2022 was an interesting year for DigitalBridge (“Digital” or the “Company”) with strong performance of their portfolio companies (for the most part), a double digit percentage increase in FEEUM in the first nine months of 2022, monetization of a few investments which returned capital (and nice IRRs) to investors, announcement of two large investments (one closed), the repurchase of the fee streams owned by WAFRA, the announced acquisition of AMP at attractive terms, and the launch of fundraising for new strategies. Despite the good news and accomplishments, the stock was pummeled in 2022. Before diving into 2023, let’s look at some of the issues that caused the collapse in the stock price in 2022.
Excellent breakdown! Very few people are writing about this and understand it as well as you do, thank you for sharing.
Personally, I also find it a nice confirmation to see that Chuck Akre’s portfolio continues to add DBRG over several quarters, despite saying publicly that they no longer look at “small” companies! Long runway, management aligned with shareholders, lots of green flags here.
Excellent overview. Any thoughts on when they might exit BSRP and why they are being so bullheaded about that postion. In terms of multiple 15x feels right to me for IM, JPM has 24x in their model which clearly seems rich.
Excellent breakdown! Very few people are writing about this and understand it as well as you do, thank you for sharing.
Personally, I also find it a nice confirmation to see that Chuck Akre’s portfolio continues to add DBRG over several quarters, despite saying publicly that they no longer look at “small” companies! Long runway, management aligned with shareholders, lots of green flags here.
Thanks for the kind words.
Excellent overview. Any thoughts on when they might exit BSRP and why they are being so bullheaded about that postion. In terms of multiple 15x feels right to me for IM, JPM has 24x in their model which clearly seems rich.
I think they will do it when the dividend yield is less than the interest yield on the prefs.