Bridge Investment (BRDG) 13 Nov 222022 Q3 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the Bridge Investment Group's Third Quarter 2022 Earnings Call and Webcast. [Operator Instructions]. At this time, it is my pleasure to turn the floor over to your host, Bonni Rosen, Head of Shareholder Relations. Bonni, the floor is yours.

Good morning, everyone. Investment Quarter Bridge Conference Financial the Call. to Group XXXX Third Results Welcome

include Executive Officer, from Chief prepared comments Our remarks our Jonathan and Executive Slager; Chairman, Chief Elsnab. Financial Katie Officer, Morse; Robert

to update are materially. a may hold to differ control any statements. may the I'd today's session We We outside undertake remind statements, of duty will that which Q&A you forward-looking and results do and prepared not from following these remarks. actual like uncertain include firm's call the

For section the results, a risks that please see of some discussion of XX-K. could the of affect Risk Factors our

During are the certain non-GAAP the discuss site on at website turn morning accessible the Robert slides. the slides appendix link. non-GAAP of provided are you, The available good to supplemental are in our the also along the of Bonnie, be Presentations IR Morse now reconciliation all. portion will the pleasure quarter call, is with These found event of to and earnings metrics under we ir.bridgeig.com. Bob. They call of over materials financial It can my supplemental during also our metrics. call live Thank third webcast. the to The

at and to an Fee third detail AUM earnings of is increased a billion turbulence billion year-over-year for achieved Bridge's Gross at quarter. quarter by Distributable turbulent additional earnings record markets. XX% record debt increase year-to-date, consistent billion the our statement in AUM activities in share strategies the million. is growth AUM company the represents results driven results third $XX.X XQ the operating market at end strong $X.XX, fee-earning the progression a to for the sheet over fundraising to of the to fee year-over-year for raise billion find by results provide and fund navigate fee-earning will $X.X amidst $X.X the of strong conditions. $XX.X and strategy. third the per management of pleased quarter. income quarter our are on $X.X We related in increased with of you continue quarter and and now current final $XX.X revenue. our quarter closing that strategy XX% balance Katie ended to results year-over-year. we We strategy XX% fund investment Bridge the XX% specialized reported record opportunities investment that of attractive for raise, for Bridge which share called, and to billion, led Notwithstanding

had Fund Multifamily we Workforce a the at the $X.XX closing final Affordable series. for predecessor almost penultimate Fund XQ, the Fund XQ, already in to in and V closing date the of and hold is addition, which expect Housing amount our of billion, of we In Xx Multifamily fund, record to II size at

continue inaugural said, also and prior the which success. We Townsend. meaningful venture capacity, office from has track focus joint the our the quartile market by be turbulent our effect tranche with top of capital and investment many furthered global so-called and cautious KB Preqin, attitude our record I $XXX consistent have our confidence and fundraising strong Grosvenor financial consultants third and in have whether Management, a relationships My fundraising remains contributed global investors committing some of investors are simply our income investor for to environment, momentum with lease high. capital. strategic less dialogue. to We performance appeal the a and raising insulation. of in institutional relations funds or from sources as ranked recognize due and In our visits company. into XQ, in Diversity that the relationship had key as XQ broadened Many trip wait-and-see we a a that more well with to provides into a we million a U.S. included net capital culminated is from and welcomed flows investors to announcement new and logistics with denominator announced of our of relationship That as fund our meaningful colleagues meaningfully real in of network X which just with largest Bridge steward international estate completed largest group, strength Korea's the investors the trusted Asset the our to interest in a in roster, our

Morgan research component commitments investors to for We Stanley from institutional net new has investors XX% XX% growth have recent retail individual in of one years. worth institutions. with Bridge opportunities of healthy from for a from segment net high always alternatives and retail largest the and and a worth XQ been allocations both of our to estimated is double X industry mix per high with in investors strong The

well to softening expansion to share Luxembourg continue and prompted internationally. a our value. public High of more of economic our equity AIFM approval as condition expect South a July, came difficult in to raising and in us like perspective conditions. firm commitments our to and would quarter on as the international inflation Europe which position from in market we in of capital rising interest and I further domestically determine and retrenchment globally offices Korea environment rates follow. Additionally, in current XX% markets a growing license clients, have

