Bridge Investment Group Q2 2025 slides: Revenue down 8%, AUM grows 3%

Bridge Investment Group Holdings Inc (NYSE:BRDG) released its second quarter 2025 earnings presentation on August 7, 2025, revealing a mixed financial performance with declining revenue but growth in assets under management and distributable earnings. The company continues to emphasize its long-duration capital structure and strategic focus on credit, multifamily, and logistics investments.

Quarterly Performance Highlights

Bridge Investment Group reported total revenue of $96.5 million for Q2 2025, representing an 8% decrease compared to $104.8 million in Q2 2024. GAAP net income saw a significant decline of 90%, falling to $2.8 million from $27.5 million in the same period last year. Despite these decreases, the company declared a quarterly dividend of $0.045 per share.

As shown in the following overview chart, the company achieved growth in several key operating metrics, including a 3% increase in gross assets under management (AUM) to $50.2 billion and a 2% rise in fee-earning AUM to $21.9 billion compared to Q2 2024:

The company maintained $3.2 billion in dry powder, positioning it to capitalize on investment opportunities across its various strategies. Fee-related earnings increased by 14% and distributable earnings rose by 52% year-over-year, highlighting the company’s ability to generate higher earnings despite the revenue decline.

Detailed Financial Analysis

Bridge’s GAAP Income Statement reveals the details behind the revenue decline, with fund management fees decreasing from $61.5 million in Q2 2024 to $58.5 million in Q2 2025, and property management and leasing fees falling from $17.8 million to $16.7 million:

The company’s long-term growth trajectory remains positive, with a 5-year CAGR of approximately 18% for gross AUM and 19% for fee-earning AUM from Q2 2020 to Q2 2025, as illustrated in the following chart:

Similarly, total revenues and fee-related revenue have shown strong growth over the same period, with 5-year CAGRs of approximately 12% and 13%, respectively:

A key strength of Bridge’s business model is its long-duration capital structure, with 68% of fee-earning AUM having a remaining duration greater than 5 years, and 97% of FEAUM in long-term, closed-end funds with no redemption features. This provides significant fee visibility and stability:

Strategic Initiatives and Capital Deployment

In Q2 2025, Bridge raised new capital primarily driven by credit strategies, with 97% coming from institutional investors and 3% from individual investors. The company deployed $509 million during the quarter, primarily in Multifamily, Logistics, and Net Lease strategies, not including an additional $1.0 billion of recycled capital.

The following chart illustrates the drivers of fee-earning AUM, including capital raised and deployment over recent quarters:

Bridge continues to demonstrate strong fund-level performance across its diverse investment strategies, which include multifamily, workforce and affordable housing, seniors housing, office, secondaries, single-family rental, logistics, opportunity zones, and debt strategies:

The company’s distributable earnings per share have fluctuated over recent quarters, with a notable difference between GAAP earnings per share and distributable earnings per share:

Forward-Looking Statements

Bridge Investment Group’s presentation included forward-looking information about Apollo’s acquisition of the company, mentioned in the disclaimer sections. This pending transaction represents a significant development for the company’s future.

The company’s current stock price of $9.96 (as of August 14, 2025) reflects a slight decline from previous levels, with a 52-week range of $7.12 to $11.69. Despite the mixed quarterly results, Bridge’s emphasis on long-duration capital and diversified investment strategies positions it to navigate market challenges.

With $50.2 billion in gross AUM and a vertically integrated approach across multiple real estate sectors, Bridge continues to focus on data-driven investment decisions and community-focused initiatives. The company employs approximately 2,250 people and maintains commitments to environmental sustainability and diversity and inclusion.

As the real estate market continues to evolve, Bridge’s strategic focus on credit strategies, multifamily, and logistics appears designed to capitalize on sectors with strong fundamentals while maintaining the stability provided by its long-duration capital structure.

Full presentation:

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