Bridge Investment (BRDG) 14 Feb 232022 Q4 Earnings call transcript

Greetings, and welcome to the Bridge Investment Group Fourth Quarter 2022 Earnings and Acquisition of Newbury Partners Conference Call. [Operator Instructions]

As a reminder, this conference is being recorded. I would now like to turn the call over to Bonni Rosen, Head of Shareholder Relations. Thank you.

begin. may You

Welcome Fourth everyone. Bridge Group Investment Good Conference to Call. and Quarter Year-end morning, the

We discuss will Partners. Newbury also our planned of acquisition

Our Slager, from Chief prepared Chris Jaroch Elsnab; comments Chairman, Newbury as remarks Morse; Partners. of Robert as our well Executive Financial Chief Executive Jonathan partner Officer, Katie Officer, include

Q&A Managing the by hold prepared and Jaroch We Partner Chris we Newbury Lichter, where a Richard will and remarks, session following Founder of Partners. joined will be

on press statements. remind the a which with release undertake call posted our we materially duty presentation transaction. to website and firm's update on investor like may morning, differ not may you any to from Newbury the outside This and are uncertain statements, details results. and actual do today's these control include I'd forward-looking that We

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

can also reconciliation appendix metrics non-GAAP on call, certain financial we the live These Presentations of website quarter our link. our IR call supplemental portion The of provided also with will the are be site materials webcast. slides slides. The found metrics. are During fourth earnings under at event are They supplemental non-GAAP of during accessible discuss in ir.bridgeig.com. the the available the the along of the

for fourth $X.XX quarter XXXX We I loss per the will the earnings present $XX.X of $XXX.X a GAAP full of for net reported present data. year to fourth share our the year Katie income operating share full $X.XX. non-GAAP and GAAP million GAAP for per quarter GAAP metrics million our XXXX. the the company was with will for and

to pleasure the call Katie. is now to turn It my over

work macro good going the then Jonathan the on and earnings with share day Newbury morning, It's Bob Thanks, on from Chris details this review forward. will will Bridge. for will and our introduce our and Bonni, how and and operations. announcement morning, Jonathan XXXX Bob, financial commentary by markets together Bridge highlights exciting followed I an Newbury Partners and everyone.

was From perspective, experienced We the inflation XXXX a year. macro a highest in of levels decades. challenging

central and aggressive world tightening. banks monetary and from policy to increases rate quantitative rates around result, a easing concurrent As shifted low the interest

addition, increased the Ukraine weighing developments global Russia now and geopolitical experienced markets. the other In conflict and subsequent capital world between from slowdown in expanding risks economic China and reopening and on

and time, on solar and compensation cost our Notwithstanding occur and started and X%, other XXXX. recurring cautious which Despite by outpaced in to these PropTech in growth backdrop, a delivered million FRE expenses. the for investing augmented our up challenging more compliance year-over-year and our teams, fees, the we're meaningful We logistics, verticals, new discipline. operating as Operating company efforts, our management fee showcasing relatively to growth same this scale. powered expenses to to our operating platform continues fund offset for management key than added a positive XX% in our were growth Bridge which fund leverage at XX% across revenue increased ESG fees. $XXX.X growth, decline employee already new metrics to by transaction has

repricing increase Distributable of continued earnings share increase $X.XX, with close will per million, a and and has markets of second a made in A to during company which a share, for of the $X.XX We of of decrease in year. earnings impacted Distributable after-tax transaction earnings. dividend led and with our widening fee-related which the paid quarter lesser to $X.XX. extent, the a XXXX. spread record after-tax deployment DE bid-ask from in capital-raising share in DE half and fee-earning declared value to record growth per fourth in our shareholders $XXX.X the AUM as rates March million, assets difficult activities. were operating This This property $XX.X XX% participate markets investments. of driven we activity be the increased to in to it XX. rapid interest rise significant was by a a The per lending asset to

With we have as in markets respect to deployment, of the half XXXX. been second corrected patient

transaction As would the a view result, be billion were values in with at down, market our our dry took future. volumes, the along we deployed powder $X.X that better a entire and of

the Although transaction business short-term fees our may fundamentals performance conditions, market the the near term and to in revenue remain due of remain realized fee muted underlying healthy.