In the loan U.S. and context, the the stimulus the in conflict the health geopolitical of of the taken the reshoring globally. this risk-off the In Act seem the weighing of materialize. consumer either year U.S. distress turbulence investment addition, Reduction and for government CHIPS term, and destination other including as the U.S. strength form U.S. end to approach, near economic waiting slowdown Inflation however, have some economic have expanded manufacturing of economy, China, activity to increased of investors Ukraine expected and between the in the for metrics, across multiple on the and continued Russia global are U.K. risks, investment In in or markets. the developments position be student many a until the incentives Act to to related forgiveness, preeminent investors the stopped

have positioned is to yield and higher that environment appreciation. and property asset impact the these in inflation-protected the We markets whose low current well factors estate rate volumes resilience, term, and durable investment in we offer capabilities remain recession-resistant sectors with of believe even Longer capital management. teams potential U.S. strong. estate fundamentals seen real due of enhanced high-touch investors integration our We for specialized forward downside our transaction into meaningful protection, alternatives the Bridge believe real interest in

estate several: property asset of we amplify price; X, low-cost model one, decade, with cash forward, the the value vertically leveraging right generating business the X, flow management. and right enhancing in our were last In debt; the in Going the integrated through optimizing value to asset a to expect our real asset finding location; the outperformance. X, disciplined levers paying efficient performance

getting value cases, to data-driven knowledge enormous flow, investment negative. a in Leverage and Well-run management, inception asset focus we Bridge footprint, approach as efficient price the well. a the been across is diminished has better focused our differentiated national level. discipline markets Property us keep and deal generates at We've Management of has every now add considerably which of and since Our and neutral Bridge Bridge specialized company, at asset allows many year. to driver to built property and alpha more the and buy always Function, allows classes

one in and have integrated over have We Solar income over an the acquired a announced stood the a program, vehicle. We've have an a X,XXX which homes, deployed experienced logistics opportunity strong team in pillars for is initiatives of up to rental $X.X zone of within single-family long-term largest and the built gross has growing of from our strong start, net industry growth a portfolio have also other Infrastructure and built capital our PropTech. during organization. business, billion quarter, This which all built new addition development is lease standing

challenges of million, credit balance over perspective a Jonathan clearly $XXX that, detail an facility in with a capital liquidity strategy. our $XXX let ahead, and expanded the results to from are further position powder. we're along With dry turn call there million of cash me strong and and significant sheet with to While

morning, and and Bridge everyone. solid Bob, AUM delivered a good fundraising growth. strong quarter with you, Thank

continue or partially providing perform hedged In either and addition, Further, us hedged, value. majority these over fund portfolio additional the the assets X the of debt months, from which past fixed, is to the hedges appreciated helps $XXX insulate rate the during level increases. asset million have interest continued

We also of driven year was mostly at meaningful an another in Multifamily which had realized $XX.X fees III, X term. million. performance is by This Fund X-year quarter anticipated of

combined lender our while their is limit leverage recover. to near position avoid monetization, will to and fair relationships, continue the assets we levels high given put for will to operate with below and continue the realizations hold solid our us markets choose we in well-performing The we debt to a transaction assets, selective While term volumes interest current generally pace value. strength some rates, and believe the illiquidity selling of to what of see cautious

will volumes and Bridge a like were pause us. In environment revenue the in down mentioned, lenders XX% the of times continues and management until this, the an people deal slow transaction persist last noted remain our The further amount. Bob volatile August commercial down $XX.X buyers, in estate million as As slowdown and less quarter. $XX.X decrease debt that year-over-year and believes is these markets real their quarter the million in quarter capital distinguish similar we in second was footing. to third that find This to transactions our sellers it capabilities is liquid. like reflected in September volumes from

on were into recover, million assets uncertainty strategies. our our While this, in diminishes. the to of will Despite select until across volumes able all market the the quarter we transaction remain of we we cautious ultimately level transaction deploy revenue project $XXX

firm, we fundamentals of strategies. in And buyer's continue our many is specialized to $X.X billion our to cases, deploy see have in most what have the funds. We healthy evolving dry significant Across powder in market. a we as in

