What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-08-08 compared with 2025-05-01 · 107 added, 87 removed, 362 unchanged (35% of the section changed)

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Our diverse global investor base includes public and private pensions, sovereign wealth funds, asset managers, insurance companies, and endowments.

At March 31, 2025, we had $37.3 billion of fee earning equity under management ("FEEUM").

At June 30, 2025, we had $39.7 billion of fee earning equity under management ("FEEUM").

We are headquartered in Boca Raton, Florida, with key offices in New York, London, Luxembourg and Singapore.

At March 31, 2025, we had 324 employees.

At June 30, 2025, we had 309 employees.

We operate as a taxable C Corporation and conduct substantially all of our activities and hold substantially all of our assets and liabilities through our Operating Company.

At March 31, 2025, we owned 94% of the Operating Company as its sole managing member.

As sole managing member, we own 96% of the Operating Company at June 30, 2025, which increased to 97% as of July 31, 2025 following redemption of additional OP units.

Our Investment Management Platform

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Significant Developments

The following summarizes significant developments that affected our business and results of operations in 2024 and through the date of this filing.

The following summarizes significant developments that affected our business and results of operations in 2025.

Capital Raise

• In 2025, through April 2025, we raised $1.15 billion of capital, primarily for the third series in our flagship value-add strategy and the second series of our credit strategy.

• In 2025, through the second quarter, we raised $2.5 billion of capital, primarily for the third series in our flagship value-add strategy and co-investment vehicles.

Realization of Investment

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Fund Performance Metrics

Certain performance metrics for our key investment funds from inception through March 31, 2025 are presented in the table below.

Excluded are funds with less than one year of performance history as of March 31, 2025, funds and separately managed accounts in the liquid strategy, co-investment vehicles and separately capitalized portfolio companies.

Certain performance metrics for our key investment funds from inception through June 30, 2025 are presented in the table below.

Excluded are funds with less than one year of performance history as of June 30, 2025, funds and separately managed accounts in the liquid strategy, co-investment vehicles and separately capitalized portfolio companies.

The historical performance of our funds is not indicative of their future performance nor indicative of the performance of our other existing funds or of any of our future funds.

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Results of Operations

Three Months Ended March 31,

(In thousands) 2025 2024 Change

Three Months Ended June 30, Six Months Ended June 30,

(In thousands) 2025 2024 Change 2025 2024 Change

Fee revenue $ 85,262 $ 78,605 $ 6,657 $ 175,401 $ 151,560 $ 23,841

Carried interest allocation (55,464) (8,478) (46,986)

Carried interest allocation (reversal) (115,074) 288,244 (403,318) (170,538) 279,766 (450,304)

Principal investment income 20,437 15,982 4,455 25,744 18,827 6,917

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Compensation expense—cash and equity-based 47,002 51,661 (4,659) 93,112 102,845 (9,733)

Compensation expense—incentive fee and carried interest allocation (22,304) (6,714) (15,590)

Compensation expense—incentive fee and carried interest allocation (reversal) (43,372) 178,430 (221,802) (65,676) 171,716 (237,392)

Administrative and other expenses 11,440 26,508 (15,068) 27,386 50,818 (23,432)

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Net income (loss) attributable to common stockholders $ 16,962 $ 76,763 (59,801) $ 16,084 $ 32,475 (16,391)

Total revenues were $45.4 million in 2025 and $74.4 million in 2024.

The decrease of $28.9 million was driven by a significantly higher reversal of unrealized carried interest in 2025, partially offset by a $17.2 million increase in fee revenue.

Total revenues were negative $3.2 million in the second quarter of 2025 and positive $390.3 million in the same period in 2024, and $42.2 million and $464.7 million in the six months ended June 30, 2025 and 2024, respectively.

The large swings in total revenues were driven by significant variability in unrealized carried interest, specifically a large net reversal in 2025 and net positive allocations in 2024.

Additionally, there were increases to fee revenue, driven mainly by additional capital raised for our third flagship fund.

The key components of revenue are discussed in more detail below.

Three Months Ended March 31,

(In thousands) 2025 2024 Change

Three Months Ended June 30, Six Months Ended June 30,

(In thousands) 2025 2024 Change 2025 2024 Change

Management fees

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Incentive fees

600 1,651 (1,051) 606 2,532 (1,926)

Other fee revenue

289 1,267 (978) 562 1,497 (935)

Fee revenue increased $17.2 million or 24% to $90.1 million.

