8-K: Bridge Investment Group Reports Q2 Loss Amid Apollo Merger

Bridge Investment Group Holdings Inc. reported a net income of $2.8 million for Q2 2025, alongside a net loss attributable to Class A common stockholders of $0.01 per share, as it anticipates completing its merger with Apollo Global Management in early September.

Summary

• Net income for the quarter ended June 30, 2025, was $2.8 million, a significant decrease from $27.5 million in Q2 2024.
• Net loss attributable to Bridge Investment Group Holdings Inc. per share of Class A common stock was $(0.01) for Q2 2025, an improvement from $(0.11) in Q2 2024.
• The loss per share was primarily attributed to approximately $4.7 million in transaction costs related to the Apollo Merger Agreement and $3.5 million in credit losses from a note receivable related to Bridge Office Fund I.
• Fee Related Earnings (FRE) to the Operating Company decreased by 22% year-over-year to $28.0 million in Q2 2025.
• Distributable Earnings (DE) of the Operating Company decreased by 28% year-over-year to $25.7 million in Q2 2025.
• Total revenues for Q2 2025 were $96.5 million, an 8% decrease compared to $104.8 million in Q2 2024.
• Gross Assets Under Management (AUM) increased by 3% year-over-year to $50.2 billion as of June 30, 2025.
• Fee-Earning AUM (FEAUM) increased by 2% year-over-year to $21.9 billion as of June 30, 2025.
• Capital raised in Q2 2025 was $0.5 billion, a 59% increase from Q2 2024, primarily driven by Credit strategies.
• Capital deployed in Q2 2025 was $0.5 billion, a 40% increase from Q2 2024, mainly in Multifamily, Logistics, and Net Lease strategies.
• The company declared a final dividend of $0.045 per share of Class A common stock, payable on August 29, 2025, as it expects to complete its transaction with Apollo Global Management in early September 2025.
• No second quarter 2025 earnings conference call and webcast will be held due to the pending merger transaction.

Sentiment

Score: 4

Explanation: Core financial metrics (Net Income, FRE, DE, Revenue) declined significantly year-over-year, impacted by merger-related costs and specific credit losses. However, AUM and capital raising/deployment showed growth, and the company is progressing towards a strategic merger with Apollo, which is a significant positive strategic event that overshadows the operational declines.

Positives

• Net loss attributable to Class A common stock improved to $(0.01) per share in Q2 2025 from $(0.11) in Q2 2024.
• Gross Assets Under Management (AUM) increased 3% year-over-year to $50.2 billion.
• Fee-Earning AUM (FEAUM) increased 2% year-over-year to $21.9 billion.
• Capital raised significantly increased by 59% year-over-year to $0.5 billion in Q2 2025, with 97% from institutional investors.
• Capital deployed increased by 40% year-over-year to $0.5 billion in Q2 2025.
• The company maintains $3.2 billion of dry powder, primarily in real estate equity and credit vehicles, indicating future investment capacity.
• The anticipated completion of the merger with Apollo Global Management in early September 2025 provides a clear strategic path forward for the company.

Negatives

• Net income for Q2 2025 was $2.8 million, a 90% decrease from $27.5 million in Q2 2024.
• Fee Related Earnings (FRE) to the Operating Company decreased by 22% year-over-year to $28.0 million.
• Distributable Earnings (DE) of the Operating Company decreased by 28% year-over-year to $25.7 million.
• Total revenues decreased by 8% year-over-year to $96.5 million.
• Realized Performance Allocations decreased by 31% year-over-year to $4.9 million.
• Unrealized Accrued Performance Allocations decreased by 3% year-over-year to $328.6 million.
• The Q2 2025 loss per share was impacted by approximately $4.7 million in transaction costs related to the Apollo Merger Agreement.
• Credit losses of $3.5 million due to the write-off of principal, interest, and fees on a note receivable related to Bridge Office Fund I negatively impacted results.
• Fee-related revenues decreased due to dispositions in Credit and Seniors Housing strategies and the conversion of fee basis for certain funds.
• Net insurance loss due to claims settled in the captive insurance company during 2025 contributed to the decrease in Distributable Earnings.

