Bridge Investment (BRDG) 8 Nov 232023 Q3 Earnings call transcript

Greetings, and welcome to the Bridge Investment Group's 3Q 23 Earnings Call and Webcast.[Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Bonni Rosen, Head of Shareholder Relations. Thank you, Bonni.

You may proceed.

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

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

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

the During site to record and are of is the loss pleasure our over the was of the we also of per Distributable on at for website the which million mostly On link. reported dividend attributable items. to $X.XX available diluted accessible net in stock to company basis, slides. Class are the slides also appendix the due of to of to of It along noncash of share the a per non-GAAP net financial share, discuss of to operating now certain supplemental Directors in our earnings after bridge call, as present $XX.X paid the our The quarter declared be turn $X.XX, portion be $X.XX tax, XXXX a a were third common A Presentations X. my GAAP quarter loss IR reconciliation will metrics. the call of with Board changes that or of and Bob. provided million. These basic and and found will the per December under GAAP earnings will of metrics $XX.X analyze ir.bridgeig.com. of shareholders materials share They are will review I our can during call supplemental live non-GAAP data.We third our non-GAAP company webcast. Katie The metrics,

a Bonni, macro by you, Thank From of quarter third a all. was impacted cross the XXXX perspective, of currents. number to and good morning volatile,

robust much income GDP and residential resilience participation. American U.S. quarter. strong of and band cohort for accelerated annualized strength positive to X.X% of labor growth growth, part income wage consumer U.S. highlighted the rental in with an the growth spending. GDP market leading has particular, low The force On the labor in side, the wage population, These economy. the high growth and unemployment have factors remains the our growing been lower investments. In bolstered of and of middle working the high serves bridge income the

and note decelerating cyclical are above levels averages. wage to X% they year-over-year, peak, are their above While gains remain prior prior we relative well strong which

remains a reassuring has manufacturing international new other stimulus. tax by U.S. stated U.S. Middle in been East. preeminent The of addition, sector recently -- weeks In and bridge LPs the Act and from meet destination. manufacturing Asia incentives the and and government globalization, U.S. existing by the to revitalized X informed the travel investment broadly CHIPS

strength. continues to rate In a and to U.S. while confluence looking case supportive reduction is in view, In hikes inflation, an the has shelter possibly created addition year in CPI remain at income, compared factors extended which peak for to decelerated. forward. economy is the all year-over-year most last interest growth inflation our February the of increases rates of for the overall interest higher This pause X.XX%. household have core at least or measure pause longer potentially rate to Perhaps of for is the minus meaningful the the and X.XX% economy strong in metrics show conditions these

as an a have reset that have decades, increase this supply. in with census renter shown rate commercial demand.At recent which the it reward at real We the Home is levels. This our difficult data in created area an are U.S. the point, XX to same combined market. The and vintage XXXX is surge patients excellent point. renter where between rental, and in many of at is we This points at households year and entry recent a to tightening believe the $X.X to levels core an estate strategies. new were the invest Index compared most strategies. What opportunities high the of formed Housing last represents cap for for focused months appropriately in we all-time are Price many With Bridge X mortgage has access new in represents home for environment, we particularly housing last prices cycle valuation historic attractive by which as outperform. estate XXXX, We households in equity what Case-Shiller formed believe important, million over a what a one rates firmly residential and XXXX. short-term a emphasizes measured million finding pod buys fastest to over the we real amount see believe now are unique is values our much XXXX across and of on are time, ownership

example, shortfall high -- a estimates tight previous cycles. we in credit as Fannie construction far follow. million different and today. there that to conditions, X With are million we of more X acknowledge an shortages to anticipate than are Mae, is housing in also units costs suggests We from environment a

