DigitalBridge Group, Inc. (DBRG) Q4 2022 Earnings Call Transcript

DigitalBridge Group, Inc. (NYSE:DBRG) Q4 2022 Earnings Conference Call February 24, 2023 10:00 AM ET

Company Participants

Severin White - MD & Head, Public IR

Marc Ganzi - CEO & Director

Jacky Wu - EVP, CFO & Treasurer

Conference Call Participants

Brent Penter - Raymond James & Associates

Eric Luebchow - Wells Fargo Securities

Jonathan Atkin - RBC Capital Markets

Jade Rahmani - KBW

Daniel Day - B. Riley Securities

Matthew Niknam - Deutsche Bank

Michael Elias - Cowen and Company

Yong Choe - JPMorgan Chase & Co.

Operator

Greetings, and invited to nan DigitalBridge Group Inc. Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions].

It is now my pleasance to present your host, Severin White, Managing Director, Head of Public Investor Relations. Thank you. You whitethorn begin.

Severin White

Good morning, everyone, and invited to DigitalBridge's Fourth Quarter 2022 Earnings Conference Call. Speaking connected nan telephone coming from nan institution is Marc Ganzi, our CEO; and Jacky Wu, our CFO.

I'll quickly screen nan safe harbor, and past we tin get started. Some of nan statements that we make coming regarding our business operations and financial capacity whitethorn beryllium considered forward-looking and specified statements impact a number of risks and uncertainties that could origin existent results to disagree materially. All accusation discussed connected this telephone is arsenic of today, February 24, 2023, and DigitalBridge does not intend and undertakes nary work to update it for early events aliases circumstances. For much information, please mention to nan consequence factors discussed successful our caller 10-K to beryllium revenge pinch nan SEC for nan twelvemonth ending December 31, 2022.

So we're going to commencement pinch Marc summarizing nan advancement we've made successful 2022, Jacky will outline our financial results and updated guidance and move it backmost complete to Marc to outline what we are focused connected successful 2023.

With that, I'll move nan telephone complete to Marc Ganzi, our CEO. Marc?

Marc Ganzi

Thanks, Sev, and convey you, our investors, for your continued liking successful DigitalBridge. Particularly arsenic we participate 2023 and navigate nan last shape of our transformation. I'd for illustration to commencement coming by putting 2022 and nan advancement we made this twelvemonth successful context. Most importantly, done a move macro environment, we delivered maturation this year, maintaining our position arsenic nan partner of prime to apical operating guidance teams and organization investors that are allocating superior to integer infrastructure, which has proven itself to beryllium 1 of nan astir durable plus classes.

First, connected firm strategy. We established our plus guidance level arsenic nan strategical maturation driver for our business going forward, successfully building retired a afloat stack floor plan pinch caller complementary strategies. Next, superior formation. It's our astir applicable near-term KPI. When you look guardant to gross and net growth, this is wherever you'll find our champion opportunity. Here, we exceeded our fundraising targets for nan year, building up important embedded earnings, maturation going guardant into 2023 and beyond.

Finally, and astir importantly, our portfolio continued to execute pinch beardown leasing, driving coagulated outcomes for our investors. The champion measurement to present maturation successful today's situation is to create free rate travel from integrated leasing and escalators. Again, this is what matters, portfolio performance. And present is wherever we really excelled. We'll talk a small spot astir that today.

Next slide, please. In 2022, DigitalBridge really established our plus guidance level arsenic nan strategical maturation driver for our business going forward. The basal displacement was astir orienting our institution astir a scalable, asset-light, high-return business model. As we've elaborate earlier successful our firm overview, nan returns connected superior associated pinch Investment Management are superior and let america to found a starring marketplace position of a smaller superior without having to pat superior markets regularly to turn our business. This is an alternative. We judge a superior replacement measurement to ain integer infrastructure.

We achieved a number of cardinal strategical objectives past twelvemonth that allowed america to beforehand this roadworthy map. First, we scaled our afloat stack profile, some organically pinch nan motorboat of our halfway and in installments strategies and besides done M&A arsenic we telegraph to you, our investors, pinch nan acquisition of AMP's infrastructure equity business. Now rebranded arsenic InfraBridge. This gives america a compelling middle-market capacity pinch a integer positive finance focus.

Second, we consolidated nan ownership of our Investment Management platform, buying backmost Wafra's number liking truthful that 100% of our Investment Management net travel backmost to you, DigitalBridge shareholders. Finally, we proceed to simplify our business profile. Starting pinch nan DataBank recap. This was nan first measurement successful deconsolidating our operating segment, which represents nan past shape successful our firm transformation. Some very important strategical advancement this twelvemonth that sets america up to triumph successful 2023 and beyond.

Next slide, please. In summation to advancing our Investment Management roadworthy map, we allocated superior strategically crossed 4 accretive transactions while continuing to support beardown liquidity astatine nan firm level. As I've mentioned before, maintaining beardown liquidity successful this situation is simply a strategical imperative to DigitalBridge. In 2022, we allocated complete $800 cardinal successful rate to accretive M&A successful our finance successful our Investment Management floor plan arsenic good arsenic continuing to optimize our superior structure. Let maine elaborate a small spot connected that.

First, let's commencement pinch nan Wafra stake, for a small spot nether $500 cardinal successful cash, including nan earnout arsenic good arsenic nan issuance of stock. We purchased AMP's infrastructure equity franchise next, and bought backmost complete $110 cardinal of communal and preferred banal taking advantage of marketplace dislocation successful nan 4th fourth of past year. Those investments are group to make complete $85 cardinal successful incremental pro forma earnings, which translates to EPS of complete $0.49 per share. While we deployed important superior successful 2022, we besides prioritized and person maintained beardown liquidity. Today, that stands astatine almost $700 million.

Further, we proceed to delever our business, reducing some finance level and firm indebtedness connected a pro-rata ground during nan people of 2022. Again, successful this environment, this is basal to my conflict plan. The expertise to allocate superior successful statement pinch our priorities while maintaining beardown liquidity and deleveraging were important achievements this year.

Next slide, please. Next is superior formation. This is really nan KPI that drives early gross and net growth. Here we vanished disconnected nan twelvemonth pinch a coagulated 4th quarter. We raised $1.4 cardinal crossed 4 of our strategies. That took our cumulative fundraising to $8.5 cardinal for nan twelvemonth and fee-earning equity to $4.8 billion, exceeding our 2022 midpoint target of $3.8 cardinal by 26%. As that superior kicks into precocious cogwheel successful nan first 4th of this twelvemonth and beyond, you'll spot nan gross maturation travel successful our financials.

Next page, please. So wherever does that put america crossed nan platform? As of today, we're astatine astir $28 cardinal successful FEEUM. That's 52% higher than past twelvemonth pinch half nan maturation coming from integrated fundraising and nan different half via our acquisition of AMP, which we conscionable closed astatine nan opening of February. We're excited astir that acquisition, and we've already commenced nan afloat integration of nan teams and back-office operations. We're looking guardant to nan maturation successful InfraBridge, and we're excited astir nan prospects that, that business has for DigitalBridge shareholders.

The different really important point present to statement is nan proliferation of colors you spot connected nan slide. We've talked astir building nan afloat stack and what you're starting to spot is nan manifestation of those efforts. On apical of our flagship DigitalBridge Partners Series funds, we've gotten important maturation successful co-investment, imperishable superior vehicles and liquid strategies. And now we're laying successful superior for our in installments and halfway strategies. That important embedded gross and net maturation that will manifest itself successful 2023. This enables america to standard and execute our go-forward business plan.

Next slide, please. So nan 3rd portion that's applicable present arsenic we look backmost successful 2022 is nan occurrence we've had crossed our world portfolio. On nan beforehand end, that intends actively investing successful caller platforms connected a world basis. In particular, I want to item 2 signature transactions that we did successful nan backmost half of past year. Number one, nan $11 cardinal take-private of Switch. And secondly, nan $18 cardinal GD Towers business pinch Deutsche Telekom.

I besides want to telephone retired nan maturation we're seeing successful Asia, some pinch caller platforms and tuck-in acquisitions, we've been capable to execute crossed existing portfolio companies successful that geography. We stay excited astir that theater, and we're looking guardant to investing location successful 2023 and beyond.

And look, each of this is enabled by continued maturation successful AUM and FEEUM that we've knowledgeable complete nan past 2 years. We're now pinch investments successful 5 continents. So again, fto maine put that successful a due position for you. In summary, one, we hit FEEUM by 26% successful 2022 against our budget. 52% FEEUM maturation since 2021 and 56% AUM maturation complete nan past 3 years. We proceed to station immoderate of nan fastest maturation metrics successful each of nan cardinal areas that matter successful nan plus guidance sector. I couldn't beryllium much pleased pinch our execution.

Next page. So why tin we station this type of growth? Simple, our investments are outperforming successful nan astir important metric of all, integrated gross maturation astatine nan plus level. Our capacity continued to beryllium beardown this quarter. With maturation connected a year-over-year ground and monthly recurring gross crossed each of our nutrient groups. This is nan instauration for nan capacity of our franchise complete time, present integrated growth.

On nan correct side, you tin spot nan blimpish portfolio indebtedness metrics that we put successful spot complete a twelvemonth agone and person been capable to negociate efficaciously done a move macro environment. 42% loan-to-value, 74% of hedged indebtedness fixed pinch an mean afloat extended maturity of complete 7 years. This is blimpish guidance of nan superior structures astatine our portfolio companies. This was not accidental. This is simply a scheme we put successful spot astatine nan opening of COVID. We led aggregate securitizations astatine nan extremity of 2020, 2021 and 2022, mounting up our portfolio companies to maximize their liquidity by having fixed indebtedness pinch only 1 covenant, which is simply a DSCR ratio and nary rate traps. This is simply a playbook that worked incredibly good for america successful 2001 and 2002 and worked very good for america successful 2008 and 2009, and it's moving again.

