Bridge Investment (BRDG) 9 May 232023 Q1 Earnings call transcript

Greetings. And welcome to the Bridge Investments Group First Quarter 2023 Earnings Call and Webcast. At this time, all participant are in listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions]

conference recorded. this reminder, a is being As It Bonni Rosen, my pleasure your host, to introduce Head is now of Shareholder Relations. madam. you, Thank

You begin. may

morning, XXXX the to Good to Group Welcome call conference Bridge review results. financial Investment quarter first everyone.

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

will a Q&A hold session remarks. We following the prepared

from are to actual uncertain undertake to call statements, may like include may not today’s differ We remind and results. that materially the do any outside update which you firm’s these control I’d forward-looking duty statements.

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

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

of the quarter selected basis. reductions loss diluted assets. of first $XXX of million was Basic I share related We $X.XX will net was a metrics present of performance a quarter to review Katie allocation $XX the real loss estate to by The XXXX driven loss unrealized for operating first for a reported the company income GAAP to to valuation $X.XX an non-GAAP our our of due our on and analyze loss will million. accrued GAAP data. GAAP with per XXXX and net

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

hard update, our has rate increases In months since morning market number the Three landing. the state of the ongoing a across by bank with Bonni, about possibility announcements the numerous a interest layoff and Fed, you, last and in of good GDP continued growth, fronts. quantitative of all. context volatility substantial failures, Thank markets continued three of labor concerns coupled earnings the tightening, the

to global the issues and domestic and and That’s a global accelerating Russia-Ukraine added list centered of around and for implications list growth the are peace the long prosperity. U.S., China, situations Taiwan tensions

both environment prompted in in investment These a a values appetites set reset asset chilled and in operates. this current short-term activity of across investment the risk the opportunities off We for have has in a attractive and environment. themes stage macro which Bridge rebound in believe markets the many

this market tactical Bridge with the to on focusing the central while Through earlier Bridge’s create for outlook. remains market in our opportunities secular long-term these markets, by highlighted believe created trends volatile and focused XXXX that We the turbulent in today’s times, ongoing value acknowledgment year of investors. both investing facts dislocation of conviction theme on requires conviction

deep extensive regular perspective investors, Our with constituencies both of dialogue a analysis ongoing data on public with informed by banks other we is act and and whom proprietary research, basis. sources, and

selection of the at specialization that ever, careful to economic relates asset level. to property more into opportunities, we flow deal and operationally the than management intensive Importantly, strong drive in is strategies it of as real forward environment, more a alpha case believe in estate volatile integration and important

to invest in the drive the focuses different A the is best premiums the that one is asset on going cases. level In investing. of of equity paradigm merits classes selected creating asset benefits alpha use addition, at at successfully negative many return leverage for investment from to in current neutral the forward, and environment required

strong, renaissance. by onshoring/reshoring in XXXX The X% a and accelerating now X% a Our growth metrics, has been and for manufacturing and the labor has conviction on of rate is over many the been economy promised year-over-year. holding wage U.S. unemployment resilience below year strength throughout across markets, the near many growth, measures

in skilled Bridge outpacing the These with residential benefited rental lower of the investments. wage much of U.S. income and low residents serves half actually in leading band are those higher occupations cohort the skilled our have increases middle disproportionately occupations. These

resilience have in out cycles. We play seen such past

we As investor one U.S. can found the unlevered point NCREIF XX. and several against of slide income decades, investment in on reference, over equities compared the last sector Multifamily for returns fixed indices be our which presentation

Key findings include. analysis from our

XXXX the recession indices. commercial investments withstands these deepest major including periods, even real of estate value better First, intrinsic the recessionary than the

For believe for estate enduring persistent of housing real this the as assets. and as rental commercial the we Multifamily, need speaks value well specifically, consistent to income

in our rental own our concentration durable logistics high our portfolio, investments principles we the isn’t Second, a the it Multifamily as robust view, classes is industry, and of given largest the the of one believe real for residential the of value industry, assets, of representation entire asset to for perfect and serves benchmark a index this applied although residential strategies. and our rental same real estate all estate

income fixed spot been strategies have investment landscape. an bright otherwise Our in difficult a

returns at and deploy income continued mirror and raise exceed have strategies fixed We returns. often and capital targeted that our across sometimes to meaningful projected equity

