Bridge Investment Group Reports 8% Revenue Decline and Net Income Drop in Q2 2025

Bridge Investment Group Holdings Inc. reported a decline in financial performance for the second quarter of 2025, with total revenues of $96.5 million, down 8% from $104.8 million in the same period last year. The decrease was primarily driven by a reduction in fund management fees, which fell by 5% to $58.5 million, and a significant drop in transaction fees, which decreased by 25% to $4.8 million. The company also experienced a substantial decline in investment income, with total investment income of $6.3 million, down 75% from $25.6 million in the prior year, largely due to a decrease in both realized and unrealized performance allocations.

In terms of profitability, Bridge reported a net income of $2.8 million for the quarter, a significant decrease from $27.5 million in the previous year. The company’s net loss attributable to its Class A common stockholders was $0.5 million, translating to a loss per share of $0.01. This contrasts sharply with the prior year’s earnings per share of $0.11. The decline in profitability was attributed to increased general and administrative expenses, which surged by 94% to $18.2 million, largely due to non-recurring transaction costs associated with the company's ongoing merger activities.

Bridge's assets under management (AUM) increased to approximately $50.2 billion as of June 30, 2025, reflecting a 2% increase from the previous year. This growth was attributed to new capital commitments and favorable market conditions for certain funds, although it was partially offset by distributions and changes in fair value. The company’s fee-earning AUM also saw a slight increase, reaching $21.9 billion, despite a decrease in total fee-related revenues, which fell by 9% to $73.2 million.

Strategically, Bridge is in the process of merging with Apollo Global Management, with the merger expected to close in the third quarter of 2025. This merger, valued at approximately $1.5 billion, is anticipated to enhance Bridge's operational capabilities and market reach. The company has also been focusing on expanding its investment platforms, particularly in real estate and alternative investments, to capture new market opportunities.

Looking ahead, Bridge anticipates challenges in fundraising and capital deployment due to ongoing economic uncertainties and market volatility. The company is closely monitoring its investment strategies and operational efficiencies to navigate these challenges while aiming to maintain its competitive position in the alternative investment management sector.