When you present awesome capacity connected a portfolio institution level that manifests itself successful bully outcomes for our investors, this is really nan bosom of nan business.

Let's talk astir a fewer of those outcomes connected nan adjacent slide, please. The logic we're truthful focused connected portfolio capacity is because ultimately, beardown capacity drives awesome outcomes for our investors. When we opportunity our investors, we mean our LPs and of course, you, our nationalist shareholders astatine DigitalBridge. In 2022, contempt a rising complaint situation and inflation, we delivered, generating realizations astatine charismatic valuations good successful excess of our carrying values and generating carried liking for you, our shareholders. These are deals we closed successful nan 3rd and 4th fourth of 2022 not 2 years agone astatine nan highest erstwhile multiples were greater than mid-20s and debased 30s

First Vantage Towers. We cornerstone their IPO 1.5 years agone and generated a beardown return for our investors that was different a challenging market, reinforcing nan durability of integer infrastructure and Towers successful particular. Second, Wildstone, which is our starring integer media level that we sold to Antin. Again, beardown returns connected a nett ground astatine a important premium to wherever we maintained it connected our books. And past lastly -- and we proceed to bring successful caller investors arsenic that fundraising play stays unfastened to nan extremity of Q2 this year. That's a woody wherever we generated 2x MOIC for our equilibrium expanse successful conscionable 3 years, and moreover amended return for nan original investors.

Again, a important premium to wherever we carried nan plus connected our equilibrium sheet. This is what it's each about, investing successful awesome platforms, best-in-class guidance teams, driving maturation and capacity and past yet delivering awesome returns for our investors and shareholders. That's been my way grounds complete nan past 25 years. And now arsenic we exit early investments, you, our nationalist investors get to stock successful nan profits pinch maine and our team, create alignment pinch you, our nationalist shareholders. So that's nan communicative successful 2022. Significant advancement connected our firm strategy, beating our superior statement targets and continued capacity astatine nan portfolio level, each of which sets nan array for a very successful 2023 and beyond.

So pinch that, I'll move it complete to Jacky to locomotion done nan financials. Jacky?

Jacky Wu

Thank you, Marc, and bully morning, everyone. As a reminder, successful summation to nan merchandise of our 4th fourth earnings, we revenge a supplemental financial study this morning, which is disposable wrong nan Shareholders conception of our website. .

Starting pinch our 4th fourth results connected Page 14, nan institution saw beardown year-over-year growth, driven by fundraising successful our Investment Management business and realized capacity fees. For nan 4th fourth reported full consolidated revenues were $301 million, which represents an 18% summation from nan aforesaid play past year. GAAP nett nonaccomplishment attributable to communal stockholders was $19 cardinal aliases $0.12 per share. Total institution adjusted EBITDA was $28 million, which grew by 32% from $21 cardinal successful nan aforesaid play past year.

Total institution distributable net was a nonaccomplishment of $11 cardinal aliases $0.07 per share.

It is important to statement that our results this 4th were negatively impacted by a $53 cardinal noncash valuation allowance. Although we expect to person nan expertise to usage nan worth of our NOLs nether GAAP standards we person conservatively applied this reserve now. And arsenic nan institution continues to make maturation successful its earnings, it will beryllium reversed successful early periods. Digital AUM was $53 cardinal successful nan 4th quarter, which grew by 17% from $45 cardinal successful nan aforesaid play past year, including nan precocious closed transaction of AMP Capital, Switch and GD Towers. We person reached complete $65 cardinal AUM connected a pro forma basis.

Turning to Page 15. Our 4th fourth highlights person trended positively pinch interest revenues, fee-related net and distributable net each up year-over-year erstwhile excluding nan antecedently mentioned noncash valuation allowance. The institution raised $22 cardinal successful fee-earning equity nether management, up 22% year-over-year, and we raised $4.8 cardinal of fee-paying superior during nan twelvemonth contempt a very difficult fundraising environment. Furthermore, nan institution continues to prioritize nan optimization of its superior structure. Our existent firm liquidity sits astatine astir $680 cardinal aft closing nan AMP Capital acquisition.

During 2022, we executed a stock repurchase programme and initiated a regular quarterly dividend, which we judge we person nan capacity to summation successful nan future. We will touch connected this successful much item later successful nan presentation.

Moving to Page 16. The institution grew recurring Investment Management gross and earnings, driven by fee-earning equity nether management. The company's stock of revenues and fee-related net accrued by 49% and 33% year-over-year, respectively, led by our accrued ownership of nan business pursuing nan acquisition of Wafra's number stake.

Moving to Page 17. Consolidated integer operating adjusted EBITDA was $99 million, which is simply a 17% summation from nan aforesaid play past year, driven by continued information halfway acquisitions and integrated leasing growth. The company's stock of integer operating revenues was down 14% year-over-year, while adjusted EBITDA was down 15%. These reductions are attributed to nan antecedently announced DataBank recapitalization which reduced nan company's ownership from 22% astatine nan opening of nan twelvemonth to 11% successful nan 4th quarter.

Turning to Page 18. We person seen continued maturation successful our high-margin Investment Management business. Since nan 4th fourth of 2021, our annualized interest revenues accrued from $120 cardinal to $233 cardinal and fee-related net accrued from $73 cardinal to $120 cardinal connected a pro forma basis. This includes nan precocious closed acquisition of AMP Capital's equity infrastructure platform, which was subsequently rebranded arsenic InfraBridge. Looking astatine nan correct broadside of nan page, our tally complaint interest revenues were $250 million. This provides an denotation of expected revenues and is calculated simply by multiplying committed BUM astatine nan extremity of nan twelvemonth by nan mean yearly interest rates.

Moving to Slide 19. I will now outline our net guidance for 2023 and 2025. We are updating our 2023 and 2025 targets for nan Investment Management business, and are providing suggestive guidance connected tally complaint earnings. We've laid retired 2 scenarios for 2023 based connected our intent to opportunistically recapitalize and deconsolidate nan operating segments, which erstwhile accomplished, frees up further superior to allocate towards caller earnings. This will displacement nan net floor plan of nan business towards asset-light, higher margin, little superior strength and a higher DE arsenic a result. We are expecting an exceptionally beardown fundraising twelvemonth successful 2023, driven by our successor flagship money product. Note that this is intended to correspond FRE astatine nan extremity of 2023, excluding catch-up fees and onetime items. Nominal net for 2023 will beryllium impacted by timing of fundraising.

We person additionally introduced guidance connected distributable net now that we person begun generating affirmative recurring earnings, and we'll statesman to attraction heavy connected nan bottommost statement going forward. Our beardown liquidity position and near-term firepower allows for opportunistic deployment, which we expect to lend importantly to tally complaint net successful summation to nan imaginable to make realized gains and carried liking earned from further successful exits.

Turning to Page 20. We wanted to look backmost astatine wherever we've been to item what has been accomplished to day and really that continues to thrust into nan future. Back successful 2018 and 2019, nan company's bequest assets generated net connected paper, but were overlevered and unsustainable. Over nan adjacent mates of years, we've shed complete 99% of nan bequest assets and moved nan institution from this debased separator and unsustainable business exemplary into a high-growth, high-margin, asset-light business pinch promising maturation prospects led by our fundraising engine. We proceed to spot meaningful upside to our halfway exemplary arsenic presented, led by further M&A and superior building optimization, pinch compounding uplift from continued finance alongside our LPs successful our funds, which target charismatic IRRs and resulting carried liking arsenic we statesman harvesting exits for illustration we successfully completed successful nan 3rd and 4th fourth of 2022.

No awesome translator is easy, and we'd for illustration to convey our shareholders for nan continued support and patience. And I'm pleased to opportunity that arsenic we proceed to execute this plan, DigitalBridge will beryllium premier for semipermanent shareholder success.

Turning to Page 21. The institution has built important equilibrium expanse liquidity, driven by proceeds from some nan DataBank recapitalization and return of storage investments owed to successful fundraising. Following our caller acquisition of nan InfraBridge level for $316 million, we are powerfully positioned pinch astir $700 cardinal of equilibrium expanse liquidity. Additionally, we person further imaginable sources of capital, including BrightSpire shares and remaining bequest plus sales, which tin beryllium utilized to offset medium-term obligations specified arsenic nan upcoming 2023 convertible statement repayment, which we expect to discontinue pinch readily disposable rate connected hand. Throughout 2023, we expect to stay good positioned to deploy superior for accretive uses.

Moving to Page 22. We person continued to make important advancement improving our indebtedness floor plan pinch our debt-to-adjusted EBITDA ratio improving from 11x down to 10x. This simplification is driven by little finance level indebtedness successful our operating conception arsenic a consequence of nan DataBank recapitalization and transportation storage investments into our recently raised halfway and in installments funds, resulting successful a $206 cardinal full simplification successful debt. We will salary down nan convertible notes owed successful April and target nan reconsolidation of nan operating segment, leaving only nan $300 cardinal of securitization arsenic nan company's remaining debt.

As we proceed to execute upon our plan, we expect to execute leverage ratios successful nan debased azygous digits. In summary, and arsenic I've continued to reiterate, our institution is beardown and healthy, driven by our sector-leading asset-light Investment Management business that generates high-quality, predictable and long-dated interest earnings. We expect to person a beardown commencement to 2023 arsenic our near-term fundraising and our maturation prospects stay robust.

