– Pure play alternative asset manager focused exclusively on the digital infrastructure space – cell towers, data centers, small cells, and fiber.
– A transformed Colony Capital (CLNY) with nearly all legacy assets sold off.
– A significant step up in earnings is expected in 2023 following the launch of several new funds.
– The market is now pricing in zero success in fundraising and zero credit towards carried interest.
– The market sentiment is likely to rapidly reverse upon the announcement of successful new fund launches.
– The CEO and other insiders started buying stock recently.
– Infrastructure has been a key growth engine for alternative asset managers – $KKR, $BX, etc., are all raising significant capital for infrastructure investments and $DBRG is the fastest-growing alternative asset manager out there.
DBRG valuation: Valuing fee-related earnings at 22x, results in a SOTP valuation of $32/share with an additional $5/share from carried interest.
Exp. gain: +200% to $40/share.
Full DBRG write-up (free guest account required):