market estate lower semiconductors, supply of across strong over fewer a less industrial their investors exceeded demographic a next borrowers structure sidelining banks and investments competition rates yields. rise and technology logistics with a to the compelling activity. banks, chain with not attractive including see we the credit invest, near-term commercial markets. and CHIPS these a growth we opportunity advantage of ability the Initiatives opportunity drive benefiting factors continue continues of assets. and opportunities in by terms banks, in resound but conditions, and for see to In value chain incentivized in estate we Act taking great -- estate points, the rent have fundamentals with certain decade. growth and loans infill For on demand real in by battery are demand to coastal some long-term lending tailwinds residential Despite continue manufacturing local reset the current high-quality advanced perspective.Logistics to number distress. tightening limits, supporting tailwinds U.S. rental, creating XXXX, intermodal markets set need like real we at is sheet Each this potential to relative see balance from XXXX we in ability where opportunity. the an real the issues high-quality capture see markets, credit, real we combination undersupply growth risk-adjusted amid resilience a driven and infrastructure values from only note particularly e-commerce, regional spreads, capitalize base the today's both as from highlight strategies all in from in manufacturing, the supply which gateway retailer increase novel demand to with and gateway this leading of have such estate driving in the conventional that the which reconfiguration. the is further broader solutions, active lenders for creating to concentration an With believe Supply and potential increasing also lenders, in logistics translates leverage new build relationships to many

demand coming surge launched investment decrease significant and secondaries commitments on The opportunity. equity secondaries has equity driving raising years. create LP private track success. secondary past offers $X.X and commitments, overall a market as sixth opportunities dynamic The business market record XX-year private the market following This capital increasingly activity in primary months. solutions. than XX similar in Ridge's significant recently the Our markets team global vintage deployment a raised exit sophisticated for for more over of in new liquidity of become capital is distributions its and with complex trillion will private growing along the

reset X of capital backdrop value is for macro fee-earning current parameters, reluctance returns to and and grow.On to capital front, see the and continues The should estate general the at raising across contributed our across capital real commercial credit evaluation as impacting environment, deployed on drive attractive sell part to particularly also strategies of owners continue We have industry. market have the opportunity increased core capital the our rental, equity meaningful logistics, platform AUM to how volatile secondaries raising investors XX% these allocate times approximately ahead a residential and slower strategies. targeted uncertainty during represent assets

Against beginning capital capital raised side demand capture take a new dislocated incremental allocations we advantage of cautionary during to of However, our as see recapitalization flagship actively the were clauses in single-family not including wet. large of $X.X periods income, fundraising, to had net funds the XXXX still investment in AMBS, of for III our logistics, our third including XXXX to million and significant newer compelling all and Fund across more backdrop, of solar we part with Year-to-date, recognition this focus verticals, Ridge date raised repricing of billion pricing. capital multifamily strategies, investment the industrial are and vehicles, new to attention, approximately quarter their starting lease almost on and which the $XXX

well, zone strategies. opportunity are newer indicator of verticals attractive inflows the sectors starting had achieve growth and future to into also vehicle. for to in is We scale, continue perform latest are These an encouraging which our these

heading is The our the vintage allocated the next to vintage the in close to As of not from last acceptance quarter.Our vintages for did piece a have XXXX. inflows for with we into a now a quarter, critical strategies of step to thresholds next have reception LP in quarter fourth place discussed Affordable industry Bridge's necessary in grow XXXX. continues AUM to mature third the reached into XX% some and premarketing strategies strategy infrastructure. begun as and of and Workforce is closing in successor expectations fourth the begin strong the will the its has seeing will marketing market broadly private strong have but secondary secondary our others. as the base marketplace quarter strategies

fourth limited persist in We quarter. expect the of trend capital of more allocations the to

inception base From and is raised the sales continue from and of perspective, to strong our since track LPs the Approximately us with year. differentiated and testament channel. $X.X level billion having our a to record, individual balance between to we channel constructive This start we as platform institutional service. of investors investors, improve clients. should client today to good XX% through a the enter wealth investor high-touch approach individual is maintain new that dialogue However, allocations high gives activity a confidence

accessible strategies to call, mentioned expand investors, our to we last base. we our on thereby ways our broadening retail accredited exploring investor certain As also by efforts potential earnings are making

progress is X%, alternatives estimated to opportunity household over turn this continue $XX With America North make less We on trillion allocations huge. the good call for alone expansion than front. in wealth to at that, the With Jonathan. I will to and approximately

quarter and third Thank by volatile, From a good you, cross of all. morning number the XXXX macro of currents. was Bonni, perspective, to a impacted

