Bridge Investment (BRDG) 8 Aug 232023 Q2 Earnings call transcript

Greetings and welcome to the Bridge Investment Group's Second 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] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host Ms. Shareholder of Head Rosen, Relations. Bonni Thank you.

begin. may You

Robert Investment Good to call Prepared Chief include Executive Financial Bridge Slager; Elsnab. Officer, XXXX morning, Welcome to remarks Chairman, our from everyone. Officer, Group comments Chief review and results. Executive Jonathan conference financial the Morse; our Katie quarter second

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

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

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

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

record after September $X.XX a share share to items. of declared of On of diluted as the earnings I $X.XX share of metrics to of per per in and company will operating our analyze for and of common to Distributable reported and second $X.XX, $XX X. per be net data. will basis, was We which the net quarter GAAP non-cash loss to were review non-GAAP a million. the and million due of Katie paid of $X.X stock or GAAP our a Bridge present basic changes loss mostly our shareholders XXXX dividend company will attributable Directors tax Class Board A

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

focus three our adjusted to the improvement secondaries in months Bridge's U.S. activity you, estate and earnings rental the environment the company credit we have expansion the prices all. estate, an macroeconomic residential and beginning recover good served in and morning last real on at logistics the in seen update, real of have since selected recent attractive Bonni, markets. U.S. well. sectors and In Thank our to levels and

Strong underlying sectors through our preserve has existing while been investment portfolios some operational dry improvements of to in values existing these powder of helped values attractive deployed have in fundamentals vehicles recently. at

alternative In attractive lease industrial and selective renewable addition, globally including in relatively and mix net are an looking We're capital of with investing raising several energy mature positioning gaining potential. our with newer of investments sectors of about optimistic and AMBS, assets initiatives momentum. Bridge's and traction forward, sectors high-performing income high new

Our also areas from from investment U.S. and economy. relative only of but benefit tailwinds, focus secular strength the resilience not the of

of the banking the that to is last to an Regional many the of end the economic outlook systemic from While U.S. continues growth, momentum. policy in not it deceleration bolster has compromised labor continues activity severe financial past nor have Though market. tightened to Consumer restrictive the the crisis. has or major destination global investment. did nor demonstrate high over strong yet quarter signal turbulence and confidence the for year, it a economy's did softened it a resulted a remains economies, beginning monetary has consumer rapid in preeminent conditions put expansion, not

minus X.X% at year Perhaps growth core most CPI a meaningful shelter, As stands at amid which year-over-year have compared the to in measure February stronger is meaningful of expected a we X.X%. deceleration domestic of result, than peak seen last inflation.

diminished has called the has based, with of XXX which markets have equity the XX% capability challenged which become broadly the denominator X, and institutions. so as up approximately up responded August has of many the Equal Weight As rally investment the XX%, S&P Index market more effect

rental we've as growth band, which wage and has largest residential multifamily Bridge rental leading income In lower and fundamentals of our the in across to of overall especially of some witnessed been workforce in the series. our is are residential support attractive provide helping comprehensive aggregate, most residential cohort in the case portfolios. labor thousands half the Strong for many is the investment This also serves to our families theme including and housing investment much and and country. the flagship shelter of of the individuals investments, in our services we markets

vital operational year. forward the within performance, and rent Operationally, with healthy our over Through focus sector outperforming results seeing and over we're market this residential differentiator. and of our industrial We've cycles, past estate are most portfolios driving positive properties rental our specialization and integration underwritten and our growth. occupancy years is real seen especially their fundamentals

On our cautious, wealth Client across at of Group Solutions raised vehicles. larger before net worth than the our and busier the in support of front, more volume channels. million interest capital and high remained entering the half optimism constructive institutional resulting and management second and second new is the in the year. Bridge's of time high in than any $XXX history, Investors raising XXXX in capable direct we're investment dialogue of our the Yet quarter ever capital

required in to enables our Additionally, expected latest this workforce the fund. drive in strategies today, housing launch Remember, the vehicles on vehicles predecessor of leading reached to affordable largest housing each future were in these records of large us track with acquisition strategies debt immediate back fee-earning both the deployment Along AUM fund, close workforce history. threshold with in in the these we a quarters in sectors. have Bridge strategies strong successor and to portfolio the essentially our coming

expanding end with logistic progression Townsend June, Townsend the venture another the represents milestone XQ our at additional the Bridge's previously inflows value in of continued announced add of joint partnership included strategy.