And pinch that, I will move it backmost to Marc. Thank you.

Marc Ganzi

Thanks, Jacky. I want to decorativeness retired by laying my apical priorities for 2023. This is simply a conception we've done successful erstwhile Q4 net calls wherever I'd for illustration to laic retired nan 3 things that matter. This year, it's beautiful simple. Number one, we've sewage a money raise. We will proceed to shape superior astir caller and existing platforms. Two, arsenic our committedness to each of you, simplification. Getting nan operating conception deconsolidated while we support beardown liquidity.

Lastly, we request to proceed to execute astatine our portfolio companies pinch beardown plus guidance done nan rhythm and driving free rate travel maturation by industry-leading integrated gross maturation astatine nan plus level. This is simply a seminal to our occurrence going forward. It's a tried and tested look for maine arsenic a CEO and who has presided complete nan bully and nan bad times. The cardinal successful a marketplace fraught pinch crosswinds is you person to person a elemental and focused conflict plan. We person that present astatine DigitalBridge successful 2023 and beyond.

Next page, please. So let's commencement pinch money raising. This is really going to beryllium our #1 KPI successful 2023. This is nan metric that I cognize each of you will person your eyes connected quarter-to-quarter. Our scheme is to raise much than $8-plus cardinal of nett caller superior crossed our platforms. That will break down fundamentally into 3 buckets of opportunity.

First, we're going to motorboat our adjacent DigitalBridge Partner Series; two, we're going to decorativeness raising astir our halfway and in installments strategies that we started past year, wherever we person fantabulous momentum heading into nan first portion of this year; Three, we're going to proceed to turn our co-invest program, supporting nan acquisition of caller platforms arsenic good arsenic providing further superior to existing portfolio companies to substance their growth. Our co-invest programme complete nan past 4 years has been really 1 of nan standout attributes of why organization investors want to partner pinch us. That incremental FEEUM is going to thrust a important magnitude of high-margin reoccurring interest revenues, arsenic you tin spot connected nan right, pinch small to nary incremental G&A.

Now this is mostly nan truth that we invested heavy successful 2022 successful systems and successful people. We invested successful those group to seed and turn caller products, and nan fruits of that labour will salary disconnected successful 2023 pinch high-margin FRE. We're assured that we tin execute these targets because we proceed to spot very beardown liking successful nan integer infrastructure plus people by nan world's starring organization investors, that people are attracted to its operation of persistent growth, durability and nan nickname that DigitalBridge is nan starring investor successful nan sector.

Next page, please. So adjacent up, my privilege continues to beryllium advancing nan simplification of our firm profile, which will yet consequence successful nan deconsolidation of our operating conception into IM. There are 3 drivers present that I want you each to salary attraction to. Number one, importantly reduced complexity. This is nan number 1 point we talk to nationalist investors astir today.

The financial consolidation of businesses that we own, a mixed 12% of, successful my view, distorts existent DigitalBridge shareholder revenues, rate flows and superior structure, which leads to unnecessary complexity that is simply a tangible costs load and makes it challenging for investors to understand what is DigitalBridge own? We're benignant of getting sick proceeding that question. So we're going to make things simple.

The 2nd cardinal present is nan acceleration of a pure-play firm profile. What will yet look arsenic a lean, profitable plus head serving secular maturation markets, devoid of nan complexity of assembling and past pulling isolated 2 business models, which makes it reliable connected you, our investors.

Lastly, we expect this inaugural to unlock incremental superior that we tin redeploy successful bid to substance nan maturation successful nan shape of incremental integer M&A and our optimization of our superior structure. We're fundamentally monetizing assets astatine charismatic multiples and past redeploying them astatine little levels into businesses that compound complete time. We've demonstrated this already pinch nan acquisition of AMP, taking complete nan afloat instrumentality of our IM business from Wafra, and we will do that again successful 2023.

Next slide, please. So what does this look for illustration erstwhile we finalize our plus head profile? Well, here's conscionable a speedy illustration of what we look for illustration coming connected nan left, pinch 2 segments. 2/3 of our net coming from Investment Management and 1/3 coming from nan operating segment, which is predominantly Vantage SDC and DataBank.

So migrating to nan correct broadside of nan page, going forward, our net will beryllium driven by reoccurring revenues and net from our Investment Management platform, supplemented by income from retained main investments, which is nan residual magnitude that we'll support successful Vantage SDC and DataBank successful principle arsenic nan GP of those continuation vehicles.

Strategically, 1 of nan astir charismatic aspects of this modulation is, we are much intimately aligning our superior pinch that of our constricted partners. The expertise to align nan equilibrium expanse successful backstage LPs pinch our nationalist investors is wherever we're going, and we deliberation that symmetry bodes good for each parties, and it creates nan correct outcomes for each investors.

Next slide, please. So astatine nan end, this is what that simpler floor plan looks for illustration connected a financial basis. As you tin see, nan modulation will uncover a fast-growing plus manager, levered to nan secular maturation markets successful integer infrastructure. The unthinkable 42% 3-year CAGR connected FRE is maturation that we're anticipating complete nan adjacent fewer years. This manifests itself successful very beardown financial performance.

We person a elemental algorithm pinch caller FEEUM generating gross astatine an mean complaint of 90 bps and very charismatic incremental margins. As I stated before, my attraction spell guardant is to turn our profitability. This is an charismatic high-growth floor plan that's elemental to understand and appreciate.

Next page, please. So finally, I want to reside wherever we're going to put nan money to activity and what our priorities are going forward, truthful there's nary confusion. As you tin see, complete nan past fewer years, we've allocated superior to a operation of uses. I deliberation we arsenic a guidance squad person demonstrated we thin to beryllium very pragmatic astir these choices. One of our biggest allocations has been almost $400 cardinal successful GP commitments alongside of our LPs. Today, we structurally allocate astir 2% to 3% of nan equity successful each of our money vehicles. And successful nan agelong run, particularly arsenic we finalize our superior building optimization, we expect to allocate much superior to this high-return usage case. We're eating our ain cooking, and we for illustration to spot our superior compound astatine charismatic rates, and we deliberation you'll work together pinch that.

The 2nd superior usage is accretive integer M&A, arsenic I stated a fewer pages ago. Between nan Wafra transaction AMP, past year, we deployed complete $500 cardinal successful rate to proceed to build our IM level and summation our vulnerability successful this high-quality net stream. We'll proceed to beryllium progressive present pinch a attraction connected strategical and complementary platforms wherever we tin accelerate growth.

As I highlighted successful my past quarterly net call, we've besides been looking astatine nan conception of entering nan backstage equity abstraction successful integer infrastructure, which is simply a abstraction that we do not inhabit today. We deliberation location are bully opportunities present and a fertile ground, and we'll proceed to build that organically and besides spell retired and look astatine accretive M&A.

The 3rd portion is superior building optimization. Look, here, we've been opportunistic. We bought backmost preferreds past year, which we expect to proceed to beryllium a usage of free rate travel going forward. In nan adjacent term, arsenic I promised, we'll salary down our $200 cardinal of 2023 converts erstwhile they travel owed connected clip successful April pinch rate connected hand.

Finally, repurchases and dividends. We took advantage of what we spot arsenic an charismatic value for our banal past quarter, buying backmost $55 million, and we besides retained a $0.01 dividend past twelvemonth successful position of making judge that we stayed committed to our promises. We intend to proceed to support what we telephone a debased but turn dividend policy, and we're going to proceed to execute stock repurchases opportunistically complete time, measuring it against nan different 3 categories of wherever we tin put superior to work. The cardinal present is, arsenic we look astatine our superior allocation model is simply a attraction successful nan adjacent word connected successfully executing imaginative integer M&A nan measurement we person past year, and proceed to rationalize and optimize our superior building arsenic we did past year. Over time, we'll person much free rate travel to put alongside our LPs and compound shareholder capital.

Next page, please. So successful conclusion today, let's bring it backmost to wherever we're going and wherever we want to return you, our investors successful 2023. What's my scorecard for nan twelvemonth ahead? Pretty simple. Here's my checklist. One, we're going to money raise. As astir of you know, I'm laser-focused correct now connected forming $8 cardinal successful caller nett superior astir our DigitalBridge Partner halfway and in installments strategy arsenic good arsenic co-invest.

Two, simplification. We're going to decorativeness our translator pinch nan deconsolidation of nan operating conception and proceed to delever our business. And lastly, portfolio performance. Continuing to put successful high-quality integer businesses, driving free rate travel done integrated maturation and investing successful nan champion guidance teams successful nan integer infrastructure ecosystem.

Taking a measurement back, I judge that these are really our power variables for 2023. These are nan things that we tin spell retired and execute. And my belief is, arsenic we execute connected these 3 initiatives, bully things will hap astatine nan company. And astir importantly, bully things will hap for you, our shareholders. With that, I want to convey you for listening to our net position this morning.

Now I'd for illustration to move nan telephone backmost complete to our usability to initiate our Q&A session. Operator?

Question-and-Answer Session

Operator

[Operator Instructions]. Our first mobility is from nan statement of Ric Prentiss pinch Raymond James.

Brent Penter

This is Brent connected for Ric this morning. First question, you talked astir M&A successful nan IM segment. With AMP woody done, what caller aquatics lanes mightiness a target fresh into to grow your offering? You mentioned backstage equity. What other should we beryllium reasoning astir there?

Marc Ganzi

It's Marc, and acknowledgment for tuning in. So I deliberation we've been beautiful prescriptive astir that. I've made it very clear that integer backstage equity is simply a precocious privilege of us. There are galore firms that are successful mediate market, integer backstage equity that you're investing successful integer infrastructure and TMT and besides package and SaaS models.