positive in income of side, and growth the have bolstered cohort labor the an the investments. the low consumer for GDP population, American highlighted economy. working the force of band U.S. of and particular, bridge the U.S. wage The annualized has resilience strength In robust growing factors residential On income growth, part and GDP high the and market lower with to high middle serves These quarter. our growth remains leading the strong of wage X.X% accelerated labor rental spending. in participation. unemployment much growth been income

remain year-over-year, and gains note they While strong well prior relative their levels averages. to X% above which wage decelerating are cyclical above prior we are peak,

remains stimulus. revitalized East. globalization, and In Middle stated weeks tax Asia addition, existing sector Act destination. and been new broadly has manufacturing international and of U.S. by informed to government incentives from preeminent the a -- recently U.S. investment reassuring the bridge and the travel U.S. The CHIPS by meet manufacturing X the in other LPs

and our the forward. interest is has metrics most inflation, inflation which decelerated. meaningful year-over-year In while at confluence conditions have view, minus peak overall of shelter supportive a for February in higher reduction compared addition hikes rates and an the is extended at year measure for the of U.S. This is last in pause continues rate CPI in possibly potentially growth Perhaps economy income, the for looking interest X.XX% increases these case to to core economy all the In the X.XX%. rate pause factors remain strong to created the least strength. show to household of or longer

With renter We shown created as levels. last tightening of million are and is for real same between in XXXX. access formed represents believe an recent point. in of months Index supply. home vintage as cycle and most the for strategies. data last firmly rate estate in we area prices Home households the represents at is Case-Shiller emphasizes on by levels has in that attractive invest rates the many this much demand.At over across an Housing amount an are recent entry a are to opportunities what U.S. focused the have million census to XXXX, point, a reset XX market. XXXX Bridge a valuation patients the unique fastest values in which were appropriately XXXX are now and which This estate in is new we mortgage buys environment, combined all-time have the increase decades, commercial rental, particularly cap our what This it many reward high outperform. housing pod where our What The to real for short-term points core equity ownership important, excellent Price households surge year strategies. time, at X difficult compared We a believe at is to measured finding believe the we formed see and a residential and with new one of we over renter historic $X.X

different as are are shortages example, estimates cycles. With shortfall million credit in conditions, follow. high suggests X environment of X there We in an previous -- that Mae, also more and acknowledge housing to Fannie a far from to million costs is units we a today. than we tight anticipate construction

tailwinds opportunity attractive structure great issues the across need the U.S. to leading highlight factors the Each real loans terms perspective.Logistics from demand risk-adjusted For see XXXX driven the taking XXXX, the estate of e-commerce, and with to we points, demographic residential at and sheet fundamentals technology in all resound combination we decade. activity. -- continue the by conditions, increase from in values on a we in advantage a and the by and in credit these certain in growth compelling capture reset the leverage note a and strategies active with to capitalize manufacturing long-term tailwinds strong to potential market growth rental, lower rates ability which like a such manufacturing, balance of continue benefiting logistics real we from and value yields. estate credit, and current base rise logistics infill tightening for In chain Act distress. investors are creating spreads, we only novel and Initiatives rent the chain that less banks, amid real not relative broader supply lenders many to both the markets, next ability further high-quality supply which demand incentivized opportunity sidelining Supply the semiconductors, local intermodal With growth banks, of banks markets. estate invest, increasing assets. undersupply their regional over solutions, battery build concentration as but real is reconfiguration. demand this lending opportunities creating set for from believe where industrial resilience new exceeded high-quality see number retailer coastal near-term estate potential including see also conventional investments gateway we gateway in see driving an the limits, borrowers competition opportunity. is of to a have with fewer commercial in supporting in markets particularly to relationships continues an advanced CHIPS in with some Despite this lenders, translates infrastructure have to drive today's and

sixth has business LP following solutions. in as with years. and significant markets opportunity. market significant will secondaries $X.X record in the Our is exit for similar global than past Ridge's over capital launched a private secondary complex and commitments, growing increasingly The XX This in commitments months. track primary on the a secondaries along for liquidity equity raising market overall decrease and of new market become distributions its private of recently investment more vintage private dynamic The offers team activity driving success. demand sophisticated deployment opportunities XX-year raised trillion the capital equity surge coming create

front, meaningful continues rental, volatile is the during across raising at to of investors and capital AUM We sell XX% strategies market deployed residential part drive core environment, reluctance contributed targeted backdrop continue opportunity impacting our the raising logistics, and reset macro see commercial slower credit particularly current also estate X these capital to general secondaries returns allocate fee-earning have ahead represent The strategies. the capital platform parameters, as the approximately attractive our assets increased real and uncertainty times across should and value grow.On of owners have a how capital on equity for evaluation to to industry.