XX% averaged XX% above are XXXX For occupied example, of XX%. and represent our which effective assets, fee-earning same-store growth our and the AUM for rent XXXX Multifamily Workforce over

will low persist for vacancy Fundamentals is This, invest. into experience turn, support rental primarily X.X% rates, and infill which in with XXXX our particularly latest gateway think we and growing in historically XXXX. double-digit in which Logistics, AUM, continued growth the markets to are single-family in NOI we in occupancy. XX% a which strong, continues component rent growth, coastal portfolio our of has similarly to

Now turning to performance. investment

and we on real unrealized to quarter strength in Our assumptions X.X% in cap sectors depreciated the These value-add strategies, increase invest. equity and rent estate underlying rate for largely value-add rate which cap we year in the rising in which mostly environment X.X% been as the in rate are funds, continue we've continued offset to many have cases the investments. increases growth by see

In our assets addition, the and we generally capitalized. volatility, conservatively through ability appropriately the funds and are believe have we hold market to

We fundraising to bringing our backdrop for on of are to the $XXX.X focused billion what $X.X a was QX achieved provide difficult million, more long-term assets capital. our value and in continue we are that inflows limited We confident for partners we value in results in add the raising solid to year the funds. to

XXXX January During XXXX. of through

Multifamily the completed also Affordable and latest of We strategies, at Workforce vintages final and levels. our Funds closings debt record for

of the IV we credit turbulence invested the the continue markets. in fully Debt to months opportunities expect Strategies investment We attractive will amidst coming find be as

seen with spread outside of million the average fourth in the of during the In and illiquidity we SOFR CLO securitization CMBS bought bonds basis the XXX general to weighted in risk-mitigated capital investment-grade here plus highly markets all floating and unlevered. that These deals structure, exhibited are the quarter, $XXX due points a were quarter. great CRE, bonds investment-grade

We to had investors income $XX this with strategy. continue our from V, to to have $XX lease in related $XXX million of to committed We productive net with million QX momentum on and dialogue strategies Fund several million AMBS. to our opportunity

With gross to funds powder, billion AUM ended we we We our are of at for billion cycle. of of billion, year AUM and XXXX. in deploy is with an capital attractive XX% believe point $XX.X and fee-paying from $XX.X of XX%, $X.X dry respectively, positioned fully an well the increase the

such Our value-add built platform for is environments. market

our years. XX% with which We about our also of closed-end have feel features and redemption duration funds, fee-earning capital long-term in fund average AUM good X.X a no base of weighted

inflates have collateral in residential currently Senior themes, Housing, those in majority U.S. vehicles. who Multifamily by redemptions rental in related. of is across AUM exposure the XX% the is Approximately significantly from private strategy the our Multifamily, retail which invested seen to This of Rental, Housing and Single-Family more Workforce open-end Affordable include the where high-conviction credit Bridge our fee-earning and

appreciation. yields been continue meaningful U.S. that has investors resistant volatile the to While recession capital alternative offers the estate the durable and real environment believe in potential downside resilient, past months, for market inflation-protected few the we protection,

let to me turn over that, the With Bob. call

Katie. you, Thank

platform year-end discuss pleased best Newbury our XXXX largest the are our step The plan Partners, our in to quarter secondaries our in fourth agreement investment an strategic one is transaction growing to and view, next definitive the both We and grow and highest to performing firms. exciting independent asset an and inorganically in strong attractive results of organically and thoughtfully expand acquire class. and, to quality

the Debt billion, teams. billion environment closing V confidence X operate billion, the the our in Affordable in achieved Workforce II Multifamily at investment in in closes which investors that rationale with Newbury occurred I transaction established place Strategies $X.X Bridge We strategic the with best-in-class IV we to XXXX, Housing to macro highlighting highlight verticals record reviewing XXXX. in selected and $X.X a and Before and final at for wanted achievements in expect January; at $X.X

specialized opportunities and in Both participate predecessor quartile these and and forward the ranked to The of U.S. focus in of for Multifamily are funds Preqin real II their V which, integration, continued top in estate each and the performance by sizes are in largest housing the the of for part, both specialized value their define markets. of positioned in to and Workforce illustrating around funds the the vintages, kind, approach our Affordable

Debt deployed. health in first quarter well office logistics, vertical vehicles will as strategies debt expected and to care Fund verticals launch be XXXX, established IV is in XX% our our We as since over successor

We're in an management strong to PropTech and sector. XXXX We launched sector finally, X have rent Newbury the and for team those in starting scope we with success early strategies Single-Family with further have our And Renewable the to an of into and teams success. enjoyed secondaries and and acquisition, track expand outstanding investment in acquisition growing strategic new attractive expand record enviable assembled in complementary the efforts. completed Energy planned outstanding

