- DigitalBridge is scaling its fee-based model, with Q3 fee revenue up ~22% YoY and fee-related earnings up ~43%.
- Its key moat is secured power capacity (~21 GW), enabling record hyperscale leasing (2.6 GW in Q3, about one-third of U.S. volume).
- Fee-earning equity under management reached $40.7B ahead of plan, supported by $4.1B of capital raised year-to-date.
- Large projects and acquisitions expand data-center exposure, but SoftBank’s $16/share cash deal (~$4B EV) effectively caps near-term public upside.
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DigitalBridge’s recent performance underscores a transition from growth mode to platform maturity. Its fee‐business is scaling, driven by continuing demand for AI infrastructure and hyperscale data centers. The key metric of FRE growing 43% YoY in Q3, outpacing revenue growth of 22%, signals leverage in their cost base and improvement in operating efficiency.[0search3] The company’s ability to hit its $40 billion FEEUM goal one quarter early implies strong momentum in capital raising and investor confidence.[0search3]
Power and scale emerge as clear competitive differentiators. The “power bank” of over 20.9 GW – secured power capacity – allows DBRG to deliver large, highly power-intensive data center builds rapidly. That enabled the 2.6 GW of leases in Q3, which is approximately one-third of U.S. hyperscale leasing. These figures confirm that DBRG is not only participating in AI infrastructure demand but shaping it.[1search0]
Major capital deployment and large-scale asset acquisitions, such as Yondr and Vantage’s Frontier campus, both speak to risk as well as reward. These projects are highly capital intensive, often multi-year with long ROI timelines, subject to construction, permitting, energy supply, and tenant credit risk. DBRG’s liquidity profile looks solid (corporate cash ~$173 million; low debt after retiring exchangeables) but its capacity to fund large development will depend on continued fundraising and capital markets access.[1search0][1search5]
The SoftBank acquisition at $16 per share (~$4 billion enterprise value) places a practical limit on incremental investment upside near term for public shareholders. Analysts, such as Truist, downgrading DBRG to Hold reflects this cap. [1search6][news14]
Strategic Implications:
- For DigitalBridge, success hinges on maintaining its power supply lead, accelerating FRE and carry realisation, and managing execution risk in large hyperscale builds.
- Potential acquirer (SoftBank) will gain physical infrastructure assets central to AI expansion (data centers, fiber, power), reinforcing its ASI (Artificial Super Intelligence) ambitions. The focus will also shift to integration risk and cost discipline post-deal.
- For investors, the SoftBank deal closes much of the upside in the stock price, but opens a window into assessing the fair value of AI infrastructure platforms more broadly—how much premium does ‘power bank + scale + platform diversity’ deserve?
- Can DBRG continue growing FRE margin beyond current levels, especially as they balance co-investment fee rates vs pure management fees?
- How will energy/power supply constraints and regulation (environmental, zoning, energy markets) stress capacity and costs?
- What is the roadmap for carried interest realisations—how frequent, how much, in which regions or platforms?
- Post-SoftBank, how autonomous will DBRG remain, and what will change in capital allocation or platform strategy?
Open Questions:
Supporting Notes
- Fee revenue in Q3 2025 was $93.5-94 million, up ~22% year-over-year; FRE grew ~43% to ~$37 million.[1search0]
- DigitalBridge leased 2.6 GW in Q3, representing ~33% of U.S. hyperscale leasing; secured power bank of ~20.9-21 GW.[1search0]
- FEEUM reached $40.7 billion in Q3—target met one quarter early; capital raised in Q3 alone was $1.6 billion, $4.1 billion YTD.[0search3]
- Projects announced: Vantage’s Frontier campus (Texas, $25 billion, 1.4 GW) and Lighthouse campus (Wisconsin, large scale), and acquisition of Yondr with 420 MW committed and over 1 GW potential. [1search2][0search1][1search8]
- Financials: corporate cash ~$173 million; corporate debt ~$300 million; low cost of debt (avg ~3.9%).[1search0]
- SoftBank agreed to acquire DBRG for $16 per share in cash; the deal values the company at ~$4 billion enterprise value; expected to close H2 2026. [news14][news13][1news12]
- Analysts such as Truist lowered rating to Hold post-deal due to limited share price upside. [1search6]