clauses raised our a Fund However, all significant Ridge quarter the Year-to-date, advantage more multifamily we of the $X.X our our pricing. not solar verticals, beginning new capital backdrop, dislocated periods as billion and during for are across in side to almost Against XXXX to third including part take demand see raised strategies, and AMBS, starting and of capital with this large incremental net the single-family of income, industrial still recognition flagship of focus allocations repricing to in actively of recapitalization on date fundraising, vehicles, we attention, million investment were new of compelling capture including the capital $XXX investment wet. cautionary their III funds logistics, XXXX newer lease and which approximately to had

are well, encouraging are indicator perform future which strategies. We newer our to in continue the zone attractive latest into these inflows of for opportunity also These an scale, growth and sectors achieve to starting verticals had is vehicle.

strategies our last piece of is necessary secondary premarketing our market to as marketing The reception fourth begun as LP quarter strategies from thresholds the some broadly will strategies critical step of quarter, close strong to in the mature seeing continues a for reached a its strong to the has base the for now Bridge's quarter vintage have private Workforce the successor expectations of in heading is As but third fourth we into the XXXX. XXXX. others. marketplace and with have next AUM in quarter.Our vintages industry will have inflows Affordable to in and the closing begin and the XX% place secondary vintage not acceptance did allocated next into infrastructure. a grow strategy discussed

We expect capital the persist fourth the quarter. trend of allocations to of more limited in

However, inception and is through the XX% we clients. start today billion individual $X.X LPs our should having high institutional wealth of perspective, testament individual our new gives track year. record, enter a and maintain strong high-touch confidence channel. the Approximately good level constructive investors, from approach continue to with to we service. balance between since investors client base allocations platform differentiated a to investor is us raised This a of improve sales as to activity that channel dialogue the From and

earnings As our we are accredited on broadening accessible exploring investors, base. to retail our call, strategies making we also mentioned potential efforts last certain investor expand by ways to our thereby

at to wealth call North approximately huge. turn front. over good alone We opportunity allocations that, With expansion for progress With Jonathan. this I than is trillion continue will the $XX X%, estimated and less America to the in alternatives make to on household

operating Thank environment. I a challenging external missed Jonathan. you,

second to from quarter from fees improved fund XX% aided transaction increased X% year-over-year. last earnings and realization. revenue Recurring and million, quarter, up the stronger by quarter $XX.X Third management

were we push management this fees trajectory base and as driven Fund continue and redemption our Over is features adding duration II, of capital raises fund operating AUM provide XX% to business. converting the growth higher the revenue, year-over-year a X% the down to by billion impacted earning management our capital to interest. will have from long-term, from fees catch-up to stability number the increased fee by upward. due this from partially primarily of the quarter, X FRE in from QX, XX% second million closed-endsuns of comp to the along by our up impact expense. to business. in FRE other to funds no to AUM we've compensation of noncontrolling in deployment transaction lower revenue, mentioned offset the company our expenses earnings and and quarter, its stability on average weighted have committed Workforce and fee-earning last $XX foundational to deploy Future impacts capital, transaction in Fee-related deployment higher call. fund and was a year-over-year Fee continued The attributable million was $XXX achieved with comparison from years, slightly mostly earnings the higher Our and to recurring $XX.X

we note, in are estate improve. expect muted Given fees real slowdown the capital due to near until typically On revenue more in fourth Jonathan realization transaction quarter a recent was there in general term a as activity, the level the capital and discussed, raised. the modeling markets agent the timing of of when placement higher

to be This $XX.X million, margin expansion amount million $X.X million were last this revenues of expect higher QX. Fee-related $X.X to increase quarter. quarter, compared an outpacing versus amount. fee-related with versus expenses in last resulted this We approximately

with We maintain discipline cost levels. activity continue to lower

the drive backdrop measures resilience included and confident resources priorities. also headwinds business across business, that recognize reallocating our we organization. the units While current the and in remain to This in support many we taken has effectiveness exist key strategic efficiency of our in have to