XXXX, in were high half expectations of $XXX sold started of was pattern to are we At bang XXXX were buyers the the with million XXXX of assets, high, to year beginning whimper. volumes half Counter of first greater price the where plentiful. the an contributing ended XXXX, were unusual a typical the volumes $XX.X fees. half In performance commercial the transaction a of from perspective realized from real million the first sellers and second with estate. of than and year,

as very brokers, seeking In actively yet we monetizations sponsors were selective the well half priced of lenders second and we opportunities. XXXX, as engaged attractively on with remained deployment,

more We of steady as with more progresses, markets year second half expect as the hopefully the culminating these market XXXX active see capital a of to and stabilize. by the much

with the U.S. since in As see see consumer We've labor X% and evidence of easing index the resilient we slowest also gain price to expenditures with annual started healthy particularly XXXX. September in metrics. rising look a green the ahead, some personal December, just inflation we market shoots,

as We've needed come estate we basis XX Fed to their bring If down which by rate discovery transactions to highs. almost price already trends increase real treasury further much continue, pace increases XXXX. of progress the would back seen points XX points and in velocity of the from yields points, XXX from slow market, the the this basis commercial basis will these

In commercial structures assets. form of demand of outlook capital come opportunistic sectors or estate, the with real drivers plays focuses that and in may broken our long-term repositioning on

We near-term in later expect some in significant capital as market, activity followed a opportunities albeit markets to stabilize. see in deployment slower the increase attractive by year the a

we and grow are curated growth management organic offers alternative Our opportunities. combine to strategic is and verticals fragmented established and we've organically intentions consolidating asset with our continue to The in believe as long-term carefully done acquisitions. significant space

Over the numerous course of Partners. XXXX, on before opportunities Newbury focusing evaluated we

We and the have the consolidate, managers to just the seen in desire this third that beginning. is accelerated believe fourth quarters weakness smaller and we trend XXXX the markets in capital of of

the hand in the fit of the opportunity selected most We investment the philosophy sector founded. glove successfully with others has Newbury believe within team, We high-growth navigated process see secondaries since as that secondaries Bridge and attractive significant and one and how market.

rapidly expected has the The managers years. to in more than next under is alternative grow grown and X decade the over double-digit alternative at assets with trillion rates $XX.X for management asset by past sector

demand for needs has for accelerated. solutions investors, liquidity evolve As secondaries

of with market a per report. billion Morgan in XX% at rate XXXX, the XXXX, in in growth and estimated market projected $XXX with a healthy secondaries volume grow research dramatically has a is Stanley XXXX to compound annual billion XXX% recent up grown volume $XXX XXXX years over The through for

benefit buying LPs cash high turn, funds from and to market macroeconomic The rebalance along exposure private outsized below classes current durations diversification public In increased portfolios. yields, weather and the and extend instant to to fund LPs J value asset streamline allocations, sponsors current or to no protection only NAV. volatility, to secondaries has liquidity price gain secondaries PE with need with from gap solutions environment pricing for between curve, investment the seek limited structural and

real investor. add Newbury's will an to represents funds we underwriting transaction the reputation estate as market expertise to product The we Bridge secondaries our secondary real Newbury, leading a offering Newbury investors significant also platform. Bridge and both as assets our investment diversify and sterling developing With to combine estate by offerings with expand Bridge's opportunity

capitalize a today's for significant secondary complementary our We value will for Bridge are make shared see scale the opportunities management look firm's on This areas to excited forward with value-enhancing confident proven positions Newbury's and we transaction create and values, a to of of team, track highly in We number investors. set and experienced seamless growing and expertise working integration. opportunity closely records, long-term that this together about our market. near secondaries are to

turn the Newbury terms to does the fully the what through over to now more I'll describe financial Jonathan Newbury and to call of transaction. today walk

you, and morning. Bob, good Thank

to senior are its growth of contracts We the success of to definitive professionals a who of all into to Newbury long-term Partners acquire delighted and Newbury business announce substantially with XXXX. the agreement of and the employment since the enter managed have founding in signing

billion equity founding Newbury $X.X is secondaries Newbury's in in transactions, way of less Consistent investor estate where Newbury focus limited venture there interest and in capital funds. acquiring its is the capital a attractive raised buyout, its investment on X real in funds. pricing. and leader across more with with growth committed market has has the focus Bridge and been middle over Since partnership the established dedicated XXXX, operates competition on funds, small market

