Bridge Investment Group Holdings Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Investments

Investments

9 Months Ended

Sep. 30, 2021

Schedule of Investments [Line Items]

INVESTMENTS

The Company has interests in 144 partnership or joint venture entities. The limited liability companies and limited partnerships in which the Company is the general partner are generally engaged directly or indirectly in the acquisition, development, operation and ownership of real estate. The accounting principles of these entities are substantially the same as those of the Company. Additionally, the Company has direct investments in several funds, including certain Bridge-sponsored funds. The Company’s investments are summarized below:


		Carrying Value at
(in thousands)		September 30,		December 31,
Investments		2021		2020
Accrued performance allocations	(1)	$	301,910	$	199,410
Partnership interest in Company sponsored funds	(2)		27,871		12,975
Investments in third-party partnership	(3)		6,393		2,697
Other investments	(4)		4,221		345
		$	340,395	$	215,427

(1)

Represents an investment in carried interest in the funds. There is a disproportionate allocation of returns to the Company as general partner or equivalent based on the extent to which cumulative performance of the fund exceeds minimum return hurdles. Investment is valued using NAV of the respective vehicle.

(2)

Investments in the funds and limited partnership interest, included in “other investments” on the consolidated balance sheet, are valued using NAV of the respective vehicle.

(3)

Investments in limited partnership interest in third-party private proptech venture capital firms, included in “other investments” on the consolidated balance sheet. Valued using NAV of the respective vehicle.

(4)

Other investments, included in “other investments” on the balance sheet, are accounted for using the measurement alternative to measure at cost adjusted for any impairment and observable price changes.

Fair value of the investments is reported on a three-month lag from the fund financial statements due to timing of the information provided by the funds and third-party entities unless information is available on a more-timely basis.

The Company’s equity method investments include investments that are not consolidated, but over which the Company exerts significant influence. The Company evaluates each of its equity method investments to determine if any were significant as defined by guidance from the Securities Exchange Commission. At September 30, 2021, the Company’s investment in Bridge Multifamily Fund III and Bridge Multifamily Fund IV represented 12% and 16% of total assets, respectively. No other investment represented greater than 10% of total assets.

The following table presents financial information of our significant equity investment in Bridge Multifamily Fund III:


(in thousands)	Three Months Ended
Investment income	September 30, 2021		September 30, 2020
Net earnings from investments in real estate	$	5,154	$	543
Interest and other income		15		—
Total investment income		5,169		543
Expenses
Management fees		1,496		60
Partnership expense		570		42
Total expenses		2,066		102
Net investment income		3,103		441

Net realized gain on investments in real estate		90,752		50
Changes in unrealized gain on investments in real estate		41,445		873
Unrealized gain on interest rate swap		1,023		—
Net gain on investments		133,220		923
Net increase in partnersʼ capital resulting from operations	$	136,323	$	1,364


(in thousands)	Nine Months Ended
Investment income	September 30, 2021		September 30, 2020
Net earnings from investments in real estate	$	18,716	$	722
Interest and other income		26		12
Total investment income		18,742		734
Expenses
Management fees		4,796		187
Partnership expense		1,198		326
Interest expense		25		1
Total expenses		6,019		514
Net investment income		12,723		220

Net realized gain on investments in real estate		209,867		4,192
Changes in unrealized gain on investments in real estate		63,187		(1,489	)
Unrealized gain on interest rate swap		3,952		—
Net gain on investments		277,006		2,703
Net increase in partnersʼ capital resulting from operations	$	289,729	$	2,923

The following table presents financial information of our significant equity investment in Bridge Multifamily Fund IV:


(in thousands)	Three Months Ended
Investment income	September 30, 2021		September 30, 2020
Net earnings from investments in real estate	$	18,189	$	15,169
Interest and other income		136		1
Total investment income		18,325		15,170
Expenses
Management fees		3,822		4,767
Partnership expense		1,617		494
Interest expense		57		110
Total expenses		5,496		5,371
Net investment income		12,829		9,799

Changes in unrealized gain on investments in real estate		366,490		45,681
Net gain on investments		366,490		45,681
Net increase in partnersʼ capital resulting from operations	$	379,319	$	55,480

(in thousands)	Nine Months Ended
Investment income	September 30, 2021		September 30, 2020
Net earnings from investments in real estate	$	51,268	$	27,185
Interest and other income		241		2
Total investment income		51,509		27,187
Expenses
Management fees		12,576		14,414
Partnership expense		2,585		1,474
Interest expense		912		920
Total expenses		16,073		16,808
Net investment income		35,436		10,379

Changes in unrealized gain on investments in real estate		693,496		120,013
Net gain on investments		693,496		120,013
Net increase in partnersʼ capital resulting from operations	$	728,932	$	130,392