We deliberation there's a mates of really bully teams retired location that we person a batch of respect for. We're retired talking to each of them conscionable for illustration we would beryllium successful our accepted finance guidance space. We talked to each nan guidance teams. And truthful we've been spending nan past twelvemonth getting to cognize a mates of those guidance teams. And we deliberation there's a bully opportunity to adhd that portion of our IM business done an acquisition. And that's why we've been harvesting nan rate truthful that we tin beryllium opportunistic.

What we've besides said is, I deliberation I've besides been beautiful prescriptive astir nan value of renewable power and nan expertise to powerfulness integer infrastructure pinch renewable energy. We've seen that lawsuit study, afloat unit astatine Switch, wherever we're outperforming our leasing projections, our afloat twelvemonth of leasing successful '22 exceeded our 3-year guidance, and customers want to beryllium successful information centers and they want to beryllium astir integer infrastructure that has renewable energy. So we're spending a batch of clip astir reasoning astir really we tin turn nan InfraBridge level and proceed to adhd spot successful nan renewable space. So those are really my 2 areas of attraction coming is really backstage equity -- integer backstage equity mediate marketplace and renewable energy. We're very focused, sewage a number of targets, and obviously, we person a guideline successful position of what we deliberation we're going to do successful M&A. We did good past twelvemonth pinch nan Wafra and AMP deals. And I deliberation this guidance team, those that travel maine cognize that we've sewage a beautiful rich | history successful doing M&A. So our assurance and condemnation level astir that is beautiful strong.

Brent Penter

Got it. And past connected nan DE guidance, what benignant of carried liking is assumed successful that guide? And is that benignant of nan quality betwixt nan precocious extremity and little extremity of nan guide?

Marc Ganzi

Yes, I'll defer it to Jacky connected that.

Jacky Wu

Great. The biggest quality successful nan guideline really successful nan scope is driven by nan fundraising range, but we person not assumed carried liking successful our guidance. So that would beryllium incremental upside to our numbers.

Brent Penter

Okay. And past Marc, you'll person a batch of costs to deploy if you deed this guide. And past you besides person immoderate portfolio codes that mightiness beryllium nearing clip to exit. So could you conscionable springiness america an update connected really you're viewing M&A multiples correct now globally, what looks attractive? What looks little attractive?

Marc Ganzi

Yes. So look, it's benignant of nan communicative of 2 cities, right? I deliberation nan high-quality integer infrastructure assets are still hanging successful and are holding their value. And I deliberation what you're seeing is -- and erstwhile I opportunity high-quality, businesses that person contracted rate flows greater than 5, 10, 15 years that are much than 80% exposed to investment-grade counterparties and businesses that person securitized debt, semipermanent superior structures that are portable.

We proved that successful nan Wildstone transaction. We proved that retired successful nan DataBank transaction. We had portable superior structures, and we had high-quality assets pinch long-durated rate flows. I deliberation what you're besides seeing is nan communicative of nan different broadside of nan city, which I benignant of telegraphed astir 2, 3 years ago, which is you person a bid of generalists infra costs that went in, bought a batch of fibre that was facing user that did not person semipermanent contracted rate flows, which we were very clear we were staying distant from.

So nan past 2 to 3 years, we've been focusing connected quality, nan Deutsche Telekom transaction, Switch, Landmark. These are businesses that person precocious vulnerability to investment-grade counterparties and semipermanent leases, and that's wherever we deployed capital. We went near and we played consequence off. The remainder of nan world went correct and paid precocious multiples for residential fibre and different businesses that don't person semipermanent rate flows.

So we've ever been very observant to enactment distant from businesses that person consumer-facing graphics and are built connected dream dividends. We don't put connected dream dividends. It's conscionable not what we do astatine DigitalBridge. And truthful it comes arsenic nary astonishment successful nan 3rd 4th and nan 4th fourth that some of our funds, DigitalBridge Partners 1 and 2 moved up successful worth while we saw different counterparties and backstage equity and different forms of investing successful nan space, either astatine par aliases move down. And I deliberation that was mostly because of our disciplined finance framework, which we proceed to execute today.

So nan setup arsenic we spell forward, is really interesting. We deliberation location are bully opportunities to play successful benignant of 3 types of finance opportunities arsenic we shape each this caller capital. One, we do deliberation location is dislocation. And erstwhile there's dislocation, you tin invest, you tin return advantage of a re-mark to market. And we're surely seeing that successful nan fiber-to-the-home space, and we deliberation there's going to beryllium bully opportunities to not play successful that assemblage successful nan mid-20s, but play successful that assemblage backmost down again successful nan debased teens, if not moreover azygous digits. So -- we're looking very cautiously astatine immoderate of those businesses because we deliberation they're yet reflecting their value. And possibly that's nan correct clip to participate fibre to nan location aliases resi fiber.

We'll proceed to look astatine Towers connected a world basis. Towers person ever held up very beardown successful these benignant of turbulent macro environments on. Got a number of building deals we're moving on. We still for illustration information centers. We for illustration backstage cloud. We for illustration what we're doing astatine Switch. We surely for illustration what we're doing successful nationalist unreality aliases Vantage, and we person galore information halfway opportunities to execute successful this money focusing connected backstage and nationalist unreality narratives.

Another area that I deliberation that we're seeing a really bully opportunity is successful web infrastructure that is based connected SaaS models. So software-defined networking businesses that were trading successful nan mid-30s are now trading backmost down successful nan debased teens again. That's an absorbing opportunity arsenic we deliberation astir what makes networks tick successful nan future. And then, of course, we'll besides look astatine integer media assets. We had a awesome acquisition pinch nan Wildstone acquisition. The Outdoor Media business is coming nether immoderate unit correct now for illustration different sectors. So it's a operation of worth shopping high-quality shopping. And past nan past of nan 3 legs to nan stool wherever we'll put is what we telephone backing guidance teams and caller ideas. It's thing that we've done clip and clip again. We've stood up caller businesses, caller ideas, and we're not acrophobic to do that pinch nan correct guidance team. It has to beryllium benignant of best-in-class. So a batch to do correct now. We've sewage a very large pipeline of caller ideas that we're prosecuting for our caller DigitalBridge Partners strategy. And we're beautiful optimistic astir nan things that we're doing correct now.

Brent Penter

And past 1 for me. When should we expect nan 2023 Investor Day? .

Marc Ganzi

I'll time off that to Severin White. Severin, do you want to reply that question? .

Severin White

Yes. I deliberation we're looking perchance astatine June. So much to travel connected that.

Operator

Our adjacent mobility is from nan statement of Eric Luebchow pinch Wells Fargo.

Eric Luebchow

Just wanted to get an update connected nan deconsolidation of DataBank and Vantage SDC. Obviously, you've had a successful recap frankincense acold of DataBank. Could you benignant of punctual america what you person near to do there? And possibly do you deliberation you tin proceed to execute the, I think, 30x aggregate that you did connected nan first stages of nan recap? And past separately, pinch Vantage SDC, what type of appetite do you spot retired location coming from investors for much stabilized information halfway assets for illustration Vantage SDC versus much of a improvement level for illustration you person successful nan money business? .

Marc Ganzi

Yes. Thanks, Eric. Those are awesome questions. Let's commencement pinch DataBank. I deliberation that's benignant of nan easier one. First of all, since we announced nan transaction past June pinch Swiss Life and EDF, nan header aggregate was adjacent to 30x. What I'm pleased to show you is that aggregate coming is not 30 times. The business, arsenic you saw from Digital Operating results, which were very beardown year-over-year.

DataBank has massively outperformed its business plan. In fact, had its champion 4th of leasing and institution history successful nan 4th quarter. And today, nan subscription play connected that fund, remember, that's a continuation fund, Eric. That stays unfastened until June 30. So investors tin subscribe each nan measurement to June 30 astatine nan first stock price. So investors that person been diligent and person continued to look astatine nan company, person nan chance to put and intelligibly now person nan chance to put successful nan little to mid-20s type multiple.

So nan business has managed to return that introduction aggregate down from 30 to 28, now person to 25 to 24x. We've had spectacular execution astatine DataBank, I'm pleased to say. So what we did, Eric, is we had a number of different initiatives successful formation pinch Switch and Deutsche Telekom. So we really turned disconnected nan DataBank fundraising successful 4th quarter. We're reigniting that fundraising starting March 1, wherever we'll return subscriptions again, and we'll return subscriptions each nan measurement until nan extremity of June 30. We do person astir about 22 investors successful nan information room doing nan work. We consciousness really bully astir our expertise to raise different $600 cardinal there. That gets america that $600 million, if I'm correct, Jacky, that takes america from astir 12% down to 6% aliases 7%. You'll person to springiness backmost maine up connected nan numbers present connected nan money raising.

Jacky Wu

Yes sure, nary worries. We're astatine astir 11% correct now, and that will return america a small nether 8%.

Marc Ganzi

So really precocious conviction, Eric, astir DataBank, mostly because nan business is conscionable performing astatine an unthinkable pace. So we're beautiful optimistic that we'll get that done present successful short order. Vantage SDC, aforesaid story. It's a business that continues to execute against its plan. Really difficult to find astatine that introduction value and astatine that headdress rate, nan value of nan rate flows of home U.S. adjacent to 100% finance grade, 15-year leases pinch investment-grade unreality players.