The XXX behalf limited than in interest firm partners. has of XXX transactions, executed underlying investing more over on

inception. Newbury's experienced over management investors track distributions team has of $X since to cash returned has of record billion performance strong decades and long

had and crisis, approximately and Newbury performance net global XX% Since have steady to funds that have greater improved gross of than been strong Newbury's mark-to-market over has has time. investment XX% started returns of returns financial annualized XX%. and the reporting

risk-adjusted market Newbury's opportunities channel our middle drive best-in-class of targeted strategy align management carefully strong team, allow in direct investing us sourcing to strategy better that with investment and returns.

endowments, worldwide, firms. less family partners more limited overlap institutional clients with overlap Bridge and investment than and and spanning funds Newbury's partners investors limited has both X% is among XXX little managers, offices pension There others. with Newbury existing invested of with than

believe platform. significant Newbury the financially is the cross-selling and Bridge We This highly accretive allows acquisition opportunities. strategic to

assets of Bridge which approximately AUM will $XX.X a total Newbury $X.X bring billion under has in management, to billion.

us growth which as closely AUM, XX, billion billion, XXXX, the or represents December combined of More true numbers. most to our XX% fee-paying year-end $X.X will importantly, bringing by underlying business, of increase on based $XX.X

at time IPO the For of was perspective, AUM fee paying billion. our Bridge's $XX.X

this So quarters. growth in Newbury, post-closing of XXX% X represents just

years. generated million with fee fee-related Newbury their of AUM fees the XXXX, $XX duration management $XX of earnings, of million and X During earning approximately

our powerful a As basis, we profile our million combined that in FRE on for result, estimate period, been would have earnings a $XXX fee-related a time way. enhancing same

XX%, margins generated combined FRE addition, Newbury will the forward. estimated which FRE In business strong of margins enhance for the going

per would we closing, accretive would the the been basis, FRE transaction margins. Overall, been we On to transaction XXXX expect FRE on have mid-single-digits and an share have accretive. after-tax estimate DE

earnings, addition In the growth prospects offerings funds secondaries Newbury the accretive our and being expand launch about to as in we successor of immediately excited to we are sector.

inconsistent past, that as have long As our saw recurring in of fees we XXXX. more the management we focused shareholders and discussed our underlying in that be We benchmark a clearly recognize fees can growth and on and we stability. fund seasonal transaction

million at $XXX And million, of quarter of as $XXX the XXXX, now the fourth XX% fees we management time fund recurring growth. were are annualized at IPO. representing Our of

combined million, than level. twice When $XXX our which Newbury, IPO they are is more with

this we We Newbury to successor continue raise expect to year. as grow fund

Newbury with capital Additionally, a loyal XX% Fund has nearly its from repeat coming investor of V base investors.

existing management to acquisition which the in-place transaction, agreements respect funding for provide Newbury, substantially includes Bridge $XXX of workforce. With of million the in of business the all the will cash and of

with We are Funds carried interest I the not associated acquiring through V.

that allocated earn operating our attributable interest funds in future ownership company. anticipate we to to the carried XX% the be However, platform will will and on of carry

rate fund priced placement January The in the including X%. this a million recent of private proceeds the and of include notes notes weighted private using X-year approximately $XXX of $XX of $XXX issuance of was resources, acquisition debt. interest existing with and Bridge to placement will the intends from sheet balance million XX-year million of average

The us Newbury note and the purchase is time. at contingent occur closing upon that agreement would transaction funding

full capacity to facility million our $XXX available. We credit revolving also with expanded currently

to the expect consents XXXX regulatory to of closing customary subject conditions, approvals. transaction investor first the close half We including in and

be I we Richard, we specialization to Warren, values, aligned excellence the remarks prepared with team. reiterating entire and our teamwork years Their want Newbury culture by in look the together forward to is and Gerry to to Chris, end are of working partnering come. excited how our and with

dynamic highly another a Bridge This of now to few growth going strategic to is transaction Newbury is for of area turn potential Partners provides Jaroch the forward. and say It call words. pleasure to over my Chris

Jonathan. Thanks,

time as excited of we common about and Newbury benefits both shared success, investment Bridge well existing growth believe with vision and know, partnership We team The as Bridge between transaction is us very much you within into lot complementary opportunities. development this to our the are position our and our the we team a we strategy future spent closely of look the Newbury. and confident that that combination. of adjacent secondaries cultural forward growth business, accelerate entire this will about As realize for thinking to fit will at this working and the

you, Thank Chris.

thrilled We now Operator, together. Thank have this we are about open will new the line you. up for we opportunity likewise questions.