Risks

• The ultimate outcome of the proposed transaction with Apollo, including the effect of the announcement of the proposed transaction.
• The ability to operate the respective businesses, including business disruptions.
• Difficulties in retaining and hiring key personnel and employees.
• The ability to maintain favorable business relationships with customers and other business partners.
• The terms and timing of the proposed transaction.
• The occurrence of any event, change, or other circumstance that could give rise to the termination of the merger agreement and the proposed transaction.
• The anticipated or actual tax treatment of the proposed transaction.
• The ability to satisfy closing conditions to the completion of the proposed transaction, including the adoption of the merger agreement by the company's stockholders.
• Other risks related to the completion of the proposed transaction and actions related thereto.
• The ability of Apollo and the company to integrate the businesses successfully and to achieve value creation from the proposed transaction.
• Global market, political, and economic conditions, including in the markets in which Apollo and the company operate.
• The ability to secure government regulatory approvals on the terms expected, at all or in a timely manner.
• The global macro-economic environment, including headwinds caused by inflation, rising interest rates, unfavorable currency exchange rates, and potential recessionary or depressionary conditions.
• Cyber-attacks, information security, and data privacy.
• The impact of public health crises, such as pandemics and epidemics and any related company or government policies and actions.
• Litigation and regulatory proceedings, including any proceedings that have been or may be instituted against Apollo or the company related to the proposed transaction.
• Disruptions of Apollo's or the company's information technology systems.

Future Outlook

The company anticipates completing its transaction with Apollo Global Management, Inc. in early September 2025, subject to the satisfaction or waiver of customary closing conditions. This is expected to be the final dividend declared by Bridge Investment Group Holdings Inc. as an independent entity.

Management Comments

• The company will not be holding a second quarter 2025 earnings conference call and webcast in light of the pending merger transaction with Apollo.

Industry Context

Bridge Investment Group is positioned as a leading alternative investment manager, diversified across specialized asset classes, with approximately $50 billion of assets under management. It operates a nationwide platform with dedicated investment professionals focused on U.S. verticals including real estate, credit, renewable energy, and secondaries strategies. The pending acquisition by Apollo Global Management reflects a broader trend of consolidation and strategic alignment within the alternative asset management industry, where larger firms seek to expand their specialized capabilities and AUM.

Comparison to Industry Standards

• Bridge Investment Group was ranked #13 global private equity real estate firm for fundraising by PERE as of June 2024, indicating a strong position in attracting capital within its sector.
• The company's diversified asset classes, including Multifamily, Workforce & Affordable Housing, Seniors Housing, Single-Family Rental, Development, Office, Logistics, Net Lease Income, Debt, Agency MBS, and Secondaries, align with industry trends towards broad alternative investment offerings.
• The company's vertically integrated model, encompassing active asset management, property management, leasing, and construction management, is a differentiated approach that aims to provide quality operating execution and cost efficiencies, which can be a competitive advantage compared to firms relying solely on third-party operators.

Stakeholder Impact

• Shareholders: Will receive a final dividend and will be impacted by the terms and completion of the merger with Apollo Global Management.
• Employees: Potential for difficulties in retaining and hiring key personnel due to the merger.
• Customers and Business Partners: The ability to maintain favorable business relationships is a risk factor during the transition to Apollo.

Next Steps

• Completion of the transaction with Apollo Global Management, Inc. in early September 2025.
• Payment of the final dividend of $0.045 per share on August 29, 2025.

Key Dates

Recommendation

The company's financial performance is overshadowed by the pending acquisition by Apollo Global Management. The stock's value is now primarily tied to the terms and successful completion of this merger, making fundamental analysis of quarterly results less relevant for a new investment decision. Investors should hold pending merger completion, as the company will cease to exist as an independent entity.

Keywords

Real estate, Investment management, Alternative investments, Assets under management, AUM, Financial results, Merger, Apollo Global Management, Private equity, SEC filing, Earnings, Dividends