AMBS Each lease vehicles industrial IV, capital. strategies deployed has debt and of income net meaningful our Fund

continue and banks short to least. balance at term lenders exposure, we to reduce believe multiply sheet in As these CRE intermediate will other opportunities the

continue continue of for credit performance performing should of expect for investors our these and represents solid fee-earning Credit to to our and products. grow in We demand see AUM importance. about report to each to vehicles strong XX%

navigate of we management of highly tested prior opportunities to and team leaders strategy market. the the well specialized positioned navigated experienced Bridge’s challenges the in each cycle cycles with current and has are make most

with build $X.X AUM a V quarter, recurring completed and in fee fee-earning to XX% year-over-year, close management we business first revenue increasing the for XX% we our billion. Multifamily increasing record momentum continued During at

Partners in We leader market. also completed secondaries acquisition on March XXXX, Newbury XX, of the the a

of that of strategies. total capital most close with record of oriented the credit during quarter, $XXX raised towards investment the V our our we across Fund vehicles, Including million Multifamily a

quarter. in Importantly, we any the first did not have outflows

long-term behalf the manage We capital, of on continue stable benefits our we to of partners. limited which enjoy

Our with duration no vehicles is of and capital features. closed of average end an base X.X redemption comprised has entirely years almost

we quarter, continued seamless on acquisitions. all closed been Partners with our Newbury to carefully combine strategic the on of integration organic vision XXst The March growth efforts During have acquisition accounts. curated by execute and to

We and precedent guide acquired encourages Bridge structure at management value aligns a a immediate Newbury philosophy a transaction and price to We accretion in by the that earnings to which projects created incentivizes ONE our that compares and performance embraces efforts. at well we substantial that transactions.

Newbury. and along integration manage We to brightest Bridge have with our some assigned the at best partners of at our

our platform modest our on focus specialized revenue investment builds in base. our The and some highly provide acquisition diversifies of Newbury countercyclicality further

Newbury growth on secondaries market, funds. is interests and with partnership established a buyout, a leader focus capital in venture equity limited in the acquiring

competition Consistent where operates middle Bridge less there and the is pricing. small market real more with its estate in investment way on transactions been attractive Newbury’s funds, has and focus

excited product for as expanding while We adjacent the long-term platform’s offering, Newbury developing we near- the plans potential are about the for existing growth scale over both and into strategies.

the Bridge’s of brighter enormous. seeing X% their to than The less secondary achieve has solutions great The business, specific time limited LP are seeking our at And overlap partners cross-sell Newbury’s dialogue liquidity already is with for outlook and goals. from the never which transaction. we to basis, opportunity been have sector for

as report expect on and other these progress. further we initiatives revenue synergies make more to We

Jonathan. over turn the I that, call With will to

Thank will what opportunities seeing real and you, transaction broader Bob, efforts performance, are outlook market, we morning. in investment and good commercial XXXX. in deployment I through our and estate the Bridge’s walk and

for real tightened. the continuation U.S. was transaction slow, which in estate XX% in strong, we rates QX year seen a more XXXX, depressed but was markets year, as interest XXXX, XXXX far QX have finished but started XX% very debt Thus just down and transaction overall than volumes. the of volume rose from down

is volume in XXXX, XX% Real data, For QX the highest the the sector, volume XX%, financial following QX largest transaction were one transactions down And the off industry crisis. since the latest which Multifamily Analytics great of sector, is Capital drops representing typically year-over-year.

in to data cap with rates Low market transaction providers participants reported of activity and private between among dispersion rates and has REITs. led and values, huge various wide cap public swings a

the shift trade than valuation of dislocation challenging rather of believe makes exercise. in markets capital time this fundamental lack in reflects the The more assets. much value moment We a long-term a in this at

