Microvast Holdings announces departure of chief financial officer
Bridge Investment Group Holdings Inc (NYSE:BRDG) reported a significant decline in earnings for the first quarter of 2025, with transaction costs related to its pending merger with Apollo weighing on results. The alternative investment manager, which specializes in real estate, released its quarterly presentation on May 8, 2025, revealing a 47% year-over-year drop in distributable earnings.
Quarterly Performance Highlights
Bridge Investment Group reported total revenue of $96.3 million for Q1 2025, representing a 6% decrease from $102.8 million in Q1 2024. The company posted a net loss of $37.6 million, slightly worse than the $36.8 million loss recorded in the same period last year. This loss was partially attributed to approximately $17.0 million in transaction costs related to the Merger Agreement with Apollo.
As shown in the following financial overview, distributable earnings fell significantly year-over-year, while assets under management showed modest growth:
Fee Related Earnings (FRE) declined to $24.6 million, down 28% from $33.9 million in Q1 2024. Distributable Earnings (DE) saw an even steeper decline of 47%, falling to $17.0 million from $32.2 million in the prior-year period. Consequently, after-tax distributable earnings per share dropped to $0.09, compared to $0.17 in Q1 2024.
Notably, the company did not declare a quarterly dividend for the quarter ended March 31, 2025, a departure from its previous dividend policy. In contrast, the company had paid a $0.10 per share dividend in Q3 2024, according to previous earnings reports.
AUM and Capital Deployment
Despite the earnings challenges, Bridge Investment Group maintained relatively stable assets under management. Gross AUM reached $49.4 billion, reflecting a 3% increase from $48.0 billion in Q1 2024. Fee-Earning AUM remained unchanged at $22.0 billion year-over-year.
The following chart illustrates the company’s consistent growth in both gross and fee-earning AUM over the past five years:
Capital raised during the quarter totaled $0.2 billion, a modest 4% increase from Q1 2024. More impressively, capital deployment surged 73% year-over-year to $0.6 billion, primarily driven by activity in Credit, Multifamily, Seniors Housing, and Logistics strategies. The company maintained $3.1 billion in dry powder, unchanged from the previous year.
The following chart details the capital raised and deployed during recent quarters:
Fee Structure and Revenue Sources
Bridge Investment Group’s revenue decline was primarily attributed to lower management fees and transaction fees. Management fees decreased to $59 million in Q1 2025, down from previous quarters, largely due to dispositions in Bridge Seniors Housing Fund I.
The following breakdown shows the composition of fee-related revenue:
Transaction (JO:NTUJ) fees also decreased in Q1 2025 compared to Q4 2024, which the company attributed to the timing of deployment in its residential strategies. This contributed to the overall decline in fee-related earnings during the quarter.
Strategic Positioning and Long-Term Capital Structure
A key strength highlighted in Bridge Investment Group’s presentation is its long-duration capital structure, which provides stability and visibility for future fee earnings. According to the company, 68% of total Fee-Earning AUM has greater than 5 years of remaining duration, with a weighted-average remaining duration of 6.2 years.
The following chart illustrates the company’s diversified asset allocation and long-term capital structure:
Over 97% of Fee-Earning AUM is in long-term, closed-end funds with no redemption features, providing significant stability to the company’s revenue base despite quarterly fluctuations. The commitments on capital raised in the first quarter averaged 8.7 years in duration.
Performance fees represent another important revenue source for Bridge Investment Group. The company reported accrued performance allocations of $327 million in Q1 2025, with 82% related to Multifamily Fund IV and Workforce & Affordable Housing Fund I.
Forward Outlook and Apollo Merger
Bridge Investment Group’s Q1 2025 results were significantly impacted by transaction costs related to its pending merger with Apollo. While the presentation did not provide extensive details about the merger’s progress, the transaction costs suggest the deal is moving forward.
The company’s vertically integrated model and diversified asset portfolio position it as a significant player in the alternative investment space. Bridge Investment Group is ranked as the #13 global private equity real estate firm for fundraising by PERE (as of June 2024) and has raised approximately $15.8 billion of capital over the past five years.
As of the close of trading on May 8, 2025, Bridge Investment Group’s stock price was $9.13, up 3.07% for the day. The stock has traded between $6.73 and $11.69 over the past 52 weeks, according to market data.
While current quarterly performance shows challenges, the company’s long-duration capital structure and pending merger with Apollo may provide a foundation for future stability and growth. Investors will likely be watching closely for updates on the merger completion timeline and its potential impact on the company’s strategic direction.
Full presentation:
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.