AMBS, of we've into and and inflows Zone Net had billion. Opportunity newer including $X as Lease, Debt raised also We our as vehicles. PropTech Secondaries verticals, many well our Strategies Year-to-date, approximately

good is oriented investor XX% is with net between investors. highly a to we've approach. we Historically, and a worth component with platform a institutional. individual from retail ultra-high differentiated net strong maintain high worth investors always purchasers, XX% our clients. This and high-touch continue institutional balance our From retail sales base had qualified and resulted perspective, of channel

are ways expand accredited We by our certain our thereby accessible retail investor broadening making to to base. potential also investors, efforts products exploring

As secondaries forward, new Bridge growth a and we high residential our exciting conviction has both look number logistics, investing; of and of mature sectors. areas sectors credit in rental, in

strategies including established track strong further have records and more and in performance strategies, have significant future with Our affordable Bridge has runway achieved to the multifamily substantial housing that yet profitability, vintages, especially debt workforce scale established.

impact further is Newbury of reception fee-earning vintage bit like recent the AUM market. our most positive addition, of I'd acquisition to bolstered In by contributing and our integration Newbury to already meaningful on business. Partners, Secondaries valuation. sell, firm its recent a and the the an PE elaborate cross the brightest ensure acquired SWAT high have expectations. team on and exceeded attractive implemented We in overall best our seamless at internal of professionals We we a our

that mass at profitability. Gorelick times. positioned acquisitions, our consolidation in of Longer scale we closer future IPO the have have Industrial a well growth term, to time. and to to was the in yet over and FRE, on Newbury of even but we've reaching AUM objective and moving newer time We that growth via in AMBS strategies Lease Partners Income an that are delivered of Brothers organic critical challenging inorganic indicated achieve positive and important Net number are component

uncertainty option rising As estate world and in multiply corporate balance of sheet users. real triple these leases other costs a believe many lenders banks commercial for will corporate and attractive availability, looks net opportunities about an reduce we exposure, continue like to capital

In with on unburdened addition, critical manufacturing assets significant a in is singular the pre-Fed focus our industrial logistics, market. fact and new acquired relatively mission along lease with higher is the at income tightening, prices that assets net a strategy advantage and

and experienced gross as billion We've totaling e-commerce and team or capital standing stood manufacturing locations, supply robust, from an infill remains professionals durable up were have power. particularly over and they chain drivers now staying in $X.X Logistics on-shoring, logistics resiliency of start. deployed demand a demand XX

energy, are rental and family high homes. is built due team to over portfolio of has years conditions elevated Within a debt its the which benefit transition under broadly just sources to renewable for our critically residential global tight expected quality energy coupled commercial cost construction. rental, Renewable energy solutions Housing had on from first shift with estate. for and availability real for supplied single need X,XXX persist close will to new of unmet an

that, Jonathan. turn call over With the to I'll

Thank morning. and you, Bob, good

are have that some to however, activity levels to the year-over-year, be renewed is XX% Bob fact volume the sellers transaction weigh commercial interest data, capital to despite seems the within volume mentioned, latest becoming either starting markets the activity.For for from as press for reemerge down remained As valuations. debt capitulated impact was QX real QX rates real analytics slightly volatility generate to QX rates capital owners and at and liquidity as higher estate to higher longer or on beginning to of continue on transaction see Bridge forced the up

from both On at the Jefferies. first that's also expected GP-led XXXX. picked heading the transaction the improving according the PE Secondaries market to the second half an of highs seen despite XX% reflecting volumes is to have XXXX, macroeconomic After first activity off headline of a backdrop. demand start strong front, and traditional of half partners QX, Notably, strong, LP our to XXXX in half up Newbury slower into flow, for a in set record year, down Buyer in transactions. be

with credit our Against million Bridge that deployed of backdrop, secondaries most within $XXX strategies. coming

year As portfolio on asset past willingness taken fund increasingly valuations, creating down over have markets transact. to values the managers have come realistic their

amounts solutions due of to find coming broken pressuring is fix to capital asset Additionally, large structures. the debt owners near-term