With Bridge backdrop, that XXXX. $XXX deployed million in QX

our mentioned, deployment in has As credit been strategies. of most this

We patient to underwriting, trying to in been our be market disciplined have continue cautious and are be but about timers. we

weighted Opportunistically, million investment-grade XXX of we bonds and of estate rate a average at plus SOFR basis CLO bought $XXX points. CMBS real floating

investment-grade addition, amount yield small we of CMBS X.X%. bonds a bought In fixed average a weighted of rate at

outsized continuing that, yields significant investment These cushions illiquidity equity the have securitization in markets. grade have highly and but risk-mitigated to due exhibited subordinate debt below bonds

are from a of have pickup slight a These see to funds harvesting older on started that vintage equity handful coming with the also structures. who side. and are well the have We capital in broken transactions investors assets performed

$X.X powder, which Affordable in done strategies. and to to of related positive Debt Multifamily, With Workforce outcomes is for are billion expect and the deployments dry positioned strategies, these majority XXXX well and we of generate

On of portfolio fundamentals the remain operating our side, the underlying investments healthy.

estate Workforce For are our XX% of fee-earning example, which and AUM represents Multifamily our occupied. real XX% assets,

growth rent for QX effective same-store X.X%. increased Our

NOI some occupancy portfolio collections X.X%. the the in across While growth toward in XX%. QX of similarly are pre-pandemic strong, slowing are demand supply Single-Family and Fundamentals growth sector Rental portfolio markets the experiencing year-over-year recovering remains in XX.XX% and and in strong at resulting issues is growth rent our Board, rent across with levels,

component vacancy have infill much product. Logistics, invest of availability markets our is obsolete experience which functionally to that continues gateway low than X% a coastal rates. we historically is vacancy The and in primarily which of less growing AUM

on leasing exceeded these underwriting original performance has With our a availability, basis. acquisition months last net pressures the effective by over XX XX% on rent

X.X% quarter slightly our higher was strong income investment NOI values depreciated estate values terminal the conservative to and turning growth rates. current across operating performance. funds, slightly more offset real by Despite in equity cap and by performance our Now as

conservatively capitalized. ability have and are We the appropriately market and our hold volatility believe funds assets to through

does mostly for leverage than layer fund level funds at the property at other a real the of employ leverage Bridge lines. operating additional single our equity and short-term estate level employs subscription and not

insulate while Over the return with This its higher cost rates. of being and given helps asset debt the either in level property hedged, is XX% interest on cycle. the of evaluating life fixed from in funds more hedged the or where is benefits process

Further, these factoring even during the quarter. over during million in of in portfolio additional have interest benchmark decrease as last $X.X hedges QX a million providing XX declined appreciated months, rates value, when $XX.X the

recover. of also strength while hold to position to levels and of seek markets which constantly our liquidity, with puts assets, our cautious plenty relationships a to generally we continue combined lender ensure solid debt fund We leverage with operates monitor. in each The and us the transaction operate

have areas in pipelines thematic as we is the to rates, backbone of Near-term and majority for limited wane conviction term, the AUM. strong serve Longer the demographic likely of undersupplied propelled debt to continued due and pressures. availability construction select by equity, cost our supply as Housing as inflationary higher which well critically are tailwinds.

particularly locations lenders Logistics e-commerce are infill robust, issues as durable funding drivers conventional chain and to with in to and regulatory market supply staying strategies resiliency due Private positioned manufacturing constraints. onshoring, are demand as demand are credit sidelined deposit remains and take share power.

any are we driving the attractive execute poised We will markets markets private dynamic highly XXXX as in for believe rapidly, solutions. of we to sophisticated navigate ahead as demand and liquidity recovery. illiquid strategies LP become Secondary grow be increasingly complex, deployment

slow and through we well-positioned challenging originated its market, during of remain has some the As most to and a investments transaction so we again. times historically choppy best which work do

discuss I to our Katie will the over financial call of business. our to and hand stability the results now

Thank you, Jonathan.

million, efforts second all management $XX.X fund steadily totaled quarter more year-over-year. which durable last face in push in recurring revenue, to advance of to $XX.X the Newbury XX% X.X% The million, quarter. basis Newbury funding management add to fees would for a a XXXX, dynamic of our beginning including macro XX% occurring, In continue management total of from is the up fund will We of quarter environment. and On forma up even this acquisition recurring building further year-over-year. the first fee QX, the pro fees

our since of including AUM, most growth year-over-year when our XXX% represents in and AUM increased $XX.X short acquisition to which billion, Fee-earning at of billion. closely time Newbury. true XX% of IPO, $XX.X period tremendous This the stability represents the stood our fee-earning underlying growth the of business,

fee-earning features our of that closed-end the of XX% and redemption funds Over X.X years in business. weighted long-term AUM no a duration average our adding is of foundational have to stability

risk, redemption investment vehicles today. long-term from This our with open-end significantly the purposeful mass insulate retail the spreads are still capital and we of in strategy long-duration in market seeing