[Operator Stanley. from question Michael coming line Cyprys is with the Morgan Our Instructions] of first

scale off Congratulations opportunities elaborate the the be was more on a hoping on able Newbury business. bit transaction. transaction. on to you Maybe start I might Newbury you the just see the to

real What to think mentioned products. also How I cross-selling. some do think another secondaries Expanding take? other you does area, You into that alluded you think about estate that? I maybe

that? you build? What guys might require What team 'XX? year that in this actions take terms how the you are and think that does into doing curious of about Just of some

fund to a alluded also raising at you successor fund And Newbury. a then I think --

capital that sizing And you fund strong the record. track just given sort market there? today the think thoughts might environment that? And around any if how scale for raising of Just performance about

This well. Michael. Bob and might speaking. ask bit as is then off Chris start little elaborate Thanks, I a to

the We we both feel be potential have look strategic philosophy, its secondaries one forward. tactical will, for has and that team They forward. very how growth Newbury's growth and and as created that created speaking, going is for The business we that you closely, the interpretation secondaries record if tried a history our the to enviable record. as to strong so broadly -- track expand, significant record have offers philosophy, track And Newbury opportunities such parallels of an going it is a that track middle-market sets has Bridge foundation well.

So a how to firms our we think business. that there's between in fit significant X do

Newbury the has completed Fund capital V. deployment of just their in about

for capital the So as we for to opportunities that capital collectively our their with base, expect We, of as of doing some aspects do been significant of continue But anticipate their real we estate for the business, focus on a very list between PE, cross-sell and of base investor raising has well precisely alluded raising VI real been they've estate the successful focusing capital has to, main like strong can launch Fund would secondaries venture what both fundamental and activities. investors. our Jonathan it, different Newbury. business business the the as lot buyout secondaries to a investor

business. that strong that entrant power create a field. estate but expertise real backwards, the there's expertise will meaningful the growing in view opportunity in more that estate secondaries and we nascent, Bridge's Looking think of It's secondaries Newbury's our real

whether business. secondaries to other focus a well, areas other infrastructure are It's as the business. be growing opportunities there in on it And or

be that that team effective some we terms that we opportunities. really think like have capturing believe our growth quiver, in Newbury of there? of anything to and you'd already various to that Chris, it So will in those we the adds the add vectors

market is on as secondaries delighted Michael, middle that question first focused is we're looking delighted way off, and started And growth. $XX innings probably market markets we're in billion its combination. in equity XXXX, I'd the our with of the Bob said, year-over-year. Today, even $XX opening or business when this Well, we're this say really just its billion the tremendous we back if was billion secondaries I mean business at private in that. size, $XXX-plus regular

the in years. Xx business, we the market overall So but has there's been enormous to think still another the X next few that in growth

so And there's business. tremendous the just underlying in growth

which looking in two, Bob portfolios, other fund, talk fund at is, I forward launch. so said, our we to fund funds. And their we was to for through our [culture] types a venture the we've of liquidity solutions, funds billion focused imminent see what other as in just U.S. and forward see And see we've and that and we one, types raising not to equity we but V, interest, Fund portfolios. see going or then think buyout growth been Newbury, in the other the We a that sellers universe funds there, on we're as successor looking credit been series $X looking rebalancing in whole real estate in these of of

we're the will broader evolving, for it's as growth the but the better So folks with avenues solutions platform. that address market also I we together look that we the people as Bridge of to continued create capabilities incremental with, develop give can us, think these dealing for one,

just that. maybe up follow And to Great. on

challenging mentioned VI just launching broadly, here backdrop we're You hearing more given fundraising about Fund today. a that

front? see could And that larger focus the larger-sized Fund of environment the for end on the alluded marketplace. given that to about talk if guys $X billion that, to, capacity that raise just So that at the you smaller fund? And are to extent maybe raising just scale bit think focus you V you you you smaller curious sized the this funds on mid-market the could little market what and seeing given secondaries a a the in on

the speak just a does require to of to into order the product following estate. you What such builds? in bring actions in that then guys And take actually what have platform hiring you into terms on extending might around to Maybe real together? Bob new could up marketplace point

about little with respect team I'll Perhaps, secondaries Chris could to question appetite address a then that bit building. the of the talk business. part And first in

Michael, all great questions.

year, equity it in sort a overlay space the think definitely fundraising but third on the general largest of that XXXX private I still is record. year slower fundraising was the was around

