including the maximum potential contingent amount of $125 million. This adjustment resulted in an allocation from additional paid-in capital to redeemable noncontrolling interests on the consolidated balance sheet. The unrealized carried interest earnings allocated to Wafra that was retained and no longer subject to redemption was reclassified in May 2022 to permanent equity, included in noncontrolling interests in investment entities. Additionally, in July 2020, the Company had also issued Wafra five warrants to purchase up to an aggregate of 5% of the Company’s class A common stock (5% at the time of the transaction, on a fully-diluted, post-transaction basis), as described further in Note 10. In connection with the redemption, the terms of the warrants were amended, among other things, to provide for net cash settlement upon exercise of the warrants, at election of either the Company or Wafra, if such exercise would result in Wafra beneficially owning in excess of 9.8% of the issued and outstanding shares of the Company's class A common stock. Inclusion of the cash settlement feature changed the classification of the warrants from equity to liability. The warrants were remeasured to fair value prior to reclassification in May 2022, with the increase in value recorded in equity to reduce additional paid-in capital. Subsequent changes in fair value of the warrant liability is recorded in earnings. The Company's redemption of Wafra's interest in May 2022 also resulted in the assumption of $5.2 million of deferred tax asset that now accrues to the Company. Noncontrolling Interests in Investment Entities DataBank and Vantage SDC represent portfolio companies managed by the Company under its Investment Management segment with respect to equity interests owned by third party capital and, prior to deconsolidation (as discussed below) and reclassification to discontinued operations in 2023 (Note 2), were consolidated in the Company's former Operating segment. DataBank 2022 DataBank Recapitalization The Company began a partial recapitalization of DataBank in the second half of 2022 through multiple sales of equity interest to new investors, resulting in net proceeds to the Company of approximately $425.5 million, including its share of carried interest, net of allocation to employees and former employees of $20.1 million (the "2022 Recapitalization"). As a result of the 2022 Recapitalization, the Company's ownership decreased from 21.8% to 11.0% at December 31, 2022. Upon completion of the 2022 Recapitalization, the Company reconsidered its consolidation assessment and concluded that it remained the primary beneficiary of the VIE through which it holds its interest in DataBank. As the 2022 Recapitalization involved a change in ownership of a consolidated subsidiary, it was accounted for as an equity transaction. The difference between the book value of the Company's interest and its ownership based upon the fair value of DataBank resulted in a reallocation from noncontrolling interests in investment entities to additional paid-in capital totaling $230.2 million in the third and fourth quarters of 2022. 2023 DataBank Recapitalization and Deconsolidation In September 2023, the Company completed the partial recapitalization of DataBank through additional sales of equity interest to new investors (the "2023 Recapitalization"), resulting in net proceeds to the Company of $49.4 million, including carried interest of $27.9 million. As a result of the 2023 Recapitalization, the Company's ownership interest in DataBank decreased from 11.0% to 9.87%. Upon completion of the 2023 Recapitalization, the Company reconsidered its consolidation assessment and concluded that it no longer held a controlling financial interest in DataBank and was no longer the primary beneficiary of the VIE through which it holds its interest in DataBank. As a result, the Company deconsolidated DataBank effective September 14, 2023, and accounts for its remaining investment in DataBank using the equity method. In connection with the deconsolidation, the Company realized a $3.7 million gain from the sale of its equity interest in the 2023 Recapitalization, and remeasured its remaining 9.87% equity interest in DataBank at a fair value of $434.5 million (Note 4) based upon the pricing of the recapitalization, which resulted in an unrealized gain of $275.0 million. The total gain of $278.7 million was recorded in other gain (loss), net on the Company's consolidated statements of operations, and is presented in Corporate and Other. As of December 31, 2023, the Company's interest in DataBank was 9.5% following a dilution of its interest as a result of a rights offering by DataBank in November 2023. Vantage SDC Vantage SDC Deconsolidation In connection with the Company's acquisition of Vantage SDC in July 2020 and an additional data center in September 2021, the Company and its co-investors committed to acquire the future build-out of expansion capacity, along with lease-up of the expanded capacity and existing inventory, the costs of which are borne by the existing owners of Vantage SDC. Through 2023, the cost of the expansion capacity had been funded by Vantage SDC from borrowings under its credit facilities or through cash from operations, except for a $122 million payment that has been deferred to December 2024 and treated as a contribution of infrastructure assets and lease intangibles by the existing owners of Vantage SDC that was funded through equity. On December 31, 2023, there was an accelerated settlement of $36 million of the deferred payment through a combination of a) a reallocation of equity from DBRG and its co-investors to the existing owners at 150%; and b) issuance of a note payable to an existing owner. This settlement transaction resulted in a dilution of the ownership held by DBRG and its co-investors in Vantage SDC, with DBRG's interest decreasing from 13.1% to 12.8%. On December 31, 2023, in connection with the accelerated partial settlement of the deferred payment which diluted the Company's interest in Vantage SDC, certain governance changes were concurrently made at Vantage SDC. This resulted in a dilution of the Company's voting rights and the Company is no longer deemed to control the Board of Managers of Vantage SDC. In light of the governance changes, the Company reconsidered its consolidation assessment and concluded that it no longer held a controlling financial interest in Vantage SDC and was no longer the primary beneficiary of Vantage SDC. As a result, the Company deconsolidated Vantage SDC effective December 31, 2023. The Company's interest in Vantage SDC is held through two consolidated funds, which aggregated to a 38.3% interest in Vantage SDC, of which the Company's share is 12.8% and remaining 25.6% is held by limited partners of the consolidated funds which represent noncontrolling interests. In connection with the deconsolidation, the remaining interest in Vantage SDC held by the consolidated funds were remeasured at fair value of $393.8 million (Note 4), resulting in an immaterial difference in the remeasured value, recorded in earnings. Effect of Deconsolidation on Financial Statement Presentation The deconsolidation of DataBank and Vantage SDC in 2023 resulted in derecognition of $8.55 billion of assets, $5.94 billion of liabilities and $2.06 billion of noncontrolling interests in investment entities. Subsequent to deconsolidation, the Company's consolidated financial statements include only its equity method investment in DataBank and its consolidated funds' investment in Vantage SDC, carried at fair value, along with noncontrolling interests representing the limited partners of the consolidated funds, and changes in fair value of these investments. The Company's investments in DataBank and Vantage SDC are presented in Corporate and Other, consistent with the treatment and presentation of the Company's other consolidated funds and of its interest as general partner affiliate in other sponsored investment vehicles (Note 4). Noncontrolling Interests in Operating Company Certain current and former employees of the Company directly or indirectly own interests in OP, presented as noncontrolling interests in the Operating Company. Noncontrolling interests in OP have the right to require OP to redeem part or all of such member’s OP Units for cash based on the market value of an equivalent number of shares of class A common stock at the time of redemption, or at the Company's election as managing member of OP, through issuance of shares of class A common stock (registered or unregistered) on a one-for-one basis. At the end of each period, noncontrolling interests in OP is adjusted to reflect their ownership percentage in OP at the end of the period, through a reallocation between controlling and noncontrolling interests in OP. Redemption of OP Units —The Company redeemed OP Units totaling 253,084 in 2023 and 100,220 in 2022 through issuance of an equal number of shares of class A common stock on a one-for-one basis. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 10. Fair Value Recurring Fair Values Financial assets and financial liabilities carried at fair value on a recurring basis include financial instruments for which the fair value option was elected, but exclude financial assets under the NAV practical expedient. Fair value is categorized into a three tier hierarchy that is prioritized based upon the level of transparency in inputs used in the valuation techniques. Fair Value Measurement Hierarchy (In thousands) Level 1 Level 2 Level 3 Total December 31, 2023 Assets Investments (Note 4) Other equity investments $ 17,487 $ — $ — $ 17,487 CLO subordinated notes — — 50,927 50,927 Equity investments of consolidated funds 66,297 — 416,614 482,911 Fair Value Option: Equity method investment — — 6,700 6,700 Liabilities Other liabilities InfraBridge contingent consideration — — 11,338 11,338 Warrants issued to Wafra — — 39,200 39,200 Securities of consolidated funds sold short 38,481 — — 38,481 December 31, 2022 Assets Investments (Note 4) Other equity investments $ 16,790 $ — $ — 16,790 CLO subordinated notes — — 50,927 50,927 Equity investments of consolidated funds 139,075 — 46,770 185,845 Fair Value Option: Loans receivable — — 133,307 133,307 Other assets—derivative assets — 11,793 — 11,793 Liabilities Other liabilities Warrants issued to Wafra — — 17,700 17,700 Securities of consolidated funds sold short 40,928 — — 40,928 Equity Investments of Consolidated Funds Equity investments of consolidated funds include marketable equity securities held by our liquid strategy funds, valued based upon listed prices in active markets, classified as Level 1, and at December 31, 2023, equity investments in digital infrastructure portfolio companies held by single asset funds. The marketable equity securities comprise publicly listed stocks primarily in the U.S. and to a lesser extent, in Europe, and primarily in the technology, media and telecommunications sectors. With respect to other equity investments at December 31, 2023, fair value of an underlying portfolio company was determined using a discounted cash flow model based upon projected net operating income of the investee with an exit capitalization rate of 5.5% and discounted at 10.4%, classified as level 3. Additionally, a recently acquired fund investment was valued based upon its transacted price, classified as level 2. Prior to December 31, 2023, equity investments of consolidated funds included equity interests in pooling entities that hold a portfolio of loans, invested alongside other parallel funds within the same credit fund complex. In December 2023, following a reorganization of the Company's ownership interest within the fund structure, the consolidated credit fund was deconsolidated. Fair value of the fund's equity interests in the pooling entities was based upon its share of expected cash flows from the loan assets held by the pooling entities, classified as level 3. In estimating fair value of the underlying loans, the pooling entities considered the prevailing market yields at which a third party might expect to receive on equivalent loans with similar credit risk. Based upon a comparison to market yields, it was determined that the transacted price or par value of the loans held by the pooling entities approximated their fair value at December 31, 2022 . Fair Value Option Equity Method Investments At December 31, 2023, the Company had one equity method investment under the fair value option. Fair value was determined using a balanced application of the discounted cash flow model based upon projected earnings, discounted at 18.3%, and comparison to market values of similar public companies. The fair value is classified as Level 3 of the fair value hierarchy and changes in fair value are recorded in principal investment income. Loans Receivable At December 31, 2023, there was no outstanding loans receivable balance. At December 31, 2022, loans receivable under fair value option consisted of an unsecured promissory note in connection with the 2022 sale of the Company's Wellness Infrastructure business (Note 2). The note had bullet repayment of principal and accrued paid-in-kind ("PIK") interest. Fair value of the note was $133.3 million, with unpaid principal balance, inclusive of PIK interest, of $162.0 million, classified as Level 3 in the fair value hierarchy. In March 2023, the note was fully written down, taking into consideration foreclosure of certain assets within the Wellness Infrastructure portfolio by its mezzanine lender. Derivatives The Company's derivative instruments generally consist of: (i) foreign currency put options, forward contracts and costless collars to hedge the foreign currency exposure of certain foreign-denominated investments or investments in foreign subsidiaries (in GBP and EUR), with notional amounts and termination dates based upon the anticipated return of capital from these investments; and (ii) interest rate caps and swaps to limit the exposure to changes in interest rates on various floating rate debt obligations (indexed to SOFR or Euribor). These derivative contracts may be designated as qualifying hedge accounting relationships, specifically as net investment hedges and cash flow hedges, respectively. The derivative instruments are subject to master netting arrangements with counterparties that allow the Company to offset the settlement of derivative assets and liabilities in the same currency by instrument type or, in the event of default by the counterparty, to offset all derivative assets and liabilities with the same counterparty. Notwithstanding the conditions for right of offset may have been met, the Company presents derivative assets and liabilities with the same counterparty on a gross basis on the consolidated balance sheets. The Company had no outstanding derivatives at December 31, 2023. At December 31, 2022, fair value of derivative assets was $11.8 million, included in other assets (Note 6), and there were no derivatives in a liability position. All derivative positions were non-designated hedges. At December 31, 2022, derivative notional amounts aggregated to the equivalent of $321.1 million for foreign exchange contracts, with no outstanding interest rate contracts. Realized and unrealized gains and losses on derivative instruments were recorded in other gain (loss) on the consolidated statement of operations as follows: Year Ended December 31, (In thousands) 2023 2022 2021 Foreign currency contracts: Designated contracts Realized gain (loss) transferred from AOCI to earnings $ — $ 17,334 $ 58,727 Non-designated contracts Realized and unrealized gain (loss) in earnings (1) 4,053 17,092 889 Interest rate contracts: Designated contracts Interest expense (2) — — 20 Realized gain (loss) transferred from AOCI to earnings — — (1,328) Non-designated contracts Realized and unrealized gain (loss) in earnings — 11,533 (213) __________ (1) Includes amounts related to foreign currency contract entered into on behalf of a sponsored fund, which had no net impact to the Company's earnings, (Note 16). The Company's foreign currency and interest rate contracts are generally traded over-the-counter, and are valued using a third-party service provider. Quotations on over-the-counter derivatives are not adjusted and are generally valued using observable inputs such as contractual cash flows, yield curve, foreign currency rates and credit spreads, and are classified as Level 2 of the fair value hierarchy. Although credit valuation adjustments, such as the risk of default, rely on Level 3 inputs, these inputs are not significant to the overall valuation of the derivatives. As a result, derivative valuations in their entirety are classified as Level 2 of the fair value hierarchy. Warrants As discussed in Note 9, the Company had issued five warrants to Wafra in July 2020. Each warrant entitles Wafra to purchase up to 1,338,000 shares of the Company's class A common stock at staggered strike prices between $9.72 and $24.00 each, exercisable through July 17, 2026. No warrants have been exercised to-date. The warrants are carried at fair value effective May 2022 when they were reclassified from equity to liability, with subsequent changes in fair value recorded in other gain (loss) on the consolidated statements of operations. The warrants were valued using a Black-Scholes option pricing model, applying the following inputs: (a) estimated volatility for DBRG's class A common stock of 37.8% (40.8% at December 31, 2022); (b) closing stock price of DBRG's class A common stock on the last trading day of the quarter; (c) the strike price for each warrant; (d) remaining term to expiration of the warrants; and (e) risk free rate of 4.11% per annum (4.16% per annum at December 31, 2022), derived from the daily U.S. Treasury yield curve rates to correspond to the remaining term to expiration of the warrants. Contingent Consideration In connection with the acquisition of InfraBridge, contingent consideration is payable if prescribed fundraising targets for InfraBridge's new global infrastructure funds are met. In measuring the contingent consideration, the Company applied a probability-weighted approach to the likelihood of meeting various fundraising targets and discounted the estimated future contingent consideration payment at 4.9% to derive a present value amount, classified as Level 3 of the fair value hierarchy. Changes in Level 3 Fair Value The following table presents changes in recurring Level 3 fair value assets held for investment. Realized and unrealized gains (losses) are included in other gain (loss). Level 3 Assets Level 3 Liabilities Fair Value Option Equity Investment of Consolidated Fund Warrants InfraBridge Contingent Consideration (In thousands) AFS Debt Securities Loans Receivable Equity Method Investments Fair value at December 31, 2021 $ — $ 78,607 $ — $ — $ — $ — Purchases, originations, drawdowns and contributions 50,927 370,496 — 35,566 — — Transfer out of equity to liability — — — — 81,400 — Change in accrued interest and capitalization of paid-in-kind interest — 5,814 — — — — Paydowns — (159,501) — — — — Transfer of warehoused loans to sponsored fund — (123,312) — — — — Consolidation of sponsored fund — — — 10,536 — — Unrealized gain (loss) in earnings, net — (38,797) — 668 (63,700) — Fair value at December 31, 2022 $ 50,927 $ 133,307 $ — $ 46,770 $ 17,700 $ — Net unrealized gain (loss) in earnings on instruments held at December 31, 2022 $ — $ (28,706) $ — $ 668 $ (63,700) $ — Fair value at December 31, 2022 $ 50,927 $ 133,307 $ — $ 46,770 $ 17,700 $ — Contributions — — 20,000 85,486 — — Consolidation of sponsored funds — — — 393,614 — — Business combination — — — — — 10,874 Change in consolidated fund's share of equity investment (1) — — — 1,842 — — Paydown of underlying loans held by equity investment of consolidated fund — — — (8,109) — — Unrealized gain (loss) in earnings, net — (133,307) (13,300) 2,216 21,500 464 Deconsolidation of sponsored fund — — — (105,205) — — Fair value at December 31, 2023 $ 50,927 $ — $ 6,700 $ 416,614 $ 39,200 $ 11,338 Net unrealized gain (loss) in earnings on instruments held at December 31, 2023 $ — $ (133,307) $ (13,300) $ — $ 21,500 $ 464 __________ (1) Represents reallocation of investment value when relative ownership of the pooling entity across its fund owners change following additional capital contributions. Investment Carried at Fair Value Using Net Asset Value The Company holds an investment in a non-traded healthcare REIT. In early February 2024, the non-traded healthcare REIT listed its shares on the NYSE through an initial public offering. Pursuant to a 180 day lock-up by the underwriters from the date of listing, the Company is restricted from liquidating its holdings in these securities until expiration of the lock-up period in August 2024. The investment was carried at $14.7 million at December 31, 2023 using its IPO price as an indicative value and at $34.5 million at December 31, 2022 based upon its estimated NAV. Nonrecurring Fair Values The Company measures fair value of certain assets on a nonrecurring basis: (i) on the acquisition date for business combinations; (ii) when events or changes in circumstances indicate that the carrying value of the assets may not be recoverable; and (iii) upon deconsolidation of a subsidiary for any retained interest. Adjustments to fair value generally result from an application of the lower of amortized cost or fair value for assets held for disposition or otherwise, a write-down of asset values due to impairment. There were no assets carried at nonrecurring fair value at December 31, 2023 and December 31, 2022. Fair Value of Financial Instruments Reported at Cost Fair value of financial instruments reported at amortized cost are presented below. Fair Value Measurements Carrying Value (In thousands) Level 1 Level 2 Level 3 Total December 31, 2023 Liabilities Corporate debt Secured fund fee revenue notes $ — $ 250,547 $ — $ 250,547 $ 294,267 Exchangeable senior notes — 152,296 — 152,296 77,516 December 31, 2022 Liabilities Corporate debt Secured fund fee revenue notes $ — $ 250,547 $ — $ 250,547 $ 292,171 Convertible and exchangeable senior notes 304,513 — 304,513 276,741 Non-recourse investment-level debt — — 465 465 465 Debt —Senior notes and secured fund fee revenue notes were valued using their last traded price. At December 31, 2022, carrying value of investment-level debt approximated fair value due to the short term nature of the amount drawn from a line of credit of a consolidated fund. Other —The carrying values of cash and cash equivalents, accounts receivable, due from and to affiliates, interest payable and accounts payable generally approximate fair value due to their short term nature, and credit risk, if any, is negligible. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 11. Earnings per Share The following table presents the basic and diluted earnings per common share computations. Year Ended December 31, (In thousands, except per share data) 2023 2022 2021 Net income (loss) allocated to common stockholders Income (Loss) from continuing operations attributable to DigitalBridge Group, Inc. $ 241,279 $ (129,578) $ (80,312) Income (Loss) from discontinued operations attributable to DigitalBridge Group, Inc. (55,999) (192,219) (229,785) Net income (loss) attributable to DigitalBridge Group, Inc. 185,280 (321,797) (310,097) Preferred stock repurchases/redemptions (Note 8) 927 1,098 (4,992) Preferred dividends (58,656) (61,567) (70,627) Net income (loss) attributable to common stockholders 127,551 (382,266) (385,716) Net income (loss) allocated to participating securities (2,179) (34) — Net income (loss) allocated to common stockholders—basic 125,372 (382,300) (385,716) Interest expense attributable to convertible and exchangeable notes (1) 5,050 — — Net income (loss) allocated to common stockholders—diluted $ 130,422 $ (382,300) $ (385,716) Weighted average common shares outstanding Weighted average number of common shares outstanding—basic 159,868 154,495 122,864 Weighted average effect of dilutive shares (1)(2)(3) 9,852 — — Weighted average number of common shares outstanding—diluted 169,720 154,495 122,864 Income (loss) per share—basic Income (Loss) from continuing operations $ 1.13 $ (1.23) $ (1.27) Income (Loss) from discontinued operations (0.35) (1.24) (1.87) Net income (loss) attributable to common stockholders per common share—basic $ 0.78 $ (2.47) $ (3.14) Income (loss) per share—diluted Income (Loss) from continuing operations $ 1.10 $ (1.23) $ (1.27) Income (Loss) from discontinued operations (0.33) (1.24) (1.87) Net income (loss) attributable to common stockholders per common share—diluted $ 0.77 $ (2.47) $ (3.14) __________ (1) With respect to the assumed conversion or exchange of the Company's outstanding senior notes, the following are excluded from the calculation of diluted earnings per share as their inclusion would be antidilutive: (a) for the years ended December 31, 2023, 2022 and 2021, the effect of adding back interest expense of $3.1 million, $16.6 million and $54.7 million, respectively, and 912,900, 12,901,700 and 33,849,100 of weighted average dilutive common share equivalents. Also excluded from the calculation of diluted earnings per share was $133.2 million of debt extinguishment loss (Note 7) for the year ended December 31, 2022. (2) The calculation of diluted earnings per share excludes the effect of the following as their inclusion would be antidilutive: (a) class A common shares that are contingently issuable in relation to performance stock units (Note 13) with weighted average shares of 1,298,900 and 2,712,700 for the years ended December 31, 2022 and 2021; and (b) class A common shares that are issuable to net settle the exercise of warrants (Note 9) with weighted average shares of 667,400, 1,742,800 and 2,659,400 for the years ended December 31, 2023, 2022 and 2021, respectively. (3) OP Units may be redeemed for registered or unregistered class A common stock on a one-for-one basis and are not dilutive. At December 31, 2023, 2022 and 2021, 12,375,800, 12,628,900 and 12,613,800 of OP Units, respectively, were not included in the computation of diluted earnings per share in the respective periods presented. |
Fee Revenue
Fee Revenue | 12 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Fee Revenue | 12. Fee Revenue The following table presents the Company's fee revenue by type. Year Ended December 31, (In thousands) 2023 2022 2021 Management fees $ 258,288 $ 169,922 $ 168,618 Incentive fees 3,229 — 7,174 Other fees 2,600 2,751 5,034 Total fee revenue $ 264,117 $ 172,673 $ 180,826 Management Fees — Management fees for equity funds are calculated at contractual rates between 0.64% per annum to 1.60% per annum of investors' committed capital during the commitment period, and thereafter, contributed or invested capital (subject to certain reductions for NAV write-downs); at contractual rates between 0.25% per annum and 1.10% per annum of invested capital from inception for Credit and co-investment vehicles; and at contractual rates between 0.30% per annum and 1.25% per annum based upon NAV for vehicles in the Liquid Strategies and gross asset value for certain Infrabridge co-investment vehicles. Also, certain co-investment vehicles charge a one-time fee upfront at contractual rates between 0.15% and 2.00% of committed capital, generally to be paid in tranches, but with recognition of fee revenue over the life of the vehicle. Incentive Fees —The Company is entitled to incentive fees from sub-advisory accounts in its liquid securities strategy. Incentive fees are determined based upon the performance of the respective accounts, subject to the achievement of specified return thresholds in accordance with the terms set out in their respective governing agreements. A portion of incentive fees earned by the Company is allocable to certain employees and former employees, included in carried interest and incentive fee compensation expense. Other Fee Revenue —Other fees include primarily service fees for information technology, facilities and operational support provided to certain portfolio companies, and on a non-recurring basis, loan origination fees from co-investors. Revenue Concentration For the year ended December 31, 2023, revenues from three funds, including fee revenue, principal investment income and carried interest allocation, accounted for approximately 24%, 20%, and 15% of the Company's total revenues. |
Equity-Based Compensation
Equity-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Equity-Based Compensation | 13. Equity-Based Compensation The DigitalBridge Group, Inc. 2014 Omnibus Stock Incentive Plan (the "Equity Incentive Plan") provides for the grant of restricted stock, performance stock units ("PSUs"), Long Term Incentive Plan ("LTIP") units, restricted stock units ("RSUs"), deferred stock units ("DSUs"), options, warrants or rights to purchase shares of the Company's common stock, cash incentives and other equity-based awards to the Company's officers, directors (including non-employee directors), employees, co-employees, consultants or advisors of the Company or of any parent or subsidiary who provides services to the Company, but excluding employees of portfolio companies. Shares reserved for the issuance of awards under the Equity Incentive Plan are subject to equitable adjustment upon the occurrence of certain corporate events, provided that this number automatically increases each January 1st by 2% of the outstanding number of shares of the Company’s class A common stock on the immediately preceding December 31st. At December 31, 2023, an aggregate 24.5 million shares of the Company's class A common stock were reserved for the issuance of awards under the Equity Incentive Plan. Restricted Stock — Restricted stock awards in the Company's class A common stock are granted to senior executives, directors and certain employees, generally subject to a service condition only, with annual time-based vesting in equal tranches over a three-year period. Restricted stock is entitled to dividends declared and paid on the Company's class A common stock and such dividends are not forfeitable prior to vesting of the award. Restricted stock awards are valued based on the Company's class A common stock price on grant date and equity-based compensation expense is recognized on a straight-line basis over the requisite service period. Restricted Stock Units — RSUs in the Company's class A common stock are subject to a performance condition. Vesting of performance-based RSUs occur upon achievement of certain Company-specific metrics over a performance measurement period that coincides with the recipients' term of service. Only vested RSUs are entitled to accrued dividends declared and paid on the Company's class A common stock during the time period the RSUs are outstanding. RSUs are initially valued based upon the Company's class A common stock price on grant date and not subsequently remeasured for equity-classified awards, while liability-classified awards are remeasured at fair value at the end of each reporting period until the award is fully vested. Equity-based compensation expense is recognized over the vesting period when it becomes probable that the performance condition will be met. A liability classified award that met its performance condition and became fully vested over the course of 2023 was settled in cash totaling $3.3 million. There was no cash settlement of awards in 2022 or 2021. Performance Stock Units — PSUs are granted to senior executives and certain employees, and are subject to both a service condition and a market condition. Following the end of the measurement period, the recipients of PSUs who remain employed will vest in, and be issued a number of shares of the Company's class A common stock, generally ranging from 0% to 200% of the number of PSUs granted and determined based upon the performance of the Company's class A common stock relative to that of a specified peer group over a three-year measurement period (such measurement metric the "total shareholder return"). In addition, recipients of PSUs whose employment is terminated after the first anniversary of their PSU grant are eligible to vest in a portion of the PSU award following the end of the measurement period based upon achievement of the total shareholder return metric applicable to the award. PSUs also contain dividend equivalent rights which entitle the recipients to a payment equal to the amount of dividends that would have been paid on the shares that are ultimately issued at the end of the measurement period. Fair value of PSUs, including dividend equivalent rights, was determined using a Monte Carlo simulation under a risk-neutral premise, with the following assumptions: 2023 PSU Grants 2022 PSU Grants 2021 PSU Grants Expected volatility of the Company's class A common stock (1) 41.3% 32.4% 35.4% Expected annual dividend yield (2) 0.3% —% —% Risk-free rate (per annum) (3) 3.8% 2.0% 0.3% __________ (1) Based upon the historical volatility of the Company's stock and those of a specified peer group. (2) Based upon the Company's expected annualized dividends. Expected dividend yield was zero for the March 2022 and 2021 PSU awards as common dividends were suspended beginning the second quarter of 2020 and reinstated in the third quarter of 2022. (3) Based upon the continuously compounded zero-coupon U.S. Treasury yield for the term coinciding with the measurement period of the award as of valuation date. Fair value of PSU awards, excluding dividend equivalent rights, is recognized on a straight-line basis over their measurement period as compensation expense, and is not subject to reversal even if the market condition is not achieved. The dividend equivalent right is accounted for as a liability-classified award. The fair value of the dividend equivalent right is recognized as compensation expense on a straight-line basis over the measurement period, and is subject to adjustment to fair value at each reporting period. LTIP Units — LTIP units are units in the Operating Company that are designated as profits interests for federal income tax purposes. Unvested LTIP units that are subject to market conditions do not accrue distributions. Each vested LTIP unit is convertible, at the election of the holder (subject to capital account limitation), into one common OP Unit and upon conversion, subject to the redemption terms of OP Units (Note 8). LTIP units issued have either (1) a service condition only, valued based upon the Company's class A common stock price on grant date; or (2) both a service condition and a market condition based upon the Company's class A common stock achieving a target price over a predetermined measurement period, subject to continuous employment to the time of vesting, and valued using a Monte Carlo simulation. The following assumptions were applied in the Monte Carlo model under a risk-neutral premise: 2022 LTIP Grant 2019 LTIP Grant (1) Expected volatility of the Company's class A common stock (2) 34.0% 28.3% Expected dividend yield (3) 0.0% 8.1% Risk-free rate (per annum) (4) 3.6% 1.8% __________ (1) Represents 2.5 million LTIP units granted to the Company's Chief Executive Officer, Marc Ganzi, in connection with the Company's acquisition of Digital Bridge Holdings, LLC in July 2019, with vesting based upon the Company's class A common stock price closing at or above $40 over any 90 consecutive trading days prior to the fifth anniversary of the grant date. (2) Based upon historical volatility of the Company's stock and those of a specified peer group. (3) Based upon the Company's most recently issued dividend prior to grant date and closing price of the Company's class A common stock on grant date. Expected dividend yield was zero for the June 2022 award as common dividends were suspended beginning the second quarter of 2020 and reinstated in the third quarter of 2022. (4) Based upon the continuously compounded zero-coupon US Treasury yield for the term coinciding with the measurement period of the award as of valuation date. Equity-based compensation cost on LTIP units is recognized on a straight-line basis either over (1) the service period for awards with a service condition only; or (2) the derived service period for awards with both a service condition and a market condition, irrespective of whether the market condition is satisfied. The derived service period is a service period that is inferred from the application of the simulation technique used in the valuation of the award, and represents the median of the terms in the simulation in which the market condition is satisfied. Deferred Stock Units — Certain non-employee directors may elect to defer the receipt of annual base fees and/or restricted stock awards, and in lieu, receive awards of DSUs. DSUs awarded in lieu of annual base fees are fully vested on their grant date, while DSUs awarded in lieu of restricted stock awards vest one year from their grant date. DSUs are entitled to a dividend equivalent, in the form of additional DSUs based on dividends declared and paid on the Company's class A common stock, subject to the same restrictions and vesting conditions, where applicable. Upon separation of service from the Company, vested DSUs will be settled in shares of the Company’s class A common stock. Fair value of DSUs are determined based upon the price of the Company's class A common stock on grant date and recognized immediately if fully vested upon grant, or on a straight-line basis over the vesting period as equity based compensation expense and equity. Equity-based compensation cost pursuant to DBRG's Equity Incentive Plan is presented on the consolidated statement of operations, as follows. Year Ended December 31, (In thousands) 2023 2022 2021 Compensation expense (including $0, $(410) and $1,194 expense related to dividend equivalent rights) $ 55,597 $ 31,281 $ 35,428 Administrative expense 228 1,422 222 $ 55,825 $ 32,703 $ 35,650 Changes in unvested equity awards pursuant to DBRG's Equity Incentive Plan are summarized below. Weighted Average Grant Date Fair Value Restricted Stock LTIP Units (1) DSUs RSUs (2) PSUs (3) Total PSUs All Other Awards Unvested shares and units at December 31, 2022 1,706,674 2,625,000 20,058 2,397,391 1,889,587 8,638,710 $ 16.28 $ 10.84 Granted 2,468,842 — 70,887 — 413,172 2,952,901 11.98 12.24 Vested (1,308,856) — (26,846) (1,798,044) (603,525) (3,737,271) 7.88 13.95 Forfeited (53,291) — — — (424,799) (478,090) 7.92 13.83 Unvested shares and units at December 31, 2023 2,813,369 2,625,000 64,099 599,347 1,274,435 7,376,250 21.66 9.80 __________ (1) Represents the number of LTIP units granted subject to vesting upon achievement of market condition. LTIP units that do not meet the market condition within the measurement period will be forfeited. (2) Represents the number of RSUs granted subject to vesting upon achievement of performance condition. RSUs that do not meet the performance condition at the end of the measurement period will be forfeited. (3) Number of PSUs granted does not reflect potential increases or decreases that could result from the final outcome of the total shareholder return measured at the end of the performance period. PSUs for which the total shareholder return was not met at the end of the performance period are forfeited. Fair value of equity awards that vested, determined based upon their respective fair values at vesting date, totaled $50.3 million in 2023, $53.9 million in 2022 and $68.3 million in 2021. At December 31, 2023, aggregate unrecognized compensation cost for all unvested equity awards pursuant to DBRG's Equity Incentive Plan was $36.0 million, which is expected to be recognized over a weighted average period of 1.8 years. This excludes $6.3 million of unvested RSUs that are not currently probable of achieving their performance condition and have a remaining performance measurement period of approximately four months. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes Transition to Taxable C Corporation In 2022, the Company’s Board of Directors and management agreed to discontinue actions necessary to maintain qualification as a REIT. Commencing with the taxable year ended December 31, 2022, all of the Company’s taxable income, except for income generated by subsidiaries that have elected REIT status, is subject to U.S. federal and state income tax at the applicable corporate tax rate. The Company’s transition to a taxable C Corporation in 2022, in and of itself, did not result in significant incremental current income tax expense due to the availability of significant capital loss and net operating loss (“NOL”) carryforwards. The Company's primary source of income subject to tax remains its investment management business, which was already subject to tax through its previously designated taxable REIT subsidiaries. Income Tax Benefit (Expense) The components of current and deferred tax benefit (expense) are as follows. Year Ended December 31, (In thousands) 2023 2022 2021 Current Federal $ 167 $ 3,986 $ 3,369 State and local 1,058 (786) (19) Foreign (1,252) (1,163) — Total current tax benefit (expense) (27) 2,037 3,350 Deferred Federal (1,004) (13,850) 15,615 State and local 124 (2,419) 2,498 Foreign 901 1,100 — Total deferred tax benefit (expense) 21 (15,169) 18,113 Income tax benefit (expense) on continuing operations $ (6) $ (13,132) $ 21,463 The Company has no income tax benefits recognized for uncertain tax positions. Deferred Income Tax Asset and Liability Deferred tax asset and deferred tax liability are presented within other assets, and other liabilities, respectively. The components of deferred tax asset and deferred tax liability are as follows. (In thousands) December 31, 2023 December 31, 2022 Deferred tax asset Capital losses (1) $ 366,083 $ 252,904 Net operating losses (2) 146,537 92,224 Investment in partnerships 131,828 317,048 Equity-based compensation 15,104 11,856 Intangible assets 5,013 5,959 Deferred income 2,576 2,086 Deferred interest expense 6,050 5,556 Lease liability—corporate offices 12,507 9,341 Lease liability—investment properties — 6,789 Other 4,487 5,847 Gross deferred tax asset 690,185 709,610 Valuation allowance (664,397) (679,057) Deferred tax asset, net of valuation allowance 25,788 30,553 Deferred tax liability Intangible assets 23,382 13,725 ROU lease asset—corporate offices 8,527 5,350 ROU lease asset—investment properties — 6,026 Other 1,909 3,408 Gross deferred tax liability 33,818 28,509 Net deferred tax asset (liability) $ (8,030) $ 2,044 __________ (1) At December 31, 2023, deferred tax asset was recognized on capital losses of $1.38 billion, which expire between 2024 and 2028, with full valuation allowance established. (2) At December 31, 2023 and 2022, deferred tax asset was recognized on NOL of $589.7 million and $378.7 million, respectively, for which full valuation allowance was established in both years. NOL, which is largely attributable to U.S. federal losses incurred after December 31, 2017, can be carried forward indefinitely. Valuation Allowance Changes in the deferred tax asset valuation allowance are presented below: Year Ended December 31, (In thousands) 2023 2022 2021 Beginning balance $ 679,057 $ 12,766 $ 1,852 Addition 19,483 666,291 33,756 Utilization and/or reversal (34,143) — (22,842) Ending balance 664,397 $ 679,057 $ 12,766 Deferred Income Taxes In 2022, significant deferred tax assets were recognized with an offsetting valuation allowance. As a result of the Company's transition to a taxable C Corporation, $400.2 million of deferred tax asset was recognized as of January 1, 2022 related principally to capital loss carryforwards and outside basis difference in DBRG's interest in the OP, and $134.2 million was recorded during the year related to changes in DBRG’s interest in the OP that were treated as equity transactions. Outside basis difference in investment in partnerships along with NOL generated by a subsidiary during the year further contributed to the deferred tax asset balance in 2022. At December 31, 2022, it was determined that the realizability of these deferred tax assets did not meet the more-likely-than-not threshold, and consequently, a full valuation allowance was established against these deferred tax assets. In assessing realizability, the Company determined that there were no prudent and feasible tax planning strategies that the Company could employ to reasonably assure the future realizability of its carryforward losses and other deferred tax assets. In the absence of tax planning strategies and given the Company’s history of cumulative operating losses, which was largely a product of the recent transition in the Company's business, it was difficult to overcome the resulting uncertainties over the Company’s ability to generate future taxable income to realize these deferred tax assets. As of December 31, 2023 , a full valuation allowance has been maintained as the more-likely-than-not threshold continues to not be met in assessing realizability of deferred tax assets. As a result, income tax expense in 2023 generally reflects the income tax effect of foreign subsidiaries. In future periods, if the realizability of all or some portion of these deferred tax assets becomes more likely than not, the associated valuation allowance would be reversed as a deferred tax benefit. Foreign Subsidiary Earnings The Company has evaluated all unremitted earnings of its foreign subsidiaries, which may be repatriated at the Company’s election, and has not recorded any deferred tax liability as no material taxes are expected to be due if and when these amounts are repatriated. Effective Income Tax Income tax benefit (expense) attributable to continuing operations varied from the amount computed by applying the statutory income tax rate to loss from continuing operations before income taxes. The following table presents a reconciliation of the statutory U.S. income tax to the Company's effective income tax attributable to continuing operations: Year Ended December 31, (In thousands) 2023 2022 2021 Income (Loss) from continuing operations before income taxes $ 365,629 $ (46,681) $ (55,999) Income (Loss) from continuing operations before income taxes attributable to pass-through subsidiaries NA NA (5,905) Income (Loss) from continuing operations before income taxes attributable to taxable subsidiaries 365,629 (46,681) (61,904) Federal income tax benefit (expense) at statutory tax rate (21%) (76,782) 9,802 13,000 State and local income taxes, net of federal income tax benefit (21,970) 5,559 1,930 Foreign income tax differential 36 782 — Effect of change in income tax rate 34,684 — — Noncontrolling interests (27,699) (44,014) — Separately taxable subsidiaries of OP 15,213 21,226 — Change in ownership of OP, including equity reallocation (Note 2) — (2,838) — Equity-based compensation 682 1,971 1,814 Valuation allowance (1) 76,087 (784) 1,852 Other, net (257) (4,836) 2,867 Income tax benefit (expense) on continuing operations $ (6) $ (13,132) $ 21,463 __________ (1) 2022 excludes changes in valuation allowance related to the Company's transition to taxable C Corporation as of January 1, 2022, outside basis difference in changes in DBRG’s interest in the OP that were treated as equity transactions, and other activities associated with discontinued operations. Tax Examinations The Company is no longer subject to new income tax examinations by U.S. tax authorities for years prior to 2019 . |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | 15. Variable Interest Entities A VIE is an entity that lacks sufficient equity to finance its activities without additional subordinated financial support from other parties, or whose equity holders lack the characteristics of a controlling financial interest. The following discusses the Company's involvement with VIEs where the Company is the primary beneficiary and consolidates the VIEs or where the Company is not the primary beneficiary and does not consolidate the VIEs. Operating Subsidiary The Company's operating subsidiary, OP, is a limited liability company that has governing provisions that are the functional equivalent of a limited partnership. The Company holds the majority of membership interest in OP, acts as the managing member of OP and exercises full responsibility, discretion and control over the day-to-day management of OP. The noncontrolling interests in OP do not have substantive liquidation rights, substantive kick-out rights without cause, or substantive participating rights that could be exercised by a simple majority of noncontrolling interest members (including by such a member unilaterally). The absence of such rights, which represent voting rights in a limited partnership equivalent structure, would render OP to be a VIE. The Company, as managing member, has the power to direct the core activities of OP that most significantly affect OP's performance, and through its majority interest in OP, has both the right to receive benefits from and the obligation to absorb losses of OP. Accordingly, the Company is the primary beneficiary of OP and consolidates OP. As the Company conducts its business and holds its assets and liabilities through OP, the total assets and liabilities, earnings (losses), and cash flows of OP represent substantially all of the total consolidated assets and liabilities, earnings (losses), and cash flows of the Company. Company-Sponsored Funds The Company sponsors funds and other investment vehicles as general partner for the purpose of providing investment management services in exchange for management fees and carried interest. These funds are established as limited partnerships or equivalent structures. Limited partners of the funds do not have either substantive liquidation rights, or substantive kick-out rights without cause, or substantive participating rights that could be exercised by a simple majority of limited partners or by a single limited partner. Accordingly, the absence of such rights, which represent voting rights in a limited partnership, results in the funds being considered VIEs. The nature of the Company's involvement with its sponsored funds comprise fee arrangements and equity interests in its capacity as general partner and general partner affiliate. The fee arrangements are commensurate with the level of management services provided by the Company, and contain terms and conditions that are customary to similar at-market fee arrangements. Consolidated Company-Sponsored Funds —The Company currently consolidates sponsored funds in which it has more than an insignificant equity interest in the fund as general partner. As a result, the Company is considered to be acting in the capacity of a principal of the sponsored fund and is therefore the primary beneficiary of the fund. The Company’s exposure is limited to its capital account balance in the consolidated funds of $200.8 million at December 31, 2023 and $94.7 million at December 31, 2022. The liabilities of the consolidated funds may only be settled using assets of the consolidated funds, and the Company, as general partner, is not obligated to provide any financial support to the consolidated funds. At December 31, 2023, the Company did not have any unfunded equity commitments to consolidated funds. The following table presents the assets and liabilities of the consolidated funds: (In thousands) December 31, 2023 December 31, 2022 Assets Cash and cash equivalents $ 69,654 $ 86,433 Investments (Note 4) 482,911 185,845 Other assets 576 1,895 $ 553,141 $ 274,173 Liabilities Debt $ — $ 465 Other liabilities Securities sold short 38,482 40,928 Due to custodian 9,415 35,457 Other 16,313 2,734 $ 64,210 $ 79,584 Unconsolidated Company-Sponsored Funds —The Company does not consolidate its sponsored funds where it has insignificant equity interests in these funds as general partner. As such interests absorb insignificant variability from the fund, the Company is considered to be acting in the capacity of an agent of the fund and is therefore not the primary beneficiary of these funds. The Company accounts for its equity interests in unconsolidated funds under the equity method. The Company's maximum exposure to loss is limited to the outstanding balance of its investment in the unconsolidated funds (Note 4) of $1.86 billion at December 31, 2023 and $752.3 million at December 31, 2022. The Company also has receivables from its unconsolidated funds for fee revenue and reimbursable or recoverable costs, as discussed in Note 16. At December 31, 2023, the Company's unfunded equity commitments to its unconsolidated funds as general partner and general partner affiliate totaled $260.4 million. Generally, the timing for funding of these commitments is not known and the commitments are callable on demand at any time prior to their respective expirations. |
Transactions with Affiliates
Transactions with Affiliates | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Transactions with Affiliates | 16. Transactions with Affiliates Affiliates include (i) investment vehicles that the Company sponsors and/or manages, and in which the Company may have an equity interest; (ii) portfolio companies of sponsored funds; (iii) the Company's other equity investments outside of sponsored funds; and (iv) directors and employees of the Company (collectively, "employees"). Amounts due from and due to affiliates consist of the following: (In thousands) December 31, 2023 December 31, 2022 Due from Affiliates Investment vehicles and portfolio companies Fee revenue $ 71,427 $ 35,010 Cost reimbursements and recoverable expenses 14,388 7,031 Employees and other affiliates — 3,319 $ 85,815 $ 45,360 Due to Affiliates (Note 6) Investment vehicles—Derivative obligation $ — $ 11,793 Investment vehicles—InfraBridge (Note 3) 10,123 — Employees and other affiliates 541 658 $ 10,664 $ 12,451 Significant transactions with affiliates include the following: Fee Revenue —Fee revenue earned from investment vehicles that the Company manages and/or sponsors, and may have an equity interest, are presented in Note 12. Substantially all fee revenue are from affiliates, except for management fees and incentive fee from sub-advisory accounts and generally, other fee revenue. Cost Reimbursements and Recoverable Expenses— The Company receives reimbursements and recovers certain costs paid on behalf of investment vehicles sponsored by the Company, which include: (i) organization and offering costs related to formation and capital raising of the investment vehicles up to specified thresholds; (ii) professional fees incurred in performing investment due diligence; and (iii) direct and indirect operating costs for managing the operations of certain investment vehicles. To the extent the Company determines it acts in the capacity of principal in the incurrence of such costs, the related reimbursements and recoverable expenses are included in other income, which totaled $10.4 million, $4.3 million and $10.2 million for the years ended December 31, 2023, 2022 and 2021, respectively. To the extent the Company determines that it acts in the capacity of an agent, the cost reimbursement is presented on a net basis in the consolidated statements of operations. Warehoused Investments— The Company may acquire and temporarily warehouse investments on behalf of prospective sponsored investment vehicles that are actively fundraising (Note 4). The warehoused investments are transferred to the investment vehicle when sufficient third party capital, including debt, is raised. The Company is generally paid a fee by the investment vehicle, akin to an interest charge, typically calculated as a percentage of the acquisition price of the investment, to compensate the Company for its cost of holding the investment during the warehouse period. The terms of such arrangements may differ for each sponsored investment vehicle and by investment. Derivative Obligations of Sponsored Fund— In the third quarter of 2022, the Company, in its capacity as general partner and for the benefit of its sponsored fund, entered into foreign currency forward contracts to economically hedge the foreign currency exposure of an investment commitment of its sponsored fund (Note 10). The investment committee of the sponsored fund has ratified the fund's responsibility and obligation to assume all resulting liabilities and benefits from the foreign currency contracts effective from trade date through the novation of the contracts to the fund. The Company recorded a payable in due to affiliates to reflect the fund's obligation to assume the resulting asset from the foreign currency contracts; accordingly, there was no net effect to the Company's earnings resulting from these foreign currency contracts. Upon the novation of the contracts to the fund in January 2023, the Company de-recognized the derivative asset and the corresponding payable in due to affiliate. Digital Real Estate Acquisitions— Marc Ganzi, Chief Executive Officer of the Company, and Ben Jenkins, President and Chief Investment Officer of the Company, were former owners of Digital Bridge Holdings, LLC ("DBH") prior to its merger into the Company in July 2019. Messrs. Ganzi and Jenkins had retained their equity investments and general partner interests in the portfolio companies of DBH, which include DataBank and Vantage. As a result of the personal investments made by Messrs. Ganzi and Jenkins in DataBank and Vantage SDC prior to the Company’s acquisition of DBH, additional investments made by the Company in DataBank and Vantage SDC subsequent to their initial acquisitions may trigger future carried interest payments to Messrs. Ganzi and Jenkins upon the occurrence of future realization events. Such investments made by the Company include ongoing payments for the build-out of expansion capacity, including lease-up of the expanded capacity and existing inventory, in Vantage SDC (Note 9) and the acquisition of additional interest in DataBank from an existing investor in January 2022. Carried Interest Allocation from Sponsored Investment Vehicles —With respect to investment vehicles sponsored by the Company for which Messrs. Ganzi and Jenkins are invested in their capacity as former owners of DBH, and not in their capacity as employees of the Company, any carried interest entitlement attributed to such investments by Messrs. Ganzi and Jenkins as general partner are not subject to continuing vesting provisions and do not represent compensatory arrangements to the Company. Such carried interest allocation to Messrs. Ganzi and Jenkins that are unrealized or distributed but unpaid are included in noncontrolling interests on the balance sheet in the Investment Management segment, in the amount of $112.2 million at December 31, 2023 and $70.4 million at December 31, 2022. Carried interest allocated is recorded as net income attributable to noncontrolling interests in the Investment Management segment totaling $42.5 million, $65.0 million and $17.6 million for the years ended December 31, 2023, 2022 and 2021 respectively. Additionally, in connection with the DataBank recapitalization (Note 9) in the second half of 2022, Messrs. Ganzi and Jenkins received distributed carried interest in the form of equity interest in vehicles that invest in DataBank, of which $86.1 million in aggregate was not deemed a compensatory arrangement. Such equity interest represent ownership interests in DataBank. A portion of such equity interest was sold by Messrs. Ganzi and Jenkins in connection with the recapitalization transaction. Investment in Managed Investment Vehicles —Subject to the Company's related party policies and procedures, certain employees may invest on a discretionary basis in investment vehicles sponsored by the Company, either directly in the vehicle or indirectly through the Company's general partner entity. These investments are generally not subject to management fees or carried interest, but otherwise bear their proportionate share of other operating expenses of the investment vehicles. Such investments in consolidated investment vehicles and general partner entities totaled $22.7 million at December 31, 2023 and $17.7 million at December 31, 2022, reflected in redeemable noncontrolling interests and noncontrolling interests on the balance sheet in the Investment Management segment. The employees' share of net income was $4.9 million, $2.2 million and $2.1 million for the years ended December 31, 2023, 2022 and 2021, respectively. Such amounts are reflected in net income (loss) attributable to noncontrolling interests on the consolidated statement of operations in the Investment Management segment and exclude their share of carried interest allocation, which is reflected in incentive fee and carried interest compensation expense. Aircraft— P ursuant to Mr. Ganzi’s employment agreement, as amended, the Company has agreed to reimburse Mr. Ganzi for certain variable operational costs of business travel on a chartered or private jet (including any aircraft that Mr. Ganzi may partially or fully own), provided that the Company will not reimburse the allocable share (based on the number of passengers) of variable operational costs for any passenger on such flight who is not traveling on Company business. Additionally, the Company has also agreed to reimburse Mr. Ganzi for certain defined fixed costs of any aircraft owned by Mr. Ganzi. The fixed cost reimbursements will be made based on an allocable portion of an aircraft’s annual budgeted fixed cash operating costs, based on the number of hours the aircraft will be used for business purposes. At least once a year, the Company will reconcile the budgeted fixed operating costs with the actual fixed operating costs of the aircraft, and the Company or Mr. Ganzi, as applicable, will make a payment for any difference. The Company reimbursed Mr. Ganzi $4.7 million, $2.7 million and $3.0 million for the years ended December 31, 2023, 2022 and 2021 respectively. Investment Venture— Pursuant to an investment agreement entered into between a subsidiary of the Company and Thomas J. Barrack, the Company's former Executive Chairman, effective April 1, 2021, the Company invested $26.0 million in Mr. Barrack's newly formed investment entity (the “Venture”), which entitles the Company to a portion of carried interest payable to Mr. Barrack from the Venture. Following subsequent events which significantly reduced the likelihood that fundraising by the Venture will sufficiently support its value, the Company determined that its investment would likely not be recoverable and wrote off its investment as of June 30, 2021. In 2023, the investment agreement was terminated and both parties agreed to a dissolution of the Venture. Advancement of Expenses— Effective April 1, 2021, Thomas J. Barrack stepped down as Executive Chairman of the Company and in July 2021, resigned as a member of the Company's Board of Directors. In October 2021, the Company entered into an Agreement Regarding Advancement of Certain Expenses ("Advancement Agreement") with Mr. Barrack, which is generally consistent with the Company’s obligations and Mr. Barrack’s rights regarding advancement of expenses under the terms of a January 2017 Indemnification Agreement between the Company and Mr. Barrack, and under the Company’s Bylaws. The Advancement Agreement (a) memorializes the parties’ agreement as to the Company’s obligations and Mr. Barrack’s rights under the earlier Indemnification Agreement and the Company's Bylaws, and (b) obligates Mr. Barrack to reimburse the Company for such advanced expenses under certain circumstances. Pursuant to the Advancement Agreement , the Company expensed $27.6 million and $5.6 million in the years ended December 31, 2022 and 2021, respectively, with immaterial expenses in 2023. The Company believes it has met all of its financial obligations under the Advancement Agreement and does not expect to make any further advances to Mr. Barrack thereunder. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | 17. Segment Reporting The Company conducts its business through its one reportable segment of Investment Management. The Operating segment was discontinued following full deconsolidation of the portfolio companies in the Operating segment on December 31, 2023, as discussed in Note 9, at which time, the activities thereof qualified as discontinued operations (Note 2). • The Investment Management segment represents the Company's global investment management platform, deploying and managing capital on behalf of a diverse base of global institutional investors. The Company's investment management platform is composed of a growing number of long-duration, private investment funds designed to provide institutional investors access to investments across different segments of the digital infrastructure ecosystem. In addition to its flagship value-add digital infrastructure equity offerings, the Company's investment offerings have expanded to include core equity, credit and liquid securities. The Company earns management fees based upon the assets or capital managed in investment vehicles, and may earn incentive fees and carried interest based upon the performance of such investment vehicles, subject to achievement of minimum return hurdles. The amount of incentive fees and carried interest recognized, a portion of which is allocated to employees and former employees, may be highly variable from period to period. Through the end of May 2022, earnings from the Investment Management segment were attributed 31.5% to Wafra prior to the Company's redemption of Wafra's interest in the investment management business (Note 9). The Company's remaining investment activities and corporate level activities are presented as Corporate and Other. • Other investment activities are composed primarily of the Company's equity interests as general partner affiliate in its sponsored investment vehicles, the largest of which are the DBP flagship funds, InfraBridge funds, DataBank and Vantage SDC post-deconsolidation, and seed investments in liquid securities and other potential new strategies. With respect to seed investments, these are not intended to be a long-term deployment of capital by the Company and are expected to be warehoused temporarily on the Company's balance sheet until sufficient third party capital has been raised. The Company's r emaining non-digital investments consisted, for the most part, of shares in BRSP that were disposed in March 2023. The Company's other investment activities generate largely principal investment income, driven by fair value changes of underlying investments held by its investment vehicles, and to a lesser extent, interest income or dividend income from warehoused investments and investments of consolidated investment vehicles. • Corporate activities include corporate level cash and corresponding interest income, corporate level financing and related interest expense, corporate level transaction costs, costs in connection with unconsummated investments, income and expense related to cost reimbursement arrangements with affiliates, fixed assets for corporate use, compensation expense not directly attributable to reportable segments, and corporate level administrative and overhead costs. Costs which are directly attributable, or otherwise can be subjected to a reasonable and systematic attribution, have been attributed to reportable segments. As segment results are presented before elimination of intercompany fees, elimination adjustment is made with respect to fee revenue earned by the Investment Management segment from third party capital in managed investment vehicles consolidated in Corporate and Other. Segment Results of Operations The following table summarizes results from continuing operations of the Company's reportable segments and reconciled to the consolidated statement of operations. Investment Management Corporate and Other Total Year Ended December 31, Year Ended December 31, Year Ended December 31, 2023 2022 2021 2023 2022 2021 2023 2022 2021 Revenues Fee revenue $ 267,181 $ 176,061 $ 187,379 $ (3,064) $ (3,388) $ (6,553) $ 264,117 $ 172,673 $ 180,826 Carried interest allocation 363,075 378,342 99,207 — — — 363,075 378,342 99,207 Principal investment income 4,223 4,121 2,604 141,225 52,610 83,419 145,448 56,731 86,023 Other income 11,405 5,984 4,303 37,338 81,041 17,471 48,743 87,025 21,774 Total revenues 645,884 564,508 293,493 175,499 130,263 94,337 821,383 694,771 387,830 Expenses Interest expense 10,514 10,872 4,766 14,026 32,054 58,478 24,540 42,926 63,244 Investment-related expense 2,539 4,112 3,423 616 19,107 3,745 3,155 23,219 7,168 Transaction-related costs 6,973 4,895 — 3,850 5,234 5,515 10,823 10,129 5,515 Depreciation and amortization 35,259 22,155 26,736 1,392 22,116 17,617 36,651 44,271 44,353 Compensation expense Cash and equity-based 154,442 101,433 71,055 52,450 53,319 88,717 206,892 154,752 159,772 Incentive fee and carried interest allocation 186,030 202,286 65,890 — — — 186,030 202,286 65,890 Administrative expense 40,544 21,515 21,683 43,238 72,607 56,085 83,782 94,122 77,768 Total expenses 436,301 367,268 193,553 115,572 204,437 230,157 551,873 571,705 423,710 Other income (loss) Other gain (loss), net (2,527) (3,341) 797 98,646 (166,406) (20,916) 96,119 (169,747) (20,119) Income (loss) from continuing operations before income taxes 207,056 193,899 100,737 158,573 (240,580) (156,736) 365,629 (46,681) (55,999) Income tax benefit (expense) (1,694) (7,815) (9,822) 1,688 (5,317) 31,285 (6) (13,132) 21,463 Income (loss) from continuing operations 205,362 186,084 90,915 160,261 (245,897) (125,451) 365,623 (59,813) (34,536) Income (loss) from continuing operations attributable to noncontrolling interests: Redeemable noncontrolling interests 215 (3,175) 14,893 6,288 (23,603) 19,784 6,503 (26,778) 34,677 Investment entities 86,290 113,853 19,153 18,074 (834) 7,992 104,364 113,019 27,145 Operating Company 8,374 5,522 5,338 5,103 (21,998) (21,384) 13,477 (16,476) (16,046) Income (loss) from continuing operations attributable to DigitalBridge Group, Inc. $ 110,483 $ 69,884 $ 51,531 $ 130,796 $ (199,462) $ (131,843) $ 241,279 $ (129,578) $ (80,312) Income (loss) from discontinued operations attributable to DigitalBridge Group, Inc. (55,999) (192,219) (229,785) Income (loss) attributable to DigitalBridge Group, Inc. $ 185,280 $ (321,797) $ (310,097) Of the Company's total assets of $3.6 billion at December 31, 2023 and $11.0 billion at December 31, 2022, $1.48 billion and $875.4 million reside in the Investment Management segment, respectively. Geography Geographic information about the Company's total income from continuing operations and long-lived assets, excluding assets of discontinued operations, are as follows. Geography is generally presented as the location in which the income producing assets reside or the location in which income generating services are performed. Year Ended December 31, (In thousands) 2023 2022 2021 Total income by geography: United States $ 746,462 $ 643,073 $ 375,133 Europe 56,280 47,196 2,512 Other 8,241 165 — Total (1) $ 810,983 $ 690,434 $ 377,645 (In thousands) December 31, 2023 December 31, 2022 Long-lived assets by geography: United States $ 22,294 $ 27,588 Europe 17,868 3,997 Other 967 1,037 Total (2) $ 41,129 $ 32,622 __________ (1) Total income excludes cost reimbursement income from affiliates (Note 16), presented within other income, and income from discontinued operations (Note 2). (2) |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 18. Commitments and Contingencies Litigation The Company may be involved in litigation in the ordinary course of business. As of December 31, 2023, the Company was not involved in any legal proceedings that are expected to have a material adverse effect on the Company’s results of operations, financial position or liquidity. Leases As lessee, the Company's leasing arrangements are generally limited to operating leases for its corporate offices. The weighted average remaining lease term based upon outstanding lease liability balances at December 31, 2023 was 6.3 years for operating leases on corporate offices. The following table summarizes total lease cost for operating leases on corporate offices, which are included in administrative expense. December 31, (In thousands) 2023 2022 2021 Fixed lease expense $ 8,678 $ 7,090 $ 7,010 Variable lease expense 1,713 2,073 1,829 Total operating lease cost $ 10,391 $ 9,163 $ 8,839 In 2022, the Company also had operating leases on tower assets that were temporarily warehoused from June to December 2022, with total lease cost, generally fixed, of $7.6 million (Note 2). Lease Commitments Operating lease liabilities take into consideration renewal or termination options when such options are deemed reasonably certain to be exercised by the Company and exclude variable lease payments which are expensed as incurred. The Company makes variable lease payments for: (i) leases with rental payments that are adjusted periodically for inflation, and/or (ii) nonlease services, such as common area maintenance. The table below presents the Company's future lease commitments for operating leases on corporate offices at December 31, 2023 , determined using a weighted average discount rate of 5.7%: Year Ending December 31, (In thousands) 2024 $ 9,435 2025 9,454 2026 10,141 2027 9,113 2028 7,067 2029 and thereafter 15,203 Total lease payments 60,413 Present value discount (11,378) Operating lease liability on corporate offices $ 49,035 Commitments on Future Leases At December 31, 2023 , the Company had an operating lease commitment on an office space expected to commence in 2025 with fixed lease payments (undiscounted) totaling $57.1 million over a ten year lease term. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 19. Subsequent Events No subsequent events have occurred that would require recognition in the consolidated financial statements or disclosure in the accompanying notes. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Income (loss) attributable to DigitalBridge Group, Inc. | $ 185,280 | $ (321,797) | $ (310,097) |