Senior themes, in U.S. is AUM of across includes is the where estate related real majority and the and Multifamily rental Rental, related. Multifamily, high Affordable conviction in fee-earning to residential which Workhorse invested strategies in credit private of Housing, Housing XX% our Approximately the Single-Family our collateral

vertical. XX% of X%. our newest our Office portion fee-earning AUM represents at a secondary is in small

theme of down to year capital a be central conviction, positioned Our we and from thoughtfully investor economy. or to benefit the turning have is resilient to our

to management the for the in earnings interests. from fees transaction slowdown. the driven fund partially These catch-up fees and company from development lower attributable positive slightly Fee-related non-controlling from operating offset $XX.X resulting million by by with fee-related market were decrease attribution fee a mostly and were down million QX, revenue, earnings $X.X recurring quarter, along in higher broader

seasonal profit as likely keep interest that verticals, profitability over the which passes be time in interest to year. team in the FRE are they non-controlling investment more tends hurdles course of relates and to The to

driving $XX in more million strategies growth decrease that tremendous year-over-year are Additionally, fees. FRE comparison will they as transaction scale. well-positioned FRE, The by our drivers built-in nascent have the not but in grow impacted was be positive

and compared cash-out were protect expenses as on fees helped which revenue. by discipline and maintained compensation have transaction-related been we also have Operating stable and year-over-year, cost impacted lower to expenses. QX margins, This down employee relatively other

this Real volumes FRE short-term the estate impact depressed likely continue in transaction to will remain and margins. will

simply and a put rebound, push that element. powder As margins. timing is our to dry up markets This will transaction will revenue record work be

We always which plus on recommend minus. the long-term, the investors quarterly Instead, move. margins tend or to focusing we average cautioned have XX% on

For on XX%, example, the up a months. was margin in QX XX% trailing XX

for quarter DE and the company million, the Distributable pause earnings realizations protection reflecting $X quarter, performance. in and share million fund to of management $X.XX. with operating after-tax $XX.X market the our the declined were general to of prudent the Net per

expect million, Unrealized decreased XX% carry realizations. near-term. remain decline We in $XXX.X to the for adjusting selective after a on represents to monetizations which

As our balance was The we Accrued were carry arrears. IPO assumptions stabilized. is a XX% quarter value disclosed is previous sheet in driven reminder, the asset up in the markets and well in accrued are conservative on ultimately carry since one recorded by more that position when quarter. decrease XXXX

record costs earnings be is based Directors incurred quarter, Board Partners, dividend declared to June which shareholders of as This non-recurring Our and share, represents of will a paid of during transaction Xnd. per for $X.XX amount to mostly of the distributable $X.X the adjusted which Newbury million. on related acquisition of

nature our conservative diversified. highly a the how Bridge our we sheet. and discussed management process same leverage prudent also risk Jonathan banking employ mentality with balance a corporate While we of funds, within that employs are relationships maintain

grade are asset rating. manager with We an leverage an investment low light and

the and average the of placement issuance million in Newbury As was balance we private funded discussed $XX including last rate X%. seven-year funded acquisition and $XXX recent resulting quarter, quarter The Newbury with resources, of with expense. of included approximately XX-year notes, weighted priced the The XXst our the January reflecting of be existing will placement first million private and proceeds million on interest a of interest using of sheet March closing from debt. of the $XXX QX notes notes

of excess drawn. our until outstanding credit maturities our also $XXX revolving private placement is well The is million no and We seven facility with million with $XX duration in staggered of expanded to XXXX. years

long-term to for and We and environment success. confident the strategy are in navigate well-positioned are current Bridge’s vision

for I that, the questions. call like to now With open would

Morgan is question go from Michael Please [Operator Instructions] The Stanley. first from Cyprys ahead.