So amounts private flowing enormous again, into and -- equity. of still capital

specifically, space, look is interest I of in the ever Within and great market the as it's and market, Partners at mean been. fund. $XX we've of Blackstone out fits size secondaries think of the platform space sort just if the I in the as secondary the acknowledgment go and raise you growth the the Strategic seen the a billion where

the sort So the in fund largest of past XX months. raised -- in

enormous that and appetite causing some So LP there's of in business. interest for secondaries issues And now, a slowdown which lot and that the are the the right some in LPs in facing the growth market. is ways, of

are need instance, to overallocated. they're some funds for limited secondaries exactly the for So Those way. solve rebalance in partners. that problems They

has are base looking us in the some we of very lot investor we're in sort historically have market the right a expect a successful result, a of the would we not secondaries interest that's on lot meta now. problem see through of inbound the just So the because going people would this now strong we just right have fundraising fundraising a market ways, that a of for. we as exposure solution understand And very very but again, that that, in that supported lots much with funds, is because LPs exactly and multiple

excited that. So we're very, very about

those support other are would interest. and do certainly have levels investor As we of adjacencies, different different look to specific add because need they vehicles activities we they fund teams activities, into to and

face to of things. core can't a it to need so flow seeing I think continue much out already, format. current stuff was team as from describing we in But our would these build we we we're to sellers, before, the in as and the So address this perspective, activity that address I

And into so going leverage forward. easy ability to lots again, we of see those spaces

the of I activity. was a Number acknowledging Michael, a slowdown certainly couple there would in just that modest fourth in quarter, one, things. add fundraising

that see allocate family domestically investors of amount worth the looking were net of lot XXXX. investors, the we quite to been the the end at The in amount forward in investors et dialogue, capital of calendar early well -- a activity offices, internationally XXXX look as year. investors, high think strong to I institutional turning both page of as as has cetera,

So fundraising we investors. record have dialogue amount results capabilities. a generally with some strong of in Dialogue probably

teams, point are that's stood Bridge which job, To a we team in late net value-add as building team, the a stood about fantastic We today. is XXXX. logistics Remember, how doing up grown lease in where has well. we a up XXXX to late

So incrementalizing to what an the Newbury be adjunct capability like secondaries whether continuation business natural a organization real done other to a estate basis. secondaries or or it the capability a of fund aspects seems include on ongoing we've

Our next Ken questions with the is coming from JPMorgan. Worthington line of

thinking products Can about Do advance? it So in terms might are Newbury launch? How management What you do IV. wait wealth products of concurrent? take thinking you Is be secondary timing for Newbury for here. thinking need to sort about more on you Bridge's in and you you are introducing channels? it wealth of and new How X are to Would going years? of products timing? like? it about products Newbury distribution to management look And what then

the for Ken, Thanks, question.

there's think of XXXX, First wealth over of have in so a fund. Bridge imminent, much we Newbury of is has that a of And wealth broad platform the terms expanded not management the IV with this of suite weight course there don't a dialogue of that at we all, don't platforms. whom management relationships launching I on with major funds platform. single point. good distribution

which in beginning a introducing earlier the at stages talk the concept very Of announced We we place secondaries this took couldn't are we morning. of that really about dialogue. course, that transaction, before much

management high-performing, capable, wealth wealth do appetite we've management We a products. the the meaningful built there's said business think we record a do think with company, partner variety good we strong channels of to having whom in that, a as a a that that as with channels track whom We for business.

we to on So well, as to certainly to business meaningful include that -- receptivity there's expect that secondaries product will that follow. but the there more expanding suite be

business Newbury's has been The investor family, well net as as traditionally has office both worth supported base that institutional. ultra-high

wealth base. channel they've So the big, XXX% distribution past. it's broad the a augmenting built The global in be investor successfully should addition of distribution that purely a management to

follow for way opportunities. sort it cash of And the better on because duration secondaries shorter it private entry risk management that point of a what that sense the of little the I'd to version bit. Ken I in diversification that, a -- the into flowing aspects to of you're with channel it, maybe looking if the I well portfolio because get the tailored into mean think mitigation for diversified comes secondary is very wealth an highly equity, through of

think product I will market. from itself attractive standpoint, the end that very for So be that

Great. terms and a of of they results drove than What the income the the and insurance in top were property here? looking are sustainable. bit kind results, And better trend. we're higher guess I if from Maybe quarter operations for income sustainability,

history occur. Let to occurred insurance the was incidents that that first. me results driven during speak based claim really by That actual upon vary just that And XXXX. will