may markets is dramatic either who a capital reliable positioned in beginning opportunity, also those volume, by unique assets benefit providing need to to from solution. high-quality to fast created rescue pricing. a is well to Bridge it has acquire liquidity liquidity and While or slowdown transaction at present in this opportunities the meaningful debt distressed

our advantage such already months, We expect the will to returns. have the more took at capitalized capital positioned strategies in coming We acute crisis. in believe the financial and and assets gap have We opportunities there to similar XXXX pandemic-related attractive not structures levels offering near on public global meaningful be term and fund the debt investment-grade with become during have motivated since our solutions broken to seen dislocation as could securities invest teams in selling opportunities out great for this yields we need within more market of funds nimble. in be the seen

. significant business dry powder, near-term we unique in subsequent XX% To amount market, in to to estate-backed while the to than quarter ahead. deployment lies its into negative recognize on capabilities, already less called $X Strategies Katie. with operating As in window. impact Debt have platform we position IV, believes Bob principal you, our illiquidity capitalize the of of Fund with a we mentioned, billion about the QX Bridge X to and invested X-year end, uncertainty summarize, that Over years real the CLOs date, combined

margins in and Thanks, strong and led solid another realizations. had quarter was We good everyone. QX. Jonathan, by morning, This

company operating Our $XX.X the GAAP net income million. to was

Our GAAP $X.XX. share earnings per was

This fund of a of grew consistent fund to the their true management increase Our underlying fees our XX% to perspective prior an growth metric recurring year. increase with business. $XX.X provides investors is fees stability on This our million a million. and Recurring growth. and $XX.X management continued compared

expansion XX%. In the verticals. X-year driven durable business resilient. scaling has environment, proven this more has and existing our into Our volatile strategies CAGR outstanding and be macro is been growth to This of new by

X.X years. years. has are all average fees fee-earning tenure duration raise The our nature. in of of tenure quarter current the XX AUM Our an management of average during long is The capital

with Our or capital committed redemption upon management based no largely closed-end in either fees are are features. commitments vehicles our limited Fund from invested partners.

management fees volatility. against our are such, As insulated market

This X last was to XX% revenue growth, Slide of fee billion for year-over-year on For on to increased presentation. X% a the your found AUM Fee-earning strong year-over-year increase trajectory the the of million. continued reference, non-GAAP our fund fee-earning to double-digit quarter third from investor on financial metrics management the Total quarter. and due level fees $XX.X up are higher increase in $XX.X an its fund XX% primarily AUM. of XX%

revenue elevated and II due of Multifamily in Affordable also Housing workforce closing final fee level the and Fund includes $XX.X the that were Our million fund fees material Fund management in closing catch-up to V.

in a fees the timing step as see ramp launch will down less QX catch-up of amounts We with newer XXXX meaningful up. in funds of

partially level volume. [indiscernible] revenue offset fee Our by is transaction lower

impacted Total Jonathan the growth integrated quarter over our seeing discussed, to in XX% on grew fee-earning margins near short be revenue market. lower This real in strategy. driven the an have the by transaction at vertically last continued our and broader revenues to we're As fee-related could the $XX.X will fundraising, by by was continue term. volumes million. the that strong in effect year estate term growth AUM This end

earnings company contribute to these the XX% operating to $XX.X year-over-year Total of margins. our million. increased All meaningfully fee-related to

for quarter distributable to healthy a ago. year $XX.X XX%. a was the to company the compared XX% operating was FRE Our Pretax margin up million, earnings

XX% earnings substantially strong in III. distribute after-tax AUM share. distributable is earnings dividend related was our the of Multifamily shareholders. driven fee-earning our our Fund Bridge our line in per goal Our $X.XX. to earnings distributable that, to growth share related by $X.XX This per and to declared with and This a of With fee increased all realizations

dividend on will be December Our paid XXXX. XX,

performance. to Moving investment

incentive in realizations The sheet Multifamily the due of vertical. vertical. Multifamily the for our proud assets performance in performance million. This high-growth created quarter brings primarily carry by driven Realized has are unrealized largely of focus fees the million $XXX.X fees We value-add the value realizations decreased and been that quarter. markets. interest third million. $XX.X million balance in the to the the $XX.X were within by This carried were through Unrealized $XX.X was on to on