The increase is attributable to higher capital raised for our third flagship fund, which contributed an additional $20.6 million of management fees, including $10.7 million of catch-up fees.

This was partially offset by $4.0 million of lower fees from an InfraBridge fund following a change in fee basis from committed to invested capital effective December 2024.

Year over year, FEEUM increased $4.8 billion or 15% to $37.3 billion at March 31, 2025 from $32.5 billion at March 31, 2024.

$ 85,262 $ 78,605 6,657 $ 175,401 $ 151,560 23,841

Fee revenue increased $6.7 million or 8% to $85.3 million in the quarter-to-date comparison and $23.8 million or 16% to $175.4 million in the year-to-date comparison.

The increases in both the quarter-to-date and year-to-date comparisons were driven by (i) additional capital raised for our third flagship fund, which contributed incremental management fees of $8.5 million and $29.1 million (of which $10.6 million were catch-up fees), respectively, and (ii) deployment of capital by various funds and co-investment vehicles, partially offset by (iii) lower management fees from an InfraBridge fund following a change in fee basis from committed to invested capital effective late December 2024 (decreased $4.4 million and $8.3 million, respectively).

Year over year, FEEUM increased $7.0 billion or 21% to $39.7 billion at June 30, 2025 from $32.7 billion at June 30, 2024.

Incentive fees in all periods were attributed to our liquid securities strategy.

Carried Interest Allocation

Three Months Ended March 31,

(In thousands) 2025 2024 Change

Three Months Ended June 30, Six Months Ended June 30,

(In thousands) 2025 2024 Change 2025 2024 Change

Carried interest allocation

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Unrealized carried interest is subject to adjustments each period, including reversals, based upon the cumulative performance of the underlying investments of these vehicles that are measured at fair value, until such time as the carried interest is distributed.

Distributed carried interest arose from a secondary equity offering by our DataBank portfolio company in February 2025, of which our share net of management allocation was $0.9 million.

There was a higher net reversal of unrealized carried interest in 2025 compared to 2024.

The carried interest reversals are generally a function of continuing accrual of preferred returns over time at a higher rate than the fair value increase for certain limited partners.

Principal Investment Income

Three Months Ended March 31,

(In thousands) 2025 2024 Change

In 2025, distributed carried interest arose from a secondary equity offering by our DataBank portfolio company in February 2025, of which our share net of management allocation was $0.9 million.

Unrealized carried interest reversals are generally a function of continuing accrual of preferred returns over time outpacing changes in investment fair values and the resulting effects are exacerbated given the early lifecycle of our funds.

Principal Investment Income

Three Months Ended June 30, Six Months Ended June 30,

(In thousands) 2025 2024 Change 2025 2024 Change

Principal investment income (loss)

Realized $ (33,819) $ 8,169 $ (41,988) $ 1,219 $ 10,546 $ (9,327)

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Principal investment income represents the Company's proportionate share of net income (loss) from investments in its sponsored investment vehicles, which is predominantly unrealized gain (loss) from changes in fair value of underlying fund investments.

In February 2025, we received $34.0 million of income distribution in connection with our participation in a secondary sale of equity by our DataBank portfolio company.

This is reflected as reclassification from unrealized to realized principal investment income.

Additionally, realized principal investment income in both periods included distributions of interest income from our credit fund, while u nrealized principal investment income in 2025 also reflects fair value increases in DBP II and InfraBridge funds (combined $5.5 million).

Other income was $1.6 million lower at $5.5 million, driven by lower dividend income from equity securities of consolidated funds and lower interest income from money market deposits and our subordinated notes in a collateralized loan obligation ("CLO").

Total expenses were $55.3 million in 2025 and $83.9 million in 2024, with the decrease attributable to higher reversal of unrealized carried interest compensation, and lower administrative costs.

Realized principal investment loss in the second quarter of 2025 was driven by a $40.3 million loss from a portfolio company in an InfraBridge fund.

In the 2025 year-to-date period, this loss was partially offset by $34.0 million of income distribution in connection with our participation in a secondary sale of equity by our DataBank portfolio company in February 2025.

These realizations are accompanied by a reversal of unrealized principal investment income (loss) in the periods the realizations are recognized.