As increase. operations, continues that balance earning will fee to our as AUM we the grow, property think to about continue

sectors, the scale. to continue Multifamily -- so those largest capital, to properties are in deploy drivers, Multifamily sector continue deploy the particularly -- and really and those Workforce And and we will

like kind hand kind we of to with that business. in that fee income They of in on of Right. core go recurring focus hand the terms

range is in real to alpha in can of performance. management, in particularly from the the into that in the we changed this, acquisitions that's asset interest strategic really has at financing We think mentioned terms things. an something estate believe, where leverage neutral more important level. rate We think we I earlier we generate think, being of to integrated decision an forward post unmitigated gone earnings how whole in be scheme probably Ken, property we an positive call, the environment, the of component

In management environment, this property don't alpha investors just an new that gives are integrated not enjoy. of forward us who element

us think it's of worked hard We as our and XX continue had approach property and our And over so lot for past so hard we've to that huge for we've years to optimize we've to learnings or over going years, management, work a investors we and we management. grown think property the a asset forward. the

Mody Our of line coming Piper Sandler. from next question with Sumeet is the

today talk backdrop you we be could there? transaction Wondering the And lower the this you us in that on to think about we deployment ago? how the months then those given X about expecting. seeing a fees came guys the changes for frame see? were help of kind Any Can little if in you opportunity year broadly versus than fees quarter might

Jonathan, how to that? on about you over

Sure. Sure.

I interesting there's transaction fees, I been debt to of are We've that have think slower I On seen opportunities on think, side, sort our the this markets spread the alluded that I much bid-ask in seeing, market. was which the presented, think negative think very the a call. we

real need higher for down including overall some rates, things floating to the see saying of cap for think is connected everyone the volume, be impact be estate coming purchases aside significant is green of debt. We're put coming terms the the see commercial rate also market course, of back. that which, that XX% of reserves subject rate to broad that to. are other statistics to from starting I to that We're some things are like in and the shoots opportunistic might starting of

So to again. the a are up bit open markets little starting

we we in is that assumption really stability what volume really markets. over steady focus in to then think segments I of stability commercial the time, debt a like that growth a And estate multifamily the bit the more kind in of and little need there's real in transaction in. is our kind industrial especially

pause kind will active by the second hope year. so happen in the followed in market, probably period the the a will we half of And of very in which this be market

of do lot sure we between a when it, have and capital don't is there's of changed. and and demand secular we that exactly course, resurges. call for know what not a we lot But see know focus that demand long-term benefits Of supply these,

the still So a at have outlook the -- on this estate very in. bullish operate that stage, we we real segments segments

comfortable quite patient responsible and I been the fourth we add, having in would quarter. only feel think I

to many appropriately and Asset markets, adjust prices we continued cautious. in were

powder deploy XXXX vintage, think be in order funds. dry that to We $X.X across if a We billion some capital. very you that have our of approximately of will various will, attractive

day, are opportunities. specialized looking in investment all every for markets the And day, teams our

and assess to analyze said, As Jonathan ability combination really surface, in going are and shoots opportunity some the green that that are we there more that good prioritize is powder, to assets we beginning create in accurately markets the and dry some think the of to XXXX.

Our next the of question coming line is from UBS. Adam Beatty with

A with idea the Newbury. product fair bit extensions of appreciate around discussion. Much of

think Is follow-up you mid-'XX assuming about of about of timing about extension of are kind that? thinking How just we this if were closed on to that we of a around year, aggressive? think transaction I some Is If launch. a half first timing to So wanted conservative? sort sort -- were for product to quick that. that just on --

to a and is #X -- VI time Fund I zone, #X particular a Fund committing job think capital is for successful closing transaction. that Job the launch Newbury VI. without raise

to immediate the eyes going that not our it off to take as so focus. that. the And will be relates ball We're

Having traditional said traditional investors, a shows in the shows Newbury our firm with interest products, that, that working combined strong strong secondaries the dialogue demand to dialogue with with investors investors, Bridge a demand. the in with access dialogue alternative

completely So add and capable, anything to we launching we're to commercial has Chris, think products jobs it is X relates our as organization as be Richard that you'd first evolved the and are done. to or like going new there?