$XXX we issued weighted July. in XX of As of duration a of senior X.XX% previously rate notes average announced, and million at years interest

to million our refinanced an facility, $XXX revolving with it feature we $XXX from addition, increasing million for another In accordion secured credit senior $XX million.

in and it and the are liquidity timing terms of with debt provides We our current the new additional in flexibility with pleased us believe that financial market.

amount have to powder have only a so sector. participate sheet our significant in our balance Finally, should having future funds, discussed, as position. of as strong do advantageous but Not will to navigate we highly in Jonathan dry dry we enable This corporate powder volatility. is us a the and that everyone take the I for the With to alternative consolidation the asset their management continued flexibility back that, I of want we today, turn to call in highly operator your can thank fragmented time the will questions. be

first our Stanley. from from comes And Instructions]. question [Operator Michael Cyprys Morgan

off of start could little a were about you commentary bit Maybe to. alluding distressed talking the some guys you

catalyst mentioned sort that assets debt of more I expand of forward, you think could in expect soon? implications forced just what And you you anytime to or result? of see fundraising strategy might be what result debt could opportunities quarter? like that And deployment could played you you Maybe your distressed opportunity there do in It compelling market as be there? on selling? seemed in of would that terms types acquire assets upon leaned how what And high-quality in what prices. Might the the out distressed for upon terms in an at look strategies, in might maybe on that. you side? back see you you So to the this expand does in mean sort of more

of background of meetings. our for raising. all, that Stockholm productive capital noise call. speaking speaking, the of when middle in the Yes. if for a continuation it's there's it's background its there's because really Bob Morse thank noise, I'm but Michael, I'm if and any I And speaking, set -- being been a I'm background in airport and apologize the you more on any noise our

question very distress, Your point. is about Michael, on much

stress We the are fixed -- the we income manifest in have seen markets.

of buying an some are As an sellers Jonathan opportunistic environment tranches. liquidity that by a secure think packages great publicly lack that small we to to in ensure in the we motivated the the securitizations are yields carefully of mentioned, analyze and and traded really the underlying of on way, with safe executed markets, commercial market estate continuing. that to CLO real in in We those. deal in what with We achieving take is positions that that a these and respect CMBS did comfort see and collateral attractive backed we've offered investment-grade very subordination ability

over in I want or think exciting prepared of more the estate course a opportunity the have for we the to real do that. equally ability and even we to yet materialize, meaningful maybe capital flawed markets is structures -- amount anticipate but buy correct we XXXX. not seen help of We don't be that to equity

significant dry powder a of have amount funds. in We our

significant that The those question have debt related to interest of strategies we're -- amount vehicle as that vehicle, can opportunities the in implications our IV, for well, are We to for in next called closing. funds a that a when a participate outside fundraising XX% and new materialize. we have as we're XX% of we're when we called, can currently about premarket called, first in XX% Fund our when

enthusiasm anticipated to have And the modestly record reiterate I raise and of IV markets. been that strategies Fund and the we've our we capital great fixed overall launch deploy So we've in very I capital generated that, that income Fund that was but accelerated a efficiently. selectively support think very V. strategies able would for deal a of activities

the pretty about like Jonathan, we're side? that. excited you'd equity anything add from So to

beginning, Bob yet. amount haven't are it's -- to, alluded activity we we just No, significant as of though even a seen

they order that friends seeing raised to up particularly some to that dislocation, some. keep seen done. single equity their kind rescue get of deal co-invest kind debt started they then things some try have heavily pretty and through and sponsors has and transactions to to them don't trying from get to the in actually some like gone involved the with have the to We're tend lever in done. of fact with We've own by them We Xx, that their and capital transactions, and restructure strength capabilities institutions service get to family

is So and capital we're starting solid most but challenge. underlying real to the see actually opportunity. cases, real is in extremely stack well the performing some The estate a

and market. we're think with so we create with relationships opportunities, And well with the we other to debt brokerage because have going sponsors the all and positioned market more it's extremely the