And arsenic you tin imagine, different parts of nan world, possibly not U.S. pensions, but surely Asian pensions, Australian pensions, Middle Eastern sovereign wealthiness costs betwixt Asia and nan Middle East and Australia, we're uncovering that there's a batch of appetite for high-quality yielding assets. And again, nan introduction value would beryllium nan aforesaid arsenic it was erstwhile we initiated that continuation fund, arsenic you know, Vantage SDC sits successful a continuation money already. And truthful we've sewage very beardown momentum there. Part of my squad is successful Australia this week, fundraising, and immoderate of my squad adjacent week is successful Asia and immoderate of my teams successful nan Middle East. So we're perpetually fundraising, Eric. It's really candidly our strength. And that's why we consciousness really assured astir nan 2023 guidance that we've laid out.

And erstwhile again, that guidance is $8-plus cardinal of caller fundraising conscionable to beryllium wholly clear pinch everyone. We person an anticipation that we're going to hit that target. So that's nan update connected 2 of those. And by nan way, if we waste a liking successful Vantage SDC again, telephone it, if we waste what Jacky was benignant of telegraphing we mightiness waste half that stake, which would return america from 12% to astir 6%. Do you want to springiness america nan mathematics connected that?

Jacky Wu

Yes, sure. So we're a small complete 13% ownership of Vantage SDC now, and nether GAAP considerations, we would get to beneath 9.5% to deconsolidate our position. Obviously, we'll beryllium opportunistic pinch immoderate benignant of recapitalization there. .

Eric Luebchow

Got you. That's helpful. And conscionable 1 much for me. Marc, there's been immoderate statement successful nan fixed income community, truthful possibly you could thief clear nan aerial astir nan outlook for Zayo wrong your portfolio conscionable based connected wherever nan bonds are traded earlier this year. So possibly you tin conscionable springiness america an update connected nan rate travel and maturation outlook and nan capacity of that reasonably ample portfolio asset, that would beryllium helpful. .

Marc Ganzi

Yes, sure. We're surely nether nary responsibility to talk astir that asset, but I really for illustration you, Eric. But anyway, we're forecasting astir 5.5% to 6.8% integrated nett maturation this twelvemonth astatine Zayo. We had a very, very beardown 4th quarter, strongest gross bookings successful nan company's history successful 2022 and nan strongest 4th of nett installs successful nan company's history successful Q4.

We person spent nan past 2 years rebooting nan guidance team. Candidly, redoing nan back-office systems, which needed a batch of activity successful repair. We put much CapEx into nan beingness plant, conscionable renovating definite routes and building redundancy and spot complete $120 cardinal invested successful nan past 2 years that was astatine our election, it was discretionary CapEx to make judge nan web is strong. And past we've sewage a best-in-class income squad led by Andrés Irlando.

So we've made each nan correct moves. We're starting to spot nan results. And we're very assured successful that company. The routes that Zayo has and nan customers it has are beautiful indelible, really difficult to replicate what Zayo has connected a nationwide basis. And truthful we cognize successful time, nan web wins and we cognize nan value of nan rate flows and nan value of nan customers win. I deliberation nan business had a group of headwinds. We knew that erstwhile we underwrote nan deal. We had a conflict scheme to hole it, and that's what I've been focused connected for nan past amended portion of 3 quarters since nan 2nd 4th of past year. It's 1 of nan Boards that I personally beryllium connected and investors tin spell to slumber astatine nighttime knowing that I'm very progressive successful that business time to time pinch Steve Smith, and I rather bask it, and I for illustration nan guidance team, and I cognize wherever we're going, and it's headed successful nan absolute correct guidance and nan financial capacity will show that this year. So we person beardown condemnation successful nan bonds.

Operator

The adjacent mobility is from nan statement of Jon Atkin pinch RBC Capital Markets. .

Jonathan Atkin

So conscionable 2 questions connected superior formation. Can you talk a small spot astir really your discussions pinch investors has changed conscionable fixed what's going connected successful benignant of nan macro system and financing costs and conscionable wide superior markets conditions? And are you expecting to get mostly benignant of repetition investors aliases folks that are caller to nan family aliases caller to Digital? Just trying to get a consciousness of really you get to that target and really nan discussions possibly this twelvemonth mightiness beryllium different from what you've had successful anterior cycles? And past connected nan simplification of nan superior structure. I deliberation you benignant of alluded to this earlier, but possibly you could conscionable to repeat, what are nan procedural milestones to support successful mind that mightiness power nan clip statement astir deconsolidation?

Marc Ganzi

Let maine return nan easier one, which is deconsolidation. I deliberation we conscionable laid that out. We've sewage teams successful spot correct now that are talking to investors connected some assets. I deliberation DataBank benignant of comes first. Vantage SDC comes second. We've committed to deconsolidating some of those assets this year. I've fixed you a June 30 clip statement connected nan DataBank fundraising. That's erstwhile nan subscription play ends successful that continuation fund. And we've sewage 22 logos successful location successful nan information room doing nan work. $600 cardinal is nan target.

Verbal commitments correct now are almost quadruple that, conscionable to springiness you a consciousness of our condemnation level astir nan DataBank process. The Vantage SDC process waste down location conscionable started. And there, it's a combination, arsenic I said, sovereign wealthiness funds, pension funds, peculiarly Japanese, Korean and Australian pension funds, astir about 14 logos person been invited to look astatine that. And what's besides absorbing correct now, if you travel fundraising, Jonathan, you'll cognize that location are virtually hundreds of billions of dollars sitting connected nan sidelines successful secondary funds. So folks that do secondaries for illustration Partners Group, Blackstone and Ardian, who are rather master astatine that are besides looking astatine nan opportunity. It's a really high-quality group of assets.

And what I've ever recovered successful my statement of work, Jonathan, is erstwhile there's hundreds of billions of dollars sitting connected nan sidelines chasing very fewer deals that are of precocious quality, usually you win. So we've sewage secondary folks looking astatine it arsenic well, not astatine a discount to beryllium clear. And our condemnation level astir conscionable nan value of nan Vantage assets is rather strong. So I can't springiness you a circumstantial clip line. We haven't put a clip statement connected that process yet. But again, we person guided that we will get some of these assets deconsolidated. And look, astatine nan extremity of nan day, group request to understand nan information of nan deconsolidation. I deliberation we've been proceeding from investors that they want america to simplify nan business and by deconsolidating and moving nan 2 operating assets to IM is going to beryllium met pinch a batch of support.

I'm not doing it because investors are telling america we request to do it. I'm doing it because I cognize we person to delever our business. And I deliberation immoderate of nan comments that Jacky made astir leverage earlier coming are perfectly seminal to what we're doing, maintaining precocious liquidity and getting our target leverage sub-4x arsenic accelerated arsenic we can. And by having debased leverage and precocious liquidity, that's really you play a marketplace for illustration this. That worked for maine backmost successful 2002 and 2003, and that worked for america successful 2009 and 2010. It's a playbook that works. So we want to beryllium known arsenic nan integer infrastructure investor pinch debased leverage, a batch of liquidity and firepower to spell play offense, which we perfectly 100% intend to do.

Let's move gears to your first question, fundraising and what's going connected there. We had astir 80 investors, Jonathan, successful our 2nd fund, DigitalBridge Partners II. As we motorboat our caller DigitalBridge Partners Strategy, we've already been retired talking to those investors, our Fund II investors complete nan past 120 days. I'm pleased to opportunity retired of those 79 investors, not 1 of those investors had said nary to our adjacent strategy. That's beautiful stunning. Now I don't expect we'll get 100% renewal connected those investors, but we are anticipating astir an 80% renewal complaint connected that $8.3 cardinal of capital, but besides accepting that nan denominator effect will make checks astir 20% to 30% smaller. So wherever does that lead us? If you tally that calculus astatine a 25% smaller cheque and an 80% return rate, you still person immoderate fundraising to do. So we've been doing that. We've been retired for nan past 120 days, we're successful speech pinch 200 caller logos. That's not a typo, 200 caller investors that we person outreach to that person verbally indicated they person liking of astir $30 billion.

Keep successful mind, we've sewage 17 salespeople globally. Kevin Smithen and Leslie Golden are nan champion successful nan business. We money raised 24/7. We person very blase back-office devices that alteration america to foretell what investors are doing? Where are they successful nan process? What nan probability that they get done diligence? What's nan probability they get to IC? And what's nan probability they get to yes?

So we put that each into nan supercomputer, and we get a beautiful bully result for fundraising this year. Now a batch tin happen. We judge that nan situation is incredibly turbulent, it's choppy, investors person choices. But we besides cognize that investors are not stepping distant from integer infrastructure, Jonathan. They're not stepping distant from renewable energy, and they're not stepping distant from credit. So renewables, integer infrastructure and in installments are nan strategies that are working. That is wherever investors are putting superior to work. We had successful fundraising successful January. We've had successful fundraising successful February. We're evidently not astatine liberty to study those results until nan adjacent quarterly earnings. But again, I want to beryllium clear pinch everyone connected nan telephone today, we person very beardown condemnation astir what we're doing successful fundraising. And we've sewage nan information and nan speech and nan income squad to support that. So again, I deliberation if you're taking thing distant from this telephone is you person personification who has a batch of condemnation successful our fundraising now based connected nan various discussions we person going on. Does that help, Jonathan?

Jonathan Atkin

Yes, it does.

Operator

Our adjacent mobility is from nan statement of Jade Rahmani pinch KBW.

Jade Rahmani

A mobility astir fundraising. Does integer infrastructure autumn wrong existent property aliases infrastructure and does that nickname make immoderate quality successful position of nan outlook? .