In 2024, realized principal investment income in both periods included gains from syndication of an investment and $4.2 million of previously escrowed proceeds received from the partial sale of our interest in DataBank in prior years.

Additionally, realized principal investment income in both years also included distributions of interest income from our credit funds.

Other income decreased $1.3 million to $6.2 million in the quarter-to-date comparison and $2.9 million to $11.6 million in the year-to-date comparison.

The decrease in both periods was driven by lower dividend income from equity securities of consolidated funds ($0.4 million and $1.0 million, respectively), and lower cost reimbursements from managed investment vehicles that are presented gross as income and expense ($0.6 million in both periods).

Also, in the year-to-date comparison, there was lower interest income from our subordinated notes in a third party sponsored collateralized loan obligation.

Total expenses were $32.4 million and $268.5 million for the three months ended June 30, 2025 and 2024, respectively, and $87.7 million and $352.4 million for the six months ended June 30, 2025 and 2024, respectively, with the decrease attributed to unrealized carried interest compensation which was a net reversal in 2025 compared to a net expense in 2024, and lower administrative cost.

Changes in the various expense items are discussed below.

Compensation Expense

Three Months Ended March 31,

(In thousands) 2025 2024 Change

Three Months Ended June 30, Six Months Ended June 30,

(In thousands) 2025 2024 Change 2025 2024 Change

Cash and equity-based compensation

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Incentive fee and carried interest compensation allocation (reversal) $ (43,372) $ 178,430 (221,802) $ (65,676) $ 171,716 (237,392)

Cash and equity-based compensation— Cash compensation was $3.5 million lower in 2025 as a result of an acquisition-related bonus in 2024 ($2.0 million) and lower severance costs in 2025 ($1.7 million), partially offset by the effect of increased headcount.

Equity-based compensation was $1.6 million lower in 2025 due to awards that fully vested in 2024.

Incentive fee and carried interest compensation allocation— The reversal in compensation expense for both periods is consistent with the reversal in carried interest, as discussed above.

In 2024, management allocation of carried interest for DBP II is reflected mostly as compensation expense.

In comparison, DBP I's management allocation in 2025 is split between compensation expense and net income attributable to noncontrolling interests.

Cash and equity-based compensation— Cash compensation was largely consistent in the periods under comparison.

Equity-based compensation was lower in both periods under comparison as 2024 included performance-based awards that had fully vested.

Incentive fee and carried interest compensation allocation— For both quarter-to-date and year-to-date periods under comparison, the net reversal of compensation in 2025 and net expense in 2024 are consistent with the changes in carried interest, as discussed above.

Administrative and Other Expenses

Administrative and other expenses decreased $8.4 million to $15.9 million, driven primarily by insurance recoveries in 2025 related to litigation costs incurred in prior periods ($10.6 million) and lower placement fees ($3.0 million), partially offset by loss accrual in 2025 related to an employment arbitration ($5.3 million), as well as fund formation and offering costs in 2025 ($2.1 million).

Administrative and other expenses decreased $15.1 million to $11.4 million in the quarter-to-date comparison and $23.4 million to $27.4 million in the year-to-date comparison.

The decreases in both periods can be attributed largely to insurance recoveries in 2025 related to litigation costs incurred in prior periods ($7.6 million and $18.2 million, respectively) and lower third party professional service costs, including reimbursable costs incurred on behalf of our managed investment vehicles.

This was partially offset by costs incurred for potential new products ($3.0 million and $5.7 million, respectively).

Interest Expense

Interest expense decreased $1.3 million to $3.9 million as a result of the full exchange/redemption of the remaining 5.75% exchangeable senior notes in April 2024.

Interest expense increased $1.4 million to $4.6 million in the quarter-to-date comparison and $0.1 million to $8.5 million in the year-to-date comparison.

The increases in both periods were driven by $0.6 million of accelerated deferred financing costs in connection with a reduction in the VFN borrowing capacity in June 2025.

In the year-to-date comparison, this was partially offset by a decrease resulting from the full exchange/redemption of the remaining 5.75% exchangeable senior notes in April 2024.

Transaction-Related Costs

Transaction-related costs increased $3.7 million to $4.4 million due to higher deal activity.

Transaction-related costs increased $3.5 million to $4.2 million in the quarter-to-date comparison and $7.2 million to $8.6 million in the year-to-date comparison due to higher deal activity.