So we're poised alluded regular from to as going control. hopefully, is active attractive markets we're see comes just deployment that some not staying deployment, until going any something nimble. that We're debt our peers of or that Bridge be the and that's staying way not and as just to, controls was to settle

in being So leverage, the less to but respond meantime, to opportunities. prepared

So see. we'll

just a you as Great. bit your around Maybe in that could. if rate have little just And portfolio could I interest assets. a the existing elaborate follow-up exposure you question,

are portion is those large duration hedges, a that that? and mentioned fixed And when you roll on what's how is off? you what but think or how and the versus hedged, you managing can about think help I the happens what much quantify floating maybe actually

we clear I that. as forward, question. But single into great our I unique think The in mean, our There's actually of into that's either portfolio. And an the And is What very securing of very really And of hedges And It's or that made all across our have we funds cap have unhedged. almost investment I most -- securing. again, across one I last looking we know, it's nothing have liquidity. a if already. much sure turned number, Yes. we across that perspective we a of our you I've of fixed have have allocation funds, the has we're is Not value portfolio. asset that. mentioned, view a swap percentage. Katie, that's rock-solid every feel overall month our -- unhedged? from specific like vertical or the what spent basically all not

So...

all XX% verticals. [indiscernible]. that's across And about It's

need is I our take to that because but really and that XX% of It's getting LPs. don't -- now hedged. being right -- we of process the tell for So kind would exposure you in that, hedged

to our good think, is cash thing is candidly, many constructive de-levering that. liquidity that So now sound, flow is to sure really that main I making in and leverage of feel And cases I portfolio. de-risking cost constructive about given and the actually

like So relationships restructuring everywhere. we're most leverage internal today have the across an our differentiator The really leverage debt our taking fact lender strength constructively team becomes that times approach this. a of lower of and a strategies we and in

And from Bill from question Suisse. Credit comes our next Katz

between versus First distressed question, a trying to the for sort counterbalance of opportunity. in pickup the the through think signals of pickup for just signals recovery of sort

we So to might the improvement? you help what when we take should this deceleration think how for, we take for restructuring you about some to conversely, about faster transaction that fees, that, what think advantage see understand capital an of could it of a deployment of look And me should then for of mentioned?

Do you want do that, me Bob? to

Jonathan. Sure, don't add start, Why may something. and I you

Yes. That's great. Sure.

been take of -- very the advantage the So deployment strategies clearly kind well term. I strength in dislocation. short really advantage to deployment to pace able able has been in heard. you it's we being outlined acceleration We're business. that of side the massive, We've ahead debt of it think as The of think pretty of on been of take the

to about excited short we I'm of very is think take debt order more define a dislocation that. of that term, But term, and capital when on you So in in to not want advantage good actively short-term markets. at very me capital working the short what kind

it I years, But expecting So be don't certainly. know. months, to we're not

And that, and want able and deployment respond there. so to we be be which I accelerates have nimble and to think we that some are been, to

still where business, they or that viable months kinds the have because again, there's getting it call way a bit ago want if of kind that to trying the that, is you there's spread well. slowed regular numbers lag, to X sellers really if just in there sort regime that fact still of year done the X, a candidly, of and they're players have to trade would be a reduces number side bid-ask a I still trying of not. of ago decide leverage equity of can little the or In that participate transactions adjust are to not terms of the getting the where think to as And the been lower

condition So some finding the we're able because know selective in We're slower in ways, excited don't will that's last. long a in actually, be the the find stacks we're But happening, again, we're to seeing debt as equity really that still people's market. just that opportunities capital overall really just them regular-way in and I how beginning at things. start and reflects to stack. challenges pace

our big how an quickly so that difficult to predict. for deployment becomes is, becomes to how that anyone And accelerant very again, and