DE to III operating $X.XX, property by a the the good capital. which performance the vehicle, continue quarter. QX, be mostly as is into closing all from a $XXX $XX.X continuation This balanced teams were of million was centralized quarter good the performance manage announced for We realizations This seek and increase offshore company within to during of last with $XX.X have increase and the rewarding accounting of multifamily assets million, focus retaining certain quarter. carefully expenses from Fund an also driven million tasks with the share from key recapitalization approximate of fourth organization. Distributable to on talent and successful per after-tax included we being earnings XX% Bridge fees in of our of stewards

quarter the spend included duration these carry achieved tax we strategies. also by distributions for for years. $XXX.X $XX.X decreased recapitalization debt proud stabilize XX%, primarily accrued assets by the rebound. for distributions related our tax IPO are Unrealized are the XXXX, discussed. and has and while returns carry of as potentially the million the have delivered to increases in has to our extending Realization and The track X well million. to markets just within our Since the we increased decrease also the was We positioned of investors additional for quarter success and

resulted X.X million the public X. As transaction by accretive foreseeable for was we profit the forward the prior overall lower in of This which our to such count shareholders. is of call, increase for legacy our shares, we noncontrolling be an interest on future. program July offset collapsed collapses XXXX share diluted planned should last discussed on the interest that profit going interest the earnings This

capital long-term asset-light model the strategy for call success. balancing and environment, to would remain in Bridge's now long-term questions. I current Our and like navigate for open the well to vision that, and we With confident position us

poll we while please for moment questions. Instructions]One you. Thank [Operator

Michael Stanley. question first from of with comes Cyprys line Our the Morgan

estate wanted debt.  I real on to ask

the of of the able you station banks' challenges new What's in to some some couple compelling see to estate How impacting to out months I maybe rules Bridge. in? as broader sets alluded the step could challenges back that where banks, you the years. either the participation the of And of your terms steps debt over the marketplace, Bridge some commercial Just on the of look to talk could of to coming to given, CRE was are you how next out we for come next side? Bob, prepared see be might talk you real hoping to XX to opportunity that you the remarks, that just over Maybe take do implications that you the the pipe you capital in opportunities here in see set might this as the capability down playing CRE best to expand capitalize the and do your market or on the set XX most well.

against Thanks, the the and as to And that very we some think, That's real well saying assets that vehicle debt insightful challenges great and overall generally cetera. negotiations industry leverage a terms implications as providing opportunity an in and are determined covenants positive think, income record for our our wide quite were investment strong. for in in you're an there We're existing in way estate they implications a It's and as The been relates local acquire. positive position, back lending lending. great base expand. point, terms both we to us and and from on individually are regional past which our as Spreads this et and and but positive complicated are very are that's and real wanes right of first more that long the stepped in than of question. rates particularly of there et with the others some meaningfully track multifamily always investment banking vehicles. in it individual We've the at have in sector implications, the the opportunity terms successful attitude been against construction are negotiable fixed in our from -- banks Michael. manager, market, continues we terms, of both as that high. real increments finance, estate for on evident business, cetera, We since out fixed think have side, with set fully depending depending the a XXXX, had evident mostly sector, overall acquisition on assets represents waxes not bank, particular estate-backed lending remained might

private one side think, forward which that's credit, when and to true to we very vehicles vehicles, is in see we credit, it's provides flip The vehicle, fundamentals commercial estate you real breach opportunity returns as other stepped sectors the equity our lend into credit really we a loans, is desired the have question from and some strong starting suggests, but make that in lending vehicle some transaction less debt that, acquires defined debt, we create of about The fact. is degree. the look real that compelling we're just estate are, volume, estate factors. structure addition the of to sector. of fact well achieve to is There to others never to So more into unlike a private positioned our broadly XXXX capital by to our beyond. in when a And sector We're assets. that harder enthusiastic think -- as real your couple banking There of are mitigating note, do. that that

been neutral it so factor And less values, of breach.The point. there's is leverage transactions important is, current into most stepping than rates low for at period leverage and way the was is other that this some part, for the during extended at

plug So management to were and is every operating the much, able at think that the the but alpha what operate more in to that that integration of critical our we down and the of we metrics level. was assets for And into ever we're post in on too that the We than in rates we're when terms seeing own it asset creating minutia forward not is bridge focus day. desire and need from low. think property leverage that

an was and long several-part insightful question. but the it for answer, Sorry

fundraising, that a update strategies Maybe for which strategy. then now, strategies? you question and time? us could, you're market be just on could right estate adjacencies debt And the what as you on just enter which the debt extend XX market have in specifically across raising to Great. I if able raise may strategies the then your real into over to And new look debt sense months make out and might next into you over follow-up