for Thanks the morning. question. Good Hey. taking

around business? are real banks we you that including facing, from leverage sources, the and could that you business? funding on what levers, that do credit How you back the different of some financing how of Just years next couple access opportunity What talk How with versus Thank GSEs the given this maybe banks market. you challenges the of given in the you as over mean access financing your hearing us they the help that? from are back, this your much expect out can set banks front? pulling Can what pulling catalyst that some about play what’s to what does remind estate the the and are -- you you you. other then navigate of for Bridge across are do on in seeing

real has Thanks, everybody Michael, a been it’s estate commercial has become bank conservative of and for course, the And topical question. banking the more very sector focus question, think, that for an exposures. knows area of I much

some and There where of enthusiastic two it’s logistics a either are land. respects. investment lend. lend, residential willing sword that a banks of We still some to of to think are willingness a sectors rental where are cases, think there’s number We in double-edged those in sectors and to

offices, a is favor. are the currently sectors out Some poster of of child favor, sector that out of

markets from borrowing Multifamily some borrowing I a We characterize -- the private lot it, do significant of as our in opportunities characterize and We strategies. to from we credit and agencies, bank -- sector. federal course, sword, double-edged Workforce relates We particularly up it tightness private the banks. business the credit of do we opens in the because have for a as a significant

you leverage XXX credit. were our in or market basis favor has of private how I over changed for a at a Multifamily example we asset, A point at plus/minus XX% so of it a points look be transitional in so can a to to XX%. give the at would year ago, loan probably of an if against spread

lower. The metrics point Today, higher basis changed. the SOFR over XXX probably spread be be points would same be at would would those leverage and

opportunity positive it that’s private think of risk, credit, to that I indicative the spread less out as that there. relates opportunities really to some of and higher that’s conservative, more So translates

will now, will difficult their of end day, bit through. review their presumably more point, navigate again. sheet, a balance lending Thanks, of to the loans. portfolio -- at right the start at and and it’s They But some

Credit, overall to modest of of capital mostly or banks, agencies the to elsewhere course, whether our have in is from an be activities. the we debt, fund been office able focused on some part adequately very exceptions, stack, and important with order access sector, it

Great. And the deployment on just a follow-up backdrop. question

about slight activity you the And could mentioned would you You the how maybe financing transactional across a that. just here is seeing does think as of capital putting operate and that versus say side, strategies the actual of you pickup much differ bit constraints work, the that on to equity of different on you absolute lack how of the versus financing elaborate a potential and the that sellers? from on lack cost higher

Jonathan, want do address to you that?

right, more, going see broader Yeah. I mean, equity who green starting bit we it’s while I they And on because whether are call in assets reduced of still are out, owned still by business. a valuations still spotty a are little market, want there we a it at because activity are very they and shoots going definition, our great evaluating for sellers to guess, there’s those to are or sellers the -- who to and returns not have have, money assets, have made even sell.

a that they kind and put they So out, sense. so sometimes in stuff they of will don’t sell, sometimes little choppy it’s

very IO put some reserves are we they the underlying loan. call have it, up on that now allocators have they for been sizable sponsors had basis to of have in rate and debt that’s co-invest who then service and then addition, from that stress time, to capital be sponsors what a a price And put take the who on caps which to, can have is for been exceeded regional long regional expecting see beginning and times, of the simply equity to support has we X the an have level gone don’t to see

good, So the of even assets, underlying those demands cash flow challenging. assets are really though the are

sort one to have such see break are the that we we bit starting into are we take our buyer to little is such get what an that this great it’s kind that very to that way of So deep of active and are transaction. of to we clear going do of things Bridge we look markets in start about relationships in a the the

starting closed. we broadly securitization need need opportunity of when to are again, We see we fully really speaking, markets underlying little raising super things the see up. market bit We been to from But back before more a yes, little to in see are So, a stop moment stability a the the debt have need starts to recover, start we -- rates. coming bit Fed the markets. open to to see

net fundamentals and powder which powder to just we beyond in, it, so and strong that operations, around because the that talking see just kind have of demand And call underlying for that are of the dry enumerated the our in in recover incomes is demand in, we not we dry because continue favor sectors -- values so unchanged sectors the and our view in the both, of operating in be supply-demand our will are points also own much of the growth but product. there’s

between and now think again, to attractive. excited think, going can will unleveraged be The about, be starting -- at find to anything then, values. deploy, returns we we that we underlying we see have, are very we looking incredibly we going are and we we are So, good anything we to at said are

stay we So and active, what populate. stay start will we to think we busy, we do we things just start do to

Thank Great. you.

question… next The

Thanks, Mike.