And try is doing, active and search prepared and be to so is time we're you and which proactive what all can tell. in that do be be will

you So add. answer. don't Bob, I what hope that's I know And a would solid

side. from add to my Nothing

comprehensive. Very

a the through thinking P&L bit. little dynamics Just

have sort you where prior little of like Obviously, fall is different. every any in do cycles? So might of to a experience transactions cycle

to fee-related haven't just there more be seems what and ratchet public down and long. here there relatedly, investment? then non expense expenses? of opportunity given comp Or we side, third think quarter wage the should And comp been an levels? ongoing bias Is the inflation upward You how on that to an both and is about

course. Of

due think actively a deemed the -- at QX performance think in will an had million, we swing a was current And compensation so efficient. if will With a of If spend is of adjusted additional well as how really the to deemed performance. of where probable that's not everyone in in as were And the that hiring million with expenses, primarily really, component fee of $X I challenges part and there I -- quarter. and that we then upon accordingly our in probable that couple cash earnings administrative money think compensation our related company comp fee-related about increase where strategic that, area have variable bonuses so we has really we were it's think we think by just we're to managing compensation during experienced driven of growth. our quarter, sure some did be we previously being the this about due and hiring. during QX, we're the headcount about -- as forward increases costs and an environment, beyond, make based net look overall And to

Bill, our -- look have lag the AUM kind and our I a is you fee of able think you've And if bonus variable of net-net, And seen, that, funds, we've to we the big Yes. line. a kind That -- at is component. in been component our historically, comp the sometimes than of like grow between bigger prior paying AUM growth, as growth of all we more workforce. workforces double comp

those add -- So if some of that kind and manage need capital. that to deploy to now we -- capacity

the been we grow capitals revenues and much, certainty we've -- as we don't get the like come but of But that. then first usually fortunate year, that come fees catch-up the So next headcount.

of which in signal growth all the in organic. opportunities that see success And start opportunity reveal our amount are and that I These our of in and in overall, strength scale solar, we disconnect strong you growth as think all really the new that then, of The the to well. have and are us and course, just for that of a to logistics Bridge themselves beginning there's all really inorganic business. of have Bridge, the timing. So there's a we I little in other about these could long-term opportunity thing is is that initiatives, that which growth the really have But think compelling. are still come ahead we can

the Try signal down. I people though, because timing XX-month of kind the our business think think a of we think you've will guidance our of that be plus/minus don't or as it that expectation a on in XX% on we our and seen they and be a be on more margins higher over measure can of can yes, up today. margins continue we've lower. experienced on a to to is the basis, tried them it basis I kind But know the much quarterly the as about to quarter-by-quarter based give So And that's sometimes always kind time is range cycle.

our the So has of do closings, we of when catch-up to deployment have lot fund verticals. fees we we the of a have and -- when really timing in with timing that

So to what guide. right think continue probably I now, I that's would

And JPMorgan. Ken from Worthington from next our comes question

of of to magnitude slow. for your it proportional I to be or comments be in concentrated areas? want on about? segments? to X, investing different Can X to your slowdown slowdown the the for realizations outlook X, is you expected X that realizations is across you're with likely the And follow Or us sort thinking up help in

So sure So Bob's we their cycle. that towards question. years you of of has I couple get rejoined, have he I are begin to response the think I'm mode realization last mean know assuming they will hasn't, cycles now not that right? life to the or closed-end harvest they in our but that funds, I specifically, into --

even period. specifically, number really meat the of aren't So a of in our funds harvest the

really the last sheet our on we and what that the you -- means -- of life to years see so of we see can funds. coming, waterfall, timing is our when that the thinking that have cycle see we coming given that balance of European And about couple related

clear assets right little is selling are the have has be III. ability for fund those why realizations nice out. to I have III, that a some not we've Multi And -- we extend final the that would fund have to of at we end one Fund only of still realizations flexibility. we anyway to specifically, our by meaningful And significant realization, the closed-end but we've said, them the realizations -- to means give that timing just periods, is strategies, in that's And them we I us think bit as for going X of stage, exercised think say the we've now example, I unpredictable amount this X-year fund So coming. because a done that

basis. continual approaches find as if to And we again, off-market be have well. So enough transact unpredictable, to I say because when we a unsolicited it's it's those on attractive

broad of take until of of marketing for terms back and it may really may it assets change changes. individual It until in half next for QX. QX. time may in just year isn't It now, going kind think change that this the the in process, a into I thing

had of be we'll think see a in terms for will would expect. we what what I next then it couple come And to of back. slower but So I I there quarters much the is then will scheduled, think that planned pace be some or monetization, limited start still