Depreciation and Amortization

Depreciation and amortization expense decreased $1.9 million due to management contract intangible assets which have a declining amortization rate over time based upon projected cash flows to be generated from these contracts.

Depreciation and amortization expense increased $0.5 million in the quarter-to-date comparison and decreased $1.5 million in the year-to-date comparison.

Both periods included accelerated depreciation for fixed assets disposed in connection with the assignment of an office lease in the second quarter of 2025, offset by reduced amortization, which was more impactful in the year-to-date period, due to management contract intangibles that have a declining amortization rate over time.

Other Gain (Loss), Net

Other loss was $0.5 million in 2025 and $5.9 million in 2024.

The net loss in 2025 was driven by net fair value loss in equity investments, primarily marketable equity securities of our consolidated funds ($4.5 million), largely offset by fair value decrease in the InfraBridge contingent consideration liability ($3.9 million).

The net loss in 2024 was driven by fair value increase in the DBRG stock warrant liability ($5.4 million) and write-down in value of an equity investment ($3.3 million), partially offset by net fair value gain on marketable equity securities of our consolidated liquid funds( $2.0 million).

Other gain, net was $9.1 million and $8.5 million in the three and six months ended June 30, 2025, respectively, and $8.8 million and $2.9 million in the three and six months ended June 30, 2024, respectively, reflecting predominantly unrealized fair value changes in financial assets and financial liabilities.

The net gain in 2025 was driven by net unrealized gains in marketable equity securities of consolidated funds ($5.9 million and $2.1 million in the three and six month periods, respectively) and the InfraBridge contingent consideration liability ($3.8 million in the six month period).

The net gain in 2024 was driven by fair value decrease in the DBRG stock warrant liability ($8.4 million and $3.0 million in the three and six month periods, respectively).

Income Tax Benefit (Expense)

Income tax expense was $0.3 million in 2025 and $1.2 million in 2024.

The Company has operating losses and capital loss carryforwards that can be applied against current income tax expense for its domestic entities, and has established a full valuation allowance on the deferred tax assets of these entities, resulting in immaterial income tax effect for its domestic entities.

Income tax expense was immaterial, just over $1.0 million or less, in all periods under comparison.

The Company has operating losses and capital loss carryforwards that can be applied against current income tax expense for its domestic entities, and the deferred tax assets of these entities are currently subject to a full valuation allowance, resulting in an immaterial income tax effect for its domestic entities.

With respect to the Company's foreign subsidiaries, the resulting foreign income tax impact remains immaterial.

Income (Loss) from Discontinued Operations

Loss from discontinued operations of $4.2 million in 2025 and $14.1 million in 2024 were driven by a merger related real estate transfer tax liability, and loss on a guarantee related to the previous bulk sale of the Company's real estate investments, respectively.

Discontinued operations had net income of $1.6 million in the three months ended June 30, 2025 and net losses of $2.5 million, $0.7 million and $14.8 million in the six months ended June 30, 2025 and the three and six months ended June 30, 2024, respectively.

The more significant loss in the year-to-date period in 2024 included primarily a loss on a guarantee related to the previous bulk sale of the Company's real estate investments.

Operating Metrics

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Presented below are total AUM and FEEUM by product:

(In billions) March 31, 2025 December 31, 2024

(In billions) June 30, 2025 December 31, 2024

Assets Under Management

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The following table summarizes changes in FEEUM:

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

(In billions)

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Balance at January 1 $ 35.5

Market activity and other (3)

Balance at March 31

Market activity (3)

Balance at June 30

(1) Inflows include closing on new capital raised where fees are earned on committed capital, deployment of capital where fees are earned on invested capital, new subscriptions where fees are based on NAV, other changes in invested capital such as the effect of recapitalization and syndication, and FEEUM from acquired investment vehicles.

(2) Outflows include redemptions and withdrawals in Liquid Strategies, realizations where fees are based on invested capital, other changes in invested capital such as the effect of recapitalization and syndication, change in fee basis from committed to invested capital, permanent write-down in investment values, and expiration of fee paying capital.

(3) Market activity and other include changes in investment value based on NAV or GAV, and the effect of foreign exchange rates.

FEEUM increased $1.8 billion or 5% to $37.3 billion at March 31, 2025, driven by capital raise for our third flagship fund, and capital deployments.

