Bridge Investment Group Reports $96.3 Million Revenue and $37.6 Million Net Loss in Q1 2025

Bridge Investment Group Holdings Inc. reported a total revenue of $96.3 million for the first quarter of 2025, a decrease of 6% from $102.8 million in the same period of 2024. The decline was primarily driven by reductions in fund management fees, property management and leasing fees, and transaction fees. Fund management fees fell to $59.3 million from $61.1 million, while property management and leasing fees decreased by 15% to $17.0 million. Transaction fees saw a significant drop of 53%, totaling $3.2 million, attributed to a slowdown in real estate transactions. In contrast, insurance premiums increased by 23% to $5.8 million, and other asset management income rose by 44% to $3.8 million.

The company reported a net loss of $37.6 million for the quarter, compared to a loss of $36.8 million in the prior year. This loss was influenced by a significant increase in loss and loss adjustment expenses, which surged to $11.3 million from $2.7 million, largely due to claims in its captive insurance subsidiary. Additionally, general and administrative expenses rose sharply to $28.1 million, up from $11.3 million, primarily due to non-recurring transaction costs related to a merger agreement with Apollo Global Management. The company’s total expenses increased by 19% to $115.7 million.

Bridge Investment Group's assets under management (AUM) stood at approximately $49.4 billion as of March 31, 2025, reflecting a slight decrease from $49.8 billion at the end of 2024. The company noted that its fee-earning AUM remained relatively flat at $22.3 billion, with new capital raised offset by distributions and changes in fair market value. The company continues to face challenges in the commercial office sector, which has impacted its revenue streams, particularly from Bridge Office Fund LP, where it has ceased recognizing management fees.

Strategically, Bridge Investment Group is in the process of merging with Apollo Global Management, with the transaction expected to close in the third quarter of 2025. The merger, valued at approximately $1.5 billion, will see Bridge become a wholly-owned subsidiary of Apollo. This move is anticipated to enhance the company’s operational capabilities and market reach. The company has also indicated that it will continue to focus on diversifying its investment strategies and expanding its product offerings to adapt to changing market conditions and investor preferences.

Looking ahead, Bridge Investment Group remains cautious about the economic environment, particularly regarding inflation and interest rates, which could affect its fundraising and investment activities. The company is committed to maintaining its liquidity and capital resources to navigate potential market challenges while continuing to seek attractive investment opportunities across its diversified asset classes.