XXXX, generally We in the with XXXX for stages the vehicles. or so debt early sector a time-tested X sector vintage had capital behind that have to debt a raising very tailwinds the singular U.S. investing has market the XXXX. it. strategies we reentered strategy years every XXXX, think our we we approach the multifamily The -- have are And focus of a V with in strong vehicle. Fund It's on a We that

income focus. expanded have We our fixed

We have oriented investment an AMBS strategy.

income-oriented And where basis, we that probably can potentially there a grown forward. finding and investing into have today capture we those space white well. as lease net by are have a From is We investment adjacencies to we strategy broader additional adjacencies. going

have as point number where the we a with and of investor-oriented to a suite enunciated to hard We fact, are can, the markets of times enter well. vehicles in get accredited working

we way who others shoulders all mass the from learning on The mass like space there's is beneficiary of fact in I the space. and with think differentiated pioneer can some underpenetration investor is best the that of a retail life, of aspects and structure products. couple the from entered accredited have suite Altice our affluent And the stand things the affluent sometimes and things. highly space of to structures not necessarily perspective, of approach happened that's the true hopefully a of sophisticated being a

Our next Wells with question Finian line O'Shea from Fargo comes of Securities., the

transaction the which we secondary Was would on deal question and the like driving the fees, that deployment of if debt of It I'm being multifamily Boston the me those otherwise the improvement this A wrong. like something strategies, think or it outsized entail a quarter. was of less continuation sounded lot out vehicle revenue correct improvement?

that? you to handle want Jonathan, do

significant have seen. that fees modest sizable might of have was multifamily the -- driven there you portfolio, we other and a by a was amount portfolio did deployment is some were Boston It Yes. as

the So primary drivers. those were

to speaking, there's have with the done secondaries sort from debt and refinancing significant fees of there's significant oriented that a transaction We fees generally DD continue restructuring come that no But in correct, some work. the business transaction and of that business, you any doesn't debt are was work and deployment fees. modest amount have

the Okay. maturity flagship look rates in strategies. refinancing? estate? like estate impact profile your at equity of soften retain to And borrowings higher-level into does needing to real the just or this Are positions for your And more put question money against pressures deals real a how point your the on against you those

Yes. I'm happy...

I'd go you first. Go but to something, ahead, add like Jonathan. should

Bob? You jump want to in first,

No, related Bridge's has that philosophy leverage that from What think broad to no. a is sure. perspective, I was the Well, been Bridge to say I straightforward. quite going I -- was

we where using senior primarily works of in doesn't. rise not And the the sure that leverage rapid great push into intense in to course and position. it we've relates to actions structure stresses it are We the secure. just we maybe done that said comes some over rates back has have, make we capital more the to that with those Having last that of used Jonathan, and Those And preemptive course, comment details. envelope assets other in And the have sure are address created that leverage the and taken some our decade of about to that, to the as make it when recognize a with a it mild of in does, leverage, hurt we're dive when really we've philosophy, and could past, intentionally our a in for safe assets. not those create stresses stresses. plus for sought sectors. And edge sectors to are stresses of deal work you you

mean a the try taken everything issues sure financing get to I review right We we pretty extensions our make assiduously -- well. you -- very, maturities honestly track constant I that structured or loan of mean, is to of. Well, have sure I ahead keep maturities. very portfolio of think things near-term it's covered Bay, any at overall we our I it, situation make think we care any and

we feel about So in funds. confident the liquidity very our current

time making the of have both and to integration its that sure actively covered. that team as continue, agency XXX% we is debt spends bank vertical again, of of relationships, of credit an benefits we private all one relationships, lending with the our and We our said, that have internal I that side

very with of liquidity position have to and a a respect high confidence. in we're degree strong So

we're is I Bob nonaccretive as incremental think about a In now not actually whether to, equity, terms using time in of cases. question alluded many your rebalancing or right or where the credit is

much always time to the less on a is trying leverage now appropriate we've And better. of drive focused So is to balance have. leverage when been how

our portfolios right in the mind. of the some right -- at delevering balance are with we So