Yeah.

Sorry.

Operator, go ahead. Please,

is Please from question Worthington Ken from Thank next you. ahead. The go JPMorgan.

of step down double team. $XX It we levels QX. for both in saw Bridge QX which This with was to Hi, saw deployment million Great again. wanted speak XQ XXXX, QX of for from modest $XXX actually last in you to Ken. was year. Bernstein question. we the futon on Thanks is a and million, my Alex I taking

and shift are elaborate seeing most times in driven credit strategies. Can now was forward around asset credit in broader in forward? going broadly mostly that It deployment you seen what that’s going the like parts noted the happening versus credit the more expect several opportunities do You earnings. through you sounds by equity the of going management alternative been market. you change a Just

the to wanted that check that you going look at you forward? the I do you. for So and case well as funding was Thank how if

question. your the both have been observations of attractive, products on committing from I of as the for spot And well think very as opportunities. Thanks perspective a Credit in investors are lot capital, respects. deployment

deployment of Our lot We broad-based. our to suite been we debt were that has deployment of respects. pretty ahead complete credit in -- vehicle the reasonably flagship in able strategies vehicles, of a of schedule in

also have We deployment as find as for opportunities AMBS, lease. in been able to well net

that you of The that more the levels in in trading quarter our core buying securities very value we public -- with the in public was deployment first offered lending are and in K at we referenced that and as represented Series direct B pieces part good done part business in thought markets well.

deploy to I The opportunities continued credit. to that going -- addition course, think would expect in forward, the in we of

see opportunities As will Jonathan well. side the we on equity said, as

quite have over opportunities. quarter and the We first of in and course quarter equity at have to looking frankly tried fourth terms been patient the the of

I deal to XX average, try great carefully on and buy always employ that We we one due examine. every deals we out price a of of discipline. diligence believe

a something hit X% So we have around rate.

that We have selectivity. continued

paid. We think that we been have

second and think as execute we poised asset as bit, opportunities assess continuing are paid reset well have we reset hopefully first for investors the quarter values on a quarters a side and equity to the patience have and bit in on that third unfold. quarters been to the Our

Very if could Robert. helpful. on one quickly. more you, I Thank hit And topic

XX% Is total talking drove instances you and more from But fundraising, one only look part for MENA of if capital international past again. XX% Just America of in quarter? we are raised that there are an that where quarter more as Does like areas North the of capital another and a U.S. happening at looks Thanks such comprised in than rather international that in broader like AUM, like available investors. deploy sort we broadly the from that’s this it or the XX% one-off this shift came look and of market this versus this about experiencing noticed your sounds LP to perspective trend EMEA. you past type well, APAC there’s trend that as it’s

global available general, presence investing terms and over I because is capital the last a a years in pause think, who’s very in hard who’s having we on taking our valuable, different diversify have and in more areas, fundraising less fundraising to efforts. of worked is several or depending meaningfully

have offices in Europe. and opened We staffed

We in had Korea have from now this for an several office taking am Korea. actually call today. I years,

U.S., effort have coverage wealth continue both the We broad institutions, as as as well across parts a to the both management the other well as of world across channels.

It’s interesting.

They for of investors dialogue as I looking would with LP LP have interpretations for are are the our prospective clarity. We -- it’s They are existing both today looking characterize for and guidance. looking our investors stronger than market. ever Investors been.

attendance a hope and powerful of strong LP it including we from continue the and capital meeting years was a events, that has hosted for been which Annual have produce our first will strong, of We raising physical time Meeting, and recently in a as number really very record really couple dialogue a to the perspective. expect held results with

pay The percentages a American that North We you what bit think investor happens past whether versus function quote a in in long-term. that is approach a believe will short-term that we the that long-term. thematic think U.S. and are a take a three investor, many months lot investors, dividends of the offshore U.S. preeminent the a of happened and do investors investment specialized what and destination folks these

that really we regard. positive traction So in seeing are some

mention, investor equity, providing secondaries real overlap estate exposure, be going can’t investor but debt, there’s our very points, those I the help continue this little be And cross-sell other real talking base base. The we to that estate forward. solutions opportunity we will it Bridge the and of whether and mentioned thing cross-sell the substantial investors, think in Newbury between to really

that the seeing that are months. already some think coming will snowball and that we evidence We over of

Robert. so Really Thanks appreciate, much.