(3) Market activity includes changes in investment value based on NAV or GAV, and the effect of foreign exchange rates.

Amount was less than $100 million in the first half of 2025.

FEEUM increased $4.2 billion or 12% to $39.7 billion at June 30, 2025, driven by capital raise for our third flagship fund and deployment of co-invest capital previously raised.

Non-GAAP Supplemental Financial Measures

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Realized earnings included in DE are generally comprised of fee revenue, including all incentive fees, realized principal investment income (loss), distributed carried interest, interest and dividend income.

Income (loss) on principal investments is realized when the Company redeems all or a portion of its investment or when the Company receives or is due income such as dividends, interest or distributions of earnings.

Income (loss) on principal investments is realized generally when all or a portion of an investment is disposed, redeemed or repaid or if the Company no longer retains control, or when the Company receives income such as dividends, interest or other distributions of earnings.

The following items are excluded from DE:

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Results of our non-GAAP measures attributable to the Operating Company were determined as follows:

Three Months Ended March 31,

Three Months Ended June 30,

(In thousands) 2025 2024 Change

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31,975 25,968 6,007

Realized principal investment income 34,907 2,301 32,606

Realized principal investment income (loss) (33,957) 7,551 (41,508)

Distributed carried interest and incentive fees subject to realization events, net of associated expense allocation — 186 (186)

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Fee-Related Earnings

FRE was $15.4 million or 79% higher at $35.0 million in the first quarter of 2025 compared to $19.6 million in the same period in 2024.

FRE margin in the first quarter of 2025 improved to 39% from 27% a year ago.

FRE was $6.0 million or 23% higher at $32.0 million in the second quarter of 2025 compared to $26.0 million in the same period in 2024.

FRE margin in the second quarter of 2025 improved to 37% from 33% a year ago.

Fee revenue increased $6.7 million or 8%, partially offset by higher operating cost.

The increase in fee revenue is attributable to capital raised for our third flagship fund, which contributed an additional $20.6 million of fees, including $10.7 million of catch-up fees.

This was partially offset by a fee decrease for an InfraBridge fund following a change in fee basis from committed to invested capital effective December 2024.

Operating cost was $2.1 million higher, driven largely by fund formation and offering costs as well as the effects of higher headcount.

The increase in fee revenue is attributable to capital raised for our third flagship fund, which contributed an additional $8.5 million of fees, and new co-investment vehicles.

This was partially offset by a fee decrease for an InfraBridge fund following a change in fee basis from committed to invested capital effective late December 2024.

Operating cost was $0.7 million higher, which included fund formation and offering costs for potential new products.

Distributable Earnings

DE was $54.7 million in the first quarter of 2025 compared to $2.2 million in the same period in 2024.

The significant increase can be attributed to $15.4 million of additional FRE and $35 million of realized principal investment income and our share of carried interest received from our participation in a secondary sale of equity by our DataBank portfolio company.

DE also benefited from $3.1 million of lower placement fees.

DE was a negative $18.6 million in the second quarter of 2025 compared to a positive $19.6 million in the same period in 2024.

The negative DE was driven by a $40 million realized principal investment loss from a portfolio company of an InfraBridge fund.

This loss pertained to invested capital funded in prior years and the realization did not affect cash flows in the current quarter.

Distributable Earnings and Fee-Related Earnings Reconciliation

Three Months Ended March 31,

Three Months Ended June 30,

(In thousands) 2025 2024

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Transaction-related costs and non-core items (1)

(4,982) 5,344

Other (gain) loss, net (2)

(8,287) (13,451)

Unrealized principal investment income (3)

(55,422) (6,322)

Unrealized carried interest, net of associated expense (allocation) reversal (4)

11,649 (75,065)

Equity-based compensation 10,873 17,641

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Distributable Earnings, after tax—attributable to Operating Company

Realized principal investment income (34,907) (2,301)

(18,618) 19,629

Realized principal investment (income) loss 33,957 (7,551)

Distributed carried interest and incentive fees subject to realization events, net of associated expense allocation (4)

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and (ii) realized gains and losses recorded by consolidated funds or associated with non-core investments.

(3) Unrealized principal investment income is presented net of a third party participation interest.

(4) Carried interest and incentive fees are presented net of expense allocation or reversal.

(3) Unrealized principal investment income is presented net of a third party participation interest, representing only the Operating Company's share.