pipelines act debt $X.X into cases investment assets where With Bridge powder low logistics, terms. QX. workforce underwriting have strategies, many are exactly experienced affordable we're capitalized kinds are and in opportunities multifamily, situations well billion These our with owners actively conviction. but positioned These increasing of levels high-quality in with of unattractive to historically to and from the dry investors own debt like been deploy

our building of across strategies is This momentum number in platform. a

In As to the with within distribution at we distribution a manufacturing long-term up on pricing. of we and expect both which with our major attractive market prime securitized tenants. four warehouse opens facility, Boston, geographic acquired million facilities housing market. on credit today multifamily infill acquired portfolio bought we leases our large we workforce logistics, further Bob $XXX off close Lease, an credit mentioned, In footprint residential attractive into In asset AMBS, locations. an Net Bridge in

of Debt discount of margin In rate yields SOFR outside to These opportunistically CLO, to and subordinate with bought continued due CMBS bonds exhibited BBB, significant from $XXX ratings weighted XXX. quarter, range cushions below during plus for highly CRE, risk-mitigated advantage the dislocations. we equity average QX AAA floating Subsequent that and million investment grade take them, a Strategies, we bonds and to of have market volatility. market debt they've to at

and However, to the of to started activity transaction see spreads come in more inevitable the return flow we've market. returns as

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

workforce rent and are multifamily X.X% assets year-over-year. XX% QX for For and our occupied increased store growth same example, effective our

While X.X% occupancy and up and was the at in rent growth, slowing some sector single-family an portfolio latest rent markets in NOI QX, is year-over-year supply in strong portfolio with our experiencing year-over-year. are issues X.X% similarly Fundamentals residential XX%. across growth our

uptick by basis in exceeding year. a portfolio primarily our market to a we fundamentals invest original the in despite XX% low rates. light leasing drive modest component infill vacancy. relatively headwinds, of AUM coastal strong, which Market on experience is far underwriting continues vacancy returns net rent by growing acquisition so continues this Even remain gateway in outperformance in markets effective to historically which Logistics, of

of While regain constrained the has sector, limited evident fundamentals transaction in slowing and footing tempo functional into persist as of target expect supply challenges markets. our availability across products to the XXXX been volume we of

to turning only our roughly of represent AUM. of market X% portfolios investment After estate the Now of which earning equity quarters office markdowns, flat with fee our performance. several funds, were exception our in real related quarter the

seems and are short in it debt continue interest of pent-up beginning to historic we rise of market demand, dry to and an end volatility and begins see assets, the take comes stabilize the the hold. price to bulk the as side equity values rates to powder and While on

III a recapitalization its Fund we vehicle. The transaction $XXX the the and complete closing for plans assets term original its need time beyond the liquidity. Subsequent extension period the Bridge fund successful driven business of of of announced to desire many continuation by certain was Multifamily quarters, to the from million into a in first the LPs assets was of for additional and

this success our for returns the have We and delivered are proud fund of we've achieved the attractive investors.

we've management such transaction recurring when our growth strong AUM fee-earning by estate ago, and back overall to long-tenured stable and XXX%. commercial our impact fund disruptions IPO provide Looking as real This profitability fees AUM business over now periods to volumes. years grown during two market

As well and investment positioned future Bridge partners excited support our of secondaries about with as capital operational teams the mentioned, in markets and we to is growth. and powder, attractive and are the most recover capable estate global inevitably real deep dry sectors

of The investment future space. the Bridge sales well on as as real as levels and real earning PE recover increased power benefit the in estate both activity will significantly secondary side market estate the inevitably activity

future we company. markets, in major and our our the our have investments leading in to FRE that in drive large market which significant sectors addressable to mature made addition to positions platform In we more segments, expect DE business have

staffed teams We further are markets reopen value scale. they best-in-class as are drive with that and fully to investment poised

now our will Katie to to results. call the financial I over hand discuss

market continued with Jonathan. to second crisis, improve $XX.X quarter our Partners. in stability management QX, the up fund XX% from of Thank aided and recurring quarter addition business you, of year-on-year. from The the million earnings Despite heightened XX% totaling improved fees Newbury first the quarter last volatility banking by from