committed. Newbury this what Fund XX% is at Well, say would I is V point,

And VI. sort we've then re-ups launch transaction investors why And size of the we so more Fund we getting same We're our this of XX% that's the expect would close closes, funds. we'll and and the investors, been or soon thing raise as very now. to as new as

have even with Most even some have and multiple was founded. of Newbury invested investors before our been us funds

there's we on We have these [Indiscernible] so of funds. surprise launch timing when no

be first will once the that So order close of the transaction. business we

we we're or private the As us pick most on assets And funds growth estate that's see one to -- types And show But Because space, we their of equity part forward. think the and up things. transactions, us buyouts want their the the when like all then asking said of know other they a to easily Chris real assets. naturally seller do we opportunities in operating I buy. going what inefficient other earlier, since of typically, and or assets of could we sells when of their things we we we equity. us focus

That makes total sense. I appreciate all the detail around Newbury V and VI.

good forward. going Sounds

legacy Just had of to presumably thoughts to different and bigger what picture. maybe terms both get what this have and in of alternatives drew may new firms from have still together wanted management partnership as partnership in each teams you I the you.

So really bit even -- despite about was distinct what extension it's an seemed sides. both was and attractive or it partner, be a Bridge for this that good Newbury a fit like of

Richard. question. great a Thanks for That's ahead, Go that.

I can Newbury I And demand secondary are number the high side. now, from of assets transactions. in speak secondary a firms. there's mean, been

sense. saw So common us. was I we I a of vision us. investments of naturally possible thought some their they're do, types we the contact I Bridge. with that size number pleased to focused particularly made see fit acquirers thought on

synergies. were me, so And there natural to

down I to the look at ultimately, all at then the way And least it it, people. comes

are plan, So the with, you partner you people those people those with. have want to good work to the you business but want can are a

else. it's Bridge than combine excited X. firms. very we're think case the do And So a this equals someone with than And transaction more X going to much pretty to X of we wanted I forward rather about plus

the would to business comments our different from underscore Richard have pretty investment management about -- broadly asset made perspective, focus I we market, the practices, well-established of would I approach strategic From market certain about et cetera. that a in the about certainly on side, defined. opportunities philosophy, alternative those Bridge culture, all

secondary very we discussions near-term for different a adjacency, felt It and space it a strong a growth appetite was space in into we what lot was doing. comprehensive that and were general. of to Prior we were to was with have It market. engaging in a that done attracted investor meaningful expanded growing, Newbury, analysis reasons. a We the of the

distinguished quickly very Newbury itself.

about team at as secondaries We and focus probably dozens, and learned they team, underpinned distinguish met we Newbury, dozen the different the And Warren, so Richard, firms. that that manage lot team success we sector. Gerry, the themselves quickly a in had with, And those very Bridge full past. in the the the individuals quality who meetings, same not lot least a of or if Newbury felt Chris, philosophy a had a

a win-win could And us. we for so construct we them for transaction were delighted that and

Cyprys coming with Our next Stanley. question of Morgan Michael is from the line

comp as the hoping here circle was margin. well to and back Bridge FRE to might the the you margin and I expense elaborate in on 'XX noncomp here wanted Just as expense be outlook, 'XX. on in and able results outlook on expenses

we pretty quarter reduced early I We some comment make Katie I'll run, to think expenses if Michael, comments transaction ship. ask were the in we said as disciplined So activity. on lean remarks in a well we then of miss fourth our anything. in and light prepared that And

or XXXX doing delivering allocating are results, saw was to A net those initiatives good growing. appropriately, logistics those attracting assets newly capital, manage in lease growing finding et growth in or launched be PropTech, headcount well, fund We areas have are expense it solar you growth cetera. or whether all headcount acquire, well, to the opportunities, of lot to that tried of to some those

those investments, of completed point. this many at And expenses are

a headcount modest we we're, to business and other course, initiative need We anything there? well margins And to good borrowing to more to see. manage should continue growth that Katie, add our XXXX, grow The investors. conscious be of continue have in good strategic bottom delivering our line to of to and profitability headcount. some

quarter-over-quarter, on I emphasize that importance during that volatility the is I think that the a just our quarter. transactions long-term have well as thing only to margins as basis, just of relates at looking occurred we would it do the

basis. margins And long-term a so on that's one at focus our on thing. just looking It's to

like no back call hand There are further comments. any closing at management to now to this I'd time. the over questions for

to and who all today. thank us you operator, you, joined Thank

opportunity, and to we're that a announce complete XXXX, meaningful Thanks transaction. We forward We XXXX. of We're we Newbury looking look great we opportunity delighted through the delighted forward so to of to quarter capture to have the much. positioned of and in future a XXXX. year. dialogue as the fourth well amount progress think We are deal know we review

conclude does teleconference. This today's appreciate you. Thank participation. your We

at your rest disconnect day. lines of Enjoy time. may this your You the