Insider Trading Arrangements
Insider Trading Arrangements | 12 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company and its controlled subsidiaries. All significant intercompany accounts and transactions have been eliminated. The portions of equity, net income and other comprehensive income of consolidated subsidiaries that are not attributable to the parent are presented separately as amounts attributable to noncontrolling interests in the consolidated financial statements. Noncontrolling interests represents predominantly the majority ownership held by third party investors in the Company's former Operating segment, carried interest allocation to certain senior executives of the Company (Note 16), and membership interests in OP held by certain current and former employees of the Company. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates and assumptions. |
Principles of Consolidation | Principles of Consolidation The Company consolidates entities in which it has a controlling financial interest by first considering if an entity meets the definition of a variable interest entity ("VIE") for which the Company is deemed to be the primary beneficiary, or if the Company has the power to control an entity through a majority of voting interest or through other arrangements. Variable Interest Entities —A VIE is an entity that either (i) lacks sufficient equity to finance its activities without additional subordinated financial support from other parties; (ii) whose equity holders lack the characteristics of a controlling financial interest; and/or (iii) is established with non-substantive voting rights. A VIE is consolidated by its primary beneficiary, which is defined as the party who has a controlling financial interest in the VIE through (a) power to direct the activities of the VIE that most significantly affect the VIE’s economic performance, and (b) obligation to absorb losses or right to receive benefits of the VIE that could be significant to the VIE. This assessment may involve subjectivity in the determination of which activities most significantly affect the VIE’s performance, and estimates about current and future fair value of the assets held by the VIE and financial performance of the VIE. In assessing its interests in the VIE, the Company also considers interests held by its related parties, including de facto agents. Additionally, the Company assesses whether it is a member of a related party group that collectively meets the power and benefits criteria and, if so, whether the Company is most closely associated with the VIE. In performing the related party analysis, the Company considers both qualitative and quantitative factors, including, but not limited to: the characteristics and size of its investment relative to the related party; the Company’s and the related party's ability to control or significantly influence key decisions of the VIE including consideration of involvement by de facto agents; the obligation or likelihood for the Company or the related party to fund operating losses of the VIE; and the similarity and significance of the VIE’s business activities to those of the Company and the related party. The determination of whether an entity is a VIE, and whether the Company is the primary beneficiary, may involve significant judgment, and depends upon facts and circumstances specific to an entity at the time of the assessment. Voting Interest Entities —Unlike VIEs, voting interest entities have sufficient equity to finance their activities and equity investors exhibit the characteristics of a controlling financial interest through their voting rights. The Company consolidates such entities when it has the power to control these entities through ownership of a majority of the entities' voting interests or through other arrangements. |
Noncontrolling Interests | Noncontrolling Interests Redeemable Noncontrolling Interests —This represents noncontrolling interests in sponsored open-end funds in the Liquid Strategies that are consolidated by the Company. The limited partners of these funds have the ability to withdraw all or a portion of their interests from the funds in cash with advance notice. Redeemable noncontrolling interests is presented outside of permanent equity. Allocation of net income or loss to redeemable noncontrolling interests is based upon their ownership percentage during the period. The carrying amount of redeemable noncontrolling interests is adjusted to its redemption value at the end of each reporting period to an amount not less than its initial carrying value, except for amounts contingently redeemable which will be adjusted to redemption value only when redemption is probable. Such adjustments will be recognized in additional paid-in capital. Prior to full redemption in May 2022, there was also redeemable noncontrolling interests in the Company's investment management business, as discussed in Note 9. Noncontrolling Interests in Investment Entities —This represents predominantly carried interest allocation to certain senior executives of the Company (Note 16). Excluding carried interests, allocation of net income or loss is generally based upon relative ownership interests. Noncontrolling Interests in Operating Company —This represents membership interests in OP held primarily by certain current and former employees of the Company. Noncontrolling interests in OP are allocated a share of net income or loss in OP based upon their weighted average ownership interest in OP during the period. Noncontrolling interests in OP have the right to require OP to redeem part or all of such member’s membership units in OP ("OP Units") for cash based on the market value of an equivalent number of shares of class A common stock at the time of redemption, or at the Company's election as managing member of OP, through issuance of shares of class A common stock (registered or unregistered) on a one-for-one basis. At the end of each reporting period, noncontrolling interests in OP is adjusted to reflect their ownership percentage in OP at the end of the period, through a reallocation between controlling and noncontrolling interests in OP, as applicable. |
Foreign Currency | Foreign Currency Assets and liabilities denominated in a foreign currency for which the functional currency is a foreign currency are translated using the exchange rate in effect at the balance sheet date and the corresponding results of operations for such entities are translated using the average exchange rate in effect during the period. The resulting foreign currency translation adjustments are recorded as a component of accumulated other comprehensive income or loss in stockholders’ equity. Upon sale, complete or substantially complete liquidation of a foreign subsidiary, or upon partial sale of a foreign equity method investment, the translation adjustment associated with the foreign subsidiary or investment, or a proportionate share related to the portion of equity method investment sold, is reclassified from accumulated other comprehensive income or loss into earnings. Financial assets and liabilities denominated in a foreign currency for which the functional currency is the U.S. dollar are remeasured using the exchange rate in effect at the balance sheet date, whereas non-financial assets and liabilities are remeasured using the exchange rate on the date the item was initially recognized (i.e., the historical rate), and the corresponding results of operations for such entities are remeasured using the average exchange rate in effect during the period. The resulting foreign currency remeasurement adjustments are recorded in other gain (loss) on the consolidated statements of operations. Disclosures of non-U.S. dollar amounts to be recorded in the future are translated using exchange rates in effect at the date of the most recent balance sheet presented. |
Fair Value Measurement | Fair Value Measurement Fair value is based on an exit price, defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Where appropriate, the Company makes adjustments to estimated fair values to appropriately reflect counterparty credit risk as well as the Company's own credit-worthiness. The estimated fair value of financial assets and financial liabilities are categorized into a three tier hierarchy, prioritized based on the level of transparency in inputs used in the valuation techniques, as follows: Level 1 —Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 —Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in non-active markets, or valuation techniques utilizing inputs that are derived principally from or corroborated by observable data directly or indirectly for substantially the full term of the financial instrument. Level 3 —At least one assumption or input is unobservable and it is significant to the fair value measurement, requiring significant management judgment or estimate. Where the inputs used to measure the fair value of a financial instrument falls into different levels of the fair value hierarchy, the financial instrument is categorized within the hierarchy based on the lowest level of input that is significant to its fair value measurement. Due to the inherently judgmental nature of Level 3 fair value, changes in assumptions or inputs applied as of reporting date could result in a higher or lower fair value, and realized value may differ from the estimated unrealized fair value. |
Fair Value Option | Fair Value Option The fair value option provides an option to elect fair value as a measurement alternative for selected financial instruments. The fair value option may be elected only upon the occurrence of certain specified events, including when the Company enters into an eligible firm commitment, at initial recognition of the financial instrument, as well as upon a business combination or consolidation of a subsidiary. The election is irrevocable unless a new election event occurs. The Company has elected fair value option to account for certain equity method investments and loans receivable. |
Business Combinations | Business Combinations Definition of a Business —The Company evaluates each purchase transaction to determine whether the acquired assets meet the definition of a business. If substantially all of the fair value of gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, then the set of transferred assets and activities is not a business. If not, for an acquisition to be considered a business, it would have to include an input and a substantive process that together significantly contribute to the ability to create outputs (i.e., there is a continuation of revenue before and after the transaction). A substantive process is not ancillary or minor, cannot be replaced without significant costs, effort or delay or is otherwise considered unique or scarce. To qualify as a business without outputs, the acquired assets would require an organized workforce with the necessary skills, knowledge and experience to perform a substantive process. Business Combinations —The Company accounts for acquisitions that qualify as business combinations by applying the acquisition method. Transaction costs related to acquisition of a business are expensed as incurred and excluded from the fair value of consideration transferred. The identifiable assets acquired, liabilities assumed and noncontrolling interests in an acquired entity are recognized and measured at their estimated fair values, except as discussed below. The excess of the consideration transferred over the value of identifiable assets acquired, liabilities assumed and noncontrolling interests in an acquired entity, net of fair value of any previously held interest in the acquired entity, is recorded as goodwill. Such valuations require management to make significant estimates and assumptions. With respect to contract assets and contract liabilities acquired in a business combination, these are not accounted for under the fair value basis at the time of acquisition. Instead, the Company determines the value of these revenue contracts as if it had originated the acquired contracts by evaluating the associated performance obligations, transaction price and relative stand-alone selling price at the original contract inception date or subsequent modification dates. The estimated fair values and allocation of consideration are subject to adjustments during the measurement period, not to exceed one year, based upon new information obtained about facts and circumstances that existed at time of acquisition. Contingent Consideration |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Restricted Cash | Restricted Cash Restricted cash consists primarily of cash reserves maintained pursuant to the governing agreement of the securitized debt of the Company and prior to December 31, 2023, securitized debt of portfolio companies in the Operating segment. |
Investments | Investments Equity Investments A noncontrolling, unconsolidated ownership interest in an entity may be accounted for using one of: (i) equity method where applicable; (ii) fair value option if elected; (iii) fair value through earnings if fair value is readily determinable, including election of net asset value ("NAV") practical expedient where applicable; or (iv) for equity investments without readily determinable fair values, the measurement alternative to measure at cost adjusted for any impairment and observable price changes, as applicable. Marketable equity securities are recorded as of trade date. Dividend income is recognized on the ex-dividend date and is included in other income. The Company's share of earnings (losses) from equity method investments in its sponsored funds and fair value changes of equity method investments under the fair value option are recorded in principal investment income (loss). Fair value changes of other equity investments, including adjustments for observable price changes under the measurement alternative, are recorded in other gain (loss). Equity Method Investments —The Company accounts for investments under the equity method of accounting if it has the ability to exercise significant influence over the operating and financial policies of an entity, but does not have a controlling financial interest. The equity method investment is initially recorded at cost and adjusted each period for capital contributions, distributions and the Company's share of the entity’s net income or loss as well as other comprehensive income or loss. The Company's share of net income or loss may differ from the stated ownership percentage interest in an entity if the governing documents prescribe a substantive non-proportionate earnings allocation formula or a preferred return to certain investors. For certain equity method investments, the Company may record its proportionate share of income (loss) on a one to three month lag. Distributions of operating profits from equity method investments are reported as operating activities, while distributions in excess of operating profits are reported as investing activities in the statement of cash flows under the cumulative earnings approach. Carried Interest —The Company's equity method investments include its interests as general partner or equivalent in investment vehicles that it sponsors. The Company recognizes earnings based on its proportionate share of results from these investment vehicles and a disproportionate allocation of returns based on the extent to which cumulative performance exceeds minimum return hurdles pursuant to terms of their respective governing agreements (“carried interests”). Carried interest is discussed further in Note 4. Impairment —Evaluation of impairment applies to equity method investments for which fair value option has not been elected and equity investments under the measurement alternative. If indicators of impairment exist, the Company will first estimate the fair value of its investment. In assessing fair value, the Company generally considers, among others, the estimated enterprise value of the investee or fair value of the investee's underlying net assets, including net cash flows to be generated by the investee as applicable, and for equity method investees with publicly traded equity, the traded price of the equity securities in an active market. For investments under the measurement alternative, if carrying value of the investment exceeds its fair value, an impairment is deemed to have occurred. For equity method investments, further consideration is made if a decrease in value of the investment is other-than-temporary to determine if impairment loss should be recognized. Assessment of other-than-temporary impairment involves management judgment, including, but not limited to, consideration of the investee’s financial condition, operating results, business prospects and creditworthiness, the Company's ability and intent to hold the investment until recovery of its carrying value, or a significant and prolonged decline in traded price of the investee’s equity security. If management is unable to reasonably assert that an impairment is temporary or believes that the Company may not fully recover the carrying value of its investment, then the impairment is considered to be other-than-temporary. |
Debt Securities | Debt Securities Debt securities are recorded as of the trade date. Debt securities designated as available-for-sale (“AFS”) are carried at fair value with unrealized gains or losses included as a component of other comprehensive income. Upon disposition of AFS debt securities, the cumulative gains or losses in other comprehensive income (loss) that are realized are recognized in other gain (loss), net, on the statement of operations based on specific identification. Interest Income —Interest income from debt securities, including stated coupon interest payments and amortization of purchase premiums or discounts, is recognized using the effective interest method over the expected life of the debt securities. For beneficial interests in debt securities that are not of high credit quality (generally credit rating below AA) or that can be contractually settled such that the Company would not recover substantially all of its recorded investment, interest income is recognized as the accretable yield over the life of the securities using the effective yield method. The accretable yield is the excess of current expected cash flows to be collected over the net investment in the security, including the yield accreted to date. The Company evaluates estimated future cash flows expected to be collected on a quarterly basis, starting with the first full quarter after acquisition, or earlier if conditions indicating impairment are present. If the cash flows expected to be collected cannot be reasonably estimated, either at acquisition or in subsequent evaluation, the Company may consider placing the securities on nonaccrual, with interest income recognized using the cost recovery method. Impairment —The Company performs an assessment, at least quarterly, to determine whether its AFS debt securities are considered to be impaired; that is, if their fair value is less than their amortized cost basis. If the Company intends to sell the impaired debt security or is more likely than not will be required to sell the debt security before recovery of its amortized cost, the entire impairment amount is recognized in earnings within other gain (loss) as a write-off of the amortized cost basis of the debt security. If the Company does not intend to sell or is not more likely than not required to sell the debt security before recovery of its amortized cost, the credit component of the loss is recognized in earnings within other gain (loss) as an allowance for credit loss, which may be subject to reversal for subsequent recoveries in fair value. The non-credit loss component is recognized in other comprehensive income or loss ("OCI"). The allowance is charged off against the amortized cost basis of the security if in a subsequent period, the Company intends to or more likely than not will be required to sell the security, or if the Company deems the security to be uncollectible. |
Loans Receivable | Loans Receivable Loans that the Company has the intent and ability to hold for the foreseeable future are classified as held for investment. Loans that the Company intends to sell or liquidate in the foreseeable future are classified as held for disposition. Interest income is recognized based upon contractual interest rate and unpaid principal balance of the loans. Loans that are past due 90 days or more as to principal or interest, or where reasonable doubt exists as to timely collection, are generally considered nonperforming, with reversal of interest income and suspension of interest income recognition. Recognition of interest income may be restored when all principal and interest are current and full repayment of the remaining contractual principal and interest are reasonably assured. The Company had elected the fair value option for all loans receivable. Loan fair values are generally determined either: by comparing the current yield to the estimated yield of newly originated loans with similar credit risk or the market yield at which a third party might expect to purchase such investment; or based upon discounted cash flow projections of principal and interest expected to be collected, which projections include, but are not limited to, consideration of the financial standing of the borrower or sponsor as well as operating results and/or value of the underlying collateral. For loans that are nonperforming where recognition of interest income is suspended, any interest subsequently collected is recognized on a cash basis by crediting income when received. |
Goodwill | Goodwill Goodwill is an unidentifiable intangible asset and is recognized as a residual, generally measured as the excess of consideration transferred in a business combination over the identifiable assets acquired, liabilities assumed and noncontrolling interests in the acquiree. Goodwill is assigned to reporting units that are expected to benefit from the synergies of the business combination. Goodwill is tested for impairment at the reporting units to which it is assigned at least on an annual basis in the fourth quarter of each year, or more frequently if events or changes in circumstances occur that would more likely than not reduce the fair value of a reporting unit below its carrying value, including goodwill. The assessment of goodwill for impairment may initially be performed based on qualitative factors to determine if it is more likely than not that the fair value of the reporting unit to which the goodwill is assigned is less than its carrying value, including goodwill. If so, a quantitative assessment is performed to identify both the existence of impairment and the amount of impairment loss. The Company may bypass the qualitative assessment and proceed directly to performing a quantitative assessment to compare the fair value of a reporting unit with its carrying value, including goodwill. Impairment is measured as the excess of carrying value over fair value of the reporting unit, with the loss recognized limited to the amount of goodwill assigned to that reporting unit. |
Identifiable Intangibles | Identifiable Intangibles In a business combination or asset acquisition, the Company may recognize identifiable intangibles that meet either or both the contractual legal criterion or the separability criterion. An indefinite-lived intangible is not subject to amortization until such time that its useful life is determined to no longer be indefinite, at which point, it will be assessed for impairment and its adjusted carrying amount amortized over its remaining useful life. Finite-lived intangibles are amortized over their useful life in a manner that reflects the pattern in which the intangible is being consumed if readily determinable, such as based upon expected cash flows; otherwise they are amortized on a straight-line basis. The useful life of all identified intangibles will be periodically reassessed and if useful life changes, the carrying amount of the intangible will be amortized prospectively over the revised useful life. The Company's identifiable intangible assets are generally valued under the income approach, using an estimate of future net cash flows, discounted based upon risk-adjusted returns for similar underlying assets. Identifiable intangibles recognized in acquisition of an investment management business generally include management contracts, which represent contractual rights to future fee revenue from in-place management contracts that are amortized based upon expected cash flows over the remaining term of the contracts; and investor relationships, which represent potential fee revenue generated from future reinvestment by existing investors that is amortized on a straight-line basis over its estimated useful life. Other intangible assets include trade names, which are recognized as a separate identifiable intangible asset to the extent the Company intends to continue using the trade name post-acquisition. Trade names are valued as the savings from royalty fees that would have otherwise been incurred. Trade names are amortized on a straight-line basis over the estimated useful life, or not amortized if they are determined to have an indefinite useful life. Impairment Identifiable intangible assets are reviewed periodically to determine if circumstances exist which may indicate a potential impairment. If such circumstances are considered to exist, the Company evaluates if carrying value of the intangible asset is recoverable based upon an undiscounted cash flow analysis. Impairment loss is recognized for the excess, if any, of carrying value over estimated fair value of the intangible asset. An impairment establishes a new basis for the intangible asset and any impairment loss recognized is not subject to subsequent reversal. |
Accounts Receivable and Related Allowance | Accounts Receivable and Related Allowance Cost Reimbursements and Recoverable Expenses |
Fixed Assets | Fixed Assets Fixed assets of the Company are presented within other assets and carried at cost less accumulated depreciation and amortization. Ordinary repairs and maintenance are expensed as incurred. Major replacements and betterments which improve or extend the life of assets are capitalized and depreciated over their useful life. Depreciation and amortization is recognized on a straight-line basis over the estimated useful life of the assets, which range between 3 and 7 years for furniture, fixtures, equipment and capitalized software, and over the shorter of the lease term or useful life for leasehold improvements. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company may use derivative instruments to manage its interest rate risk and foreign currency risk. The Company does not use derivative instruments for speculative or trading purposes. All derivative instruments are recorded at fair value and included in other assets or other liabilities on a gross basis on the balance sheet. The accounting for changes in fair value of derivatives depends upon whether the derivative has been designated in a hedging relationship and qualifies for hedge accounting. Changes in fair value of derivatives not designated as accounting hedges are recorded in the statement of operations in other gain (loss). For designated accounting hedges, the relationships between hedging instruments and hedged items, risk management objectives and strategies for undertaking the accounting hedges as well as the methods to assess the effectiveness of the derivative prospectively and retrospectively, are formally documented at inception. Hedge effectiveness relates to the amount by which the gain or loss on the designated derivative instrument exactly offsets the change in the hedged item attributable to the hedged risk. If it is determined that a derivative is not expected to be or has ceased to be highly effective at hedging the designated exposure, hedge accounting is discontinued. Cash Flow Hedges —The Company may use interest rate caps and swaps to hedge its exposure to interest rate fluctuations in forecasted interest payments on floating rate debt and may designate as cash flow hedges. Changes in fair value of the derivative is recorded in accumulated other comprehensive income (loss), or "AOCI," and reclassified into earnings when the hedged item affects earnings. If the derivative in a cash flow hedge is terminated or the hedge designation is removed, related amounts in AOCI are reclassified into earnings when the hedged item affects earnings. Net Investment Hedges —The Company may use foreign currency hedges to protect the value of its net investments in foreign subsidiaries or equity investees whose functional currencies are not U.S. dollars. Changes in fair value of derivatives used as hedges of net investment in foreign operations are recorded in the cumulative translation adjustment account within AOCI. At the end of each quarter, the Company reassesses the effectiveness of its net investment hedges and as appropriate, dedesignates the portion of the derivative notional that is in excess of the beginning balance of its net investments as undesignated hedges. Release of amounts in AOCI related to net investment hedges occurs upon losing a controlling financial interest in an investment or obtaining control over an equity method investment. Upon sale, complete or substantially complete liquidation of an investment in a foreign subsidiary, or partial sale of an equity method investment, the gain or loss on the related net investment hedge is reclassified from AOCI to earnings. |