Our have markets while have ballast achieved and management acted a recurring growth fees as needed. transaction been we've fund the

stability time XX% fee $X.X of $XX.X our $XX.X when business. the billion our at that adding years, AUM in period which acquisition. XX% of growth is earning weighted XXXX, Fee-earning year-over-year foundational of tremendous increased AUM in funds term, Over in IPO our includes represents earning fee closed-end have a duration This no in AUM a to redemption of short billion. stood features long Newbury average of from to XXX% approximately our X.X the billion, since

and rental fee the our logistics, housing, and vertical. our high across earning invested U.S. secondaries newest themes, in workforce housing, residential which seniors of conviction residential and along XX% affordable with is multifamily Over in AUM include single-family credit

capitals theme scenarios. central investor conviction we Our a our of to have year the benefit and economic of from is thoughtfully positioned variety

$X.X Fee-related earnings comparison and agencies $XX offset million quarter, Newbury fee by QX, driven partially transaction year-over-year company transaction decrease were was impacted in placement the with in by These the XX% higher million the along operating up the timing decrease of a the by from slightly mostly The million catch-up FRE in revenue, fees. in higher $XX.X acquisition the revenue. quarter. to were

expect this begin half We revenues in transaction Bob those improve like to to that Jonathan second the of year with mentioned. acquisitions and

note, occurs. modeling in will mark until from the deployment On fee a month, Workforce move the reduction II investment capital on will hit in in to being capital, based fees quarter result committed management a further will the three-year which invested third of as revenue this period

Fee-related expenses increased Newbury. from QX $X.X the addition million with of

catch-up with have by lower and lower fee remain employee margins, to impacted other expenses protect This has helped continue which We cost discipline revenue. and transaction been compensation on activity. transaction-related

that long-term average markets will margins. powder minus. or put our On will expect basis, XX%, up rebound, dry and push transaction to work margins be a plus revenue will our we As

on For approximately XX%, example, the margin was but the XX trailing in QX XX% months.

investors to Fund the of Fund in realization event, five Overall, for III. company in these the to excited QX net a a while the an of years. impact for to creates from $XX mostly in which share also earnings due Multifamily assets the the positive of with extending outcomes slight will Distributable QX Multifamily III, quarter after-tax transaction, Fund X% DE million, had the as of duration assets will recapitalization some a operating about for pickup, result $X.XX, include were fees. realizations from we're performance per realization which increase III

$XX.X carry Unrealized million million. to slightly decreased $XXX.X by

to our carry a we our for well XX%, one in Bridge positioned sheet and arrears. on and debt As are in reminder, potentially quarter funds. III accrued strategy increased IPO distributions has The increases the additional in related tax and Since decrease balance rebound. stabilize markets is recorded and our carry Multifamily primarily XXXX, as was Fund accrued Bridge realizations

share, of X. will per dividend of be record of to which paid shareholders Directors $X.XX of September Board declared as Our a

The program, the which dividend of includes used XXXX calculation on the in the interest share occurred July X. count collapse profit

As the classes should profits planned future, of our this such to by a public the interest last of transaction an diluted non-controlling be lower shareholders. legacy for share resulting million, interest reminder, accretive overall X.X foreseeable that the was increase for the in forward count offset is which going

last of million the $XXX funded on discussed weighted included Newbury rate notes proceeds XX. using $XXX issuance private placement we average X-year funded notes resources, XX-year The our from approximately of a recent private sheet debt. of Newbury million interest As the existing closing of X%. million acquisition with of quarter, the placement The of of $XX balance notes including and with March

In addition, quarter $XX end. our $XXX million million was revolving credit facility drawn at

forward. this of to amount sheet loss a net financials our balance quarter in expect will on reflected within a We gain investment, This $X.X similar on run after In monetized which a million we recognize be GAAP expect expense realized alone. QX loss interest to QX, going realized and was end.

current strategy our The maturities positioned seven well outstanding are is our approximately along and placement are with vision no private well confident and in until our business long-term success. XXXX. increased we staggered scale, environment, asset-light with model, Bridge's duration for and to is years navigate With we the of

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

JPMorgan. proceed, Our is first Please Sir. from Instructions] Worthington question Ken with [Operator

for good taking the morning. Thanks Hi, question.

you this on rest time opportunity Is recovery I the your -- You and real the sort in And deployment about what are deployment recovery for of investing, real or talked the Any of the that recovery think lot estate. there back a is if first, you what recovers is line? substantially? deployment you really implied. the of that about think and recover it bit that's private comes we could we assume in guys remarks the in a see do it something where in magnitude prepared view set given year? estate little more And

recover the between fundraising sort the recovery second in deployment? those the is and And question there healthy part in recovery does to a Do Or the recovery lag is of fundraising trail two the of the what really extent recovery? deployment concurrently?