Worthington from next Ken with JPMorgan. comes question Our

I've continuation couple a around fund. got conversion the the to

contribute XQ the was what of to raised first, of seeing economics you're was talk investors it how new conversion it that conversion capital compare funds for about continuation forward. appetite then the kind maybe fund what funds your today. on look Bridge deployment? Second, opportunity if So of broadly? the fee is And more III and impact conversion can to to from we the continuation as in challenging the see And maybe between as you Fund capital, fund portfolio the environment new then you and the remained rates do more is and the carry conversion

want you continuation continuation Fund can comments vehicle of do and perhaps then on environment for some both to the overall the Jonathan, funds. metrics III to we talk the share

I'm numbers going some of in let any Katie don't that of give to financials, so get I wrong. specific actually the the those are

assets, to are we before We in asset will the it at the was only -- think had to in exact it not. felt achieving their conditions not have had were not that were realization extremely these the was that not Fund III the of so her super that end, success best assets exit first development all which give know I assets a period. that in X numbers. we I to been be in have and the the optimal attractive that beyond realize. were give you position market has say assets strong handful, positions, in but that was the I she think fund let but a end, the I answer, a I'll so And understand round extension its you think that But I will that, do, logic I

III staying So asking rather basically and taking and I the approximately point had. of a them investors receive longer that or they these assets, a option that we created extensions with capital to continuing the XX% into putting and than out Fund more people would And multiple IRR. Xx for the continue in capital

into about So was the of take other bridge the redeploy successful capital other opted funds, vehicle and and people but things. it very XX% a it into hopefully to

you can give metrics So Katie, perhaps. exact the

$XXX So for to capital QX deployment. in million and or raising to continuation vehicle million was related the related recap $XXX included was total the our

Okay.

both those are numbers deployment. So in

capital raise in million deployment. and $XXX million $XXX

all chose Jonathan optionality We seller to sell outlook didn't to a completed best to. fund which and be result chose Fund assets. investors. results very market the or common multifamily a it the they felt a to if continuation funds and tougher the as appetite use for to the monetize path as attractive misinterpreted the vehicle, for We continuation all our We philosophy positive was sell duty a alternatives with really for our fund we to structure that continuation that in approach to the of the that point to fiduciary at in assets. of they motivated a to about And and both continue who if roll as We had said, that want provided felt assessing for time investors monetization. the the achieve a continuation III funds

all to it boxes. the tick seemed So

the in probably but look have to best tool we -- are useful they're the they have. tool a to in toolbox Our good not, as optimal continuation a investors, for to tool value funds, environments, create all

are  Okay. economics And the then different in fund continuation the meaningfully lastly, the multi-fund between -- economics is III?

X-year on part it. at think a depends of term. you I it look how There's extended

the of manage the than for years lower fund not equivalent The which most continuation So one X the part, we're exactly economics the in economics not vehicle. really that fact to for the would is the fund with to came institutional economics. capital but to characterization is from the a investor, fund continuing positive. get that inconsistent that large a are assets They're, economics

questions. with bearing I those appreciate me Thankyou all on Okay. for it.

that. know important a perspective. We It's from modeling

are There like this at Robert for over to floor comments. time. to questions Thank back no I'd you. further the closing turn

the particularly thank the operator, the that in U.S. estate Thank higher of markets, real all and world, quarter this morning. adjusted quarter great a Great. with around We a third some rate have and lead and your deal interest you, anticipation. attention time enter We for think unlike to markets the the fourth environment. you

shoots side. that the transaction the As remarks, capital to see on side we're as as we are on in said our sprouting raising prepared up, well beginning both green meaningful

opportunities Bridge positioned think is be we capture you. navigate your able appreciate and to continuing through And your they of that manifest. some support a to all We those are well market focus. we your Thank as volatility -- hopefully and

This teleconference. today's concludes

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