Leases | Leases As lessee, the Company determines if an arrangement contains a lease and determines the classification of a leasing arrangement at its inception. A lease is classified as a finance lease, which represents a financed purchase of the leased asset, if the lease meets any of the following criteria: (a) asset ownership is transferred to lessee by end of lease term; (b) option to purchase asset is reasonably certain to be exercised by lessee; (c) the lease term is for a major part of the remaining economic life of the asset; (d) the present value of lease payments equals or exceeds substantially the fair value of the asset; or (e) the asset is of such a specialized nature that it is expected to have no alternative use at end of lease term. A lease is classified as an operating lease when none of the criteria are met. The Company also made the accounting policy election to treat lease and nonlease components in a lease contract as a single component. The Company's leasing arrangements are composed primarily of operating ground leases for investment properties, operating leases for its corporate offices and, prior to the deconsolidation of the subsidiaries in the Operating Segment, finance and operating leases for data centers. Short-term leases are not recorded on the balance sheet, with lease payments expensed on a straight-line basis over the lease term. Short-term leases are defined as leases which at commencement date, has a lease term of 12 months or less and does not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise. For leases with terms greater than 12 months, a lessee's rights to use the leased asset and obligation to make future lease payments are recognized on balance sheet at lease commencement date as a right-of-use ("ROU") lease asset and a lease liability, respectively. The lease liability is measured based upon the present value of future lease payments over the lease term, discounted at the incremental borrowing rate. Variable lease payments are excluded and are recognized as lease expense as incurred. Lease renewal or termination options are taken into account only if it is reasonably certain that the option would be exercised. As an implicit rate is not readily determinable in most leases, an estimated incremental borrowing rate is applied, which is the interest rate that the Company or its subsidiary, where applicable, would have to pay to borrow an amount equal to the lease payments, on a collateralized basis over the lease term. In estimating incremental borrowing rates, consideration is given to recent debt financing transactions by the Company or its subsidiaries as well as publicly available data for debt instruments with similar characteristics, adjusted for the lease term. The ROU lease asset is measured based upon the corresponding lease liability, reduced by any lease incentives and adjusted to include capitalized initial direct leasing costs. The Company's ROU lease asset is presented within other assets and is amortized on a straight-line basis over the shorter of its useful life or remaining lease term. The Company's lease liability is presented within accrued and other liabilities. The lease liability is (a) reduced by lease payments made during the period; and (b) accreted to the balance as of the beginning of the period based upon the discount rate used at lease commencement. For finance leases, periodic lease payments are allocated between (i) interest expense, calculated based upon the incremental borrowing rate determined at commencement, to produce a constant periodic interest rate on the remaining balance of the lease liability, and (ii) reduction of lease liability. The combination of periodic interest expense and amortization expense on the ROU lease asset effectively reflects installment purchases on the financed leased asset, and results in a front-loaded expense recognition. Higher interest expense is recorded in the early periods as a constant interest rate is applied to the finance lease liability and the liability decreases over the lease term as cash payments are made. For operating leases, fixed lease expense is recognized over the lease term on a straight-line basis and variable lease expense is recognized in the period incurred. A lease that is terminated before expiration of its lease term would result in a derecognition of the lease liability and ROU lease asset, with the difference recorded in the income statement, reflected as other gain (loss). If a plan has been committed to abandon an ROU lease asset at a future date before the end of its lease term, amortization of the ROU lease asset is accelerated based on its revised useful life. If an ROU lease asset is abandoned with immediate effect and the carrying value of the ROU lease asset is determined to be unrecoverable, an impairment loss is recognized on the ROU lease asset. |
Financing Costs | Financing Costs Debt discounts and premiums as well as debt issuance costs (except for revolving credit arrangements) are presented net against the associated debt on the balance sheet and amortized into interest expense using the effective interest method over the contractual term or expected life of the debt instrument. Costs incurred in connection with revolving credit arrangements are recorded as deferred financing costs in other assets, and amortized on a straight-line basis over the expected term of the credit facility. |
Fee Revenue | Fee Revenue Fee revenue consists primarily of the following: Management Fees —The Company earns management fees for providing investment management services to its sponsored private funds and other investment vehicles, portfolio companies and managed accounts, which constitute a series of distinct services satisfied over time. Management fees are recognized over the life of the investment vehicle as services are provided. The governing documents of the investment vehicles may provide for certain fee credits or offsets to management fees. Such amounts include primarily organizational costs of the investment vehicle in excess of prescribed thresholds, termination or similar fees paid in connection with unconsummated investments that are reimbursable by the investment vehicle, and directors' fees paid by portfolio companies to employees of the Company in their capacity as non-management directors. These fee credits or offsets represent a component of the transaction price for the Company's provision of investment management services and are applied to reduce management fees payable to the Company. Incentive Fees —The Company is entitled to incentive fees from sub-advisory accounts in its Liquid Strategies. Incentive fees are determined based upon the performance of the respective accounts, subject to the achievement of specified return thresholds in accordance with the terms set out in their respective governing agreements. Incentive fees take the form of a contractual fee arrangement, and unlike carried interests, do not represent an allocation of returns among equity holders of an investment vehicle. Incentive fees are a form of variable consideration and are recognized when it is probable that a significant reversal of the cumulative revenue will not occur, which is generally at the end of the performance measurement period. Management fees and incentive fees earned from consolidated funds and other investment vehicles are eliminated in consolidation. However, because the fees are funded by and earned from third party investors in these consolidated vehicles who represent noncontrolling interests, the Company's allocated share of net income from the consolidated funds and other vehicles is increased by the amount of fees that are eliminated. Accordingly, the elimination of these fees does not affect net income (loss) attributable to DBRG. |
Other Income | Other Income Other income includes primarily the following: Cost Reimbursements from Affiliates —For various services provided to certain affiliates, including managed investment vehicles, the Company is entitled to receive reimbursements of expenses incurred, generally based on expenses that are directly attributable to providing those services and/or a portion of overhead costs. To the extent the Company determines that it acts in the capacity of a principal in the incurrence of such costs on behalf of the managed investment vehicle, the cost reimbursement is presented on a gross basis in other income and the expense in either investment-related expense or administrative expense in the consolidated statements of operations in the period the costs are incurred. To the extent the Company determines that it acts in the capacity of an agent, the cost reimbursement is presented on a net basis in the consolidated statements of operations. Property Operating Income —2022 included lease income from a tower portfolio, acquired in June 2022 as a warehoused investment and transferred to a core equity fund in December 2022. |
Compensation | Compensation Compensation comprises salaries, bonus including discretionary awards and contractual amounts for certain senior executives, benefits, severance payments, and equity-based compensation. Bonus is accrued over the employment period to which it relates. Carried Interest and Incentive Fee Compensation —This represents a portion of carried interest and incentive fees earned by the Company that are allocated to senior management, investment professionals and certain other employees of the Company. Carried interest and incentive fee compensation are generally recorded as the related carried interest and incentive fees are recognized in earnings by the Company. Carried interest compensation amounts may be reversed if there is a decline in the cumulative carried interest amounts previously recognized by the Company. Carried interest and incentive fee compensation are generally not paid to management or other employees until the related carried interest and incentive fee amounts are distributed by the investment vehicles to the Company. If the related carried interest distributions received by the Company are subject to clawback, the previously distributed carried interest compensation would be similarly subject to clawback from employees. The Company generally withholds a portion of the distribution of carried interest compensation to employees to satisfy their potential clawback obligation. The amount withheld resides in entities outside of the Company. Equity-Based Compensation —Equity-classified stock awards granted to employees and non-employees that have a service condition and/or a market or performance condition are measured at fair value at date of grant. A modification in the terms or conditions of an award, unless the change is non-substantive, represents an exchange of the original award for a new award. The modified award is revalued and incremental compensation cost is recognized for the excess, if any, between fair value of the award upon modification and fair value of the award immediately prior to modification. Total compensation cost recognized for a modified award, however, cannot be less than its grant date fair value, unless at the time of modification, the service or performance condition of the original award was not expected to be satisfied. An award that is probable of vesting both before and after modification will result in incremental compensation cost only if terms affecting its estimate of fair value have been modified. Liability-classified stock awards are remeasured at fair value at the end of each reporting period until the award is fully vested. |
Income Taxes | Income Taxes Provision for income taxes consists of a current and deferred component. Current income taxes represent income tax to be paid or refunded for the current period. The Company uses the asset and liability method to provide for income taxes, which requires that the Company's income tax provision reflect the expected future tax consequences of temporary differences between the carrying amounts of assets or liabilities for financial reporting versus for income tax purposes. Accordingly, a deferred tax asset or liability for each temporary difference is determined based on enacted tax rates that the Company expects to be in effect upon realization of the underlying amounts when they become deductible or taxable and the differences reverse. A deferred tax asset is also recognized for NOL, capital loss and tax credit carryforwards. A valuation allowance for deferred tax assets is established if the Company believes it is more likely than not that all or some portion of the deferred tax assets will not be realized based upon the weight of all available positive and negative evidence. Realization of deferred tax assets is dependent upon the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences, forecasted earnings and prudent and feasible tax planning strategies. An established valuation allowance may be reversed in a future period if the Company subsequently determines it is more likely than not that all or some portion of the deferred tax asset will become realizable. Uncertain Tax Positions Income tax benefits are recognized for uncertain tax positions that are more likely than not to be sustained based solely on their technical merits. Such uncertain tax positions are measured as the largest amount of benefit that is more likely than not to be realized upon settlement. The difference between the benefit recognized and the tax benefit claimed on a tax return results in an unrecognized tax benefit. The Company evaluates on a quarterly basis whether it is more likely than not that its uncertain tax positions would be sustained upon examination by a tax authority for all open tax years, as defined by the statute of limitations. The evaluation of uncertain tax positions is based upon various factors including, but not limited to, changes in tax law, measurement of tax positions taken or expected to be taken in tax returns, the effective settlement of matters subject to audit, new audit activity, and changes in facts or circumstances related to a tax position. Income tax related interests and penalties, if any, are included as a component of income tax benefit (expense). |
Earnings Per Share | Earnings Per Share The Company calculates basic earnings per share ("EPS") using the two-class method which defines unvested share based payment awards that contain nonforfeitable rights to dividends as participating securities. The two-class method is an allocation formula that determines EPS for each share of common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings (distributed and undistributed) are allocated to common shares and participating securities based on their respective rights to receive dividends. EPS is calculated by dividing earnings allocated to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted EPS is based upon the weighted-average number of common shares and the effect of potentially dilutive common share equivalents outstanding during the period. Potentially dilutive common share equivalents represent the assumed issuance of common shares in settlement of certain arrangements if determined to be dilutive, generally based upon the more dilutive of the two-class method or the treasury stock method, or based upon the if-converted method for the assumed conversion of the Company's outstanding convertible notes. The earnings allocated to common shareholders is adjusted to add back the income or loss associated with the potentially dilutive instruments that are assumed to result in the issuance of common shares if determined to be dilutive, such as interest expense on the Company's convertible notes. In circumstances where discontinued operations are reported, income from continuing operations is used as the benchmark to determine whether including potential common shares in diluted EPS computation would be antidilutive. Accordingly, if there is a loss from continuing operations and potential common shares would be antidilutive due to the loss, but there is net income after adjusting for discontinued operations, the potential common shares would be excluded from diluted EPS computation even though the effect on net income would be dilutive, because income from continuing operations is used as the benchmark. |
Discontinued Operations | Discontinued Operations If the disposition of a component, being an operating or reportable segment, business unit, subsidiary or asset group, represents a strategic shift that has or will have a major effect on the Company’s operations and financial results, the operating profits or losses of the component when classified as held for sale, and the gain or loss upon disposition of the component, are presented as discontinued operations in the statements of operations. A business or asset group acquired in connection with a business combination that meets the criteria to be accounted for as held for sale at the date of acquisition is reported as discontinued operations, regardless of whether it meets the strategic shift criterion. |
Reclassifications | Reclassifications As discussed in "— Discontinued Operations ," the Company's investment in BRSP and the portfolio companies previously consolidated in the Company's former Operating segment qualified as discontinued operations in March 2023 and December 2023, respectively. For all prior periods presented: (i) on the December 31, 2022 consolidated balance sheets, the equity method investment in BRSP (2022: $218.0 million previously included in equity and debt investments) and the assets of the portfolio companies previously consolidated in the former Operating segment totaling $8.1 billion have been reclassified to assets of discontinued operations, while the liabilities of the portfolio companies previously consolidated in the former Operating segment totaling $5.3 billion have been reclassified to liabilities of discontinued operations; and (ii) on the 2022 and 2021 consolidated statements of operations, the loss from BRSP of $37.3 million in 2022 and earnings of $41.2 million in 2021, previously included in equity method earnings (losses), and the net loss of the portfolio companies previously consolidated in the former Operating segment totaling $324.2 million in 2022 and $223.5 million in 2021 have been reclassified to income (loss) from discontinued operation. In 2023, the Company also determined that principal investment income from its equity interest as general partner and general partner affiliate in its sponsored investment vehicles, and its entitlement to carried interest allocation, represent a core component of returns in its investment management business. Accordingly, beginning in 2023, principal investment income and carried interest allocation are now presented within total revenues on the consolidated statements of operations, previously presented as equity method earnings (losses) and equity method earnings—carried interest, respectively, both of which are no longer applicable as separate financial statement line items following the changes discussed herein. Prior periods have been reclassified to conform to current presentation. |
Accounting Policies Related to Real Estate | Accounting Policies Related to Real Estate Accounting policies related to real estate are applicable to continuing operations in 2022 and to discontinued operations in all periods presented. Real Estate Acquisitions Real estate acquisitions are considered asset acquisitions and are recognized based on their cost to the Company as the acquirer and no gain or loss is recognized. The cost of assets acquired are allocated among the acquired components based on their relative fair values at the time of acquisition, and does not give rise to goodwill. Such components include land, building, site and building improvements, infrastructure, equipment, lease-related tangible and intangible assets and liabilities, such as tenant improvements, deferred leasing costs, in-place lease values, above- and below-market lease values, and tenant relationships. The estimated fair value of acquired land is derived from recent comparable sales of land and listings within the same local region based on available market data. The estimated fair value of acquired buildings and building improvements is derived from comparable sales, discounted cash flow analysis using market-based assumptions, or replacement cost for a similar property, as appropriate. The fair value of site and tenant improvements and infrastructure assets are estimated based upon current market replacement costs and other relevant market rate information. Transaction costs related to acquisition of assets are included in the cost basis of the assets acquired. Contingent consideration in connection with the acquisition of assets (and that is not a VIE) is generally recognized when the liability is considered both probable and reasonably estimable, as part of the basis of the acquired assets . Previously warehoused investment In June 2022, the Company acquired the mobile telecommunications tower business (“TowerCo”) of Telenet Group Holding NV (Euronext Brussels: TNET) for €740.1 million or $791.3 million (including transaction costs) . In December 2022, the Company's interest in the temporarily warehoused TowerCo investment was transferred to the Company's new core equity fund and TowerCo was deconsolidated. The TowerCo assets acquired had included owned tower sites, tower sites subject to third party leases that gave rise to ROU lease assets and corresponding lease liabilities, equipment, as well as customer relationships related primarily to a master lease agreement with Telenet as lessee. The acquisition had been funded through $326.1 million of debt, $278.1 million of equity from the Company, and $213.8 million in third party equity. In addition to the purchase price, the funds had been used to finance transaction costs, debt issuance costs, working capital and as operating cash. The following table summarizes the allocation of cash consideration to TowerCo assets acquired and liabilities assumed, including capitalized transaction costs, in 2022. (In thousands) Real estate $ 363,121 Intangible assets 673,218 ROU and other assets 234,462 Deferred tax liabilities (243,223) Lease and other liabilities (236,324) Fair value of net assets acquired $ 791,254 • Real estate was valued based upon current replacement cost for towers in consideration of their remaining economic life. Useful lives of towers and related equipment acquired range from 11 to 71 years. • Lease-related intangibles were composed of the following: • In-place leases reflect the value of rental income forgone if the towers acquired were not leased, discounted at 6.8%, with remaining lease terms of 15 years. • Customer relationships for towers were valued as the estimated future cash flows to be generated over the life of the tenant relationships based upon rental rates, operating costs, expected renewal terms and attrition, discounted at 6.8%, with estimated useful lives between 19 and 45 years. • Deferred tax liabilities were recognized for the book-to-tax basis differences associated with the TowerCo acquisition. • Other assets acquired and liabilities assumed include primarily lease ROU assets associated with leasehold ground space hosting tower communication sites, along with corresponding lease liabilities. Lease liabilities were measured based upon the present value of future lease payments over the lease term, discounted at the incremental borrowing rate of the acquiree entity. In 2022, prior to transfer, TowerCo generated lease income of $43.0 million, and incurred depreciation expense of $8.8 million, and amortization expense of $9.9 million, presented within Corporate and Other. Real Estate Held for Investment Real estate held for investment are carried at cost less accumulated depreciation. Costs Capitalized or Expensed— Expenditures for ordinary repairs and maintenance are expensed as incurred, while expenditures for significant renovations that improve or extend the useful life of the asset are capitalized and depreciated over their estimated useful lives. Depreciation— Real estate held for investment, other than land, are depreciated on a straight-line basis over the estimated useful lives of the assets, generally up to 50 years for buildings, 40 years for site and building improvements, 30 years for data center infrastructure, and 8 years for furniture, fixtures and equipment. Tenant improvements are amortized over the lesser of the useful life or the remaining term of the lease. Impairment —The Company evaluates its real estate held for investment for impairment periodically or whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. The Company evaluates real estate for impairment generally on an individual property basis. If an impairment indicator exists, the Company evaluates the undiscounted future net cash flows that are expected to be generated by the property, including any estimated proceeds from the eventual disposition of the property. If multiple outcomes are under consideration, the Company may apply either a probability-weighted cash flows approach or the single-most-likely estimate of cash flows approach, whichever is more appropriate under the circumstances. Based upon the analysis, if the carrying value of a property exceeds its undiscounted future net cash flows, an impairment loss is recognized for the excess of the carrying value of the property over the estimated fair value of the property. In evaluating and/or measuring impairment, the Company considers, among other things, current and estimated future cash flows associated with each property for the duration of the estimated hold period of each property, market information for each sub-market, including, where applicable, competition levels, foreclosure levels, leasing trends, occupancy trends, lease or room rates, and the market prices of similar properties recently sold or currently being offered for sale, expected capitalization rates at exit, and other quantitative and qualitative factors. Another key consideration in this assessment is the Company's assumptions about the highest and best use of its real estate investments and its intent and ability to hold them for a reasonable period that would allow for the recovery of their carrying values. If such assumptions change and the Company shortens its expected hold period, this may result in the recognition of impairment losses. Real Estate Held for Disposition Real estate is classified as held for disposition in the period when (i) management approves a plan to sell the asset, (ii) the asset is available for immediate sale in its present condition, subject only to usual and customary terms, (iii) a program is initiated to locate a buyer and actively market the asset for sale at a reasonable price, and (iv) completion of the sale is probable within one year. Real estate held for disposition is stated at the lower of its carrying amount or estimated fair value less disposal cost, with any write-down to fair value less disposal cost recorded as an impairment loss. For any increase in fair value less disposal cost subsequent to classification as held for disposition, the impairment loss may be reversed, but only up to the amount of cumulative loss previously recognized. Depreciation is not recorded on assets classified as held for disposition. At the time a sale is consummated, the excess, if any, of sale price less selling costs over carrying value of the real estate is recognized as a gain. If circumstances arise that were previously considered unlikely and, as a result, the Company decides not to sell the real estate asset previously classified as held for disposition, the real estate asset is reclassified as held for investment. Upon reclassification, the real estate asset is measured at the lower of (i) its carrying amount prior to classification as held for disposition, adjusted for depreciation expense that would have been recognized had the real estate been continuously classified as held for investment, or (ii) its estimated fair value at the time the Company decides not to sell. Lease-Related Intangibles Identifiable intangibles recognized in acquisitions of operating real estate include in-place leases, deferred leasing costs, above- or below-market leases, and tenant relationships. In-place leases generate value over and above the tangible real estate because a property that is occupied with leased space is typically worth more than a vacant building without a lease contract in place. Acquired in-place leases are valued as the forgone rental income had the property been acquired in an as if vacant state, using market data on comparable and recently signed leases. Deferred leasing costs represent leasing commissions and legal fees that would otherwise have been incurred if a lease was not in-place. Acquired in-place leases and deferred leasing costs are amortized on a straight-line basis to depreciation and amortization expense over the remaining term of the applicable leases. If an in-place lease is terminated, the unamortized portion is charged to depreciation and amortization expense. The value of the above- or below-market component of acquired leases represents the difference between contractual rents of acquired leases and market rents at the time of the acquisition for the remaining lease term. Above- or below-market operating lease values are amortized on a straight-line basis as a decrease or increase to rental income, respectively, over the applicable lease terms. This includes fixed rate renewal options in acquired leases that are assumed to be renewed if below market, which are amortized to increase rental income over the renewal period. Tenant relationships represent the estimated net cash flows attributable to the likelihood of lease renewal by an existing tenant relative to the cost of obtaining a new lease, taking into consideration the time it would take to execute a new lease or backfill a vacant space. Tenant relationships are amortized on a straight-line basis to depreciation and amortization expense over its estimated useful life. In addition to leasing activities, data center operators provide various data center services to their customers, largely in the colocation business, which give rise to customer service contract and customer relationship intangible assets in an acquisition of operating data centers. Customer service contracts are valued based upon an estimate of net cash flows from providing data center services that would have been forgone if these service contracts were not in place, taking into consideration the time it would take to execute a new contract. Customer service contracts are amortized on a straight-line basis over the remaining term of the respective contracts, and if the service contract is terminated, the remaining unamortized balance is charged off. Customer relationships represent incremental net cash flows to the business that is attributable to these in-place relationships, and is amortized on a straight-line basis over its estimated useful life. Impairment analysis on lease intangible assets is performed in connection with the impairment assessment of the related real estate. Property Operating Income Property operating income includes the following: Lease Income The Company's lease income is composed of (i) fixed lease income for rents, and for interconnection services and a committed amount of power related to contracted data center leased space; and (ii) variable lease income for tenant reimbursements, installation services of Company-owned data center equipment and additional metered power reimbursements based upon usage by data center tenants at prevailing rates. As lessor, the classification of a lease as a sales-type lease is similar to the criteria for a finance lease as lessee (discussed above). If none of the criteria are met, a lease may be classified as a direct financing lease if there is a residual value guarantee from an unrelated third party. Otherwise, all other leases are classified as operating, including leases with variable lease payments that are not based upon a rate or index where classification as sales-type or direct financing lease would result in a loss to the Company at lease commencement. The Company's lease contracts contain lease components, such as leased data center space and equipment, and nonlease components, such as tenant reimbursements for net leases, interconnection services, installation services of Company-owned data center equipment and payments for power by data center tenants. As lessor, the Company made the accounting policy election to account for the lease components and nonlease components in its lease contracts as a single component in instances where the lease component is predominant, the timing and pattern of transfer for the lease and nonlease components are the same (i.e., provided on a consistent basis over the same time period), and the lease component, if accounted for separately, would be classified as an operating lease. Rental Income and Tenant Reimbursements Rental income is recognized on a straight-line basis over the noncancelable term of the related lease which includes the effects of minimum rent increases and rent abatements under the lease. Rents received in advance are deferred. In net lease arrangements, the tenant is generally responsible for operating expenses relating to the property, including real estate taxes, property insurance, maintenance, repairs and improvements. Costs reimbursable from tenants and other recoverable costs are recognized as revenue in the period the recoverable costs are incurred. When the Company is the primary obligor with respect to purchasing goods and services for property operations and has discretion in selecting the supplier and retains credit risk, tenant reimbursement revenue and property operating expenses are presented on a gross basis in the statements of operations. For net leases where the lessee self-manages the property, hires its own service providers and retains credit risk for routine maintenance contracts, no reimbursement revenue and expense are recognized. For property taxes and insurance, amounts paid directly by lessees to third parties on behalf of the Company are not recognized in the statement of operations, while amounts paid by the Company and reimbursed by lessees are presented gross as property operating income and expenses. Also, sales and similar taxes assessed by a governmental authority that is imposed on specific lease income producing transactions are netted against related collections from lessees. When it is determined that the Company is the owner of tenant improvements, the cost to construct the tenant improvements, including costs paid for or reimbursed from the tenants, is capitalized. For Company-owned tenant improvements, the amounts funded by or reimbursed from the tenants are recorded as deferred revenue, which is amortized on a straight-line basis as additional rental income over the term of the related lease. Rental income recognition commences when the leased space is substantially ready for its intended use and the tenant takes possession of the leased space. When it is determined that the tenant is the owner of tenant improvements, the Company's contribution towards those improvements is recorded as a lease incentive, included in deferred leasing costs and intangible assets on the balance sheet, and amortized as a reduction to rental income on a straight-line basis over the term of the lease. Rental income recognition commences when the tenant takes possession of the lease space. Collectability —The Company evaluates collectability of lease payments based upon the creditworthiness of the lessee and recognizes lease income only to the extent collection of all amounts due over the life of the lease is determined to be probable. If collection is subsequently determined to no longer be probable, any previously accrued lease income that has not been collected is subject to reversal. If collection is subsequently determined to be probable, lease income and corresponding receivable would be reestablished to an amount that would have been recognized if collection had always been deemed to be probable. Costs to Execute Lease —Only incremental costs of obtaining a lease, such as leasing commissions, qualify as initial direct leasing costs to be capitalized. Indirect costs such as allocated overhead, certain legal fees and negotiation costs are expensed as incurred. Data Center Service Revenue The Company earns data center service revenue, primarily composed of cloud services, data storage, data protection, network services, software licensing, other services related to installation of customer equipment, and other related information technology services, which are recognized as services are provided to data center customers. Resident Fee Income Resident fee income, presented within discontinued operations, was earned from senior housing operating facilities that operate through management agreements with independent third-party operators. Resident fee income related to independent living and assisted living facilities was recorded when services were rendered based on terms of their respective lease agreements. The Company's healthcare business was sold in February 2022. Hotel Operating Income Hotel operating income, presented within discontinued operations, included room revenue, food and beverage sales and other ancillary services. Revenue was recognized upon occupancy of rooms, consummation of sales and provision of services. The Company's hotel business was sold in March 2021, with one portfolio that was in receivership sold by the lender in September 2021. Collectability of property operating income receivable (excluding lease income receivable) |