Thanks for the question.

Suisse. Credit go from The next ahead. Bill Katz question Please is from

Hey. Thank the questions. you for much very taking

bit, you thank congrats when on terms transaction. First, Fund again sense VI sizing relative maybe focus Fund about and give V? on you that of to deployment just move a timing to and V you. of I Newbury, so around us stand in Could think a the successor on Fund for little place take where might

some that? We in that? market, the on certainly Jonathan, want about themes really me can to but funds we are do to you the handle we can’t want comment you specific seeing. handle Do that talk of

Yeah. fund. Sure. XX% that I on I are still under mean, think, today deployed well we

there’s still -- assets a some little over are see of, we it really positive. I to a underlying -- standpoint So candidly it, from but time we in just benchmark that’s but I the valuation. unlevered some consistent think bit call a returns the terms attractively earlier, and starting as a run kind priced of mentioned rate, of But are

have think operating do in to that tremendous underlying I income. I we about, we our believe the growth in continue continued net of we -- sector, talked And a think growth as see amount

although, the again, of to sort the craziness during at pandemic. than reverting a more continue mean rents Our grow, level

the are And undersupplied sector. significantly our belief is in that we

operate area a we to kind is property So, and being as differentiator creator. not course, a where but level least, of at ability look value an the and of it huge at last huge the

So optimistic for all we remain reasons, those there.

quarter a market Bob in to this financial to quarter continuing are But statistics said, not that right trying are more the means volumes timers, the of the the made be and were the investing kind earlier we about selective than down since that that little our read being volume while. for down to after quarter, be when point crisis. we down, down volumes Again, any I global

expect two starting opportunities we we -- in delay be some distress, solid because we little a see able actually as the kind are to hope a not things. coming of a capital expect necessarily now so are the to advantage then, There’s that little One, of takes it to we see to of will level distress, sector. start to take market. bit for that and some while. asset think more I And fundamentals, said, I And we across those

Fed some nearing to which will broader markets more to the the for open space. of rates, is the in stability create will the hopefully, up And see their start into again, the period end the belief raising is liquidity opportunity interest and that we debt

on look and then. And theory, to are place debt I basis. as think, On we an Bob, that every candidly, capital better when it single levered can unlevered unlevered go recycle and basis, in well, an starting you deal and markets at mentioned we get on debt out

that our now, are perhaps deploy to equal assumption and it on some for the a time opportunity take the time leverage without dry and putting seeing at of moment applying are recycling reasonable in this at about But later a capital. just just and assets with into returns we powder assets financing that

some really opportunities. interesting So

ahead make forward. able how long terms are In now. put number that set to it something four-year of for V, a kind of right up we been on order give and we take. deployment of it have in initially hopefully, you that’s will don’t hard think what’s I But a Fund we period

secondary I relates to years space, of an add of met, secondary that it the two We every awful the we specifically if Bill, would lot the spent space. we them. Newbury, met carefully not at looking player part in better as

well. spent the that time with the the that And investing the middle we we view that from at of glove the how Newbury partnership, fit came team, as to Bridge away the deploying the approach in found hand success in investor really market sector, with have culture, we analyzing professionals, capital sense

really that think are we that better. we us partnership. Newbury We better, make that about make will So will excited Newbury

had since closed or so ago. we have a integration month more program bit transaction just really than a and We the little a comprehensive intensive

demand traveled be certainly world kind LP talking expected to liquidity is the have less provides in seen and to there we for strong the but Newbury dynamic secondaries is very complex, solutions of markets for investors private that have as increasingly markets as and and become We way. today that Newbury the sophisticated comprehensive others, a think really demand we not the more in

bright of Newbury infrastructure choose arsenal at meaningful solution think vehicles there capability the allow future think to well. so Newbury a products investors there’s will service So Bridge. we additional of ever We than our that as to in we part think invest better and in that set, Newbury overall will create that our who our as

apologize… for for you Thank Okay. maybe I that and quick and Katie one one then

Hey.

somehow Bill. side. to was that about our I Bill. question Multifamily Fund just I wanted I -- sorry, Sorry, apologize. on the V misunderstood

why you And so that’s got the answer. confusing

So I apologize to that. do for you want

So thanks for jumping in there, Bob.