I'm to to is Jonathan going Bob and ask deployment some This I'm out, start as about comments, -- well. to going speaking. I'll particularly make

in retrospect, as operationally in half prepared the and accurate that we've we and existing remarks, XXXX over deploying we of assets to while of values the hard assessment try communicate patient changed. half capital. been felt it asset it enhance resetting that to first I first an appears we've our been as so, patient the We've deployment half think XXXX were because related values to was value last of worked how asset almost that, of have incremental maintain in or

analogy communicate, try I'll As across We of -- as waiting in found recently. some not water we many we attractive to diving in it opportunities in asset been And the aspects late relates our into pretty the of of as deployment we've rental. residential use water, found to We rental opportunities logistics. of different found the residential opportunities.

have dislocation in We income across credit continue markets, opportunities see vehicles as well. provided fixed to the our which

what past. good a continue capital to that the year, manifest those accelerate as attracts markets about on performance Jonathan would opportunities I elaborate opportunities over and are in vehicles But think the some excited We've bit balance can had of We good we're that. to day, and in think say, of we're in we going good probably to and the is fundraising, course performance. deals and that -- every it the the our of seeing relates we're those very now. little

is across that performance. and good some high world that call of strong, around returns. investments the opportunity would of what been, capital wealth the that will direct, to institutions, capital The more very their think investors as raising recent I worth amount we've while patients channel, And motivates is all dialogue part net have various investors, We it's made on with the continue other attractive of that deploy classes strong at it, we the investors. there's well,

So life. to your some show point, signs of to they're linked, beginning real but

to Jonathan, add like that? anything to you'd

thank Well, you. Bob,

very larger shows I returns on think you and portfolio, things things Difficult off-market when strong, know we're sort of up that to as those move portfolio deployment. actually we terms those you've are way. attractive, portfolio are our noted, some of the whether will some extremely coming of needle unlevered of look end very any substantial off-market in that a seeing on making. substantially closing the at larger pretty today, could opportunities, But that they're the

there's which we to when kind stop the of starting point, attractive start the I more in regular on. when going tightening that side, we're see In and uncertainty be of remarks, about markets, kind they're where more spreads see to going market, executed prepared think the get still a valuations said way recognizing we're is we're the get debt on I in lot the stability. to to Fed seeing to as can to the transaction level see a are point is helping, debt the people at people of kind starting of to and

but improve. is half. to improve say bring we're from the very would the I the going unclear from activity deployment, Certainly, about second what So going to hopeful it's half first it's

just feel directing that. when. question very It's or I of know think anywhere inevitably normal gets of we Whether near a in not levels it will. or kind I it and confident beyond

net Perfect. down. perspective, to if Workforce And then a III, of impact the the any? fund fee that? from that transition question, sort step little the Is perspective on transition, that a you modeling basically quantify big? from continuation then same impact what the And is you a or mentioned Can

-- the first Yes. guess take go could you I second half ahead.

be will XX% August. about invested we II, Workforce in on So

it's step Fund continuation there'll of $XXX,XXX the about be $XXX,XXX. down. Multifamily about so an From vehicle, perspective a III being And to converted

Please Michael proceed. next Our from with question Cyprys Morgan Stanley. is

time wanted platform take initiatives the coming might might go talk quarter. what Great. sort steps Newbury to to about to the might was strategies, and what there, hoping those credit, be online into with to able the estate Good here the that? Thanks real question. about I secondaries of ask how taking you of frame some about the expand secondaries I launch might in be you morning. you for

give you update of they on in an can when Newbury then just And is private might of. stand fee us the secondaries believe aware be of raising they on Fund step-downs in I deployment sort activating side just be of Fund terms terms and equity it and where V, VI? And any to