Accounting Standards Adopted in 2023 and Future Accounting Standards | Accounting Standards Adopted in 2023 Contractual Sale Restriction on Equity Securities In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions , which amends Topic 820 Fair Value to clarify that a contractual sale restriction that is entity-specific is not part of the unit of account of an equity security and is therefore not considered in measuring the fair value of an equity security, in which case, a discount should not be applied. The amendment further prohibits recognizing the contractual sale restriction as a separate unit of account, that is, as a contra asset or liability. Sale restrictions that are characteristics of the holder of an equity security include, but are not limited to, lock-up agreements, market stand-off agreements, or specific provisions in agreements between shareholders. In contrast, a legal restriction preventing a security from being sold on a national securities exchange or an over-the-counter market is a security-specific characteristic as the restriction would similarly apply to a market participant buyer in an assumed sale of the security. This guidance also applies to issuers of equity securities that are subject to contractual sale restrictions, for example, equity securities issued as consideration in a business combination. The ASU requires additional disclosures related to equity securities that are subject to contractual sale restrictions, specifically (1) the fair value of such equity securities, (2) the nature and remaining duration of the restrictions, and (3) any circumstances that could cause a lapse in restrictions. The ASU is effective January 1, 2024, with early adoption permitted in the interim periods. Transition is prospective with any fair value adjustments resulting from adoption recognized in earnings and the amount adjusted disclosed in the period of adoption. For subsidiaries of the Company that are investment companies as defined in ASC 946, the ASU is applied prospectively to equity securities with contractual sale restrictions entered into or modified on or after the adoption date. For equity securities with contractual sale restrictions entered into or modified before the adoption date, the existing accounting policy continues to be applied until the restrictions expire or are modified, and if the existing accounting policy differs from the amended guidance, the additional disclosure requirements under the ASU would be applicable. The Company early adopted the ASU on January 1, 2023. At the time of filing, the Company has one equity security that is subject to contractual sale restrictions, but was not subject to such restrictions at the time of adoption or during 2023. Future Accounting Standards Reportable Segment Disclosures In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures , which expands the breadth and frequency of segment disclosures to require all annual disclosures on an interim basis and provide for incremental disclosures, including the following: • Category and amount of significant segment expenses that are regularly provided to (even if not regularly reviewed by) the chief operating decision maker ("CODM") and included in each reported segment profit (loss) measure, otherwise the nature of expense information (for example, consolidated, forecasted, budgeted) used by the CODM; • An amount (without individual quantification) for other segment items (represents difference between segment revenue less segment expense disclosed and reported segment profit (loss) measure), including description of the composition, nature and type of the other segment items; • Description of how CODM uses each reported segment profit (loss) measure to assess segment performance and determine resource allocation; and • Title and position of individual or name of group or committee identified as CODM. The ASU changes current guidance by permitting multiple measures of segment profit (loss) to be reported provided that the measure most consistent with GAAP is reported. The ASU also clarifies that a single reportable segment entity is subject to segment disclosures in its entirety, which would require reporting of segment profit (loss) measure that is not a consolidated GAAP measure and not clearly evident from existing disclosures. The ASU does not change existing guidance around identification of operating segments and determination of reportable segments. The requirements under this ASU are to be applied retrospectively to all prior periods presented unless impracticable. The Company adopted this ASU on its effective date of January 1, 2024. Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, which enhances existing annual income tax disclosures, primarily disaggregation of: (i) effective tax rate reconciliation using both percentages and amounts into specific categories, with further disaggregation by nature and/or jurisdiction of certain categories that meet the threshold of 5% of expected tax; and (ii) income taxes paid (net of refunds received) between federal, state/local and foreign, with further disaggregation by jurisdiction if 5% or more of total income taxes paid (net of refunds received). The ASU also eliminates existing disclosures related to: (a) reasonably possible significant changes in total amount of unrecognized tax benefits within 12 months of reporting date; and (b) cumulative amount of each type of temporary difference for which deferred tax liability has not been recognized (due to exception to recognizing deferred taxes related to subsidiaries and corporate joint ventures). |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Loss from Discontinued Operations | Income (Loss) from discontinued operations is summarized as follows. Year Ended December 31, (In thousands) 2023 2022 2021 Property operating income $ 774,226 $ 953,727 $ 1,500,032 Other income 8,895 21,559 106,826 Total revenues 783,121 975,286 1,606,858 Property operating expense 329,762 412,924 779,074 Interest expense 174,722 268,519 380,272 Depreciation and amortization 448,900 534,979 592,202 Compensation and other expenses 136,097 203,669 277,730 Impairment loss — 35,985 317,405 Equity method earnings (losses) (15,188) (45,489) (192,478) Other gain (loss), net 2,671 13,682 120,753 Income (Loss) from discontinued operations before income taxes (318,877) (512,597) (811,550) Income tax benefit (expense) (1,581) 2,413 29,175 Income (Loss) from discontinued operations (320,458) (510,184) (782,375) Income (Loss) from discontinued operations attributable to noncontrolling interests: Investment entities (260,120) (302,072) (528,125) Operating Company (4,339) (15,893) (24,465) Income (Loss) from discontinued operations attributable to DigitalBridge Group, Inc. $ (55,999) $ (192,219) $ (229,785) |
Schedule of Disclosure of Long Lived Assets and Liabilities Held-for-sale | (In thousands) December 31, 2023 December 31, 2022 Assets Cash and cash equivalents $ — $ 62,690 Restricted cash — 113,631 Real estate — 5,921,298 Investments 1,342 280,019 Goodwill — 463,120 Intangible assets — 1,006,469 Other assets 356 573,368 Total assets of discontinued operations $ 1,698 $ 8,420,595 Liabilities Debt $ — $ 4,586,765 Lease intangibles and other liabilities 153 755,377 Total liabilities of discontinued operations $ 153 $ 5,342,142 |
Schedule of Consideration and Allocation to Assets Acquired and Liabilities Assumed | The following table summarizes the allocation of cash consideration to TowerCo assets acquired and liabilities assumed, including capitalized transaction costs, in 2022. (In thousands) Real estate $ 363,121 Intangible assets 673,218 ROU and other assets 234,462 Deferred tax liabilities (243,223) Lease and other liabilities (236,324) Fair value of net assets acquired $ 791,254 The following table summarizes the total consideration and allocation to assets acquired and liabilities assumed. The initial cash consideration was determined, in part, based upon estimated net working capital of the acquired entities at closing. The purchase price allocation is provisional and will be finalized through the one year measurement period. Subsequent to the acquisition, certain adjustments were identified that affected the provisional accounting, as presented below. These were adjustments to net working capital and to the value of acquired interest in an InfraBridge fund based upon a revised NAV of the fund, applying new information about facts and circumstances that existed at the time of acquisition. (In thousands) As Reported Measurement Period Adjustments As Revised At December 31, 2023 Consideration Cash $ 364,338 $ 1,102 $ 365,440 Estimated fair value of contingent consideration 10,874 — 10,874 $ 375,212 $ 376,314 Assets acquired and liabilities assumed Cash 51,174 — 51,174 Principal investments 130,810 (18,500) 112,310 Intangible assets 50,800 — 50,800 Other assets 27,682 7,017 34,699 Deferred tax liabilities (10,198) — (10,198) Other liabilities (21,625) (8,589) (30,214) Fair value of net assets acquired 228,643 208,571 Goodwill 146,569 21,174 167,743 $ 375,212 $ 376,314 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Consideration and Allocation to Assets Acquired and Liabilities Assumed | The following table summarizes the allocation of cash consideration to TowerCo assets acquired and liabilities assumed, including capitalized transaction costs, in 2022. (In thousands) Real estate $ 363,121 Intangible assets 673,218 ROU and other assets 234,462 Deferred tax liabilities (243,223) Lease and other liabilities (236,324) Fair value of net assets acquired $ 791,254 The following table summarizes the total consideration and allocation to assets acquired and liabilities assumed. The initial cash consideration was determined, in part, based upon estimated net working capital of the acquired entities at closing. The purchase price allocation is provisional and will be finalized through the one year measurement period. Subsequent to the acquisition, certain adjustments were identified that affected the provisional accounting, as presented below. These were adjustments to net working capital and to the value of acquired interest in an InfraBridge fund based upon a revised NAV of the fund, applying new information about facts and circumstances that existed at the time of acquisition. (In thousands) As Reported Measurement Period Adjustments As Revised At December 31, 2023 Consideration Cash $ 364,338 $ 1,102 $ 365,440 Estimated fair value of contingent consideration 10,874 — 10,874 $ 375,212 $ 376,314 Assets acquired and liabilities assumed Cash 51,174 — 51,174 Principal investments 130,810 (18,500) 112,310 Intangible assets 50,800 — 50,800 Other assets 27,682 7,017 34,699 Deferred tax liabilities (10,198) — (10,198) Other liabilities (21,625) (8,589) (30,214) Fair value of net assets acquired 228,643 208,571 Goodwill 146,569 21,174 167,743 $ 375,212 $ 376,314 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Investments in Unconsolidated Ventures | The Company's equity and debt investments are represented by the following: (In thousands) December 31, 2023 December 31, 2022 Equity method investments (1) Principal investments $ 1,194,417 $ 410,511 Carried interest allocation 676,421 341,749 Other equity investments 71,417 115,024 CLO subordinated notes 50,927 50,927 Loans receivable — 133,307 1,993,182 1,051,518 Equity investments of consolidated funds Marketable equity securities 66,297 139,076 Other investments 416,614 46,769 $ 2,476,093 $ 1,237,363 __________ (1) |
Schedule of Available-for-sale Securities | The balance of the CLO subordinated notes is summarized as follows: Amortized Cost without Allowance for Credit Loss Allowance for Credit Loss Gross Cumulative Unrealized (in thousands) Gains Losses Fair Value At December 31, 2023 and 2022 $ 50,927 $ — $ — $ — $ 50,927 |
Schedule of Equity Method Investments | The following tables present selected combined financial information of the Company's equity method investees, excluding investees classified as discontinued operations. Amounts presented represent combined totals at the investee level and not the Company's proportionate share. Selected Combined Balance Sheet Information (In thousands) December 31, 2023 December 31, 2022 Total assets $ 38,062,830 $ 22,507,463 Total liabilities 413,270 79,053 Owners' equity 37,649,560 22,428,410 Selected Combined Statements of Operations Information Year Ended December 31, (In thousands) 2023 2022 2021 Total revenues $ 117,846 $ 23,232 $ 39,760 Net income (loss) 2,976,972 2,150,989 771,962 |
Goodwill and Intangibles Asse_2
Goodwill and Intangibles Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table presents changes in goodwill assigned to the Investment Management reportable segment. Year Ended December 31, (In thousands) 2023 2022 Beginning balance $ 298,248 $ 298,248 Business combination (Note 3) 167,743 — Ending balance (1) $ 465,991 $ 298,248 __________ (1) Remaining goodwill deductible for income tax purposes was $111.8 million at December 31, 2023 |
Schedule of Deferred Leasing Costs and Other Intangibles | Investment management intangible assets are composed of the following: December 31, 2023 December 31, 2022 (In thousands) Carrying Amount (1)(2) Accumulated Amortization (1)(2) Net Carrying Amount (1) Carrying Amount (1) Accumulated Amortization (1) Net Carrying Amount (1) Investment management contracts $ 150,835 $ (84,824) $ 66,011 $ 126,868 $ (68,739) $ 58,129 Investor relationships 53,572 (19,190) 34,382 37,321 (13,693) 23,628 Trade name 4,300 (1,907) 2,393 4,300 (1,476) 2,824 Other (3) 1,518 (554) 964 1,518 (401) 1,117 $ 210,225 $ (106,475) $ 103,750 $ 170,007 $ (84,309) $ 85,698 __________ (1) Presented net of impairments and write-offs, if any. (2) Exclude intangible assets that were fully amortized in prior years. (3) Represents primarily the value of an acquired domain name. |
Schedule of Amortization of Intangible Assets and Liabilities | The following table summarizes amortization of finite-lived intangible assets: Year Ended December 31, (In thousands) 2023 2022 2021 Investment management contracts $ 28,512 $ 16,741 $ 21,773 Investor relationships 5,474 4,256 4,256 Trade name 430 430 15,904 Other 152 152 114 $ 34,568 $ 21,579 $ 42,047 |
Schedule of Estimated Annual Amortization Expense | The following table presents the expected future amortization of finite-lived intangible assets . Year Ending December 31, (In thousands) 2024 2025 2026 2027 2028 2029 and thereafter Total Investment management contracts $ 24,739 $ 19,049 $ 11,449 $ 6,460 $ 3,480 $ 834 $ 66,011 Investor relationships 5,610 5,610 5,610 4,945 3,830 8,777 34,382 Trade name 430 430 430 430 430 243 2,393 Other 152 152 152 152 152 204 964 $ 30,931 $ 25,241 $ 17,641 $ 11,987 $ 7,892 $ 10,058 $ 103,750 |
Restricted Cash, Other Assets_2
Restricted Cash, Other Assets and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restricted Cash, Other Assets And Other Liabilities [Abstract] | |
Schedule of the Company's Other Assets, Net | The following table summarizes the Company's other assets. (In thousands) December 31, 2023 December 31, 2022 Prepaid taxes and deferred tax assets, net $ 14,059 $ 8,642 Derivative assets — 11,793 Receivables from resolution of investment 662 14,923 Operating lease right-of-use asset for corporate offices 33,898 23,689 Accounts receivable, net 8,919 6,263 Prepaid expenses 2,952 2,514 Other assets 11,231 4,063 Fixed assets, net (1) 7,232 8,934 Total other assets $ 78,953 $ 80,821 __________ (1) Net of accumulated depreciation of $7.3 million at December 31, 2023 and $9.8 million at December 31, 2022 . |
Schedule of Accrued and Other Liabilities | The following table summarizes the Company's other liabilities: (In thousands) December 31, 2023 December 31, 2022 Deferred investment management fees (1) $ 10,250 $ 6,265 Interest payable on corporate debt 2,293 4,376 Common and preferred stock dividends payable 16,477 16,491 Securities sold short—consolidated funds 38,481 40,928 Due to custodians—consolidated funds 9,415 35,457 Current and deferred income tax liability 8,403 42 Contingent consideration payable—InfraBridge (Note 10) 11,338 — Contingent consideration payable—Wafra (Note 9) 35,000 125,000 Warrants issued to Wafra (Note 9) 39,200 17,700 Operating lease liability for corporate offices 49,035 40,497 Accrued compensation 63,761 46,303 Accrued incentive fee and carried interest compensation 356,316 171,086 Accounts payable and accrued expenses 13,844 25,175 Due to affiliates (Note 16) 10,664 12,451 Other liabilities 16,974 5,152 Other liabilities $ 681,451 $ 546,923 __________ (1) Deferred investment management fees are expected to be recognized as fee revenue over a weighted average period of 3.0 years as of December 31, 2023 and 2.9 years as of December 31, 2022. Deferred investment management fees recognized as income of $3.3 million and $3.4 million in the year ended December 31, 2023 and 2022, respectively, pertain to the deferred management fee balance at the beginning of each respective period. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company's corporate debt is composed of a securitized financing facility and senior notes issued by DigitalBridge Group, Inc. or the OP that are recourse to the Company, as discussed further below. The Company may also have investment level financings that are non-recourse to DBRG such as debt within consolidated funds and secured debt on warehoused investments. There was no investment-level debt at December 31, 2023. December 31, 2023 December 31, 2022 (In thousands) Principal Premium (Discount), net Deferred Financing Cost Amortized Cost Principal Premium (Discount), net Deferred Financing Cost Amortized Cost Corporate debt Securitized financing facility $ 300,000 — (5,733) $ 294,267 $ 300,000 — (7,829) $ 292,171 Convertible and exchangeable senior notes 78,422 (810) (96) 77,516 278,422 (1,293) (388) 276,741 378,422 (810) (5,829) 371,783 578,422 (1,293) (8,217) 568,912 Investment-level debt — — — — 500 — (35) 465 $ 378,422 $ (810) $ (5,829) $ 371,783 $ 578,922 $ (1,293) $ (8,252) $ 569,377 |
Schedule of Convertible Senior Notes Issued | Convertible and exchangeable senior notes (collectively, the senior notes) are composed of the following, representing senior unsecured obligations of DigitalBridge Group, Inc. or the OP as issuers of the senior notes: Description Issuance Date Due Date Interest Rate (per annum) Conversion or Exchange Price (per share of common stock) Conversion or Exchange Ratio (in shares) (1) Conversion or Exchange Shares (in thousands) Earliest Redemption Date Outstanding Principal December 31, 2023 December 31, 2022 Issued by DigitalBridge Group, Inc. 5.00% Convertible Senior Notes (2) April 2013 April 15, 2023 5.00 % $ 63.02 15.8675 3,174 April 22, 2020 $ — $ 200,000 Issued by DigitalBridge Operating Company, LLC 5.75% Exchangeable Senior Notes July 2020 July 15, 2025 5.75 % 9.20 108.6956 8,524 July 21, 2023 78,422 78,422 $ 78,422 $ 278,422 __________ (1) The conversion or exchange ratio for the senior notes is subject to periodic adjustments to reflect certain carried-forward adjustments relating to common stock splits, reverse stock splits, common stock adjustments in connection with spin-offs and cumulative cash dividends paid on the Company's common stock since the issuances of the senior notes. The ratios are presented in shares of common stock per $1,000 principal of each senior note. (2) Fully repaid in April 2023. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Activity of Preferred and Common Stock | The table below summarizes the share activities of the Company's preferred stock and common stock. Number of Shares (In thousands) Preferred Stock Class A Common Stock Class B Common Stock Shares outstanding at December 31, 2020 41,350 120,851 183 Redemption of preferred stock (6,010) — — Exchange of notes for class A common stock — 18,341 — Shares issued upon redemption of OP Units — 501 — Conversion of class B to class A common stock — 17 (17) Shares issued pursuant to settlement liability (1) — 1,488 — Equity-based compensation, net of forfeitures — 1,645 — Shares canceled for tax withholding on vested stock awards — (699) — Shares outstanding at December 31, 2021 35,340 142,144 166 Stock repurchases (2,229) (4,195) — Exchange of notes for class A common stock — 6,389 — Shares issued upon redemption of OP Units — 100 — Shares issued for redemption of redeemable noncontrolling interest (Note 9) — 14,435 — Equity awards issued, net of forfeitures — 1,589 — Shares canceled for tax withholding on vested equity awards — (699) — Shares outstanding at December 31, 2022 33,111 159,763 166 Stock repurchases (235) — — Shares issued upon redemption of OP Units — 253 — Equity awards issued, net of forfeitures — 4,835 — Shares canceled for tax withholding on vested equity awards — (1,642) — Shares outstanding at December 31, 2023 32,876 163,209 166 __________ (1) In 2021, the settlement liability was settled through the reissuance of some of the shares previously repurchased and held in a subsidiary. Shares of class A common stock repurchased and not reissued in the settlement of the liability were subsequently cancelled. The table below summarizes the preferred stock issued and outstanding at December 31, 2023: Description Dividend Rate Per Annum Initial Issuance Date Shares Outstanding (in thousands) Par Value (in thousands) Liquidation Preference (in thousands) Earliest Redemption Date Series H 7.125 % April 2015 8,395 $ 84 $ 209,870 Currently redeemable Series I 7.15 % June 2017 12,867 129 321,668 Currently redeemable Series J 7.125 % September 2017 11,614 116 290,361 Currently redeemable 32,876 $ 329 $ 821,899 |
Schedule of Components of Accumulated Other Comprehensive Income (Loss) Attributable to Stockholders | The following tables present the changes in each component of AOCI attributable to stockholders and noncontrolling interests in investment entities, net of immaterial tax effect. AOCI attributable to noncontrolling interests in Operating Company is immaterial. Changes in Components of AOCI—Stockholders (In thousands) Company's Share in AOCI of Equity Method Investments Unrealized Gain (Loss) on AFS Debt Securities Unrealized Gain (Loss) on Cash Flow Hedges Foreign Currency Translation Gain (Loss) Unrealized Gain (Loss) on Net Investment Hedges Total AOCI at December 31, 2020 $ 17,718 $ 6,072 $ (233) $ 52,832 $ 45,734 $ 122,123 Other comprehensive income (loss) before reclassifications (12,386) (211) — (35,001) 1,731 (45,867) Amounts reclassified from AOCI (2,998) — 233 10,153 (39,779) (32,391) Deconsolidation of investment entities — — — (1,482) — (1,482) AOCI at December 31, 2021 2,334 5,861 — 26,502 7,686 42,383 Other comprehensive income (loss) before reclassifications (2,429) — — (10,923) 8,396 (4,956) Amounts reclassified from AOCI (200) (5,861) — (16,793) (16,082) (38,936) AOCI at December 31, 2022 (295) — — (1,214) — (1,509) Other comprehensive income (loss) before reclassifications (1) — — 2,906 — 2,905 Amounts reclassified from AOCI 296 — — (1,246) — (950) Deconsolidation of investment entities — — — 965 — 965 AOCI at December 31, 2023 $ — $ — $ — $ 1,411 $ — $ 1,411 Changes in Components of AOCI—Noncontrolling Interests in Investment Entities (In thousands) Unrealized Gain (Loss) on Cash Flow Hedges Foreign Currency Translation Gain (Loss) Unrealized Gain (Loss) on Net Investment Hedges Total AOCI at December 31, 2020 $ (1,030) $ 83,845 $ 15,099 $ 97,914 Other comprehensive income (loss) before reclassifications — (65,127) — (65,127) Amounts reclassified from AOCI 1,030 (1,364) (15,099) (15,433) Deconsolidation of investment entities — (6,297) — (6,297) AOCI at December 31, 2021 — 11,057 — 11,057 Other comprehensive income (loss) before reclassifications — (4,571) — (4,571) Amounts reclassified from AOCI — (9,501) — (9,501) AOCI at December 31, 2022 — (3,015) — (3,015) Other comprehensive income (loss) before reclassifications — 884 — 884 Amounts reclassified from AOCI — (468) — (468) Deconsolidation of investment entities — 2,550 — 2,550 AOCI at December 31, 2023 $ — $ (49) $ — $ (49) |
Schedule of Reclassification out of Accumulated Other Comprehensive Income | Information about amounts reclassified out of AOCI attributable to stockholders by component is presented below. Such amounts are included in other gain (loss) in continuing and discontinued operations on the consolidated statements of operations, as applicable, except for amounts related to equity method investments, which are included in equity method losses in discontinued operations. (In thousands) Year Ended December 31, Affected Line Item in the Component of AOCI reclassified into earnings 2023 2022 2021 Relief of basis of AFS debt securities $ — $ 5,861 $ — Income (loss) from discontinued operations Release of foreign currency cumulative translation adjustments 1,246 16,793 (10,153) Other gain (loss), net Income (loss) from discontinued operations Realized gain on net investment hedges — 16,082 39,779 Other gain (loss), net Income (loss) from discontinued operations Realized loss on cash flow hedges — — (233) Income (loss) from discontinued operations Deconsolidation of investment entities (965) — 1,482 Income (loss) from discontinued operations Release of AOCI of equity method investments (296) 200 2,998 Income (loss) from discontinued operations |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Noncontrolling Interest [Abstract] | |
Schedule of Redeemable Noncontrolling Interest | The following table presents the activities in redeemable noncontrolling interests in the Company's investment management business through its redemption in May 2022 as discussed below, and in open-end funds in the liquid securities strategy consolidated by the Company. Year Ended December 31, (In thousands) 2023 2022 2021 Redeemable noncontrolling interests Beginning balance $ 100,574 $ 359,223 $ 305,278 Contributions 300 11,650 42,514 Distributions paid and payable, including redemptions by limited partners in consolidated funds (89,515) (20,784) (23,246) Net income (loss) 6,503 (26,778) 34,677 Adjustment of Wafra's interest to redemption value and warrants held by Wafra to fair value — 725,026 — Redemption of Wafra's interest — (862,276) — Reclassification of warrants held by Wafra to liability in May 2022 (Note 6) — (81,400) — Reclassification of Wafra's carried interest allocation to noncontrolling interests in investment entities in May 2022 — (4,087) — Ending balance $ 17,862 $ 100,574 $ 359,223 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Quantitative Level 3 Recurring Fair Values | Fair value is categorized into a three tier hierarchy that is prioritized based upon the level of transparency in inputs used in the valuation techniques. Fair Value Measurement Hierarchy (In thousands) Level 1 Level 2 Level 3 Total December 31, 2023 Assets Investments (Note 4) Other equity investments $ 17,487 $ — $ — $ 17,487 CLO subordinated notes — — 50,927 50,927 Equity investments of consolidated funds 66,297 — 416,614 482,911 Fair Value Option: Equity method investment — — 6,700 6,700 Liabilities Other liabilities InfraBridge contingent consideration — — 11,338 11,338 Warrants issued to Wafra — — 39,200 39,200 Securities of consolidated funds sold short 38,481 — — 38,481 December 31, 2022 Assets Investments (Note 4) Other equity investments $ 16,790 $ — $ — 16,790 CLO subordinated notes — — 50,927 50,927 Equity investments of consolidated funds 139,075 — 46,770 185,845 Fair Value Option: Loans receivable — — 133,307 133,307 Other assets—derivative assets — 11,793 — 11,793 Liabilities Other liabilities Warrants issued to Wafra — — 17,700 17,700 Securities of consolidated funds sold short 40,928 — — 40,928 |
Schedule of Realized and Unrealized Gains and Losses on Derivatives Not Designated as Hedges | Realized and unrealized gains and losses on derivative instruments were recorded in other gain (loss) on the consolidated statement of operations as follows: Year Ended December 31, (In thousands) 2023 2022 2021 Foreign currency contracts: Designated contracts Realized gain (loss) transferred from AOCI to earnings $ — $ 17,334 $ 58,727 Non-designated contracts Realized and unrealized gain (loss) in earnings (1) 4,053 17,092 889 Interest rate contracts: Designated contracts Interest expense (2) — — 20 Realized gain (loss) transferred from AOCI to earnings — — (1,328) Non-designated contracts Realized and unrealized gain (loss) in earnings — 11,533 (213) __________ (1) Includes amounts related to foreign currency contract entered into on behalf of a sponsored fund, which had no net impact to the Company's earnings, (Note 16). |
Schedule of Changes in Recurring Level 3 Fair Value | The following table presents changes in recurring Level 3 fair value assets held for investment. Realized and unrealized gains (losses) are included in other gain (loss). Level 3 Assets Level 3 Liabilities Fair Value Option Equity Investment of Consolidated Fund Warrants InfraBridge Contingent Consideration (In thousands) AFS Debt Securities Loans Receivable Equity Method Investments Fair value at December 31, 2021 $ — $ 78,607 $ — $ — $ — $ — Purchases, originations, drawdowns and contributions 50,927 370,496 — 35,566 — — Transfer out of equity to liability — — — — 81,400 — Change in accrued interest and capitalization of paid-in-kind interest — 5,814 — — — — Paydowns — (159,501) — — — — Transfer of warehoused loans to sponsored fund — (123,312) — — — — Consolidation of sponsored fund — — — 10,536 — — Unrealized gain (loss) in earnings, net — (38,797) — 668 (63,700) — Fair value at December 31, 2022 $ 50,927 $ 133,307 $ — $ 46,770 $ 17,700 $ — Net unrealized gain (loss) in earnings on instruments held at December 31, 2022 $ — $ (28,706) $ — $ 668 $ (63,700) $ — Fair value at December 31, 2022 $ 50,927 $ 133,307 $ — $ 46,770 $ 17,700 $ — Contributions — — 20,000 85,486 — — Consolidation of sponsored funds — — — 393,614 — — Business combination — — — — — 10,874 Change in consolidated fund's share of equity investment (1) — — — 1,842 — — Paydown of underlying loans held by equity investment of consolidated fund — — — (8,109) — — Unrealized gain (loss) in earnings, net — (133,307) (13,300) 2,216 21,500 464 Deconsolidation of sponsored fund — — — (105,205) — — Fair value at December 31, 2023 $ 50,927 $ — $ 6,700 $ 416,614 $ 39,200 $ 11,338 Net unrealized gain (loss) in earnings on instruments held at December 31, 2023 $ — $ (133,307) $ (13,300) $ — $ 21,500 $ 464 __________ (1) Represents reallocation of investment value when relative ownership of the pooling entity across its fund owners change following additional capital contributions. |
Schedule of Changes in Recurring Level 3 Fair Values | The following table presents changes in recurring Level 3 fair value assets held for investment. Realized and unrealized gains (losses) are included in other gain (loss). Level 3 Assets Level 3 Liabilities Fair Value Option Equity Investment of Consolidated Fund Warrants InfraBridge Contingent Consideration (In thousands) AFS Debt Securities Loans Receivable Equity Method Investments Fair value at December 31, 2021 $ — $ 78,607 $ — $ — $ — $ — Purchases, originations, drawdowns and contributions 50,927 370,496 — 35,566 — — Transfer out of equity to liability — — — — 81,400 — Change in accrued interest and capitalization of paid-in-kind interest — 5,814 — — — — Paydowns — (159,501) — — — — Transfer of warehoused loans to sponsored fund — (123,312) — — — — Consolidation of sponsored fund — — — 10,536 — — Unrealized gain (loss) in earnings, net — (38,797) — 668 (63,700) — Fair value at December 31, 2022 $ 50,927 $ 133,307 $ — $ 46,770 $ 17,700 $ — Net unrealized gain (loss) in earnings on instruments held at December 31, 2022 $ — $ (28,706) $ — $ 668 $ (63,700) $ — Fair value at December 31, 2022 $ 50,927 $ 133,307 $ — $ 46,770 $ 17,700 $ — Contributions — — 20,000 85,486 — — Consolidation of sponsored funds — — — 393,614 — — Business combination — — — — — 10,874 Change in consolidated fund's share of equity investment (1) — — — 1,842 — — Paydown of underlying loans held by equity investment of consolidated fund — — — (8,109) — — Unrealized gain (loss) in earnings, net — (133,307) (13,300) 2,216 21,500 464 Deconsolidation of sponsored fund — — — (105,205) — — Fair value at December 31, 2023 $ 50,927 $ — $ 6,700 $ 416,614 $ 39,200 $ 11,338 Net unrealized gain (loss) in earnings on instruments held at December 31, 2023 $ — $ (133,307) $ (13,300) $ — $ 21,500 $ 464 __________ (1) Represents reallocation of investment value when relative ownership of the pooling entity across its fund owners change following additional capital contributions. |
