Segment Reporting

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segment Reporting

17. Segment Reporting

The Company conducts its business through its one reportable segment of Investment Management. The Operating segment was discontinued following full deconsolidation of the portfolio companies in the Operating segment on December 31, 2023, as discussed in Note 9, at which time, the activities thereof qualified as discontinued operations (Note 2).

•The Investment Management segment represents the Company's global investment management platform, deploying and managing capital on behalf of a diverse base of global institutional investors. The Company's investment management platform is composed of a growing number of long-duration, private investment funds designed to provide institutional investors access to investments across different segments of the digital infrastructure ecosystem. In addition to its flagship value-add digital infrastructure equity offerings, the Company's investment offerings have expanded to include core equity, credit and liquid securities. The Company earns management fees based upon the assets or capital managed in investment vehicles, and may earn incentive fees and carried interest based upon the performance of such investment vehicles, subject to achievement of minimum return hurdles.

The amount of incentive fees and carried interest recognized, a portion of which is allocated to employees and former employees, may be highly variable from period to period. Through the end of May 2022, earnings from the Investment Management segment were attributed 31.5% to Wafra prior to the Company's redemption of Wafra's interest in the investment management business (Note 9).

The Company's remaining investment activities and corporate level activities are presented as Corporate and Other.

•Other investment activities are composed primarily of the Company's equity interests as general partner affiliate in its sponsored investment vehicles, the largest of which are the DBP flagship funds, InfraBridge funds, DataBank and Vantage SDC post-deconsolidation, and seed investments in liquid securities and other potential new strategies. With respect to seed investments, these are not intended to be a long-term deployment of capital by the Company and are expected to be warehoused temporarily on the Company's balance sheet until sufficient third party capital has been raised. The Company's remaining non-digital investments consisted, for the most part, of shares in BRSP that were disposed in March 2023. The Company's other investment activities generate largely principal investment income, driven by fair value changes of underlying investments held by its investment vehicles, and to a lesser extent, interest income or dividend income from warehoused investments and investments of consolidated investment vehicles.

•Corporate activities include corporate level cash and corresponding interest income, corporate level financing and related interest expense, corporate level transaction costs, costs in connection with unconsummated investments, income and expense related to cost reimbursement arrangements with affiliates, fixed assets for corporate use, compensation expense not directly attributable to reportable segments, and corporate level administrative and overhead costs. Costs which are directly attributable, or otherwise can be subjected to a reasonable and systematic attribution, have been attributed to reportable segments. As segment results are presented before elimination of intercompany fees, elimination adjustment is made with respect to fee revenue earned by the Investment Management segment from third party capital in managed investment vehicles consolidated in Corporate and Other.

Segment Results of Operations

The following table summarizes results from continuing operations of the Company's reportable segments and reconciled to the consolidated statement of operations.

	Investment Management						Corporate and Other						Total
	Year Ended December 31,						Year Ended December 31,						Year Ended December 31,
	2023		2022		2021		2023		2022		2021		2023		2022		2021
Revenues
Fee revenue	$	267,181	$	176,061	$	187,379	$	(3,064)	$	(3,388)	$	(6,553)	$	264,117	$	172,673	$	180,826
Carried interest allocation	363,075		378,342		99,207		—		—		—		363,075		378,342		99,207
Principal investment income	4,223		4,121		2,604		141,225		52,610		83,419		145,448		56,731		86,023
Other income	11,405		5,984		4,303		37,338		81,041		17,471		48,743		87,025		21,774
Total revenues	645,884		564,508		293,493		175,499		130,263		94,337		821,383		694,771		387,830
Expenses
Interest expense	10,514		10,872		4,766		14,026		32,054		58,478		24,540		42,926		63,244
Investment-related expense	2,539		4,112		3,423		616		19,107		3,745		3,155		23,219		7,168
Transaction-related costs	6,973		4,895		—		3,850		5,234		5,515		10,823		10,129		5,515
Depreciation and amortization	35,259		22,155		26,736		1,392		22,116		17,617		36,651		44,271		44,353
Compensation expense
Cash and equity-based	154,442		101,433		71,055		52,450		53,319		88,717		206,892		154,752		159,772
Incentive fee and carried interest allocation	186,030		202,286		65,890		—		—		—		186,030		202,286		65,890
Administrative expense	40,544		21,515		21,683		43,238		72,607		56,085		83,782		94,122		77,768
Total expenses	436,301		367,268		193,553		115,572		204,437		230,157		551,873		571,705		423,710
Other income (loss)
Other gain (loss), net	(2,527)		(3,341)		797		98,646		(166,406)		(20,916)		96,119		(169,747)		(20,119)
Income (loss) from continuing operations before income taxes	207,056		193,899		100,737		158,573		(240,580)		(156,736)		365,629		(46,681)		(55,999)
Income tax benefit (expense)	(1,694)		(7,815)		(9,822)		1,688		(5,317)		31,285		(6)		(13,132)		21,463
Income (loss) from continuing operations	205,362		186,084		90,915		160,261		(245,897)		(125,451)		365,623		(59,813)		(34,536)
Income (loss) from continuing operations attributable to noncontrolling interests:
Redeemable noncontrolling interests	215		(3,175)		14,893		6,288		(23,603)		19,784		6,503		(26,778)		34,677
Investment entities	86,290		113,853		19,153		18,074		(834)		7,992		104,364		113,019		27,145
Operating Company	8,374		5,522		5,338		5,103		(21,998)		(21,384)		13,477		(16,476)		(16,046)
Income (loss) from continuing operations attributable to DigitalBridge Group, Inc.	$	110,483	$	69,884	$	51,531	$	130,796	$	(199,462)	$	(131,843)	$	241,279	$	(129,578)	$	(80,312)
Income (loss) from discontinued operations attributable to DigitalBridge Group, Inc.													(55,999)		(192,219)		(229,785)
Income (loss) attributable to DigitalBridge Group, Inc.													$	185,280	$	(321,797)	$	(310,097)

Of the Company's total assets of $3.6 billion at December 31, 2023 and $11.0 billion at December 31, 2022, $1.48 billion and $875.4 million reside in the Investment Management segment, respectively.

Geography

Geographic information about the Company's total income from continuing operations and long-lived assets, excluding assets of discontinued operations, are as follows. Geography is generally presented as the location in which the income producing assets reside or the location in which income generating services are performed.

	Year Ended December 31,
(In thousands)	2023		2022		2021
Total income by geography:
United States	$	746,462	$	643,073	$	375,133
Europe	56,280		47,196		2,512
Other	8,241		165		—
Total (1)	$	810,983	$	690,434	$	377,645

(In thousands)	December 31, 2023		December 31, 2022
Long-lived assets by geography:
United States	$	22,294	$	27,588
Europe	17,868		3,997
Other	967		1,037
Total (2)	$	41,129	$	32,622

__________

(1)    Total income excludes cost reimbursement income from affiliates (Note 16), presented within other income, and income from discontinued operations (Note 2).

(2)    Long-lived assets include lease right-of-use assets and fixed assets. Long-lived assets exclude financial instruments, goodwill, non-lease related intangible assets and assets of discontinued operations.