Newbury a, new is know, to you initiative and Secondaries us. as a

quarter where quarter results. Second with included we first was results the their our

and Just collectively the is most and market to Newbury Fund for that at recent And this refresh are has with is V, memories, in raised point. deployed fund Fund VI deployed we fully the Newbury. that

the true pursued experience the strategy a Newbury we tried in and our that and founded. XXXX I of the was interest beyond the has particularly that quarter there's And is continuation and of since, when -- secondaries firm great deal in think,

secondaries and The cross-sell Newbury market associated experience positive. and both Bridge as is well investors at attractive. a with product of this very very attractive are across has as that point. investors our Discounts early been the the traditional lot the traditional There's considered

we successfully is and critically been they've moving in terrific. across go integration, We, team think manage Fund to M&A of transaction, the to continue expectations. one and course, forward and our success and and is one We've Newbury created. strong returns funds VI to established in it's with right the through that integrating five, has out a Job that great deploy collectively important both exceeded It's raise number had that success. buying to any organizations

be one pursued there number explore secondary to avenues think additional job And within expansion broader for which is job for that think significant the we I expansion. other space. two, will number after are avenues

credit real cetera, limited that. really et couple and not they're a estate mentioned You secondaries, to secondaries,

is workforce, for finding of a in to opportunities now history we've single-family essentially verticals what related we've at from created deploy the that job sectors, organically rent expect follow and start pattern multifamily Fund diversification, a and one rental of a multifamily successful a of seniors perspective -- into do many number to has raise funds. our successful existing emanating including expand and hope same Bridge and in from look done we residential can housing the secondaries. successfully But across the predecessor to VI

I'm sure you're We well. aware, as aware are

macro deal time, perspective is great and a There's the capital attractive that to focus, and of a deploying big, is we growing. Secondaries -- in a from very be think secondaries it's sector. market raising both

back activation might any be And like 'XX fee point just and aware question VI. frame Fund second on of coming to time to just for my a be downs around step earlier half event Newbury that

Fund On V?

Step on V, activation VI. on down

that quickly this, had Fund a As is VI. think V step had for modest mentioned for to relates closing down believe that it we -- I Fund soon. happening don't Jonathan a very anytime We've there's believe and I -- I

to some capital that at with market we're this have we're VI the we point. actively deploy, that we So in -- have and Fund

Fund being is VI. So it's activated been actively it's and been activated raised deployed, and sorry, -- and

Great.

Just a follow-up question, if I could.

path to elaborate What's be the distribution sort the investors. wealth. potential was private I to steps expand might of look accredited to access hoping and there? like on you Just on able could

to think in And us to organization of important investors. the think we is when says, somebody Some many as intelligence artificial AI intelligence, of AI, us as it's don't people. about as artificial we accredited

expanding We we the the the on and would that penetration that particularly We with our wealth with market. be managers in U.S. an think, overseas, most received of leading are accredited think private focused actively vehicle very sector wealth investor channel of well.

would what an most We the focuses intimately, would accredited very appropriate well, have for kind some think investor ideas by about vehicle. market. of our be received best understand be we sector We of which structure

year And hope a in able the investor accredited so. near that certainly on so be product to execute relatively or within an we future, we'll

Wells Our next Securities. Finian question Fargo O'Shea is Please with proceed. from

Hi, everyone. Good morning.

a on fees. the management question Just

I think last a mentioned pro we're that. quarter, Newbury it and below little was $XX.X million forma for

the you mentioned clarify I this change was just fees, something source if looking any in to or have on placement think, there may that other quarter? Katie,

are the Yes, few And essentially, placement which made annual during there on QX, an payments that have basis. had do agencies larger were a we paid impact.

Okay. netted And out management top-line fund fees? those are of

Yes, that is accurate.

when And placement fees wealth for agent the that about includes talk us we management remember, of partners. participation our

not it's people traditionally about that think So respect. what in

at to no comments. the for are Mr. time, call back Morse I this questions there closing turning am As Robert further

Thanks, earnings the all other participation for given your appreciate for and publish our We an focus year. of review that us. thanks in operator, our things, the annual We, outlook you've today amongst call.

at trying opportunity Our there XXXX a and outlook think shaping looking that of priced that the of real to good is vintage estate. opportunity opportunities And entitled them. pursuing to making of in very within successfully market broader of conviction up discern be sure is we the are XXXX beginning right is one then where those of

we to forward. as participating forward market So the we in look go

time for much so today. Thanks your and attention

Thank your you. for you Thank participation. This concludes today's teleconference.