Schedule of Fair Value Information on Financial Instruments Reported at Cost | Fair value of financial instruments reported at amortized cost are presented below. Fair Value Measurements Carrying Value (In thousands) Level 1 Level 2 Level 3 Total December 31, 2023 Liabilities Corporate debt Secured fund fee revenue notes $ — $ 250,547 $ — $ 250,547 $ 294,267 Exchangeable senior notes — 152,296 — 152,296 77,516 December 31, 2022 Liabilities Corporate debt Secured fund fee revenue notes $ — $ 250,547 $ — $ 250,547 $ 292,171 Convertible and exchangeable senior notes 304,513 — 304,513 276,741 Non-recourse investment-level debt — — 465 465 465 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Reconciliation | The following table presents the basic and diluted earnings per common share computations. Year Ended December 31, (In thousands, except per share data) 2023 2022 2021 Net income (loss) allocated to common stockholders Income (Loss) from continuing operations attributable to DigitalBridge Group, Inc. $ 241,279 $ (129,578) $ (80,312) Income (Loss) from discontinued operations attributable to DigitalBridge Group, Inc. (55,999) (192,219) (229,785) Net income (loss) attributable to DigitalBridge Group, Inc. 185,280 (321,797) (310,097) Preferred stock repurchases/redemptions (Note 8) 927 1,098 (4,992) Preferred dividends (58,656) (61,567) (70,627) Net income (loss) attributable to common stockholders 127,551 (382,266) (385,716) Net income (loss) allocated to participating securities (2,179) (34) — Net income (loss) allocated to common stockholders—basic 125,372 (382,300) (385,716) Interest expense attributable to convertible and exchangeable notes (1) 5,050 — — Net income (loss) allocated to common stockholders—diluted $ 130,422 $ (382,300) $ (385,716) Weighted average common shares outstanding Weighted average number of common shares outstanding—basic 159,868 154,495 122,864 Weighted average effect of dilutive shares (1)(2)(3) 9,852 — — Weighted average number of common shares outstanding—diluted 169,720 154,495 122,864 Income (loss) per share—basic Income (Loss) from continuing operations $ 1.13 $ (1.23) $ (1.27) Income (Loss) from discontinued operations (0.35) (1.24) (1.87) Net income (loss) attributable to common stockholders per common share—basic $ 0.78 $ (2.47) $ (3.14) Income (loss) per share—diluted Income (Loss) from continuing operations $ 1.10 $ (1.23) $ (1.27) Income (Loss) from discontinued operations (0.33) (1.24) (1.87) Net income (loss) attributable to common stockholders per common share—diluted $ 0.77 $ (2.47) $ (3.14) __________ (1) With respect to the assumed conversion or exchange of the Company's outstanding senior notes, the following are excluded from the calculation of diluted earnings per share as their inclusion would be antidilutive: (a) for the years ended December 31, 2023, 2022 and 2021, the effect of adding back interest expense of $3.1 million, $16.6 million and $54.7 million, respectively, and 912,900, 12,901,700 and 33,849,100 of weighted average dilutive common share equivalents. Also excluded from the calculation of diluted earnings per share was $133.2 million of debt extinguishment loss (Note 7) for the year ended December 31, 2022. (2) The calculation of diluted earnings per share excludes the effect of the following as their inclusion would be antidilutive: (a) class A common shares that are contingently issuable in relation to performance stock units (Note 13) with weighted average shares of 1,298,900 and 2,712,700 for the years ended December 31, 2022 and 2021; and (b) class A common shares that are issuable to net settle the exercise of warrants (Note 9) with weighted average shares of 667,400, 1,742,800 and 2,659,400 for the years ended December 31, 2023, 2022 and 2021, respectively. (3) OP Units may be redeemed for registered or unregistered class A common stock on a one-for-one basis and are not dilutive. At December 31, 2023, 2022 and 2021, 12,375,800, 12,628,900 and 12,613,800 of OP Units, respectively, were not included in the computation of diluted earnings per share in the respective periods presented. |
Fee Revenue (Tables)
Fee Revenue (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of Asset Management and Other Fees | The following table presents the Company's fee revenue by type. Year Ended December 31, (In thousands) 2023 2022 2021 Management fees $ 258,288 $ 169,922 $ 168,618 Incentive fees 3,229 — 7,174 Other fees 2,600 2,751 5,034 Total fee revenue $ 264,117 $ 172,673 $ 180,826 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Components of Share-Based Compensation | Fair value of PSUs, including dividend equivalent rights, was determined using a Monte Carlo simulation under a risk-neutral premise, with the following assumptions: 2023 PSU Grants 2022 PSU Grants 2021 PSU Grants Expected volatility of the Company's class A common stock (1) 41.3% 32.4% 35.4% Expected annual dividend yield (2) 0.3% —% —% Risk-free rate (per annum) (3) 3.8% 2.0% 0.3% __________ (1) Based upon the historical volatility of the Company's stock and those of a specified peer group. (2) Based upon the Company's expected annualized dividends. Expected dividend yield was zero for the March 2022 and 2021 PSU awards as common dividends were suspended beginning the second quarter of 2020 and reinstated in the third quarter of 2022. (3) Based upon the continuously compounded zero-coupon U.S. Treasury yield for the term coinciding with the measurement period of the award as of valuation date. The following assumptions were applied in the Monte Carlo model under a risk-neutral premise: 2022 LTIP Grant 2019 LTIP Grant (1) Expected volatility of the Company's class A common stock (2) 34.0% 28.3% Expected dividend yield (3) 0.0% 8.1% Risk-free rate (per annum) (4) 3.6% 1.8% __________ (1) Represents 2.5 million LTIP units granted to the Company's Chief Executive Officer, Marc Ganzi, in connection with the Company's acquisition of Digital Bridge Holdings, LLC in July 2019, with vesting based upon the Company's class A common stock price closing at or above $40 over any 90 consecutive trading days prior to the fifth anniversary of the grant date. (2) Based upon historical volatility of the Company's stock and those of a specified peer group. (3) Based upon the Company's most recently issued dividend prior to grant date and closing price of the Company's class A common stock on grant date. Expected dividend yield was zero for the June 2022 award as common dividends were suspended beginning the second quarter of 2020 and reinstated in the third quarter of 2022. (4) Based upon the continuously compounded zero-coupon US Treasury yield for the term coinciding with the measurement period of the award as of valuation date. Equity-based compensation cost pursuant to DBRG's Equity Incentive Plan is presented on the consolidated statement of operations, as follows. Year Ended December 31, (In thousands) 2023 2022 2021 Compensation expense (including $0, $(410) and $1,194 expense related to dividend equivalent rights) $ 55,597 $ 31,281 $ 35,428 Administrative expense 228 1,422 222 $ 55,825 $ 32,703 $ 35,650 |
Schedule of Nonvested Shares Under Director Stock Plan and Equity Incentive Plan | Changes in unvested equity awards pursuant to DBRG's Equity Incentive Plan are summarized below. Weighted Average Grant Date Fair Value Restricted Stock LTIP Units (1) DSUs RSUs (2) PSUs (3) Total PSUs All Other Awards Unvested shares and units at December 31, 2022 1,706,674 2,625,000 20,058 2,397,391 1,889,587 8,638,710 $ 16.28 $ 10.84 Granted 2,468,842 — 70,887 — 413,172 2,952,901 11.98 12.24 Vested (1,308,856) — (26,846) (1,798,044) (603,525) (3,737,271) 7.88 13.95 Forfeited (53,291) — — — (424,799) (478,090) 7.92 13.83 Unvested shares and units at December 31, 2023 2,813,369 2,625,000 64,099 599,347 1,274,435 7,376,250 21.66 9.80 __________ (1) Represents the number of LTIP units granted subject to vesting upon achievement of market condition. LTIP units that do not meet the market condition within the measurement period will be forfeited. (2) Represents the number of RSUs granted subject to vesting upon achievement of performance condition. RSUs that do not meet the performance condition at the end of the measurement period will be forfeited. (3) Number of PSUs granted does not reflect potential increases or decreases that could result from the final outcome of the total shareholder return measured at the end of the performance period. PSUs for which the total shareholder return was not met at the end of the performance period are forfeited. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of current and deferred tax benefit (expense) are as follows. Year Ended December 31, (In thousands) 2023 2022 2021 Current Federal $ 167 $ 3,986 $ 3,369 State and local 1,058 (786) (19) Foreign (1,252) (1,163) — Total current tax benefit (expense) (27) 2,037 3,350 Deferred Federal (1,004) (13,850) 15,615 State and local 124 (2,419) 2,498 Foreign 901 1,100 — Total deferred tax benefit (expense) 21 (15,169) 18,113 Income tax benefit (expense) on continuing operations $ (6) $ (13,132) $ 21,463 |
Schedule of Deferred Tax Assets and Liabilities | The components of deferred tax asset and deferred tax liability are as follows. (In thousands) December 31, 2023 December 31, 2022 Deferred tax asset Capital losses (1) $ 366,083 $ 252,904 Net operating losses (2) 146,537 92,224 Investment in partnerships 131,828 317,048 Equity-based compensation 15,104 11,856 Intangible assets 5,013 5,959 Deferred income 2,576 2,086 Deferred interest expense 6,050 5,556 Lease liability—corporate offices 12,507 9,341 Lease liability—investment properties — 6,789 Other 4,487 5,847 Gross deferred tax asset 690,185 709,610 Valuation allowance (664,397) (679,057) Deferred tax asset, net of valuation allowance 25,788 30,553 Deferred tax liability Intangible assets 23,382 13,725 ROU lease asset—corporate offices 8,527 5,350 ROU lease asset—investment properties — 6,026 Other 1,909 3,408 Gross deferred tax liability 33,818 28,509 Net deferred tax asset (liability) $ (8,030) $ 2,044 __________ (1) At December 31, 2023, deferred tax asset was recognized on capital losses of $1.38 billion, which expire between 2024 and 2028, with full valuation allowance established. (2) At December 31, 2023 and 2022, deferred tax asset was recognized on NOL of $589.7 million and $378.7 million, respectively, for which full valuation allowance was established in both years. NOL, which is largely attributable to U.S. federal losses incurred after December 31, 2017, can be carried forward indefinitely. |
Schedule of Valuation Allowance | Changes in the deferred tax asset valuation allowance are presented below: Year Ended December 31, (In thousands) 2023 2022 2021 Beginning balance $ 679,057 $ 12,766 $ 1,852 Addition 19,483 666,291 33,756 Utilization and/or reversal (34,143) — (22,842) Ending balance 664,397 $ 679,057 $ 12,766 |
Schedule of Effective Income Tax Rate Reconciliation | The following table presents a reconciliation of the statutory U.S. income tax to the Company's effective income tax attributable to continuing operations: Year Ended December 31, (In thousands) 2023 2022 2021 Income (Loss) from continuing operations before income taxes $ 365,629 $ (46,681) $ (55,999) Income (Loss) from continuing operations before income taxes attributable to pass-through subsidiaries NA NA (5,905) Income (Loss) from continuing operations before income taxes attributable to taxable subsidiaries 365,629 (46,681) (61,904) Federal income tax benefit (expense) at statutory tax rate (21%) (76,782) 9,802 13,000 State and local income taxes, net of federal income tax benefit (21,970) 5,559 1,930 Foreign income tax differential 36 782 — Effect of change in income tax rate 34,684 — — Noncontrolling interests (27,699) (44,014) — Separately taxable subsidiaries of OP 15,213 21,226 — Change in ownership of OP, including equity reallocation (Note 2) — (2,838) — Equity-based compensation 682 1,971 1,814 Valuation allowance (1) 76,087 (784) 1,852 Other, net (257) (4,836) 2,867 Income tax benefit (expense) on continuing operations $ (6) $ (13,132) $ 21,463 __________ (1) |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Balance Sheet, Supplemental Disclosures | The following table presents the assets and liabilities of the consolidated funds: (In thousands) December 31, 2023 December 31, 2022 Assets Cash and cash equivalents $ 69,654 $ 86,433 Investments (Note 4) 482,911 185,845 Other assets 576 1,895 $ 553,141 $ 274,173 Liabilities Debt $ — $ 465 Other liabilities Securities sold short 38,482 40,928 Due to custodian 9,415 35,457 Other 16,313 2,734 $ 64,210 $ 79,584 |
Transactions with Affiliates (T
Transactions with Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Disclosures | Amounts due from and due to affiliates consist of the following: (In thousands) December 31, 2023 December 31, 2022 Due from Affiliates Investment vehicles and portfolio companies Fee revenue $ 71,427 $ 35,010 Cost reimbursements and recoverable expenses 14,388 7,031 Employees and other affiliates — 3,319 $ 85,815 $ 45,360 Due to Affiliates (Note 6) Investment vehicles—Derivative obligation $ — $ 11,793 Investment vehicles—InfraBridge (Note 3) 10,123 — Employees and other affiliates 541 658 $ 10,664 $ 12,451 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Operating Results | The following table summarizes results from continuing operations of the Company's reportable segments and reconciled to the consolidated statement of operations. Investment Management Corporate and Other Total Year Ended December 31, Year Ended December 31, Year Ended December 31, 2023 2022 2021 2023 2022 2021 2023 2022 2021 Revenues Fee revenue $ 267,181 $ 176,061 $ 187,379 $ (3,064) $ (3,388) $ (6,553) $ 264,117 $ 172,673 $ 180,826 Carried interest allocation 363,075 378,342 99,207 — — — 363,075 378,342 99,207 Principal investment income 4,223 4,121 2,604 141,225 52,610 83,419 145,448 56,731 86,023 Other income 11,405 5,984 4,303 37,338 81,041 17,471 48,743 87,025 21,774 Total revenues 645,884 564,508 293,493 175,499 130,263 94,337 821,383 694,771 387,830 Expenses Interest expense 10,514 10,872 4,766 14,026 32,054 58,478 24,540 42,926 63,244 Investment-related expense 2,539 4,112 3,423 616 19,107 3,745 3,155 23,219 7,168 Transaction-related costs 6,973 4,895 — 3,850 5,234 5,515 10,823 10,129 5,515 Depreciation and amortization 35,259 22,155 26,736 1,392 22,116 17,617 36,651 44,271 44,353 Compensation expense Cash and equity-based 154,442 101,433 71,055 52,450 53,319 88,717 206,892 154,752 159,772 Incentive fee and carried interest allocation 186,030 202,286 65,890 — — — 186,030 202,286 65,890 Administrative expense 40,544 21,515 21,683 43,238 72,607 56,085 83,782 94,122 77,768 Total expenses 436,301 367,268 193,553 115,572 204,437 230,157 551,873 571,705 423,710 Other income (loss) Other gain (loss), net (2,527) (3,341) 797 98,646 (166,406) (20,916) 96,119 (169,747) (20,119) Income (loss) from continuing operations before income taxes 207,056 193,899 100,737 158,573 (240,580) (156,736) 365,629 (46,681) (55,999) Income tax benefit (expense) (1,694) (7,815) (9,822) 1,688 (5,317) 31,285 (6) (13,132) 21,463 Income (loss) from continuing operations 205,362 186,084 90,915 160,261 (245,897) (125,451) 365,623 (59,813) (34,536) Income (loss) from continuing operations attributable to noncontrolling interests: Redeemable noncontrolling interests 215 (3,175) 14,893 6,288 (23,603) 19,784 6,503 (26,778) 34,677 Investment entities 86,290 113,853 19,153 18,074 (834) 7,992 104,364 113,019 27,145 Operating Company 8,374 5,522 5,338 5,103 (21,998) (21,384) 13,477 (16,476) (16,046) Income (loss) from continuing operations attributable to DigitalBridge Group, Inc. $ 110,483 $ 69,884 $ 51,531 $ 130,796 $ (199,462) $ (131,843) $ 241,279 $ (129,578) $ (80,312) Income (loss) from discontinued operations attributable to DigitalBridge Group, Inc. (55,999) (192,219) (229,785) Income (loss) attributable to DigitalBridge Group, Inc. $ 185,280 $ (321,797) $ (310,097) |
Schedule of Revenue by Geographic Areas | Geographic information about the Company's total income from continuing operations and long-lived assets, excluding assets of discontinued operations, are as follows. Geography is generally presented as the location in which the income producing assets reside or the location in which income generating services are performed. Year Ended December 31, (In thousands) 2023 2022 2021 Total income by geography: United States $ 746,462 $ 643,073 $ 375,133 Europe 56,280 47,196 2,512 Other 8,241 165 — Total (1) $ 810,983 $ 690,434 $ 377,645 (In thousands) December 31, 2023 December 31, 2022 Long-lived assets by geography: United States $ 22,294 $ 27,588 Europe 17,868 3,997 Other 967 1,037 Total (2) $ 41,129 $ 32,622 __________ (1) Total income excludes cost reimbursement income from affiliates (Note 16), presented within other income, and income from discontinued operations (Note 2). (2) |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule Lease, Cost | The following table summarizes total lease cost for operating leases on corporate offices, which are included in administrative expense. December 31, (In thousands) 2023 2022 2021 Fixed lease expense $ 8,678 $ 7,090 $ 7,010 Variable lease expense 1,713 2,073 1,829 Total operating lease cost $ 10,391 $ 9,163 $ 8,839 |
Schedule of Future Fixed Lease Income | The table below presents the Company's future lease commitments for operating leases on corporate offices at December 31, 2023 , determined using a weighted average discount rate of 5.7%: Year Ending December 31, (In thousands) 2024 $ 9,435 2025 9,454 2026 10,141 2027 9,113 2028 7,067 2029 and thereafter 15,203 Total lease payments 60,413 Present value discount (11,378) Operating lease liability on corporate offices $ 49,035 |
Schedule of Finance Lease, Liability, Fiscal Year Maturity | The table below presents the Company's future lease commitments for operating leases on corporate offices at December 31, 2023 , determined using a weighted average discount rate of 5.7%: Year Ending December 31, (In thousands) 2024 $ 9,435 2025 9,454 2026 10,141 2027 9,113 2028 7,067 2029 and thereafter 15,203 Total lease payments 60,413 Present value discount (11,378) Operating lease liability on corporate offices $ 49,035 |
Business and Organization (Deta
Business and Organization (Details) - DigitalBridge Operating Company | 12 Months Ended |
Dec. 31, 2023 | |
Certain Employees | |
Business Acquisition [Line Items] | |
Senior management ownership (as a percent) | 7% |
Parent | |
Business Acquisition [Line Items] | |
General partner ownership (as a percent) | 93% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands, € in Millions | 1 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2022 EUR (€) | Mar. 31, 2022 USD ($) | Feb. 28, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Summary of Significant Accounting Policies [Line Items] | |||||||||
OP units to common stock, conversion ratio | 1 | ||||||||
Proceeds from sale of equity investments | $ 695,683 | $ 522,337 | $ 564,025 | ||||||
Gain on extinguishment of debt | $ (133,200) | $ 54,200 | 0 | (133,173) | 29,099 | ||||
Total assets of consolidated private fund | 3,562,550 | 11,028,503 | |||||||
Total liabilities of consolidated private fund | 1,053,387 | 6,458,440 | |||||||
Principal investment income | 145,448 | 56,731 | 86,023 | ||||||
Loss from continuing operations | 365,623 | (59,813) | (34,536) | ||||||
Revenues | 264,117 | 172,673 | 180,826 | ||||||
Revision of Prior Period, Reclassification, Adjustment | BRSP | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Total assets of consolidated private fund | 8,100,000 | ||||||||
Total liabilities of consolidated private fund | 5,300,000 | ||||||||
Loss from continuing operations | (324,200) | (223,500) | |||||||
Corporate and Other | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Principal investment income | 141,225 | 52,610 | 83,419 | ||||||
Loss from continuing operations | $ 160,261 | (245,897) | (125,451) | ||||||
In-Place Lease | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Discount rate for projected net cash flow (as a percent) | 6.80% | ||||||||
Useful life (in years) | 15 years | ||||||||
TowerCo | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Purchase price | $ 791,300 | € 740.1 | |||||||
Debt assumed | 326,100 | ||||||||
Equity consideration transferred | 278,100 | ||||||||
TowerCo | Corporate and Other | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Revenues | 43,000 | ||||||||
Depreciation | 8,800 | ||||||||
Amortization | 9,900 | ||||||||
TowerCo | Investor | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Equity consideration transferred | $ 213,800 | ||||||||
Investor relationships | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Discount rate for projected net cash flow (as a percent) | 6.80% | ||||||||
Minimum | Furniture, Fixtures, Equipment, And Capitalized Software | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Estimated useful lives (in years) | 3 years | ||||||||
Minimum | Towers And Equipment | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Plant, property and equipment acquired, useful life (in years) | 11 years | ||||||||
Minimum | Investor relationships | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Useful life (in years) | 19 years | ||||||||
Maximum | Furniture, Fixtures, Equipment, And Capitalized Software | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Estimated useful lives (in years) | 7 years | ||||||||
Maximum | Building | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Plant, property and equipment acquired, useful life (in years) | 50 years | ||||||||
Maximum | Site improvements | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Plant, property and equipment acquired, useful life (in years) | 40 years | ||||||||
Maximum | Data center infrastructure | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Plant, property and equipment acquired, useful life (in years) | 30 years | ||||||||
Maximum | Furniture, fixtures and equipment | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Plant, property and equipment acquired, useful life (in years) | 8 years | ||||||||
Maximum | Towers And Equipment | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Plant, property and equipment acquired, useful life (in years) | 71 years | ||||||||
Maximum | Investor relationships | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Useful life (in years) | 45 years | ||||||||
NRF | Discontinued Operations, Disposed of by Sale | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Transaction price | $ 281,000 | ||||||||
Loan receivable relieved in exchange for equity investment acquired | $ 155,000 | ||||||||
Write off of deferred debt issuance cost | $ 92,100 | ||||||||
Impairment loss | 251,700 | ||||||||
BRSP | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Proceeds from sale of equity investments | $ 201,600 | ||||||||
Adjustments for any impairment or observable price changes | $ 9,700 | ||||||||
BRSP | Revision of Prior Period, Reclassification, Adjustment | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Principal investment income | (37,300) | $ 41,200 | |||||||
BRSP | Held for Disposition | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Equity method investments | $ 218,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income (Loss) from discontinued operations | $ (320,458) | $ (510,184) | $ (782,375) |
Income (loss) from discontinued operations attributable to DigitalBridge Group, Inc. | (55,999) | (192,219) | (229,785) |
Held for Disposition | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Property operating income | 774,226 | 953,727 | 1,500,032 |
Other income | 8,895 | 21,559 | 106,826 |
Revenues from discontinued operations | 783,121 | 975,286 | 1,606,858 |
Property operating expense | 329,762 | 412,924 | 779,074 |
Interest expense | 174,722 | 268,519 | 380,272 |
Depreciation and amortization | 448,900 | 534,979 | 592,202 |
Compensation and other expenses | 136,097 | 203,669 | 277,730 |
Impairment loss | 0 | 35,985 | 317,405 |
Equity method earnings (losses) | (15,188) | (45,489) | (192,478) |
Other gain (loss), net | 2,671 | 13,682 | 120,753 |
Loss from discontinued operations before income taxes | (318,877) | (512,597) | (811,550) |
Income tax benefit (expense) | (1,581) | 2,413 | 29,175 |
Income (Loss) from discontinued operations | (320,458) | (510,184) | (782,375) |
Income (loss) from discontinued operations attributable to DigitalBridge Group, Inc. | (55,999) | (192,219) | (229,785) |
Held for Disposition | Investment entities | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income (Loss) from discontinued operations attributable to noncontrolling interests: | (260,120) | (302,072) | (528,125) |
Held for Disposition | Operating Company | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income (Loss) from discontinued operations attributable to noncontrolling interests: | $ (4,339) | $ (15,893) | $ (24,465) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Assets and Liabilities of Discontinued Operations (Details) - Discontinued Operations - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 0 | $ 62,690 |
Restricted cash | 0 | 113,631 |
Real estate | 0 | 5,921,298 |
Investments | 1,342 | 280,019 |
Goodwill | 0 | 463,120 |
Intangible assets | 0 | 1,006,469 |
Other assets | 356 | 573,368 |
Total assets held for disposition | 1,698 | 8,420,595 |
Liabilities | ||
Debt | 0 | 4,586,765 |
Lease intangibles and other liabilities | 153 | 755,377 |
Total liabilities related to assets held for disposition | $ 153 | $ 5,342,142 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Disclosure of Long Lived Assets and Liabilities Held-for-sale (Details)(Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Fair value of net assets acquired | $ 791,254 |
TowerCo | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Real estate | 363,121 |
Intangible assets | 673,218 |
ROU and other assets | 234,462 |
Deferred tax liabilities | (243,223) |
Lease and other liabilities | $ (236,324) |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Feb. 28, 2023 | Dec. 31, 2023 | |
AMP Capital Investors International Holdings Limited | ||
Business Acquisition [Line Items] | ||
Acquisition price | $ 314.3 | |
Investment Management Contracts | ||
Business Acquisition [Line Items] | ||
Discount rate for projected net cash flow (as a percent) | 8% | |
Investor relationships | ||
Business Acquisition [Line Items] | ||
Useful life (in years) | 12 years | |
Discount rate for projected net cash flow (as a percent) | 14% | |
Minimum | Investment Management Contracts | ||
Business Acquisition [Line Items] | ||
Useful life (in years) | 1 year | |
Maximum | Investment Management Contracts | ||
Business Acquisition [Line Items] | ||
Useful life (in years) | 4 years |
Business Combinations - Schedul
Business Combinations - Schedule of Allocation of Consideration Transferred (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Dec. 31, 2023 | Mar. 30, 2023 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 465,991 | $ 298,248 | |
InfraBridge contingent consideration | |||
Business Acquisition [Line Items] | |||
Cash | 365,440 | $ 364,338 | |
Estimated fair value of contingent consideration | 10,874 | 10,874 | |
Total consideration | 376,314 | 375,212 | |
Cash | 51,174 | 51,174 | |
Principal investments | 112,310 | 130,810 | |
Intangible assets | 50,800 | 50,800 | |
Other assets | 34,699 | 27,682 | |
Deferred tax liabilities | (10,198) | (10,198) | |
Other liabilities | (30,214) | (21,625) | |
Fair value of net assets acquired | 208,571 | 228,643 | |
Goodwill | 167,743 | 146,569 | |
Business combination, recognized identifiable assets acquired, goodwill, and liabilities assumed, net | 376,314 | $ 375,212 | |
Measurement Period Adjustments, Cash consideration | 1,102 | ||
Measurement Period Adjustments, Estimated fair value of contingent consideration | 0 | ||
Measurement Period Adjustments, Total | |||
Measurement Period Adjustments, Cash | 0 | ||
Measurement Period Adjustments, Principal investments | (18,500) | ||
Measurement Period Adjustments, Intangible assets | 0 | ||
Measurement Period Adjustments, Other assets | 7,017 | ||
Measurement Period Adjustments, Deferred tax liabilities | 0 | ||
Measurement Period Adjustments, Other liabilities | (8,589) | ||
Measurement Period Adjustments, Fair value of net assets acquired | |||
Measurement Period Adjustments, Goodwill | $ 21,174 |
Investments - Schedule of Inves
Investments - Schedule of Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments and debt securities | $ 1,993,182 | $ 1,051,518 |
Other investments | 416,614 | 46,769 |
Investments | 2,476,093 | 1,237,363 |
CLO subordinated notes | ||
Schedule of Equity Method Investments [Line Items] | ||
Debt securities | 50,927 | 50,927 |
Loans Receivable | ||
Schedule of Equity Method Investments [Line Items] | ||
Debt securities | 0 | 133,307 |
Marketable equity securities | ||
Schedule of Equity Method Investments [Line Items] | ||
Marketable equity securities | 66,297 | 139,076 |
Principal investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 1,194,417 | 410,511 |
Carried interest allocation | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 676,421 | 341,749 |
Other equity investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 71,417 | 115,024 |
Investment Management | Investment Management | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | $ 726,100 | $ 393,400 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | |
Schedule of Equity Method Investments [Line Items] | |||
Distributed carried interest | $ 28,400 | $ 152,500 | |
Distributed carried interest subject to clawback | 180,900 | ||
Acquisition price totaling | $ 232,700 | ||
Warehoused loans | $ 172,500 | ||
Current And Former Employees | |||
Schedule of Equity Method Investments [Line Items] | |||
Distributed carried interest | 800 | 119,800 | |
Distributed carried interest subject to clawback | 120,600 | ||
Principal investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | 1,194,417 | 410,511 | |
Other equity investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | $ 71,417 | $ 115,024 |
Investments - Schedule of Avail
Investments - Schedule of Available-for-sale Securities (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost without Allowance for Credit Loss | $ 50,927 |
Allowance for Credit Loss | 0 |
Gross cumulative unrealized gains | 0 |
Gross cumulative unrealized losses | 0 |
Fair Value | $ 50,927 |
Investments - Schedule of Combi
Investments - Schedule of Combined Financial Information of Equity Method Investees (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity Method Investment, Summarized Financial Information [Abstract] | |||
Total assets | $ 3,562,550 | $ 11,028,503 | |
Total liabilities | 1,053,387 | 6,458,440 | |
Owners' equity | 1,811,055 | 1,660,698 | |
Income Statement [Abstract] | |||
Total revenues | 821,383 | 694,771 | $ 387,830 |
Net income (loss) | 45,165 | (569,997) | (816,911) |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | |||
Equity Method Investment, Summarized Financial Information [Abstract] | |||
Total assets | 38,062,830 | 22,507,463 | |
Total liabilities | 413,270 | 79,053 | |
Owners' equity | 37,649,560 | 22,428,410 | |
Income Statement [Abstract] | |||
Total revenues | 117,846 | 23,232 | 39,760 |
Net income (loss) | $ 2,976,972 | $ 2,150,989 | $ 771,962 |
Investments - Schedule of Debt
Investments - Schedule of Debt Securities (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Equity Method Investments and Joint Ventures [Abstract] | |
Amortized Cost without Allowance for Credit Loss | $ 50,927 |
Allowance for Credit Loss | 0 |
Gross cumulative unrealized gains | 0 |
Gross cumulative unrealized losses | 0 |
Fair Value | $ 50,927 |
Goodwill and Intangibles Asse_3
Goodwill and Intangibles Assets - Schedule of Goodwill By Reportable Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 298,248 | |
Ending balance (1) | 465,991 | $ 298,248 |
Goodwill deductible for tax purposes | 111,800 | 122,400 |
Investment Management | ||
Goodwill [Roll Forward] | ||
Beginning balance | 298,248 | 298,248 |
Business combination (Note 3) | 167,743 | 0 |
Ending balance (1) | $ 465,991 | $ 298,248 |
Goodwill and Intangibles Asse_4
Goodwill and Intangibles Assets - Schedule of Deferred Leasing Costs, Other Intangible Assets and Intangible Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Carrying Amount | $ 210,225 | $ 170,007 |
Accumulated Amortization | (106,475) | (84,309) |
Net Carrying Amount | 103,750 | 85,698 |
Investment management contracts | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Carrying Amount | 150,835 | 126,868 |
Accumulated Amortization | (84,824) | (68,739) |
Net Carrying Amount | 66,011 | 58,129 |
Investor relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Carrying Amount | 53,572 | 37,321 |
Accumulated Amortization | (19,190) | (13,693) |
Net Carrying Amount | 34,382 | 23,628 |
Trade name | Investment Management | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Carrying Amount | 4,300 | 4,300 |
Accumulated Amortization | (1,907) | (1,476) |
Net Carrying Amount | 2,393 | 2,824 |
Other | Investment Management | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Carrying Amount | 1,518 | 1,518 |
Accumulated Amortization | (554) | (401) |
Net Carrying Amount | $ 964 | $ 1,117 |
Goodwill and Intangibles Asse_5
Goodwill and Intangibles Assets - Schedule of Amortization of Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 34,568 | $ 21,579 | $ 42,047 |
Investment management contracts | Investment Management | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | 28,512 | 16,741 | 21,773 |
Investor relationships | Investment Management | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | 5,474 | 4,256 | 4,256 |
Trade name | Investment Management | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | 430 | 430 | 15,904 |
Other | Investment Management | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 152 | $ 152 | $ 114 |
Goodwill and Intangibles Asse_6
Goodwill and Intangibles Assets - Schedule of Future Amortization Expense (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Finite-Lived Intangible Assets, Net [Abstract] | |
2024 | $ 30,931 |
2025 | 25,241 |
2026 | 17,641 |
2027 | 11,987 |
2028 | 7,892 |
2029 and thereafter | 10,058 |
Total | 103,750 |
Investment management contracts | |
Finite-Lived Intangible Assets, Net [Abstract] | |
2024 | 24,739 |
2025 | 19,049 |
2026 | 11,449 |
2027 | 6,460 |
2028 | 3,480 |
2029 and thereafter | 834 |
Total | 66,011 |
Investor relationships | |
Finite-Lived Intangible Assets, Net [Abstract] | |
2024 | 5,610 |
2025 | 5,610 |
2026 | 5,610 |
2027 | 4,945 |
2028 | 3,830 |
2029 and thereafter | 8,777 |
Total | 34,382 |
Trade name | |
Finite-Lived Intangible Assets, Net [Abstract] | |
2024 | 430 |
2025 | 430 |
2026 | 430 |
2027 | 430 |
2028 | 430 |
2029 and thereafter | 243 |
Total | 2,393 |
Other | |
Finite-Lived Intangible Assets, Net [Abstract] | |
2024 | 152 |
2025 | 152 |
2026 | 152 |
2027 | 152 |
2028 | 152 |
2029 and thereafter | 204 |
Total | $ 964 |
Restricted Cash, Other Assets_3
Restricted Cash, Other Assets and Other Liabilities - Schedule of Other Assets (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Other Assets [Line Items] | ||