(4) Carried interest and incentive fees are presented net of expense allocation or reversal, representing only the Operating Company's share.

The expense component is included within compensation expense — incentive fees and carried interest allocation (reversal), other gain (loss), and net income (loss) attributable to noncontrolling interests in investment entities on the GAAP income statement.

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(i) unrealized carried interest to management and a third party participation interest;

and (ii) unrealized principal investment income to a third party participation interest, are netted against "unrealized carried interest, net of expense (allocation) reversal" and "unrealized principal investment income", respectively, for all periods presented (previously presented gross in "adjustments attributable to noncontrolling interests in investment entities" and recasted for periods prior to the second quarter of 2024 and first quarter of 2025, respectively).

Allocation of unrealized principal investment income to a third party participation interest was previously presented gross in "adjustments attributable to noncontrolling interests in investment entities" and recasted for periods prior to the first quarter of 2025.

(6) OP share of discontinued operations represents residual activities from the Company's former real estate business that had been disposed.

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• proceeds from public or private equity and debt offerings.

At March 31, 2025, we have $201 million of available corporate cash.

At June 30, 2025, we have $158 million of available corporate cash.

This generally represents cash at our OP entity after allocating cash for certain compensatory liabilities, and excludes cash held at subsidiaries of the OP, including cash maintained to satisfy regulatory capital requirements in applicable foreign jurisdictions.

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• In connection with our participation in a secondary sale of equity by our DataBank portfolio company in February 2025, we received proceeds of approximately $59.7 million, representing $34.0 million realized principal investment income, $24.8 million return of capital and our share of carried interest of $0.9 million.

• Liquidation of an investment in our InfraBridge fund in June 2025 generated proceeds of $13.3 million, representing $8.2 million return of capital and $5.1 million realized principal investment income.

• We elected to reduce the capacity under our VFN (pursuant to its terms) from $300 million to $100 million effective June 2025, which will generate annual savings of $1.0 million in unused fees.

Liquidity Needs and Capital Activities

Common Stock —The payment of common stock dividends and determination of the amount thereof is at the discretion of our Board of Directors.

In April 2025, our Board of Directors declared a dividend of $0.01 per share of common stock to be paid in July 2025.

In July 2025, our Board of Directors declared a dividend of $0.01 per share of common stock to be paid in October 2025.

Preferred Stock— We have outstanding preferred stock totaling $822 million, bearing a weighted average dividend rate of 7.135% per annum, with aggregate dividend payments of $14.7 million per quarter.

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Our fund capital investments further align our interests to our investors.

As of March 31, 2025, we have unfunded equity commitments to our unconsolidated funds as general partner and general partner affiliate of $231 million (including commitments attributed to the ownership by employees and former employees in our general partner entities).

As of June 30, 2025, we have unfunded equity commitments to our unconsolidated funds as general partner and general partner affiliate of $187 million (including commitments attributed to the ownership by employees and former employees in our general partner entities).

Generally, the timing for funding of these commitments is not known and the commitments are callable on demand at any time prior to their respective expirations.

Warehoused Investments

We temporarily warehouse investments on behalf of prospective sponsored investment vehicles that are actively fundraising.

We temporarily warehouse investments on behalf of prospective sponsored investment vehicles.

The warehoused investments are transferred to the investment vehicle if and when sufficient third party capital, including debt, is raised.

Generally, the timing of future warehousing activities is not known.

Nevertheless, investment warehousing is undertaken only if it is determined that we will have sufficient liquidity through the anticipated warehousing period.

Nevertheless, investment warehousing is undertaken only if it is determined that we will have sufficient liquidity to hold the investments.

Contingent Consideration

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Generally, the Company, through the OP, has guaranteed the clawback obligation of its subsidiaries that act as general partner or special limited partner of its respective sponsored funds, for the benefit of these funds and their limited partners.

At March 31, 2025, the Company had no liability for clawback obligations on distributed carried interest.

At June 30, 2025, the Company had no liability for clawback obligations on distributed carried interest.

Lease Obligations

At March 31, 2025, we had operating lease obligations of $43 million for in-place leases on currently occupied corporate offices and commitments on a future office lease of $52 million that is expected to commence in 2026 with a 10 year lease term.