you now. or us then -- I half more new bit steady market And holding or off? Where sort picking may quarters of where is the Perfect. then fundraising next, demand a than, funds remind right dozen in fall fundraising up just a the say, in And are it have think, seeing that Okay. funds so? X of and you commence

fundraising global Multifamily curated will the its significant comment next and do closing have marketplace in highly funds a will Fund to of specialized next areas that V are December year. be of that the invest that January A final We're strategies that penultimate closing believe marketplace for tailwinds year. we in of number would interest. our finalizing pretty be We have either in are some in or with the in

is in interest. to deal for We that rent great our and of continue showing fundraising Single-Family a raise money vertical,

as funds. which income AMBS open-ended oriented, X both have yield Those We in are lease our attractive net fund. market, funds, our fund as open-ended today's are well

We're to basis ongoing an meaningful on of inflows available some they're funds. those both so seeing into And investors.

value-add launching we half closing on the the comes in $X.X back of have that a That next we gross are that logistics the We AUM second deployed of and team we billion for first year we expect I. of since that stood and launched fund, Fund our fund. value-add logistics for up

-- iteration third We are launching Fund fourth a funds. our we and Fund anticipate It's our Housing of iteration Seniors of of Office list XXXX. the in launching the our long

fact, of documentation assets, current how important difference think it's staying technologies, navigate make we our the estate. have oriented in effect the other real great and aspects operate that's defensive we actively PropTech relatively our capital lens our of we will, And perspective of in build we've fund, a our operator Fund businesses, operate we an a towards. fund, out are PropTech from but launched own and in had in investing the We Development an considerable offensive both can although terms it's how from through and PropTech a embracing our Fund. to and to meant marketing that space we Solar small owner technologies how the success off PropTech small zoning and that is That's

So list funds. a broad relatively of

is be we earlier interest, our our workforce talking and relates a whether investors as product Fund you're must the ESP perspective Candidly, with impact wait-and-see Development whether what or at bit I to it terms recently and demonstrated that in and market communities of capital the investors show Workforce to investor is about. which in In did renewable say experience environments. say of the the fund caution in that a -- in closed resilience that in be of least raising environment the all experience of I characteristics, have energy, it from -- underserved attitude. Solar it vehicles this that deal talking of market you're some servicing remarks -- a great

of as a positive. The matters been So well. that's locus investors

We investors have of created have high lot component a the oil a liquidity oriented Eastern strong in and presses of East. Middle Middle

successful investment just with people's preeminent Asset that We not continued And represents been strategic announced partnership inflows we've to do a their in from the valued We so investors U.S. Korean in many the we KB fill destination. by broad-ranging meaningful our assisting East. of in anticipate eyes, own, allocations U.S. think very any capital and means, a Korea, Management exposure. Middle

overcome is are good often a market our that And vintage rate of so lower environment. higher with a is a that contracted that as which to lot vintage, on is interest in the be basis for speak shared perspective, XXXX a by prices, should sufficient current turmoil, regular pretty a entry we maybe the whom investors

a And legacy to so arrived record, and track experienced an be to a of big considered element our how an have lot think, at happen team, now scratch lot a a that advantage of a positioned, happen vehicles upside. in it's building -- but The positive it and with. launched at be to respects, funds be last used the pricing asset a comment in are to positioned deal capacity. having I'll from a starting is portfolio prespecified make newly the And is and level, we curious newly we I portfolio feel portfolio was having of that marketing our funds fortunate don't have that in some

long Sorry a for that we're we the lot trying accomplish. have answer, but to of things

to any I the that question And now appears closing Morse call would last to like back turn for to Robert day. be the the of remarks.

the for great operator, continuing a powder, for lot look great excited Thank that of today, we thank you, you. we who opportunities to you. Thank of about us create our and and dry opportunity, We're shareholders. marketplace this deal in amount find helping hopefully, Thank all through to participated meaningful on of you in our market dialogue and a for forward and where the to navigate investors a ourselves call, [indiscernible] call.

your participation. does today's for thank Thank This you you. conference. conclude We

You a time, lines this at have your wonderful day. and may disconnect