All good with the extra commentary.

for appreciate one I that. Maybe So Katie.

sort I review are puzzled year just ago. looks so under it seasonal about wasn’t and Just the to of want little I a P&L? sure the a like this if cadence you. should how make the thank that NCI? or Can by understand the dynamics a tracking saying know rolls or I exactly, was I through had you loss what apologize of just very quickly I you version you already.

Sure. to things looking are There’s think you that our need when NCI. you about two at

interest program announced this which X, will previously last profit as program, interest our July collapse on is we the XXXX. year First profit

that So seen. we won’t seasonality historically you see have that

way have normally, don’t to earnings allocated and QX. an QX, the those programs But profits an that works NCI until so threshold, is there’s interest we

see trend well non-controlling because reached during as that’s the as of and not the attributable causes won’t yet net yet loss and you newer what of net of income instead profitability You fund seeing so seeing to our are collapse, final XXXX results. managers interest have a some that

That’s Okay. Thank you. helpful.

question Please have Morgan We follow-up go a from ahead. Cyprys Michael Stanley. from

taking Thanks the for Great. follow.

impacting mentioned, to capital strategies of raising a able you the raising your the that. How see coming expectations us to market start fundraising. you sort timing think on And of update tougher today, many I in of we the are and have come your be are any finished seeing magnitude into the strategy might raising? then for backdrop capital to funds quarters, I raising could be you you what there? marketplace hoping for capital capital in -- sort flagship, Just a what which debt was on you deploying seeing question

on that then can given of little or expectation it any we thoughts a you. And sizing favor? rating in? to capital more because Thank it’s debt expect that come in is back So a for bit tougher backdrop

talk all given But point to in are that think that about vehicles. Thanks, its question. we would specific the the can It’s say we we I have I of fund the Michael, manifestations. for this different we themes have rental include emphasizing residential hard limitations at -- some

announced for better capital to We those capital I we those Fund before, areas close As expect we had busy said. think deploy we Fund a have and II. areas Multifamily a in deploying Affordable V had are or and record in close Housing we for Workforce record

up new remain version deployment and we previous products are the the a there in logistics, that expect The that now strong of net that to both Credit on side. and strong remain built teams that attractive very on we demand will vehicle, with well side, markets for finished lease of as equity the strategy. where new include investors really vehicle, have the logistics, continued hope we as be

as And we think communicate. certainly to know, have I folks tried

reduce well. and renewable commitment a It’s carbon to and other all have of initiative DNA part ours integral to of through strong really We long and abiding ESG. energy opportunities a footprint our is as hours an finding things so

perspective. of investment of deploy against execution it’s from Bridge many important a important. professionals teams focus. think It’s these performance perspective unlike an -- alternative And We from to a important managers. areas asset specialized It’s is all investment

menu and available, specialization of but -- that that everything so that that’s in we challenges think to are that forward. capital may more that embedded bring we approach if wedded to the that of going deploying Bridge and doing advantages that broader have raising were by menu is opportunities we So array touch an deeply are markets is within that and were to terms we for high one the than of capital a broader offset the --

you. Thank Great.

the at time. Chairman like further would turn I are Robert no questions Executive to Morse back to comments. floor to closing There for this

Thanks add everybody Operator. behalf and you, for dialogue strive have update. available an you our with of who’s continued We our work together. so communications quarterly And as Thank interest. arise all and and of I additional on taking Bridge, today, us as a our for interest team always only transparent We all constituencies, our are look participated dialogue appreciate We your shareholder constituencies. to management comprehensive to much. we particularly thank forward at would who’s in questions

concludes This today’s teleconference.

may Thank this You lines your participation. your time. you for disconnect at