At June 30, 2025, we had operating lease obligations of $37 million for in-place leases on currently occupied corporate offices and commitments on a future office lease of $58 million that is expected to commence in 2026 with a 10.8 year lease term.

We sub-leased a portion of certain existing office space over the remaining term of the respective leases and expect to receive fixed sub-lease payments totaling $3 million over the remaining life of the sub-lease contracts.

With respect to the new lease commencing in 2026, the Company will be provided with a credit to cover fixed lease payments of $71,000 per month on an existing lease that expires in September 2026 during the period the two leases overlap, and also expects to sub-lease a portion of this new office space in 2026, which will reduce its future lease obligation.

With respect to the new lease commencing in 2026, the Company will be provided with a credit to cover fixed lease payments on an existing lease that expires in September 2026 during the period the two leases overlap, and also expects to sub-lease a portion of this new office space in 2026, which will reduce its future lease obligation.

The Company's lease obligations will be funded through corporate operating cash.

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The following table summarizes the activities from our consolidated statements of cash flows, including discontinued operations.

Three Months Ended March 31,

Six Months Ended June 30,

(In thousands) 2025 2024

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Our operating activities generated net cash inflows of $127.3 million in 2025 and outflows of $4.5 million in 2024.

Cash inflows in 2025 included $34.0 million in distribution of earnings from the secondary sale of equity in our DataBank portfolio company,

Outside of recurring operating activities, cash inflows in 2025 also included distribution of earnings from the secondary sale of equity in our DataBank portfolio company of $34.0 million, $5.1 million from disposition of an investment in our InfraBridge fund and $18.2 million from net insurance recoveries related to litigation costs incurred in prior periods.

Investing Activities

Investing activities relate to general partner and general partner affiliate investments in sponsored funds, including drawdown of commitments and return of capital from realized fund investments.

Our investing activities generated net cash inflows of $17.5 million in 2025 and outflows of $22.0 million in 2024.

• In 2025, we had received return of capital of $24.8 million from the secondary sale of equity in our DataBank portfolio company.

Otherwise we funded $7.0 million, net of distributions, for our general partner and general partner affiliate commitments in our sponsored funds, while the investing activities of our consolidated liquid funds which hold marketable equity securities resulted in a net cash outflow of $0.7 million.

• Net cash outflows in 2024 were driven by $26.5 million of fundings, net of distributions, for our general partner and general partner affiliate commitments in our sponsored funds, partially offset by $5.7 million of net proceeds from investing activities of our consolidated liquid funds which hold marketable equity securities.

Our investing activities generated net cash outflows of $68.5 million and $17.2 million in 2025 and 2024, respectively.

• In 2025, net cash outflows were driven by $73.6 million of fundings, net of distributions, for our general partner and general partner affiliate commitments in our sponsored funds and $32.6 million of investments warehoused for potential new products.

This was partially offset by return of capital of (i) $24.8 million from the secondary sale of equity in our DataBank portfolio company, (ii) $12.1 million from disposition and recapitalization of investments in our InfraBridge fund, and (iii) $2.4 million from our CLO subordinated notes.

• Net cash outflows in 2024 were driven by $17.0 million of fundings, net of distributions, for our general partner and general partner affiliate commitments in our sponsored funds.

Financing Activities

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Financing activities generated net cash outflows in 2025 and 2024.

• In 2025, net cash outflows of $21.9 million were driven by common and preferred dividend payments of $16.4 million, and a third party participation interest in net distributions from DBP I.

• Net cash outflows of $48.5 million in 2024 represent cash settlement of contingent consideration to Wafra of 17.5 million, $14.0 million of investor capital redeemed in our consolidated liquid funds, net of contributions, and $16.3 million of common and preferred dividend payments.

• In 2025, net cash outflows of $25.1 million were driven by common and preferred dividend payments of $32.8 million, partially offset by a follow-on investment of $14.2 million by limited partners in a consolidated single asset fund.

• Higher net cash outflows of $61.9 million in 2024 resulted from cash settlement of contingent consideration to Wafra of $17.5 million, $14.6 million of investor capital redeemed, net of contributions, in our consolidated liquid funds and $32.6 million of common and preferred dividend payments.

This was partially offset by a $6.1 million syndication of our interest in a consolidated fund, and a share of our commitments in DBP I funded by a third party participation interest.

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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.

What changed 10-Q

Item 2. Management’s Discussion and Analysis