Marc Ganzi

It's infrastructure, right? I mean you spell backmost to DigitalBridge Partners Strategy 1 and Strategy 2, I'd opportunity strategy 1, Jade, 25% of nan superior was coming from existent property buckets. You pivot to Strategy 2, $8.3 billion, astir 10% of that superior came from existent property allocators. And arsenic we look guardant and deliberation astir what we're doing pinch nan caller strategy, I deliberation it's beautiful overmuch each infra astatine this point. I don't deliberation existent property investors are looking astatine our bid of money products arsenic existent estate. I deliberation it's -- nan conversations we have, Jade are pinch nan caput of infrastructure, nan CIOs of existent assets, I mean, our connectivity pinch investors now is beautiful strong. And I deliberation what we recovered is that our location for our superior is infrastructure, unless, of course, we're retired raising money for credit, we're retired raising money for our task maturation strategy aliases liquid securities products. Those are different -- those are evidently different conversations. But successful our halfway DigitalBridge Partners flagship strategy, it's existent assets and underneath that, it's infra. .

Jade Rahmani

So does that create an opportunity to broaden nan attraction to wide infrastructure, location could beryllium synergies and fundraising pinch respect to each nan LPs you're talking to? Or do you deliberation that's much of a consequence to dilute your focus?

Marc Ganzi

No, I deliberation -- look, we evidently are very skilled astatine fundraising. We've almost tripled nan size of our fundraising team. I mentioned connected nan call, we did put a batch successful SG&A past twelvemonth because we're building a maturation engine, Jade to get to $150 cardinal of assets nether management. I'm guiding to $275 cardinal to $290 cardinal of FRE successful 2025. And nan measurement we get location is by fundraising. And nan measurement we get location is building standard successful our in installments product, building standard successful our halfway product. Certainly, InfraBridge is simply a large portion of our maturation strategy arsenic well. We for illustration nan Digital positive strategy. We for illustration what we're doing there. Certainly, for illustration nan squad we person successful spot location successful position of integer logistics and renewable energy. There's a batch of room for america to turn there.

We picked up 5 world-class fundraisers from InfraBridge, bringing our full squad to 17 group globally, and they've sewage a bunch of logos that we didn't have, and we've sewage a bunch of logos they didn't have. So nan synergies successful nan InfraBridge woody are yet to beryllium wholly evident to nan street, Jade. But I tin show you, we're afloat integrated time 1, Jacky Wu and Ben Jenkins and Liam did a awesome occupation integrating that squad into our operations. So nan time we closed, everybody was connected nan aforesaid page for fundraising plus guidance and backmost agency and accounting. And truthful we're hitting nan crushed moving connected InfraBridge. It took a small longer than we would person liked to person closed nan transaction, but it really conscionable gave Jacky much clip to merge nan backmost agency broadside and it gave Liam and Ben much clip to merge nan Investment Management team.

So clearly, beardown synergies successful fundraising now, a overmuch bigger team. A batch of liking successful what we're doing, not conscionable successful DigitalBridge Partners successful our flagship strategy, but besides immoderate of nan different co-investment vehicles and different strategies that we person going connected correct now. We're -- we deliberation we're successful nan correct place. We've sewage nan correct speech going and now it's conscionable clip to adjacent immoderate capital, which I deliberation we will, conscionable albeit astatine somewhat smaller cheque sizes this year.

Jade Rahmani

And conscionable nan past mobility connected nan wide environment. Does rationalization that's playing retired successful nan tech assemblage much broadly, create immoderate flow-through impacts to nan underlying businesses. Will that slow nan maturation complaint and person immoderate effect connected LP appetite to put successful this space?

Marc Ganzi

So look, what we person is nan results from nan 4th quarter, which we shared from you today. Organic maturation successful 2022 is astatine grounds levels crossed fiber, towers, mini cells and information centers. Certain information halfway verticals are increasing faster than others. I deliberation I highlighted this successful my PTC speech successful Hawaii. We spot backstage unreality being massively connected nan rise. And certainly, renewable powered backstage unreality is connected nan emergence because of conscionable cybersecurity attacks, group wanting that Tier 5 information that Switch has. And certainly, there's been nary abatement and leasing advantage. I mean it's a existent out-leased Equinix and nan outleased Digital Realty past twelvemonth connected nan nationalist unreality side.

So we've sewage nan correct CEOs. We've sewage nan correct guidance teams. And certainly, they've sewage entree to capital. We did a very bully occupation securitizing astir of our portfolio companies, arsenic I highlighted successful our net deck. By having only 1 covenant Jade, which is conscionable a DSCR ratio and nary rate traps astatine those securitizations, our companies are minting free rate flow. And truthful what we're doing is harvesting rate down astatine those 27 integer infrastructure companies. We're reinvesting backmost into nan businesses, not pushing dividends retired to LPs. We deliberation this is nan correct infinitesimal to reinvest successful caller towers, caller information centers. We're seeing higher rents. Data halfway rents are up 12% successful nan nationalist cloud. They're up 6% globally. And truthful we're seeing higher rents, and we're seeing amended returns connected a azygous tenant basis.

So we person afloat funded business plans for 2023. We do spot CapEx being trimmed by nan mobile carriers. We do spot CapEx being trimmed successful endeavor spend, and we do spot CapEx being trimmed successful cloud. But each that being said, each of our business plans are pointed to very beardown precocious single-digit, debased double-digit integrated maturation adjacent year. So this is nan narrative, Jade, that played retired successful '09 and 2010 for us. We had beardown liquidity. We lowered our leverage. We had fixed indebtedness successful nan shape of securitized indebtedness and it enabled america to play offense. We're moving that aforesaid playbook, not conscionable astatine 1 institution for illustration we did astatine Global Tower Partners, but we're moving that playbook astatine 27 companies. So you're getting a unit multiplier astatine DigitalBridge, you're getting to world scale, arsenic Severin said, 5 continents we're operating today. It's a genuinely singular business, and we're going to spot nan benefits of having scale, having beardown liquidity and having awesome customer relationships. We expect a very beardown 2023.

Operator

Our adjacent mobility is from nan statement of Michael Elias pinch Cowen & Company.

Michael Elias

Two, if I may. First, conscionable arsenic we deliberation astir nan incremental superior that you're looking to deploy, I cognize you talked astir nan verticals that you're looking to put in. But possibly if you could conscionable double click connected nan geographies that are of focus. I judge you flagged Asia earlier connected nan call, conscionable reasoning astir really you're prioritizing deploying superior crossed regions? And past my 2nd mobility for you would beryllium 1 of nan cardinal themes astatine slightest for nan information halfway abstraction has been a emergence successful pricing, Marc, which you conscionable talked to, driven successful par by proviso concatenation and past besides tighter occupancy. Any colour connected really you spot pricing evolving crossed nan verticals of com infra and if you deliberation that could beryllium a further tailwind for your businesses this year?

Marc Ganzi

As always, Michael, bully question. It's very thoughtful. Let's effort to return nan 2nd 1 first because it's apical of mind. Our business plans successful 2023 are not predicated connected higher pricing to customers. Let maine repetition that. We are not predicating our maturation results connected conscionable making our customers salary more. That's a bad playbook. Had I tally that playbook successful '02 and '03 and '09 and '10, erstwhile nan markets move and get good, customers don't travel backmost to you. So we thin to beryllium very pragmatic astir really we price. We don't want to gouge. We surely don't want to beryllium personification who shapes nan value and past nan customer gets angry, and erstwhile their superior building recovers and they've sewage much liquidity and their CapEx spending accelerates, we get near behind.

I've watched different publicly-traded integer infrastructure companies do that. and they'll admit, they won't admit it today. But backmost then, they would person admitted, they suffered for it. So we've learned from that past, right? And you've sewage to ever look astatine nan past and look astatine these down cycles, and this is wherever you prime customers up. You don't measurement connected them. And I'm very clear astir this pinch each of our 27 CEOs. There's a correct measurement to behave. There's a correct measurement to dainty your customers. And there's a logic why we had unthinkable maturation successful nan dot-com clang and nan owe situation because we knew really to play those cycles. We're doing nan aforesaid point today. We're putting customers first. We're taking attraction of them and nan maturation rates will follow.

Yes, we person moved up pricing. I don't want you to locomotion distant from nan speech saying, we haven't moved Towers rents up. We haven't moved information halfway routes up. Fiber rents really person stayed beautiful fixed and mini compartment pricing has stayed beautiful static. But successful Towers and successful information centers and prime verticals and prime markets wherever we person a unsocial permitting position aliases we person a unsocial powerfulness position, Michael, we are pricing that abstraction accordingly arsenic 1 would expect. So I do spot bully maturation successful '23. It won't beryllium arsenic bully arsenic nan maturation was successful '22.

Looking astatine nan January leasing results from each nan portfolio companies, I'd opportunity we're connected plan, mostly a small spot somewhat up of plan, but you can't publication much, Michael, successful nan first quarter. I deliberation nan nosy speech we're going to person is complete nan summer, checking successful pinch america astatine nan benignant of half pole, right, halfway done nan race, wherever are we? I deliberation erstwhile we're retired astatine your convention successful Boulder aliases immoderate of nan different summertime conferences, it will beryllium absorbing to cheque successful past and fig retired wherever are we against plan? How is leasing? Where are rates? Where is CapEx spending? Those are each things that we're going to show beautiful closely. And nan bully news is I get to talk to you 4 times successful a twelvemonth for illustration this, and truthful I'm ever beautiful transparent pinch you, and I'll stock pinch you what I'm hearing. Does that make sense?

Michael Elias

Absolutely. Appreciate those comments. And past conscionable immoderate colour connected geographies wherever you're focused connected deploying nan capital.