Prepaid taxes and deferred tax assets, net | $ 14,059,000 | $ 8,642,000 |
Derivative assets | 0 | 11,793,000 |
Receivables from resolution of investment | 662,000 | 14,923,000 |
Accounts receivable, net | 8,919,000 | 6,263,000 |
Prepaid expenses | 2,952,000 | 2,514,000 |
Other assets | 11,231,000 | 4,063,000 |
Fixed assets, net | 7,232,000 | 8,934,000 |
Total other assets | 78,953,000 | 80,821,000 |
Accumulated depreciation | 7,300,000 | 9,800,000 |
Corporate Offices | ||
Schedule of Other Assets [Line Items] | ||
Operating lease right-of-use asset | $ 33,898,000 | $ 23,689,000 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Total other assets | Total other assets |
Restricted Cash, Other Assets_4
Restricted Cash, Other Assets and Other Liabilities - Schedule of Accrued and Other Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Deferred investment management fees | $ 10,250 | $ 6,265 | |
Common and preferred stock dividends payable | 16,477 | 16,491 | $ 15,759 |
Securities sold short—consolidated funds | 38,481 | 40,928 | |
Due to custodians—consolidated funds | 9,415 | 35,457 | |
Current and deferred income tax liability | 8,403 | 42 | |
Warrants issued to Wafra (Note 9) | 39,200 | 17,700 | |
Accrued compensation | 63,761 | 46,303 | |
Accrued incentive fee and carried interest compensation | 356,316 | 171,086 | |
Accounts payable and accrued expenses | 13,844 | 25,175 | |
Other liabilities | 681,451 | 546,923 | |
Deferred investment management fees recognized | $ 3,300 | $ 3,400 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Fee income, weighted-average recognition period (in years) | 2 years 10 months 24 days | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Fee income, weighted-average recognition period (in years) | 3 years | ||
Related Party | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Other liabilities | $ 10,664 | $ 12,451 | |
Nonrelated Party | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Other liabilities | 16,974 | 5,152 | |
Corporate Offices | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Operating lease liability on corporate offices | $ 49,035 | $ 40,497 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities | |
InfraBridge contingent consideration | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Contingent consideration payable | $ 11,338 | $ 0 | |
Warrants issued to Wafra | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Contingent consideration payable | 35,000 | 125,000 | |
Corporate Debt | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Interest payable | $ 2,293 | $ 4,376 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Principal | $ 378,422 | $ 578,422 |
Premium (Discount), net | (810) | (1,293) |
Deferred Financing Cost | (5,829) | (8,217) |
Amortized Cost | 371,783 | 568,912 |
Secured Debt | ||
Debt Instrument [Line Items] | ||
Principal | 300,000 | |
Exchangeable senior notes | ||
Debt Instrument [Line Items] | ||
Principal | 78,422 | |
Carrying Value | Secured Debt | ||
Debt Instrument [Line Items] | ||
Principal | 378,422 | 578,922 |
Premium (Discount), net | (810) | (1,293) |
Deferred Financing Cost | (5,829) | (8,252) |
Amortized Cost | 371,783 | 569,377 |
Carrying Value | Exchangeable senior notes | ||
Debt Instrument [Line Items] | ||
Principal | 78,422 | 278,422 |
Premium (Discount), net | (810) | (1,293) |
Deferred Financing Cost | (96) | (388) |
Amortized Cost | 77,516 | 276,741 |
Securitized financing facility | Carrying Value | Secured Debt | ||
Debt Instrument [Line Items] | ||
Principal | 300,000 | 300,000 |
Premium (Discount), net | 0 | 0 |
Deferred Financing Cost | (5,733) | (7,829) |
Amortized Cost | 294,267 | 292,171 |
Investment-level debt | Carrying Value | Secured Debt | ||
Debt Instrument [Line Items] | ||
Principal | 0 | 500 |
Premium (Discount), net | 0 | 0 |
Deferred Financing Cost | 0 | (35) |
Amortized Cost | $ 0 | $ 465 |
Debt - Schedule of Securitized
Debt - Schedule of Securitized Financing Facility Facility (Details) | 1 Months Ended | ||
Apr. 30, 2022 USD ($) | Jul. 31, 2021 USD ($) extension | Dec. 31, 2023 USD ($) | |
Series 2021-1 Class A-2 Notes | Secured Debt | |||
Line of Credit Facility [Line Items] | |||
Secured debt | $ 300,000,000 | ||
Interest rate (as a percent) | 3.933% | ||
Principal prepayment (as a percent) | 1% | ||
VFN Notes | Secured Debt | |||
Line of Credit Facility [Line Items] | |||
Percentage of unused amount (as a percent) | 0.50% | ||
Number of extensions | extension | 2 | ||
Extension term (in years) | 1 year | ||
VFN Notes | Secured Debt | LIBOR | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate (as a percent) | 3% | ||
VFN Notes | Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum principal amount of credit facility | $ 300,000,000 | $ 300,000,000 | |
Increase in line of credit facility | $ 100,000,000 |
Debt - Schedule of Convertible
Debt - Schedule of Convertible and Exchangeable Senior Notes (Details) | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 USD ($) shares | Sep. 30, 2021 USD ($) | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Debt Instrument [Line Items] | |||||
Convertible and exchangeable senior notes, outstanding principal | $ 78,422,000 | $ 278,422,000 | |||
Exchange of notes into shares of Class A common stock | 0 | 60,317,000 | $ 161,261,000 | ||
Loss on extinguishment of debt | $ 133,200,000 | $ (54,200,000) | $ 0 | 133,173,000 | $ (29,099,000) |
Exchangeable senior notes | |||||
Debt Instrument [Line Items] | |||||
Redemption price, percentage of principal amount (as a percent) | 100% | ||||
Exchangeable senior notes | |||||
Debt Instrument [Line Items] | |||||
Exchange of notes into shares of Class A common stock | $ 1,000 | ||||
5.00% Convertible Senior Notes | Exchangeable senior notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 5% | ||||
Conversion or Exchange Price (in dollars per share) | $ / shares | $ 63.02 | ||||
Conversion or Exchange Ratio (in shares) | 15.8675 | ||||
Conversion or Exchange Shares (in shares) | shares | 3,174,000 | ||||
Convertible and exchangeable senior notes, outstanding principal | $ 0 | 200,000,000 | |||
5.75% Exchangeable Senior Notes | Exchangeable senior notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 5.75% | 5.75% | |||
Conversion or Exchange Price (in dollars per share) | $ / shares | $ 9.20 | ||||
Conversion or Exchange Ratio (in shares) | 108.6956 | ||||
Conversion or Exchange Shares (in shares) | shares | 8,524,000 | ||||
Convertible and exchangeable senior notes, outstanding principal | $ 78,422,000 | $ 78,422,000 | |||
Conversion ratio | 0.108696 | ||||
5.75% Exchangeable Senior Notes | Exchangeable senior notes | March 2022 Exchange | |||||
Debt Instrument [Line Items] | |||||
Exchange of notes into shares of Class A common stock | $ 60,300,000 | ||||
Exchange of notes for class A common stock (in shares) | shares | 6,389,366 | ||||
Repayments of convertible debt | $ 13,900,000 |
Debt - Schedule of Future Minim
Debt - Schedule of Future Minimum Principal Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
2024 | $ 0 | |
2025 | 78,422 | |
2026 | 300,000 | |
2027 | 0 | |
2028 | 0 | |
Total | 378,422 | $ 578,422 |
Securitized financing facility | ||
Debt Instrument [Line Items] | ||
2024 | 0 | |
2025 | 0 | |
2026 | 300,000 | |
2027 | 0 | |
2028 | 0 | |
Total | 300,000 | |
Exchangeable senior notes | ||
Debt Instrument [Line Items] | ||
2024 | 0 | |
2025 | 78,422 | |
2026 | 0 | |
2027 | 0 | |
2028 | 0 | |
Total | $ 78,422 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Preferred and Common Stock Outstanding (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share Activities Of Preferred And Common Stock [Roll Forward] | |||
Preferred stock, beginning balance, shares outstanding (in shares) | 33,111 | ||
Preferred stock, ending balance, shares outstanding (in shares) | 32,876 | 33,111 | |
Preferred Stock | |||
Share Activities Of Preferred And Common Stock [Roll Forward] | |||
Preferred stock, beginning balance, shares outstanding (in shares) | 33,111 | 35,340 | 41,350 |
Stock repurchase (in shares) | (235) | (2,229) | |
Preferred stock, ending balance, shares outstanding (in shares) | 32,876 | 33,111 | 35,340 |
Redemption of preferred stock (in shares) | (6,010) | ||
Class A Common Stock | |||
Share Activities Of Preferred And Common Stock [Roll Forward] | |||
Common stock, beginning balance, shares outstanding (in shares) | 159,763 | 142,144 | 120,851 |
Stock repurchase (in shares) | (4,195) | ||
Exchange of notes for class A common stock (in shares) | 6,389 | 18,341 | |
Conversion of class B to class A common stock (in shares) | 17 | ||
Shares issued pursuant to settlement liability (in shares) | 1,488 | ||
Equity awards issued, net of forfeitures (in shares) | 4,835 | 1,589 | 1,645 |
Shares canceled for tax withholding on vested equity awards (in shares) | (1,642) | (699) | (699) |
Common stock, ending balance, shares outstanding (in shares) | 163,209 | 159,763 | 142,144 |
Class A Common Stock | OP Units | |||
Share Activities Of Preferred And Common Stock [Roll Forward] | |||
Shares issued upon redemption of OP Units and redeemable noncontrolling interest (in shares) | 253 | 100 | 501 |
Class A Common Stock | Redeemable Noncontrolling Interests | |||
Share Activities Of Preferred And Common Stock [Roll Forward] | |||
Shares issued upon redemption of OP Units and redeemable noncontrolling interest (in shares) | 14,435 | ||
Class B Common Stock | |||
Share Activities Of Preferred And Common Stock [Roll Forward] | |||
Common stock, beginning balance, shares outstanding (in shares) | 166 | 166 | 183 |
Conversion of class B to class A common stock (in shares) | (17) | ||
Common stock, ending balance, shares outstanding (in shares) | 166 | 166 | 166 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Preferred Stock (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2021 | Dec. 31, 2022 | |
Class of Stock [Line Items] | |||
Shares Outstanding (in shares) | 32,876 | 33,111 | |
Par Value | $ 329 | ||
Liquidation Preference | $ 821,899 | $ 827,779 | |
Series H | |||
Class of Stock [Line Items] | |||
Dividend Rate Per Annum | 7.125% | 7.125% | |
Shares Outstanding (in shares) | 8,395 | ||
Par Value | $ 84 | ||
Liquidation Preference | $ 209,870 | ||
Series I | |||
Class of Stock [Line Items] | |||
Dividend Rate Per Annum | 7.15% | ||
Shares Outstanding (in shares) | 12,867 | ||
Par Value | $ 129 | ||
Liquidation Preference | $ 321,668 | ||
Series J | |||
Class of Stock [Line Items] | |||
Dividend Rate Per Annum | 7.125% | ||
Shares Outstanding (in shares) | 11,614 | ||
Par Value | $ 116 | ||
Liquidation Preference | $ 290,361 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
May 31, 2023 USD ($) $ / shares shares | Aug. 31, 2022 $ / shares | Apr. 30, 2015 | Sep. 30, 2022 $ / shares | Dec. 31, 2023 USD ($) votingRightPerShare director quarter $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Jun. 30, 2023 USD ($) | May 01, 2023 $ / shares | Aug. 01, 2022 $ / shares | |
Class of Stock [Line Items] | ||||||||||
Redemption amount per share (in dollars per share) | $ / shares | $ 25 | |||||||||
Minimum period of dividend defaults providing preferred stockholders to voting rights | quarter | 6 | |||||||||
Number of directors vote entitles | director | 2 | |||||||||
Change in common stock par value (Note 8) | $ 0 | |||||||||
Stock repurchase, authorized amount | $ 200,000,000 | |||||||||
Minimum affirmative vote required for changes to any series of preferred stock | 66.67% | |||||||||
Dividends declared per common share (in dollars per share) | $ / shares | $ 0.01 | $ 0.04 | $ 0.02 | $ 0 | ||||||
Reverse stock split conversion ratio | 0.25 | |||||||||
Redemption of preferred stock | $ 4,758,000 | $ 52,779,000 | $ 150,250,000 | |||||||
Additional Paid-in Capital | ||||||||||
Class of Stock [Line Items] | ||||||||||
Change in common stock par value (Note 8) | $ 4,900,000 | (4,862,000) | ||||||||
Common Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Change in common stock par value (Note 8) | $ (4,900,000) | $ 4,862,000 | ||||||||
Treasury Stock, Preferred | ||||||||||
Class of Stock [Line Items] | ||||||||||
Shares repurchased (in shares) | shares | 235,223 | 2,228,805 | ||||||||
Value of shares repurchased | $ 4,700,000 | $ 52,600,000 | ||||||||
Weighted average price per share (in dollars per share) | $ / shares | $ 20.18 | $ 23.62 | ||||||||
Class A Common Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Voting rights attributable to each share | votingRightPerShare | 1 | |||||||||
Common stock conversion ratio for Class A to Class B / OP units | 1 | |||||||||
Class A common stock acquired under the DRIP Plan (in shares) | shares | 0 | 0 | 0 | |||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.04 | $ 0.01 | $ 0.04 | $ 0.04 | $ 0.01 | ||||
Common stock, shares authorized (in shares) | shares | 237,250,000 | 237,250,000 | 237,250,000 | |||||||
Class A Common Stock | Treasury Stock, Common | ||||||||||
Class of Stock [Line Items] | ||||||||||
Shares repurchased (in shares) | shares | 4,195,020 | |||||||||
Value of shares repurchased | $ 54,900,000 | |||||||||
Weighted average price per share (in dollars per share) | $ / shares | $ 13.09 | |||||||||
Class B Common Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Voting rights attributable to each share | votingRightPerShare | 36.5 | |||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.04 | $ 0.01 | $ 0.04 | $ 0.04 | $ 0.01 | ||||
Common stock, shares authorized (in shares) | shares | 250,000 | 250,000 | 250,000 | |||||||
Series H | ||||||||||
Class of Stock [Line Items] | ||||||||||
Dividend rate per annum (as a percent) | 7.125% | 7.125% | ||||||||
Redemption of preferred stock | $ 64,400,000 | |||||||||
Redemption of preferred stock (in shares) | shares | 2,560,000 | |||||||||
Series G Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Redemption amount per share (in dollars per share) | $ / shares | $ 25 | |||||||||
Dividend rate per annum (as a percent) | 7.50% | |||||||||
Redemption of preferred stock | $ 86,800,000 |
Stockholders' Equity - Schedu_3
Stockholders' Equity - Schedule of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | $ 4,469,489 | $ 4,912,390 | $ 6,984,590 |
Deconsolidation of investment entities and DataBank | (2,136,854) | (376,177) | (1,079,660) |
Ending balance | 2,491,301 | 4,469,489 | 4,912,390 |
AOCI - Stockholders | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (1,509) | 42,383 | 122,123 |
Other comprehensive income (loss) before reclassifications | 2,905 | (4,956) | (45,867) |
Amounts reclassified from AOCI | (950) | (38,936) | (32,391) |
Deconsolidation of investment entities and DataBank | 965 | (1,482) | |
Ending balance | 1,411 | (1,509) | 42,383 |
Company's Share in AOCI of Equity Method Investments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (295) | 2,334 | 17,718 |
Other comprehensive income (loss) before reclassifications | (1) | (2,429) | (12,386) |
Amounts reclassified from AOCI | 296 | (200) | (2,998) |
Deconsolidation of investment entities and DataBank | 0 | 0 | |
Ending balance | 0 | (295) | 2,334 |
Unrealized Gain (Loss) on AFS Debt Securities | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 0 | 5,861 | 6,072 |
Other comprehensive income (loss) before reclassifications | 0 | 0 | (211) |
Amounts reclassified from AOCI | 0 | (5,861) | 0 |
Deconsolidation of investment entities and DataBank | 0 | 0 | |
Ending balance | 0 | 0 | 5,861 |
Unrealized Gain (Loss) on Cash Flow Hedges | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 0 | 0 | (233) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 |
Amounts reclassified from AOCI | 0 | 0 | 233 |
Deconsolidation of investment entities and DataBank | 0 | 0 | |
Ending balance | 0 | 0 | 0 |
Foreign Currency Translation Gain (Loss) | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (1,214) | 26,502 | 52,832 |
Other comprehensive income (loss) before reclassifications | 2,906 | (10,923) | (35,001) |
Amounts reclassified from AOCI | (1,246) | (16,793) | 10,153 |
Deconsolidation of investment entities and DataBank | 965 | (1,482) | |
Ending balance | 1,411 | (1,214) | 26,502 |
Unrealized Gain (Loss) on Net Investment Hedges | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 0 | 7,686 | 45,734 |
Other comprehensive income (loss) before reclassifications | 0 | 8,396 | 1,731 |
Amounts reclassified from AOCI | 0 | (16,082) | (39,779) |
Deconsolidation of investment entities and DataBank | 0 | 0 | |
Ending balance | 0 | 0 | 7,686 |
AOCI - Noncontrolling Interests In Investment Entities | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (3,015) | 11,057 | 97,914 |
Other comprehensive income (loss) before reclassifications | 884 | (4,571) | (65,127) |
Amounts reclassified from AOCI | (468) | (9,501) | (15,433) |
Deconsolidation of investment entities and DataBank | 2,550 | (6,297) | |
Ending balance | (49) | (3,015) | 11,057 |
Unrealized Gain (Loss) on Cash Flow Hedges | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 0 | 0 | (1,030) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 |
Amounts reclassified from AOCI | 0 | 0 | 1,030 |
Deconsolidation of investment entities and DataBank | 0 | 0 | |
Ending balance | 0 | 0 | 0 |
Foreign Currency Translation Gain (Loss) | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (3,015) | 11,057 | 83,845 |
Other comprehensive income (loss) before reclassifications | 884 | (4,571) | (65,127) |
Amounts reclassified from AOCI | (468) | (9,501) | (1,364) |
Deconsolidation of investment entities and DataBank | 2,550 | (6,297) | |
Ending balance | (49) | (3,015) | 11,057 |
Unrealized Gain (Loss) on Net Investment Hedges | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 0 | 0 | 15,099 |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 |
Amounts reclassified from AOCI | 0 | 0 | (15,099) |
Deconsolidation of investment entities and DataBank | 0 | 0 | |
Ending balance | $ 0 | $ 0 | $ 0 |
Stockholders' Equity - Schedu_4
Stockholders' Equity - Schedule of Reclassification Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other loss, net | $ 96,119 | $ (169,747) | $ (20,119) |
Release of AOCI of equity method investments | 145,448 | 56,731 | 86,023 |
Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Release of AOCI of equity method investments | (296) | 200 | 2,998 |
Reclassification out of Accumulated Other Comprehensive Income | Relief of basis of AFS debt securities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other loss, net | 0 | 5,861 | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Release of foreign currency cumulative translation adjustments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other loss, net | 1,246 | 16,793 | (10,153) |
Reclassification out of Accumulated Other Comprehensive Income | Realized gain on net investment hedges | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other loss, net | 0 | 16,082 | 39,779 |
Reclassification out of Accumulated Other Comprehensive Income | Deconsolidation of investment entities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other loss, net | (965) | 0 | 1,482 |
Reclassification out of Accumulated Other Comprehensive Income | Realized loss on cash flow hedges | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other loss, net | $ 0 | $ 0 | $ (233) |
Noncontrolling Interests - Sche
Noncontrolling Interests - Schedule of Changes in Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |||
Beginning balance | $ 100,574 | $ 359,223 | $ 305,278 |
Distributions paid and payable, including redemptions by limited partners in consolidated funds | (105,178) | (1,677,551) | (222,519) |
Adjustment of Wafra's interest to redemption value and warrants held by Wafra to fair value | 0 | 725,026 | 0 |
Redemption of Wafra's interest | 32,076 | ||
Reclassification of warrants held by Wafra to liability in May 2022 (Note 6) | 0 | (81,400) | 0 |
Reclassification of Wafra's carried interest allocation to noncontrolling interests in investment entities in May 2022 | 0 | (4,087) | 0 |
Ending balance | 17,862 | 100,574 | 359,223 |
Redeemable Noncontrolling Interests | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||
Contributions | 300 | 11,650 | 42,514 |
Distributions paid and payable, including redemptions by limited partners in consolidated funds | (89,515) | (20,784) | (23,246) |
Net income (loss) | 6,503 | (26,778) | 34,677 |
Redemption of Wafra's interest | $ 0 | $ (862,276) | $ 0 |
Noncontrolling Interests - Narr
Noncontrolling Interests - Narrative (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2023 USD ($) | May 23, 2022 USD ($) shares | May 22, 2022 | Mar. 31, 2022 USD ($) | Sep. 30, 2023 USD ($) | May 31, 2022 USD ($) | Jul. 31, 2020 USD ($) security | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) | Dec. 30, 2023 | Sep. 14, 2023 | Mar. 31, 2023 USD ($) | Jun. 30, 2022 | |
Noncontrolling Interest [Line Items] | |||||||||||||||
Payments to acquire noncontrolling interest | $ 0 | $ 32,076 | $ 0 | ||||||||||||
Assumption of deferred tax asset resulting from redemption of redeemable noncontrolling interest | $ 5,200 | 5,200 | |||||||||||||
DataBank recapitalization (Note 9) | 18,210 | 0 | |||||||||||||
Distributed carried interest | 28,400 | 152,500 | |||||||||||||
Other loss, net | $ 96,119 | (169,747) | $ (20,119) | ||||||||||||
OP units to common stock, conversion ratio | 1 | ||||||||||||||
Vantage Data Center Holdings, LLC's | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Asset acquisition, contingent consideration | $ 122,000 | ||||||||||||||
Accelerated settlement | $ 36,000 | ||||||||||||||
Reallocation of equity, percentage | 150% | 150% | |||||||||||||
Additional Paid-in Capital | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Assumption of deferred tax asset resulting from redemption of redeemable noncontrolling interest | 5,200 | ||||||||||||||
DataBank recapitalization (Note 9) | $ 230,200 | $ (14,791) | 230,238 | ||||||||||||
Investment entities | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
DataBank recapitalization (Note 9) | $ (230,200) | 33,001 | $ (230,238) | ||||||||||||
DataBank | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Assets acquisition, balance sheet investment, equity interest (as a percent) | 11% | 11% | 21.80% | ||||||||||||
Ownership (as a percent) | 9.87% | 11% | |||||||||||||
Equity-based compensation | 434,500 | ||||||||||||||
Distributed carried interest | $ 27,900 | ||||||||||||||
Proceeds from sale of equity interest | 3,700 | ||||||||||||||
Gain related to remeasurement | 275,000 | ||||||||||||||
Other loss, net | $ 278,700 | ||||||||||||||
DataBank | Operating | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Ownership (as a percent) | 9.50% | 9.50% | |||||||||||||
DataBank | Parent | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Proceeds from sale of investment | $ 49,400 | $ 425,500 | |||||||||||||
DataBank | Parent | Current And Former Employees | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Proceeds from sale of investment | $ 20,100 | ||||||||||||||
DataBank and Vantage SDC | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Derecognized assets | $ 8,550,000 | $ 8,550,000 | |||||||||||||
Derecognized liabilities | 5,940,000 | 5,940,000 | |||||||||||||
Derecognized noncontrolling interests in investment entities | $ 2,060,000 | $ 2,060,000 | |||||||||||||
Vantage SDC | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Ownership (as a percent) | 38.30% | 38.30% | |||||||||||||
Vantage SDC | Parent | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Ownership (as a percent) | 12.80% | 12.80% | 13.10% | ||||||||||||
Vantage Data Center Holdings, LLC's | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Fair value, liability | $ 393,800 | $ 393,800 | |||||||||||||
OP Units | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
OP units to common stock, conversion ratio | 1 | ||||||||||||||
OP units redeemed (in shares) | shares | 253,084 | 100,220 | |||||||||||||
Common Stock Warrants | Class A Common Stock | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Number of warrants issued | security | 5 | ||||||||||||||
Aggregate percentage of common stock (as a percent) | 5% | ||||||||||||||
Maximum | Common Stock Warrants | Class A Common Stock | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Aggregate percentage of common stock (as a percent) | 9.80% | ||||||||||||||
Warrants issued to Wafra | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Carried interest (as a percent) | 7% | 12.60% | |||||||||||||
Payments to acquire noncontrolling interest | $ 388,500 | ||||||||||||||
Shares issued to acquire noncontrolling interest (in shares) | shares | 14,435,399 | ||||||||||||||
Payments to noncontrolling interests | $ 348,800 | ||||||||||||||
Percentage of shares payable (as a percent) | 50% | ||||||||||||||
Payable to wafra | $ 90,000 | ||||||||||||||
Warrants issued to Wafra | Maximum | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Contingent consideration | $ 125,000 | $ 125,000 | |||||||||||||
Fee earning equity | $ 6,000,000 | ||||||||||||||
Warrants issued to Wafra | Partnership | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Participation in net management fees and carried interest (as a percent) | 31.50% | ||||||||||||||
Warrants issued to Wafra | Partnership | Commitments to DCP I | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Other commitments | $ 124,900 | ||||||||||||||
Warrants issued to Wafra | Partnership | Commitments to DCP II | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Other commitments | $ 125,000 | ||||||||||||||
Limited Partners of Consolidated Funds | Vantage SDC | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Ownership (as a percent) | 25.60% | 25.60% |
Fair Value - Schedule of Quanti
Fair Value - Schedule of Quantitative Level 3 Recurring Fair Values (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Equity Method Investments [Line Items] | ||
Other liabilities, fair value | $ 124,019 | $ 183,628 |
Recurring | Loans Receivable | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments, fair value disclosure | 133,307 | |
Recurring | Other assets—derivative assets | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments, fair value disclosure | 11,793 | |
Level 1 | Recurring | Loans Receivable | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments, fair value disclosure | 0 | |
Level 1 | Recurring | Other assets—derivative assets | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments, fair value disclosure | 0 | |
Level 2 | Recurring | Loans Receivable | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments, fair value disclosure | 0 | |
Level 2 | Recurring | Other assets—derivative assets | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments, fair value disclosure | 11,793 | |
Level 3 | Recurring | Loans Receivable | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments, fair value disclosure | 133,307 | |
Level 3 | Recurring | Other assets—derivative assets | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments, fair value disclosure | 0 | |
Other equity investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 71,417 | 115,024 |
Other equity investments | Recurring | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments, fair value disclosure | 17,487 | 16,790 |
Other equity investments | Level 1 | Recurring | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments, fair value disclosure | 17,487 | 16,790 |
Other equity investments | Level 2 | Recurring | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments, fair value disclosure | 0 | 0 |
Other equity investments | Level 3 | Recurring | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments, fair value disclosure | 0 | 0 |
CLO subordinated notes | Recurring | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments, fair value disclosure | 50,927 | 50,927 |
CLO subordinated notes | Level 1 | Recurring | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments, fair value disclosure | 0 | 0 |
CLO subordinated notes | Level 2 | Recurring | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments, fair value disclosure | 0 | 0 |
CLO subordinated notes | Level 3 | Recurring | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments, fair value disclosure | 50,927 | 50,927 |
Equity investments of consolidated funds | Recurring | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments, fair value disclosure | 482,911 | 185,845 |
Equity investments of consolidated funds | Level 1 | Recurring | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments, fair value disclosure | 66,297 | 139,075 |
Equity investments of consolidated funds | Level 2 | Recurring | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments, fair value disclosure | 0 | 0 |
Equity investments of consolidated funds | Level 3 | Recurring | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments, fair value disclosure | 416,614 | 46,770 |
InfraBridge contingent consideration | Recurring | ||
Schedule of Equity Method Investments [Line Items] | ||
Other liabilities, fair value | 11,338 | |
InfraBridge contingent consideration | Level 1 | Recurring | ||
Schedule of Equity Method Investments [Line Items] | ||
Other liabilities, fair value | 0 | |
InfraBridge contingent consideration | Level 2 | Recurring | ||
Schedule of Equity Method Investments [Line Items] | ||
Other liabilities, fair value | 0 | |
InfraBridge contingent consideration | Level 3 | Recurring | ||
Schedule of Equity Method Investments [Line Items] | ||
Other liabilities, fair value | 11,338 | |
Warrants Issued To Wafra | Recurring | ||
Schedule of Equity Method Investments [Line Items] | ||
Other liabilities, fair value | 39,200 | 17,700 |
Warrants Issued To Wafra | Level 1 | Recurring | ||
Schedule of Equity Method Investments [Line Items] | ||
Other liabilities, fair value | 0 | 0 |
Warrants Issued To Wafra | Level 2 | Recurring | ||
Schedule of Equity Method Investments [Line Items] | ||
Other liabilities, fair value | 0 | 0 |
Warrants Issued To Wafra | Level 3 | Recurring | ||
Schedule of Equity Method Investments [Line Items] | ||
Other liabilities, fair value | 39,200 | 17,700 |
Securities of consolidated funds sold short | Recurring | ||
Schedule of Equity Method Investments [Line Items] | ||
Other liabilities, fair value | 38,481 | 40,928 |
Securities of consolidated funds sold short | Level 1 | Recurring | ||
Schedule of Equity Method Investments [Line Items] | ||
Other liabilities, fair value | 38,481 | 40,928 |
Securities of consolidated funds sold short | Level 2 | Recurring | ||
Schedule of Equity Method Investments [Line Items] | ||
Other liabilities, fair value | 0 | 0 |
Securities of consolidated funds sold short | Level 3 | Recurring | ||
Schedule of Equity Method Investments [Line Items] | ||
Other liabilities, fair value | 0 | $ 0 |
Fair Value Investment Option | Recurring | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 6,700 | |
Fair Value Investment Option | Level 1 | Recurring | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 0 | |
Fair Value Investment Option | Level 2 | Recurring | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 0 | |
Fair Value Investment Option | Level 3 | Recurring | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | $ 6,700 |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2020 security $ / shares shares | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets | $ 0 | $ 11,793,000 | ||
Warrants issued to Wafra (Note 9) | $ 39,200,000 | 17,700,000 | ||
Discount rate (as a percent) | 4.90% | |||
InfraBridge contingent consideration | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration payable | $ 11,338,000 | $ 0 | ||
Measurement Input, Price Volatility | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Warrants and rights outstanding, measurement input (as a percent) | 0.378 | 0.408 | ||
Measurement Input, Risk Free Interest Rate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Warrants and rights outstanding, measurement input (as a percent) | 0.0411 | 0.0416 | ||
Common Stock Warrants | Class A Common Stock | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Number of warrants issued | security | 5 | |||
Number of shares called by each warrant (in shares) | shares | 1,338,000 | |||
Common Stock Warrants | Class A Common Stock | Minimum | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Strike price (in dollars per share) | $ / shares | $ 9.72 | |||
Common Stock Warrants | Class A Common Stock | Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Strike price (in dollars per share) | $ / shares | $ 24 | |||
Foreign Exchange Contract | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Notional amount | $ 321,100,000 | |||
Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Outstanding balance | 162,000,000 | |||
Equity method investment | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Discount rate for projected net cash flow (as a percent) | 18.30% | |||
Marketable equity securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Marketable equity securities | $ 66,297,000 | 139,076,000 | ||
Loans Receivable | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, fair value disclosure | 133,307,000 | |||
Level 1 | Loans Receivable | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, fair value disclosure | 0 | |||
Level 3 | Leased Building | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Terminal capitalization rate (as a percent) | 5.50% | |||
Discount rate for projected net cash flow (as a percent) | 10.40% | |||
Level 3 | Equity Investment of Consolidated Fund | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity investment | $ 416,614,000 | 46,770,000 | $ 0 | |
Level 3 | Loans Receivable | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity investment | 0 | 133,307,000 | $ 78,607,000 | |
Level 3 | Loans Receivable | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, fair value disclosure | 133,307,000 | |||
Fair Value Measured at Net Asset Value Per Share | Recurring | Retail Companies, Real Estate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Alternative investment | $ 14,700,000 | $ 34,500,000 |
Fair Value - Schedule of Realiz
Fair Value - Schedule of Realized and Unrealized Gain (Loss) on Derivatives not Designated as Hedges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Foreign Exchange Contract | Net Investment Hedging | Not Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized and unrealized gain (loss) in earnings | $ 4,053 | $ 17,092 | $ 889 |
Foreign Exchange Contract | Net Investment Hedging | Designated as Hedging Instrument | Income (loss) from discontinued operations | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized gain (loss) transferred from AOCI to earnings | 0 | 17,334 | 58,727 |
Interest Rate Contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized gain (loss) transferred from AOCI to earnings | 0 | 0 | (1,328) |
