Investors are high on alternative-asset managers, and DigitalBridge aims to capitalize on this trend

  • DigitalBridge Group is shifting its focus to alternative asset management
  • The company aims to be valued as an alt manager like Blackstone and TPG
  • DigitalBridge hopes to reach higher stock prices
  • The divestment of real estate interests will give investors a clearer view of the asset-management business
  • DigitalBridge’s money-management earnings grew 36% YoY in the September quarter
  • The company plans to keep growing its funds at a steep rate
  • DigitalBridge specializes in digital infrastructure investing
  • The company’s investment-management growth has been hard for stockholders to see and judge
  • Accounting rules have masked DigitalBridge’s true potential as an alt manager
  • Raymond James values DigitalBridge stock at $24 a share

DigitalBridge Group, a Florida-based firm, is making a strategic shift to focus on alternative asset management. The company aims to be valued as an alt manager, similar to industry giants like Blackstone and TPG. By divesting its real estate interests, DigitalBridge hopes to provide investors with a clearer view of its asset-management business. In the September quarter, the company’s money-management earnings grew by an impressive 36% year over year. With the increasing demand for digital infrastructure among private-fund investors, DigitalBridge plans to continue growing its funds at a steep rate. DigitalBridge specializes in digital infrastructure investing, with a focus on artificial intelligence, cloud computing, and 5G wireless. The company’s private-equity funds own stakes in more than 30 businesses worldwide that provide the foundations for these technologies. However, DigitalBridge’s investment-management growth has been difficult for stockholders to evaluate due to accounting rules that have masked its true potential as an alt manager. Raymond James analysts have valued DigitalBridge as an alt manager, projecting that the company could be worth $4.4 billion, or $24 a share. The success of DigitalBridge’s fund-raising ambitions will be a key factor to watch in the coming years.

Companies Public: DigitalBridge Group (Unknown), Blackstone (Unknown), TPG (Unknown), American Tower (Unknown), Colony Capital (Unknown), DataBank (Unknown), Vantage SDC (Unknown)
Key People: Marc Ganzi (CEO), Ben Jenkins (Investment Chief)

Factuality Level: 7
Factuality Just: The article provides information about DigitalBridge’s divestment of its cell-tower and real estate interests and its focus on its asset-management business. It discusses the company’s history, its plans for growth, and its valuation as an alternative-asset manager. The article includes quotes from analysts and provides some financial data. However, it lacks specific details and data to support its claims, and it does not provide a balanced perspective by including potential risks or challenges the company may face. Overall, the article provides some factual information but could benefit from more in-depth analysis and supporting evidence.
Noise Level: 4
Noise Just: The article provides information about DigitalBridge’s divestment of its cell-tower and real estate interests and its focus on its asset-management business. It discusses the company’s history, its plans for growth, and its valuation as an alternative-asset manager. The article includes quotes from analysts and provides some financial data. However, it lacks in-depth analysis and does not provide actionable insights or solutions. The article also includes some irrelevant information about the CEO’s background. Overall, the article contains some noise and filler content, but it provides a basic overview of DigitalBridge’s strategy and potential.
Financial Relevance: No
Financial Markets Impacted: No
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Just: The article discusses DigitalBridge’s shift from being a data-center REIT to focusing on its fast-growing private-equity business. This change in strategy may impact the financial markets, particularly the REIT market and the alternative-asset management sector. However, there is no mention of any extreme events or their impact in the article.

Reported publicly: www.marketwatch.com