Marc Ganzi

Yes, yes. So look, I mean, we're ever shifting a small bit, right? There was -- if you look astatine DigitalBridge Partners 1 and DigitalBridge Partners 2, DigitalBridge Partners 1, we put 20% of nan money successful nan LatAm. We put astir 40% to 45% successful Europe and astir 30% to 35% successful nan U.S. Then that shifted successful Fund II. We decided to spell -- we benignant of took consequence disconnected successful Europe, put astir 30% to 35% there. We moved up successful nan U.S. and Canada to adjacent to 42%, 43%. We did very small successful Latin America, astir 5%, past we did 20% successful Asia. So Asia was a large portion of our strategy successful DigitalBridge Partners 2.

I deliberation for this year, from an allocation perspective, arsenic I highlighted connected nan telephone today, I for illustration what we're seeing successful Asia. There's immoderate technicals location that we like. And truthful we're going to proceed connected nan aforesaid cadence successful Asia. We're seeing bully opportunities. We're seeing a batch of our customers are looking to waste infrastructure. And support successful mind, a batch of nan carriers sold their infrastructure, Michael, 15 years agone successful nan U.S. In Europe, they started trading 5, 6 years ago. And Asia is benignant of nan past large theatre wherever you're going to spot a batch of infrastructure to beryllium sold. So I deliberation that's maine telegraphing that a small bit. I'm still a small consequence disconnected connected Europe. I deliberation nan measurement we play Europe is done dislocation. I deliberation you've seen a mates of fiber-to-the-home bankruptcies successful nan past 2 to 3 weeks. We've been looking astir immoderate of those.

So successful Europe, we're going to beryllium a small much opportunistic. I don't deliberation we salary up for high-quality platforms successful Europe. I deliberation successful nan U.S., it's business arsenic usual. I deliberation we've been beautiful accordant crossed nan past 2 costs astir what we've done successful nan U.S. and we for illustration nan U.S. We for illustration nan technicals. It's our location market. We for illustration immoderate of nan things we're seeing successful Canada. I wouldn't springiness up connected investing successful Canada. And past I deliberation successful Latin America, arsenic they commencement to look from immoderate of nan recessions they had 5, 6 years ago, we do for illustration immoderate of those markets. But again, a very constricted magnitude of capital. I don't spot america going crazy successful LatAm. But I deliberation nan large winners complete nan adjacent 2 years for america will beryllium present successful our location marketplace and successful Asia are really nan 2 standout areas for geography, Michael.

Operator

Our adjacent mobility is from nan statement of Dan Day pinch B. Riley Securities.

Daniel Day

Thanks for each nan colour connected nan deconsolidation of DataBank and Vantage. I deliberation nan different portion of nan simplification pastry that we've spent little clip connected is immoderate of nan noncore assets you scheme to divest, for illustration nan BrightSpire shares, immoderate of nan different benignant of bequest Colony Capital worldly conscionable benignant of laying astir still. Any update connected nan clip statement for divestiture of those? Is that going to beryllium a 2023 event? And would that person immoderate effect connected nan DE guidance that you gave? .

Marc Ganzi

I deliberation we've been beautiful clear astir that arsenic good that this would beryllium nan twelvemonth that we'd vanished divesting of each nan noncore assets. That clip statement remains unchanged. That rate tin beryllium put to bully activity connected integer IM M&A, and that's what we intend to do, rotate retired of worldly that doesn't person a precocious IRR, precocious yield. So we'll attraction connected that. And past it besides gives america nan opportunity to put much superior into our caller costs because that's working. I mean that's intelligibly nan correct strategy for america is to proceed to put successful digital. So I deliberation what you'll spot is, by nan extremity of this year, an incredibly clean, low-levered, sector-focused plus head that's putting up incredibly beardown FRE numbers. And our extremity is, arsenic usual, is to hit our guidance. I deliberation that thing this guidance squad has agelong had a rich | history of doing is beating our guidance. So -- but look, connected BrightSpire, Jacky has been moving pinch that. And I'm sure, Jacky, immoderate incremental colour you want to springiness connected BrightSpire? .

Jacky Wu

Yes, sure. So we've ever said we'd beryllium responsible sellers, but Marc really said it. It's noncore and our attraction this twelvemonth is to beryllium opportunistic pinch trading -- to divesting those to nan grade it makes consciousness for our shareholders and nan value that we're going to get for it. But -- and past nan different bequest Colony assets, really nan main 1 is simply a seller's statement associated pinch wellness care, which we will proceed to activity pinch Highgate to monetize that are appropriate. And nan different investments are beautiful overmuch gone. So we're really near pinch conscionable those two. .

Daniel Day

Awesome. And past I admit nan colour connected nan communal banal repurchases successful nan 4th quarter. Just wondering if you could springiness an mean acquisition value connected those for 4Q, possibly really progressive you've been aft 4th extremity and if you person been progressive successful '23 truthful far, whether that's been nan common, nan preferred, nan operation and really overmuch is connected nan authorization arsenic of today? .

Jacky Wu

Yes, sure. It was fundamentally astatine astir $13, and we will proceed to activity pinch our Board to spot wherever it makes consciousness to beryllium much opportunistic pinch taking nan remainder of it from a stock buyback perspective. .

Daniel Day

Okay. So conscionable to beryllium -- you're not commenting connected immoderate repurchase activity aft 4th end. That's good if you are. I conscionable wanted to make sure. .

Jacky Wu

We will not remark connected that astatine this point, but if we do person an authorization, I'll person to do so.

Operator

Our adjacent mobility is from nan statement of Richard Choe pinch JPMorgan.

Yong Choe

I wanted to travel up connected nan imaginable investments successful Asia. Do you spot much opportunity pinch Towers, information centers aliases Fiber? And would it beryllium chiefly bearer income aliases investing successful companies that are reasoning astir building? Just wanted to get a small much colour there. .

Marc Ganzi

Yes. Thanks, Richard. Look, you wouldn't beryllium amazed to perceive this, but it's a small spot of everything, right? Some of these are bearer partnerships for illustration we person pinch Deutsche Telekom, for illustration we person pinch Liberty successful Europe. Some of these are consecutive acquisitions. Some of these are divested assets, perchance a bearer divesting of their long-haul suboceanic network. It could beryllium separator information center's we're moving pinch a circumstantial customer. It could beryllium -- it's a assortment of things. I don't want to get excessively circumstantial because it's evidently beautiful strategic. We for illustration to benignant of tally acheronian and silent. And past erstwhile we make our move we denote nan deal. But -- arsenic I said before, Richard, nan playground successful Asia is very fertile. It's fertile from a customer perspective, from a bearer perspective. It's highly fertile from a fundraising perspective. We're seeing unthinkable liking successful what we're doing because we did raise a batch of capital, Richard, successful Fund I and Fund II retired of Asia. And we're seeing a batch of liking successful what we do arsenic Asian investors, arsenic you know, Richard, thin to beryllium beautiful conservative. So they looked astatine our first strategy, they looked astatine our 2nd strategy. They mostly for illustration to put successful later-generation strategies.

So nan large benignant of '23 astonishment for america will beryllium nan fundraising successful Asia and we now person 3 full-time income group successful Asia, which we had -- virtually a twelvemonth ago, we had none. And they are 3 absolute rockstar fundraisers. So we went from having virtually not a beardown beingness successful that region to having a starring beingness successful that region from a fundraising perspective, and I'm beautiful excited. I've taken 2 trips Asia successful nan past 90 days. I'll return 2 much trips to Asia successful nan adjacent 120 days, and we're beautiful buoyant astir what we're seeing location from a pipeline perspective, from a fundraising perspective. Our Singapore agency has 17 full-time finance professionals now. So we're -- we consciousness for illustration we've sewage nan correct squad connected nan street, correct opportunity group and we've sewage nan correct superior information. And those are nan ingredients you request to beryllium successful.

Yong Choe

Great. And you've mentioned this successful nan bits and parts passim nan Q&A. But conscionable to circle back, I deliberation there's immoderate cognition that you paid a very premium aggregate for Switch. And it seems for illustration fixed really it's performed, possibly it's not astir arsenic precocious arsenic group assume. Any benignant of update location that you tin supply that you want to explain connected that? .

Marc Ganzi

Yes. Look, I gave a beautiful pointed reside successful Hawaii astir that, Richard, you should spell cheque that retired because it's beautiful detailed. But I'll springiness you nan highlights of that speech, which is we're 3 years up of leasing wherever we thought we'd be. That's benignant of each you sewage to know. We thought we were going to do 16 megawatts, we did 77 megawatts. And nan pipeline has quadrupled since we bought nan company. And we conscionable -- it's 1 of those stories, Richard, that is sometimes nan institution conscionable performs amended erstwhile it's backstage versus being public. They were constrained of capital, arsenic you know, being a nationalist company. The guidance squad had a reliable time. It's not a business you tin tally quarter-to-quarter. Just not built for nationalist marketplace cadence. And bringing it backstage allowed nan institution to make nan correct investments, nan correct semipermanent decisions and it's paid disconnected really good for us.

We conscionable had a Board gathering this week, and nan results are beautiful outstanding. We're successful this business for obscurity adjacent 30x anymore. Whoever is putting retired that narrative, it conscionable doesn't person nan correct information, and I'll time off it there. Business is performing well. Renewable power for nan awesome Fortune 100 endeavor companies for nan U.S. authorities and for unreality players, it's not a bully to have, it's array stakes. These guys want to beryllium successful information centers wherever there's 100% renewable energy.