Realized and unrealized gain (loss) in earnings | 0 | 11,533 | (213) |
Interest Rate Contract | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized gain (loss) transferred from AOCI to earnings | $ 0 | $ 0 | $ 20 |
Fair Value - Schedule of Change
Fair Value - Schedule of Changes in Level 3 Fair Value (Details) - Level 3 - Recurring - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Warrants | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 17,700 | $ 0 |
Purchases, originations, drawdowns and contributions | 0 | 0 |
Transfer out of equity to liability | 81,400 | |
Change in accrued interest and capitalization of paid-in-kind interest | 0 | |
Paydowns | 0 | 0 |
Transfer of warehoused loans to sponsored fund | 0 | |
Consolidation of sponsored funds | 0 | 0 |
Business combination | 0 | |
Change in consolidated fund's share of equity investment | 0 | |
Unrealized gain (loss) in earnings, net | 21,500 | (63,700) |
Deconsolidation of sponsored fund | 0 | |
Ending balance | 39,200 | 17,700 |
Net unrealized gains (losses) in earnings on instruments held, liability | 21,500 | (63,700) |
InfraBridge contingent consideration | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 0 | 0 |
Purchases, originations, drawdowns and contributions | 0 | 0 |
Transfer out of equity to liability | 0 | |
Change in accrued interest and capitalization of paid-in-kind interest | 0 | |
Paydowns | 0 | 0 |
Transfer of warehoused loans to sponsored fund | 0 | |
Consolidation of sponsored funds | 0 | 0 |
Business combination | 10,874 | |
Change in consolidated fund's share of equity investment | 0 | |
Unrealized gain (loss) in earnings, net | 464 | 0 |
Deconsolidation of sponsored fund | 0 | |
Ending balance | 11,338 | 0 |
Net unrealized gains (losses) in earnings on instruments held, liability | 464 | 0 |
AFS Debt Securities | ||
Level 3 Assets | ||
Beginnning balance | 50,927 | 0 |
Purchases, originations, drawdowns and contributions | 0 | 50,927 |
Transfer out of equity to liability | 0 | |
Change in accrued interest and capitalization of paid-in-kind interest | 0 | |
Paydowns | 0 | 0 |
Transfer of warehoused loans to sponsored fund | 0 | |
Consolidation of sponsored fund | 0 | 0 |
Business combination | 0 | |
Change in consolidated fund's share of equity investment | 0 | |
Unrealized gain (loss) in earnings, net | 0 | 0 |
Deconsolidation of sponsored fund | 0 | |
Ending balance | 50,927 | 50,927 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Net unrealized gains (losses) in earnings on instruments held, asset | 0 | 0 |
Loans Receivable | ||
Level 3 Assets | ||
Beginnning balance | 133,307 | 78,607 |
Purchases, originations, drawdowns and contributions | 0 | 370,496 |
Transfer out of equity to liability | 0 | |
Change in accrued interest and capitalization of paid-in-kind interest | 5,814 | |
Paydowns | 0 | (159,501) |
Transfer of warehoused loans to sponsored fund | (123,312) | |
Consolidation of sponsored fund | 0 | 0 |
Business combination | 0 | |
Change in consolidated fund's share of equity investment | 0 | |
Unrealized gain (loss) in earnings, net | (133,307) | (38,797) |
Deconsolidation of sponsored fund | 0 | |
Ending balance | 0 | 133,307 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Net unrealized gains (losses) in earnings on instruments held, asset | (133,307) | (28,706) |
Equity Method Investments | ||
Level 3 Assets | ||
Beginnning balance | 0 | 0 |
Purchases, originations, drawdowns and contributions | 20,000 | 0 |
Transfer out of equity to liability | 0 | |
Change in accrued interest and capitalization of paid-in-kind interest | 0 | |
Paydowns | 0 | 0 |
Transfer of warehoused loans to sponsored fund | 0 | |
Consolidation of sponsored fund | 0 | 0 |
Business combination | 0 | |
Change in consolidated fund's share of equity investment | 0 | |
Unrealized gain (loss) in earnings, net | (13,300) | 0 |
Deconsolidation of sponsored fund | 0 | |
Ending balance | 6,700 | 0 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Net unrealized gains (losses) in earnings on instruments held, asset | (13,300) | 0 |
Equity Investment of Consolidated Fund | ||
Level 3 Assets | ||
Beginnning balance | 46,770 | 0 |
Purchases, originations, drawdowns and contributions | 85,486 | 35,566 |
Transfer out of equity to liability | 0 | |
Change in accrued interest and capitalization of paid-in-kind interest | 0 | |
Paydowns | (8,109) | 0 |
Transfer of warehoused loans to sponsored fund | 0 | |
Consolidation of sponsored fund | 393,614 | 10,536 |
Business combination | 0 | |
Change in consolidated fund's share of equity investment | 1,842 | |
Unrealized gain (loss) in earnings, net | 2,216 | 668 |
Deconsolidation of sponsored fund | (105,205) | |
Ending balance | 416,614 | 46,770 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Net unrealized gains (losses) in earnings on instruments held, asset | $ 0 | $ 668 |
Fair Value - Schedule of Estima
Fair Value - Schedule of Estimated Fair Values and Carrying Values of Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Secured Debt | Fair Value | ||
Liabilities | ||
Secured and unsecured debt | $ 465 | |
Secured Debt | Carrying Value | ||
Liabilities | ||
Secured and unsecured debt | 465 | |
Exchangeable senior notes | Fair Value | ||
Liabilities | ||
Secured and unsecured debt | $ 152,296 | 304,513 |
Exchangeable senior notes | Carrying Value | ||
Liabilities | ||
Secured and unsecured debt | 77,516 | 276,741 |
Level 1 | Secured Debt | ||
Liabilities | ||
Secured and unsecured debt | 0 | |
Level 1 | Exchangeable senior notes | ||
Liabilities | ||
Secured and unsecured debt | 0 | |
Level 2 | Secured Debt | ||
Liabilities | ||
Secured and unsecured debt | 0 | |
Level 2 | Exchangeable senior notes | ||
Liabilities | ||
Secured and unsecured debt | 152,296 | 304,513 |
Level 3 | Secured Debt | ||
Liabilities | ||
Secured and unsecured debt | 465 | |
Level 3 | Exchangeable senior notes | ||
Liabilities | ||
Secured and unsecured debt | 0 | 0 |
Securitized financing facility | Secured Debt | Fair Value | ||
Liabilities | ||
Secured and unsecured debt | 250,547 | 250,547 |
Securitized financing facility | Secured Debt | Carrying Value | ||
Liabilities | ||
Secured and unsecured debt | 294,267 | 292,171 |
Securitized financing facility | Level 1 | Secured Debt | ||
Liabilities | ||
Secured and unsecured debt | 0 | 0 |
Securitized financing facility | Level 2 | Secured Debt | ||
Liabilities | ||
Secured and unsecured debt | 250,547 | 250,547 |
Securitized financing facility | Level 3 | Secured Debt | ||
Liabilities | ||
Secured and unsecured debt | $ 0 | $ 0 |
Earnings per Share (Details)
Earnings per Share (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | |
Net income (loss) allocated to common stockholders | |||
Income (loss) from continuing operations attributable to DigitalBridge Group, Inc. | $ 241,279 | $ (129,578) | $ (80,312) |
Income (Loss) from discontinued operations attributable to DigitalBridge Group, Inc. | (55,999) | (192,219) | (229,785) |
Net income (loss) attributable to DigitalBridge Group, Inc. | 185,280 | (321,797) | (310,097) |
Preferred stock repurchases/redemptions (Note 8) | 927 | 1,098 | (4,992) |
Preferred dividends | (58,656) | (61,567) | (70,627) |
Net income (loss) attributable to common stockholders | 127,551 | (382,266) | (385,716) |
Net income (loss) allocated to participating securities | (2,179) | (34) | 0 |
Net income (loss) allocated to common stockholders—basic | 125,372 | (382,300) | (385,716) |
Interest on Convertible and Exchangeable Debt, Net of Tax | 5,050 | 0 | 0 |
Net income (loss) allocated to common stockholders—diluted | $ 130,422 | $ (382,300) | $ (385,716) |
Weighted average common shares outstanding | |||
Weighted average number of common shares outstanding - basic (in shares) | shares | 159,868,000 | 154,495,000 | 122,864,000 |
Weighted average effect of dilutive shares (in shares) | shares | 9,852,000 | 0 | 0 |
Weighted average number of common shares outstanding - diluted (in shares) | shares | 169,720,000 | 154,495,000 | 122,864,000 |
Income (loss) per share—basic | |||
Income (Loss) from continuing operations (in dollars per share) | $ / shares | $ 1.13 | $ (1.23) | $ (1.27) |
Income (Loss) from discontinued operations (in dollars per share) | $ / shares | (0.35) | (1.24) | (1.87) |
Net income (loss) loss attributable to common stockholders per common share - basic (in dollars per share) | $ / shares | 0.78 | (2.47) | (3.14) |
Income (loss) per share—diluted | |||
Income (Loss) from continuing operations (in dollars per share) | $ / shares | 1.10 | (1.23) | (1.27) |
Income (Loss) from discontinued operations (in dollars per share) | $ / shares | (0.33) | (1.24) | (1.87) |
Net income (loss) attributable to common stockholders per common share - diluted (in dollars per share) | $ / shares | $ 0.77 | $ (2.47) | $ (3.14) |
Conversion ratio | 1 | ||
Convertible Debt Securities | |||
Income (loss) per share—diluted | |||
Interest expense on convertible note excluded from diluted EPS | $ 3,100 | $ 16,600 | $ 54,700 |
Weighted average dilutive common share (in shares) | shares | 912,900 | 12,901,700 | 33,849,100 |
Debt extinguishment loss excluded from diluted EPS | $ 133,200 | ||
Performance Shares | |||
Income (loss) per share—diluted | |||
Weighted average dilutive common share (in shares) | shares | 1,298,900 | 2,712,700 | |
Common Stock Warrants | |||
Income (loss) per share—diluted | |||
Weighted average dilutive common share (in shares) | shares | 667,400 | 1,742,800 | 2,659,400 |
OP Units | |||
Income (loss) per share—diluted | |||
Weighted average dilutive common share (in shares) | shares | 12,375,800 | 12,628,900 | 12,613,800 |
Fee Revenue - Schedule of Fee R
Fee Revenue - Schedule of Fee Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Revenues | $ 264,117 | $ 172,673 | $ 180,826 |
Management fees | |||
Related Party Transaction [Line Items] | |||
Revenues | 258,288 | 169,922 | 168,618 |
Incentive fees | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Revenues | 3,229 | 0 | 7,174 |
Other fees | |||
Related Party Transaction [Line Items] | |||
Revenues | 2,600 | 2,751 | 5,034 |
Total fee revenue | |||
Related Party Transaction [Line Items] | |||
Revenues | 264,117 | 172,673 | 180,826 |
Total fee revenue | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Revenues | $ 254,429 | $ 167,733 | $ 170,929 |
Fee Revenue - Narrative (Detail
Fee Revenue - Narrative (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer Benchmark | Revenue from Rights Concentration Risk | Revenue Concentration One | |
Management Fee Income [Line Items] | |
Concentration (as a percent) | 24% |
Revenue from Contract with Customer Benchmark | Revenue from Rights Concentration Risk | Revenue Concentration Two | |
Management Fee Income [Line Items] | |
Concentration (as a percent) | 20% |
Revenue from Contract with Customer Benchmark | Revenue from Rights Concentration Risk | Revenue Concentration Three | |
Management Fee Income [Line Items] | |
Concentration (as a percent) | 15% |
Private Funds | Base Management Fees | Minimum | Fee revenue | |
Management Fee Income [Line Items] | |
Management fee revenue, percent of total commitments during commitment period and thereafter invested capital (as a percent) | 0.64% |
Private Funds | Base Management Fees | Maximum | Fee revenue | |
Management Fee Income [Line Items] | |
Management fee revenue, percent of total commitments during commitment period and thereafter invested capital (as a percent) | 1.60% |
NAV Write-Downs | Base Management Fees | Minimum | Fee revenue | |
Management Fee Income [Line Items] | |
Management fee revenue, percent of total commitments during commitment period and thereafter invested capital (as a percent) | 0.25% |
NAV Write-Downs | Base Management Fees | Maximum | Fee revenue | |
Management Fee Income [Line Items] | |
Management fee revenue, percent of total commitments during commitment period and thereafter invested capital (as a percent) | 1.10% |
Credit and Co-Investment Vehicles | Base Management Fees | Minimum | Fee revenue | |
Management Fee Income [Line Items] | |
Management fee revenue, percent of total commitments during commitment period and thereafter invested capital (as a percent) | 0.30% |
Credit and Co-Investment Vehicles | Base Management Fees | Maximum | Fee revenue | |
Management Fee Income [Line Items] | |
Management fee revenue, percent of total commitments during commitment period and thereafter invested capital (as a percent) | 1.25% |
Infrabridge Vehicles | Base Management Fees | Minimum | Fee revenue | |
Management Fee Income [Line Items] | |
Management fee revenue, percent of total commitments during commitment period and thereafter invested capital (as a percent) | 0.15% |
Infrabridge Vehicles | Base Management Fees | Maximum | Fee revenue | |
Management Fee Income [Line Items] | |
Management fee revenue, percent of total commitments during commitment period and thereafter invested capital (as a percent) | 2% |
Equity-Based Compensation - Nar
Equity-Based Compensation - Narrative (Details) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Conversion of units, conversion ratio (LTIP to common OP Unit) | 1 | ||
Fair value of shares vested | $ 50.3 | $ 53.9 | $ 68.3 |
Aggregate unrecognized compensation cost related to restricted stock granted | $ 36 | ||
Weighted average period of expected cost (in years) | 1 year 9 months 18 days | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 3 years | ||
PSUs | Class A Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Measurement period (in years) | 3 years | ||
PSUs | Minimum | Class A Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued, percent of PSU granted (as a percent) | 0% | ||
PSUs | Maximum | Class A Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued, percent of PSU granted (as a percent) | 200% | ||
DSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 1 year | ||
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash settlement paid | $ 3.3 | ||
Aggregate unrecognized compensation cost related to restricted stock granted | $ 6.3 | ||
Weighted average period of expected cost (in years) | 4 months | ||
Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock, shares reserved for future issuance, annual increase (as a percent) | 2% | ||
Common stock, shares reserved for future issuance (in shares) | shares | 24.5 | ||
Equity Incentive Plan | LTIP Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Conversion of units, conversion ratio (LTIP to common OP Unit) | 1 |
Equity-Based Compensation - Sch
Equity-Based Compensation - Schedule of Valuation Technique (Details) - $ / shares | 1 Months Ended | 12 Months Ended |
Jul. 31, 2019 | Dec. 31, 2023 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
LTIP units issued (in shares) | 2,952,901 | |
2023 PSU Grants | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expected volatility of the Company's class A common stock | 41.30% | |
Expected annual dividend yield | 0.30% | |
Risk-free rate (per annum) | 3.80% | |
2022 PSU Grants | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expected volatility of the Company's class A common stock | 32.40% | |
Expected annual dividend yield | 0% | |
Risk-free rate (per annum) | 2% | |
2021 PSU Grants | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expected volatility of the Company's class A common stock | 35.40% | |
Expected annual dividend yield | 0% | |
Risk-free rate (per annum) | 0.30% | |
LTIP Units | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
LTIP units issued (in shares) | 2,500,000 | 0 |
Target share price for LTIP vesting (in dollars per share) | $ 40 | |
LTIP vesting period, threshold of consecutive trading days | 90 days | |
LTIP Units | 2022 LTIP Grant | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expected volatility of the Company's class A common stock | 34% | |
Expected annual dividend yield | 0% | |
Risk-free rate (per annum) | 3.60% | |
LTIP Units | 2019 LTIP Grant | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expected volatility of the Company's class A common stock | 28.30% | |
Expected annual dividend yield | 8.10% | |
Risk-free rate (per annum) | 1.80% |
Equity-Based Compensation - S_2
Equity-Based Compensation - Schedule of Components of Share-Based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity-based compensation cost | $ 55,825 | $ 32,703 | $ 35,650 |
Compensation expense (including $0, $(410) and $1,194 expense related to dividend equivalent rights) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity-based compensation cost | 55,597 | 31,281 | 35,428 |
Amortization of fair value of dividend equivalent right | 0 | (410) | 1,194 |
Administrative expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity-based compensation cost | $ 228 | $ 1,422 | $ 222 |
Equity-Based Compensation - S_3
Equity-Based Compensation - Schedule of Nonvested Shares Under Director Stock Plan and Equity Incentive Plan (Details) - $ / shares | 1 Months Ended | 12 Months Ended |
Jul. 31, 2019 | Dec. 31, 2023 | |
Number of Shares [Roll Forward] | ||
Unvested shares and units beginning period (in shares) | 8,638,710 | |
Granted (in shares) | 2,952,901 | |
Vested (in shares) | (3,737,271) | |
Forfeited (in shares) | (478,090) | |
Unvested shares and units period end (in shares) | 7,376,250 | |
Weighted Average Grant Date Fair Value [Roll Forward] | ||
Unvested shares and units beginning period (in dollars per share) | $ 10.84 | |
Granted (in dollars per share) | 12.24 | |
Vested (in dollars per share) | 13.95 | |
Forfeited (in dollars per share) | 13.83 | |
Unvested shares and units period end (in dollars per share) | $ 9.80 | |
Restricted Stock | ||
Number of Shares [Roll Forward] | ||
Unvested shares and units beginning period (in shares) | 1,706,674 | |
Granted (in shares) | 2,468,842 | |
Vested (in shares) | (1,308,856) | |
Forfeited (in shares) | (53,291) | |
Unvested shares and units period end (in shares) | 2,813,369 | |
LTIP Units | ||
Number of Shares [Roll Forward] | ||
Unvested shares and units beginning period (in shares) | 2,625,000 | |
Granted (in shares) | 2,500,000 | 0 |
Vested (in shares) | 0 | |
Forfeited (in shares) | 0 | |
Unvested shares and units period end (in shares) | 2,625,000 | |
DSUs | ||
Number of Shares [Roll Forward] | ||
Unvested shares and units beginning period (in shares) | 20,058 | |
Granted (in shares) | 70,887 | |
Vested (in shares) | (26,846) | |
Forfeited (in shares) | 0 | |
Unvested shares and units period end (in shares) | 64,099 | |
RSUs | ||
Number of Shares [Roll Forward] | ||
Unvested shares and units beginning period (in shares) | 2,397,391 | |
Granted (in shares) | 0 | |
Vested (in shares) | (1,798,044) | |
Forfeited (in shares) | 0 | |
Unvested shares and units period end (in shares) | 599,347 | |
PSUs | ||
Number of Shares [Roll Forward] | ||
Unvested shares and units beginning period (in shares) | 1,889,587 | |
Granted (in shares) | 413,172 | |
Vested (in shares) | (603,525) | |
Forfeited (in shares) | (424,799) | |
Unvested shares and units period end (in shares) | 1,274,435 | |
Weighted Average Grant Date Fair Value [Roll Forward] | ||
Unvested shares and units beginning period (in dollars per share) | $ 16.28 | |
Granted (in dollars per share) | 11.98 | |
Vested (in dollars per share) | 7.88 | |
Forfeited (in dollars per share) | 7.92 | |
Unvested shares and units period end (in dollars per share) | $ 21.66 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Provision (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current | |||
Federal | $ 167 | $ 3,986 | $ 3,369 |
State and local | 1,058 | (786) | (19) |
Foreign | (1,252) | (1,163) | 0 |
Total current tax benefit (expense) | (27) | 2,037 | 3,350 |
Deferred | |||
Federal | (1,004) | (13,850) | 15,615 |
State and local | 124 | (2,419) | 2,498 |
Foreign | 901 | 1,100 | 0 |
Total deferred tax benefit (expense) | 21 | (15,169) | 18,113 |
Income tax benefit (expense) on continuing operations | $ (6) | $ (13,132) | $ 21,463 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2022 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Unrecognized tax benefits | $ 0 | ||||
Valuation allowance | 664,397,000 | $ 679,057,000 | $ 12,766,000 | $ 400,200,000 | $ 1,852,000 |
Increase in valuation allowance | 134,200,000 | ||||
Deferred income tax (benefit) expense | $ 21,000 | $ (15,169,000) | $ 18,113,000 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax asset | |||||
Capital losses | $ 366,083 | $ 252,904 | |||
Net operating losses | 146,537 | 92,224 | |||
Investment in partnerships | 131,828 | 317,048 | |||
Equity-based compensation | 15,104 | 11,856 | |||
Intangible assets | 5,013 | 5,959 | |||
Deferred income | 2,576 | 2,086 | |||
Deferred interest expense | 6,050 | 5,556 | |||
Other | 4,487 | 5,847 | |||
Gross deferred tax asset | 690,185 | 709,610 | |||
Valuation allowance | (664,397) | (679,057) | $ (400,200) | $ (12,766) | $ (1,852) |
Deferred tax asset, net of valuation allowance | 25,788 | 30,553 | |||
Deferred tax liability | |||||
Intangible assets | 23,382 | 13,725 | |||
Other | 1,909 | 3,408 | |||
Gross deferred tax liability | 33,818 | 28,509 | |||
Net deferred tax liability | (8,030) | ||||
Net deferred tax asset (liability) | 2,044 | ||||
Corporate Offices | |||||
Deferred tax asset | |||||
Lease liability—corporate offices | 12,507 | 9,341 | |||
Deferred tax liability | |||||
ROU lease asset—corporate offices | 8,527 | 5,350 | |||
Investment Properties | |||||
Deferred tax asset | |||||
Lease liability—corporate offices | 0 | 6,789 | |||
Deferred tax liability | |||||
ROU lease asset—corporate offices | 0 | 6,026 | |||
Domestic Tax Authority | Capital loss | |||||
Deferred tax asset | |||||
Capital losses | 1,380,000 | ||||
Domestic Tax Authority | Net operating loss | |||||
Deferred tax asset | |||||
Net operating losses | $ 589,700 | $ 378,700 |
Income Taxes - Schedule of De_2
Income Taxes - Schedule of Deferred Tax Asset Valuation Allowance Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Valuation Allowance For Deferred Tax Assets [Roll Forward] | |||
Beginning balance | $ 679,057 | $ 12,766 | $ 1,852 |
Addition | 19,483 | 666,291 | 33,756 |
Utilization and/or reversal | (34,143) | 0 | (22,842) |
Ending balance | $ 664,397 | $ 679,057 | $ 12,766 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Income (Loss) from continuing operations before income taxes | $ 365,629 | $ (46,681) | $ (55,999) |
Income (Loss) from continuing operations before income taxes attributable to pass-through subsidiaries | (5,905) | ||
Income (Loss) from continuing operations before income taxes attributable to taxable subsidiaries | 365,629 | (46,681) | (61,904) |
Federal income tax benefit (expense) at statutory tax rate (21%) | (76,782) | 9,802 | 13,000 |
State and local income taxes, net of federal income tax benefit | (21,970) | 5,559 | 1,930 |
Foreign income tax differential | 36 | 782 | 0 |
Effect of change in income tax rate | 34,684 | 0 | 0 |
Noncontrolling interests | (27,699) | (44,014) | 0 |
Separately taxable subsidiaries of OP | 15,213 | 21,226 | 0 |
Change in ownership of OP, including equity reallocation (Note 2) | 0 | (2,838) | 0 |
Equity-based compensation | 682 | 1,971 | 1,814 |
Valuation allowance | 76,087 | (784) | 1,852 |
Other, net | (257) | (4,836) | 2,867 |
Income tax benefit (expense) on continuing operations | $ (6) | $ (13,132) | $ 21,463 |
Variable Interest Entities - Na
Variable Interest Entities - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Exposure to the obligations of the investment entities | $ 200.8 | $ 94.7 |
Variable Interest Entity, Not Primary Beneficiary | Company-Sponsored Private Funds | ||
Variable Interest Entity [Line Items] | ||
Exposure to the obligations of the investment entities | 1,860 | $ 752.3 |
Variable Interest Entity, Not Primary Beneficiary | Company Sponsored Funds | ||
Variable Interest Entity [Line Items] | ||
Unfunded lending commitment | $ 260.4 |
Variable Interest Entities - Sc
Variable Interest Entities - Schedule of Supplemental Balance Sheet Disclosures (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | $ 345,335 | $ 855,564 | $ 1,226,897 | $ 703,544 |
Investments (Note 4) | 2,476,093 | 1,237,363 | ||
Other assets | 78,953 | 80,821 | ||
Total assets of consolidated private fund | 3,562,550 | 11,028,503 | ||
Debt | 371,783 | 569,375 | ||
Due to custodian | 9,415 | 35,457 | ||
Other liabilities | 681,451 | 546,923 | ||
Marketable equity securities | ||||
Variable Interest Entity [Line Items] | ||||
Securities sold short | 66,297 | 139,076 | ||
Variable Interest Entity, Primary Beneficiary | Corporate and Other | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 69,654 | 86,433 | ||
Investments (Note 4) | 482,911 | 185,845 | ||
Other assets | 576 | 1,895 | ||
Total assets of consolidated private fund | 553,141 | 274,173 | ||
Debt | 0 | 465 | ||
Due to custodian | 9,415 | 35,457 | ||
Other | 16,313 | 2,734 | ||
Other liabilities | 64,210 | 79,584 | ||
Variable Interest Entity, Primary Beneficiary | Corporate and Other | Marketable equity securities | Short | ||||
Variable Interest Entity [Line Items] | ||||
Securities sold short | $ 38,482 | $ 40,928 |
Transactions with Affiliates -
Transactions with Affiliates - Schedule of Amounts Due to Manager or its Affiliates (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Related Party Transaction [Line Items] | ||
Due from affiliates | $ 85,815 | $ 45,360 |
Related Party | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | 10,664 | 12,451 |
Fee revenue | ||
Related Party Transaction [Line Items] | ||
Due from affiliates | 71,427 | 35,010 |
Cost reimbursements and recoverable expenses | ||
Related Party Transaction [Line Items] | ||
Due from affiliates | 14,388 | 7,031 |
Employees and other affiliates | ||
Related Party Transaction [Line Items] | ||
Due from affiliates | 0 | 3,319 |
Employees and other affiliates | Related Party | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | 541 | 658 |
Investment vehicles—Derivative obligation | Related Party | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | 0 | 11,793 |
Investment vehicles—InfraBridge (Note 3) | Related Party | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | $ 10,123 | $ 0 |
Transactions with Affiliates _2
Transactions with Affiliates - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Apr. 01, 2021 | |
Related Party Transaction [Line Items] | |||||
Revenues | $ 264,117 | $ 172,673 | $ 180,826 | ||
DataBank recapitalization (Note 9) | 18,210 | 0 | |||
Redeemable noncontrolling interests | 6,503 | (26,778) | 34,677 | ||
Noncontrolling Interest Net Income | |||||
Related Party Transaction [Line Items] | |||||
Carried interest allocation | 42,500 | 65,000 | 17,600 | ||
Former Owner | |||||
Related Party Transaction [Line Items] | |||||
Noncontrolling interest, carried interest allocation | $ 70,400 | 112,200 | 70,400 | ||
DataBank recapitalization (Note 9) | 86,100 | ||||
Affiliated Entity | Redeemable Noncontrolling Interests | Investment vehicles—Derivative obligation | |||||
Related Party Transaction [Line Items] | |||||
Investments | $ 17,700 | 22,700 | 17,700 | ||
Redeemable noncontrolling interests | 4,900 | 2,200 | 2,100 | ||
Former Employee | |||||
Related Party Transaction [Line Items] | |||||
Advanced expenses | 0 | 27,600 | 5,600 | ||
Former Employee | Other investments | |||||
Related Party Transaction [Line Items] | |||||
Equity method investments | $ 26,000 | ||||
Cost Reimbursements | Chief Executive Officer | |||||
Related Party Transaction [Line Items] | |||||
Reimbursement of chartered flight cost | 4,700 | 2,700 | 3,000 | ||
Cost Reimbursements | Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
Revenues | $ 10,400 | $ 4,300 | $ 10,200 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) $ in Thousands | 5 Months Ended | 12 Months Ended | |
May 31, 2022 | Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 1 | ||
Total assets of consolidated private fund | $ 3,562,550 | $ 11,028,503 | |
Investment Management | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total assets of consolidated private fund | $ 1,480,000 | $ 875,400 | |
Investment Management | Investor | |||
Segment Reporting Information [Line Items] | |||
Revenue, percentage of earnings (as a percent) | 31.50% |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Operating Results for Each Reportable Operating Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 264,117 | $ 172,673 | $ 180,826 |
Carried interest allocation | 363,075 | 378,342 | 99,207 |
Principal investment income | 145,448 | 56,731 | 86,023 |
Other income | 48,743 | 87,025 | 21,774 |
Total revenues | 821,383 | 694,771 | 387,830 |
Interest expense | 24,540 | 42,926 | 63,244 |
Investment-related expense | 3,155 | 23,219 | 7,168 |
Transaction-related costs | 10,823 | 10,129 | 5,515 |
Depreciation and amortization | 36,651 | 44,271 | 44,353 |
Compensation expense—cash and equity-based | 206,892 | 154,752 | 159,772 |
Compensation expense—incentive fee and carried interest allocation | 186,030 | 202,286 | 65,890 |
Administrative expense | 83,782 | 94,122 | 77,768 |
Total expenses | 551,873 | 571,705 | 423,710 |
Other gain (loss), net | 96,119 | (169,747) | (20,119) |
Income (loss) from continuing operations before income taxes | 365,629 | (46,681) | (55,999) |
Income tax benefit (expense) | (6) | (13,132) | 21,463 |
Income (loss) from continuing operations | 365,623 | (59,813) | (34,536) |
Redeemable noncontrolling interests | 6,503 | (26,778) | 34,677 |
Investment entities | 104,364 | 113,019 | 27,145 |
Operating Company | 13,477 | (16,476) | (16,046) |
Income (loss) from continuing operations attributable to DigitalBridge Group, Inc. | 241,279 | (129,578) | (80,312) |
Income (loss) from discontinued operations attributable to DigitalBridge Group, Inc. | (55,999) | (192,219) | (229,785) |
Income (loss) attributable to DigitalBridge Group, Inc. | 185,280 | (321,797) | (310,097) |
Fee Income | |||
Segment Reporting Information [Line Items] | |||
Revenues | 264,117 | 172,673 | 180,826 |
Operating Segments | Investment Management | |||
Segment Reporting Information [Line Items] | |||
Carried interest allocation | 363,075 | 378,342 | 99,207 |
Principal investment income | 4,223 | 4,121 | 2,604 |
Other income | 11,405 | 5,984 | 4,303 |
Total revenues | 645,884 | 564,508 | 293,493 |
Interest expense | 10,514 | 10,872 | 4,766 |
Investment-related expense | 2,539 | 4,112 | 3,423 |
Transaction-related costs | 6,973 | 4,895 | 0 |
Depreciation and amortization | 35,259 | 22,155 | 26,736 |
Compensation expense—cash and equity-based | 154,442 | 101,433 | 71,055 |
Compensation expense—incentive fee and carried interest allocation | 186,030 | 202,286 | 65,890 |
Administrative expense | 40,544 | 21,515 | 21,683 |
Total expenses | 436,301 | 367,268 | 193,553 |
Other gain (loss), net | (2,527) | (3,341) | 797 |
Income (loss) from continuing operations before income taxes | 207,056 | 193,899 | 100,737 |
Income tax benefit (expense) | (1,694) | (7,815) | (9,822) |
Income (loss) from continuing operations | 205,362 | 186,084 | 90,915 |
Redeemable noncontrolling interests | 215 | (3,175) | 14,893 |
Investment entities | 86,290 | 113,853 | 19,153 |
Operating Company | 8,374 | 5,522 | 5,338 |
Income (loss) from continuing operations attributable to DigitalBridge Group, Inc. | 110,483 | 69,884 | 51,531 |
Operating Segments | Investment Management | Fee Income | |||
Segment Reporting Information [Line Items] | |||
Revenues | 267,181 | 176,061 | 187,379 |
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Carried interest allocation | 0 | 0 | 0 |
Principal investment income | 141,225 | 52,610 | 83,419 |
Other income | 37,338 | 81,041 | 17,471 |
Total revenues | 175,499 | 130,263 | 94,337 |
Interest expense | 14,026 | 32,054 | 58,478 |
Investment-related expense | 616 | 19,107 | 3,745 |
Transaction-related costs | 3,850 | 5,234 | 5,515 |
Depreciation and amortization | 1,392 | 22,116 | 17,617 |
Compensation expense—cash and equity-based | 52,450 | 53,319 | 88,717 |
Compensation expense—incentive fee and carried interest allocation | 0 | 0 | 0 |
Administrative expense | 43,238 | 72,607 | 56,085 |
Total expenses | 115,572 | 204,437 | 230,157 |
Other gain (loss), net | 98,646 | (166,406) | (20,916) |
Income (loss) from continuing operations before income taxes | 158,573 | (240,580) | (156,736) |
Income tax benefit (expense) | 1,688 | (5,317) | 31,285 |
Income (loss) from continuing operations | 160,261 | (245,897) | (125,451) |
Redeemable noncontrolling interests | 6,288 | (23,603) | 19,784 |
Investment entities | 18,074 | (834) | 7,992 |
Operating Company | 5,103 | (21,998) | (21,384) |
Income (loss) from continuing operations attributable to DigitalBridge Group, Inc. | 130,796 | (199,462) | (131,843) |
Corporate and Other | Fee Income | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ (3,064) | $ (3,388) | $ (6,553) |
Segment Reporting - Schedule _2
Segment Reporting - Schedule of Geographic Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total income by geography | $ 810,983 | $ 690,434 | $ 377,645 |
Long-lived assets by geography | 41,129 | 32,622 | |
UNITED STATES | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total income by geography | 746,462 | 643,073 | 375,133 |
Long-lived assets by geography | 22,294 | 27,588 | |
Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total income by geography | 56,280 | 47,196 | 2,512 |
Long-lived assets by geography | 17,868 | 3,997 | |
Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total income by geography | 8,241 | 165 | $ 0 |
Long-lived assets by geography | $ 967 | $ 1,037 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Leased Assets [Line Items] | |||
Operating lease not yet commenced, fixed payments | $ 57,100 | ||
Operating lease not yet commenced, fixed payments, lease term (in years) | 10 years | ||
Office Leases | |||
Operating Leased Assets [Line Items] | |||
Operating lease, remaining term (in years) | 6 years 3 months 18 days | ||
Fixed lease expense | $ 8,678 | $ 7,090 | $ 7,010 |
Investment Properties | |||
Operating Leased Assets [Line Items] | |||
Fixed lease expense | $ 7,600 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Lease Expense (Details) - Office Leases - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases, Operating [Abstract] | |||
Fixed lease expense | $ 8,678 | $ 7,090 | $ 7,010 |
Variable lease expense | 1,713 | 2,073 | 1,829 |
Total operating lease cost | $ 10,391 | $ 9,163 | $ 8,839 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Future Lease Payments (Details) - Corporate Offices $ in Thousands | Dec. 31, 2023 USD ($) |
Lessor, Lease, Description [Line Items] | |
Operating lease, weighted average discount rate (as a percent) | 5.70% |
Operating Lease, Liability [Abstract] | |
2024 | $ 9,435 |
2025 | 9,454 |
2026 | 10,141 |
2027 | 9,113 |
2028 | 7,067 |
2029 and thereafter | 15,203 |
Total lease payments | 60,413 |
Present value discount | (11,378) |
Operating lease liability on corporate offices | $ 49,035 |