10 unchanged sentences
To a lesser extent, management fees are based upon the net asset value of vehicles in our Liquid Strategies, measured at fair value.
−Removed: At June 30, 2023, our Liquid Strategies make up 4% of our $29 billion FEEUM.
+Added: At September 30, 2023, our Liquid Strategies make up 4% of our $30 billion FEEUM.
Accordingly, most of our management fee income will not be directly affected by changes in investment fair values.
−Removed: Incentive Fees and Carried Interest —Incentive fees and carried interest, net of management allocations, are earned based upon the financial performance of a vehicle above a specified return threshold, which is largely driven by
−Removed: appreciation in value of underlying investments.
−Removed: Carried interest is subject to reversal until such time it is realized, which generally occurs upon disposition of all underlying investments of an investment vehicle, or in part with each disposition.
+Added: Incentive Fees and Carried Interest —Incentive fees and carried interest, net of management allocations, are earned based upon the financial performance of a vehicle above a specified return threshold, which is largely driven by appreciation in value of underlying investments.
+Added: Carried interest is subject to reversal until such time it is distributed, which generally occurs upon disposition of all underlying investments of an investment vehicle, or in part with each disposition.
The extent of the effect of fair value changes to the amount of incentive fees and carried interest earned will depend upon the cumulative performance of an investment vehicle relative to its return threshold, the performance measurement period used to calculate incentives and carried interest, and the stage of the vehicle's lifecycle.
2 unchanged sentences
Foreign Currency Risk
−Removed: As of June 30, 2023, we have limited direct foreign currency exposure from our foreign operations and foreign currency denominated investments warehoused on the balance sheet for future sponsored vehicles.
+Added: As of September 30, 2023, we have limited direct foreign currency exposure from our foreign operations and foreign currency denominated investments warehoused on the balance sheet for future sponsored vehicles.
Changes in foreign currency rates can adversely affect earnings and the value of our foreign currency denominated investments, including investments in our foreign subsidiaries.
7 unchanged sentences
dollar is largely used as the transactional currency, in which case, there is generally very limited foreign currency exposure.
−Removed: Foreign subsidiaries that operate one colocation data center in the U.K.
−Removed: and five in France do not transact in U.S.
−Removed: dollars, but they make up only a small percentage of the overall Operating segment, which in turn is substantially owned by third party investors.
−Removed: Additionally, the French portfolio is currently held for disposition.
−Removed: Overall, our exposure to foreign currency risk from the operations of foreign subsidiaries in the Operating segment is limited.
Interest Rate Risk
Instruments bearing variable interest rates include debt obligations, which are subject to interest rate fluctuations that will affect future cash flows, specifically interest expense.
−Removed: Corporate debt —Our corporate debt exposure to variable interest rates is limited to our VFN revolver, which had no outstanding amounts as of June 30, 2023.
−Removed: Investment-level debt —Investment level financing, which totals $5.1 billion, consists primarily of fixed rate securitized notes and loans issued by subsidiaries in the Operating segment, Vantage SDC and DataBank.
−Removed: Of this amount, $0.5 billion or 10% is composed of variable rate debt at June 30, 2023.
−Removed: Investment level variable rate debt is indexed primarily to Term SOFR.
−Removed: As subsidiaries in the Operating segment are substantially owned by third party investors, the resulting increase in interest expense from higher interest rates will be attributed predominantly to noncontrolling interests, with a minimal share of that effect attributed to DBRG.
−Removed: Based upon the outstanding principal on investment level variable rate debt at June 30, 2023, a hypothetical 100 basis point increase in interest rates would increase annualized interest expense by $5.2 million on a consolidated basis or $0.6 million after attribution to noncontrolling interests.
+Added: Corporate debt —Our corporate debt exposure to variable interest rates is limited to our VFN revolver, which had no outstanding amount as of September 30, 2023.
+Added: Investment-level debt —Investment level financing, which totals $2.8 billion, consists predominantly of fixed rate securitized notes issued by the Vantage SDC subsidiary in the Operating segment.
+Added: Of this amount, only $4.7 million or 0.2% is composed of variable rate debt at September 30, 2023, which is indexed primarily to Term SOFR.
+Added: Additionally, as the Company's subsidiary in the Operating segment is substantially (87%) owned by third party investors, the resulting increase in interest expense from higher interest rates will be attributed predominantly to noncontrolling interests, with a minimal share of that effect attributed to DBRG.
+Added: Therefore the effect to DBRG of increases in interest rates on variable rate debt in the Operating segment is not material.
Equity Price Risk
−Removed: At June 30, 2023, we had $97 million of long positions and $46 million of short positions in marketable equity securities, held predominantly by our consolidated sponsored liquid funds.
−Removed: Realized and unrealized gains and losses from marketable equity securities are recorded in other gain (loss) on the consolidated statement of operations.
+Added: At September 30, 2023, we had $84 million of long positions and $44 million of short positions in marketable equity securities, held predominantly by our consolidated sponsored liquid funds.
+Added: Realized and unrealized gains and losses from
+Added: marketable equity securities are recorded in other gain (loss) on the consolidated statement of operations.
Market prices for publicly traded equity securities may fluctuate due to a myriad of factors, including but not limited to, financial performance of the investee, industry conditions, economic and political environment, trade volume, and general sentiments in the equity markets.
9 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.