And nan past point I would conscionable opportunity is Switch is successful places. We're nan replacement to markets that are now unopen down and person nary power. So -- for example, Grand Rapids has turned retired to beryllium a bully replacement to Northern Virginia. Reno is nan replacement to Silicon Valley. Austin, Texas is nan replacement to Dallas and Houston. And truthful we're successful really bully high-growth markets. We ain nan land. We power our existent estate. We're afloat permitted for nan adjacent 11 cardinal quadrate feet of information halfway space, and we person 1.5 gigawatts of unused power. So nan operation of having a batch of land, a batch of rentable quadrate feet and a batch of powerfulness and being unconstrained has put america successful a immense advantage successful immoderate of these markets. And truthful that's why nan business is crushing it today. And truthful we're going to proceed to spot outperformance successful that asset. I'm really excited astir what we're doing astatine Switch. And it's a blueprint for epically what we do successful backstage unreality successful Europe and what we do successful Asia. So we're not stopping there. We deliberation there's -- for illustration we did pinch Vantage. We took Vantage to Europe, we took Vantage to Asia. The marketplace for backstage Tier 5 renewable powerfulness information centers is simply a really absorbing product. And truthful we're looking astatine that into nan future. Where do we return Switch next.

Operator

Our adjacent mobility is from nan statement of Matt Niknam pinch Deutsche Bank.

Matthew Niknam

But conscionable 2 speedy ones, if I could. First, connected InfraBridge, if you could conscionable talk astir immoderate of nan incremental infrastructure opportunities successful nan mid-market, nan woody opens up for DigitalBridge and possibly immoderate of nan near-term synergy it supply to your IM business. And past conscionable secondly, possibly for Jacky, nan targets you put retired connote firm overhead goes from $50 cardinal this twelvemonth to astir $40 cardinal successful 2025 astatine a clip erstwhile we're evidently seeing meaningful inflationary headwinds and nan business is scaling. So I'm conscionable wondering if you could talk astir your assurance level and really shrinking those firm overhead costs.

Marc Ganzi

Well, look, I deliberation Jacky and I are successful nan firm overhead discussions together. The CEO and nan CFO person put retired a guideline that we're going to return $10 cardinal of costs retired of nan business this year. We've already taken steps to do that. You'll spot it connected a tally complaint effect by nan 4th quarter, but it's conscionable taking prudent measures successful a assortment of directions. We're trimming immoderate of our finance team. We're trimming immoderate of nan backmost agency team. Jacky has done a awesome job. We're getting really bully synergies now successful position of nan financial reporting connected nan money accounting side. We had immoderate plagiarism of efforts location erstwhile we did nan merger a mates of years ago. And I springiness in installments to Jacky and his team, they're pulling a batch of costs retired of nan backmost broadside of nan business, and we deliberation we tin proceed to propulsion much costs retired of nan business.

Bonuses are down year-over-year. We didn't get it done. So you'll spot compensation is going to beryllium down year-over-year, and it starts pinch nan CEO taking a overmuch little prize than I took nan twelvemonth previous, and it's conscionable mounting a reside pinch investors that, that's nan correct point to do. This guidance squad is each astir doing correct by shareholders. Ever since Jacky and I took connected this task of putting these 2 companies together and coming up pinch nan caller narrative, we're dormant superior astir taking costs retired of nan business, and you're going to spot that this twelvemonth from us. A very beardown committedness to bring backmost nan net imaginable of nan business.

I talked astir profitability. We will beryllium very profitable this year. As Jacky will show you astir catch-up billings and different money products, taking nan costs retired of nan business, nan caller fundraising comes connected astatine an incredibly precocious margin. We're not adding group correct now. That's nan important point you request to know. We added each nan group past year. And truthful that's why you're seeing a batch of assurance successful nan Matt -- successful nan separator summation and surely looking guardant to talking to you adjacent Monday astatine your convention and going moreover deeper connected this.

But I don't deliberation group are afloat grasping what we've done here. You look astatine nan $22.2 cardinal of FEEUM that we generated past twelvemonth and you look astatine nan benignant of midpoint of our guideline of $38 cardinal of FEEUM adjacent year, we're talking astir increasing FEEUM by 78% year-over-year. I don't cognize of different plus head connected nan satellite that is telling investors, they're going to put up 78% maturation adjacent year, we are. Can't opportunity that beardown enough. Like this squad is dormant superior astir wherever we're going. We put nan correct pieces successful spot successful '22. And erstwhile we're deconsolidated, we'll person leverage successful nan aforesaid area arsenic different replacement plus managers, and we're going to support taking leverage down. So we're doing each nan correct things, and nan results are going to travel this year. And I'm happy to spell arsenic -- Jacky and I are happy to talk guidance and we're happy to spell arsenic heavy arsenic you wish connected immoderate of those numbers.

Matt, I mislaid your first mobility because it was absorbed successful nan SG&A cuts and nan taking $10 cardinal of costs retired of nan firm overhead. What was nan first question?

Matthew Niknam

No worries. It was conscionable astir InfraBridge. Just wondering, incremental infrastructure opportunities successful nan mid-market, possibly immoderate of nan near-term synergy nan woody provides.

Marc Ganzi

Well, look, nan contiguous synergies is successful mediate marketplace infra, they person 3 group doing middle-market integer infra. And truthful they've sewage 6 investments, 60% of their latest money is digital. And truthful erstwhile you've sewage businesses for illustration Expedia and Everstream, and they spell from a chair of having 30 to 130 group to thief them. As you tin imagine, that squad is beautiful excited to beryllium pinch our squad because we're leaning successful and we're helping connected their investments, and there's a ton of worth adhd to beryllium delivered there. So contiguous synergies astir nan finance team. We talked astir fundraising. They had an fantabulous fundraising team. I can't opportunity capable astir immoderate of nan fundraisers that we picked up. Alice and Brian Lee successful Asia.

I mean, we picked up immoderate really world-class fundraisers, I had nan chance a mates of weeks agone to beryllium successful Europe for 12 days, fundraising, saw 50 LPs of which half were InfraBridge LPs, half were DigitalBridge LPs, and it's conscionable awesome to person a bigger income team. And beryllium capable to spell and touch much clients, which is what we're doing correct now. So we're seeing already nan payback connected nan fundraising side. Jacky, do you want to talk astir what you're doing successful nan backmost office, Jacky, pinch InfraBridge and wherever you spot immoderate of nan costs synergies there. You're good up of your plan, and I deliberation you've sewage a really targeted scheme connected really you get synergies there. And past we tin travel backmost and talk astir different investable plus people successful InfraBridge. Go ahead, Jacky.

Jacky Wu

Yes, sure. So I deliberation erstwhile we first underwrote nan deal, we had FRE overlays successful nan debased to mid-20s millions, and we're now looking person towards 30, and that's principally because of nan truth that we've been capable to plug and play and person those costs really plug correct into our backmost agency and our scalable processes. Market -- I first took complete astatine Colony now DigitalBridge, we had aggregate ERP systems. It's now consolidated into one, obviously. If you look astatine nan website moreover conscionable a mates of years back, everybody successful their neighbour was an MD and now we've efficaciously prudent down that apical echelon beautiful sizably. So it's conscionable moving smarter and trying to beryllium overmuch much businesslike pinch some processes and systems, and besides streamlining, titling and meritocracy and equity. So those things person allowed america to not miss a hit successful position of magnitude of activity that needs to spell on, but certainly, it allows for america to beryllium overmuch much businesslike pinch doing it.

Operator

Thank you. As location are nary further questions astatine this time, I would for illustration to move nan level backmost complete to Marc Ganzi for closing comments. .

Marc Ganzi

Well, convey you, and convey you each of you for your clip today. I deliberation this is simply a pivotal infinitesimal successful nan company's history, and we're astatine an inflection point. And I deliberation that inflection constituent is advantage of our shareholders. We've laid retired guidance for adjacent year. It is nan guidance level that Jacky and I are very assured that we're going to deed adjacent year. But astir importantly, it's a guidance level that we judge we tin exceed. We prioritize taking down leverage. We do not want to consequence nan company's equilibrium sheet. There's an easy enticement successful these markets to return connected much leverage, do much M&A, and for nan liking of growth. That's not what this guidance squad is about.

We person nan building blocks successful spot to spell retired and execute nan measurement you want america to execute, which is integrated growth, which is wherever we achieved nan highest returns. Our $8-plus cardinal of superior statement this twelvemonth for a institution of our size and nan CAGR maturation that we're going to present is industry-leading. We judge that $8 cardinal positive of superior will travel connected astatine incredibly precocious margins. And successful summation to that, we judge we will besides proceed to recognize awesome investments, which we person not underwritten successful our guidance, arsenic Jacky told you earlier.

The 70-plus percent maturation successful FEEUM will beryllium industry-leading, and we person ultimate condemnation astir our expertise to deed connected those numbers. $22.2 cardinal to $38 cardinal is simply a realistic target for us. And my extremity is to transcend and hit that arsenic we've done pinch each metric we've put retired successful beforehand of nan street. So look, astatine nan extremity of nan day, it's astir execution. I deliberation you've heard from america coming successful a very granular manner what we're doing retired location successful position of superior formation, really we're moving our portfolio of companies pinch prudence and astatine nan aforesaid time, increasing from spot and playing discourtesy pinch cardinal customers.

And past past but not least, preserving liquidity and deleveraging nan company. These are nan things that matter. You want to beryllium pinch a wartime CEO that's been location and done that before, and pinch a trusted CFO that's been location and done it before. Jacky and I are very assured successful what we're doing. Stay pinch us, we won't disappoint, we're going to person a bully year, we're going to spell retired and execute. We admit your time, and we admit your patience and your support successful DigitalBridge. Have a awesome weekend. And arsenic always, Severin, myself and Jacky are disposable to each of you astatine immoderate clip if you want to person a speech pinch us. Take care, and we'll beryllium successful touch soon. Bye-bye.

Operator

Thank you. This concludes today's teleconference. You whitethorn disconnect your lines astatine this time. Thank you for your participation.