Bridge Investment Group Announces Key Developments in Its $75 Million “Bridge to Opportunity” Program
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Insights
Bridge Investment Group Holdings Inc.'s initiative, 'Bridge to Opportunity', represents a strategic alignment of corporate social responsibility with long-term business objectives. The commitment of $75 million over 10 years into the Bridge Community Enhancement Initiative (BCEI) is a substantial investment into the social fabric of the communities they operate within. By directing a portion of management fees to fund social programs, Bridge is essentially creating a self-sustaining model where the success of their Workforce & Affordable Housing (WFAH) funds is directly tied to the well-being of the community.
This approach can potentially lead to a virtuous cycle: as the community prospers, the demand for housing may increase, thereby potentially enhancing the value of Bridge's assets and funds. Such initiatives can also serve as a hedge against regulatory risks and foster goodwill, which can be beneficial during zoning and development processes. However, the long-term nature of these commitments and the indirect route to financial returns may not align with the short-term performance metrics often preferred by certain investors.
The partnership with Entryway is a strategic move that potentially addresses two critical issues: labor shortages in property management and the societal challenge of at-risk individuals facing homelessness. By providing employment and housing opportunities, Bridge is creating a pipeline of workers who have a vested interest in the success of the properties they manage. This could lead to lower turnover rates, improved property management efficiency and potentially better resident satisfaction, which can translate into higher occupancy rates and stable revenue streams.
Moreover, the involvement in Opportunity Zone developments is another strategic decision that may appeal to socially conscious investors and can attract additional capital. The $4.2 billion raised and $3.8 billion invested in Opportunity Zone developments since 2019 indicate a significant scale of operations, which can lead to substantial tax benefits and potentially higher yields for investors. However, the effectiveness of these developments in delivering the promised community benefits and financial returns should be monitored closely.
Bridge's 'Bridge to Opportunity' initiative can be viewed through the lens of impact investing, where the company is seeking to generate social and environmental impact alongside a financial return. The focus on education, healthy communities and financial wellness aligns with several United Nations Sustainable Development Goals (SDGs), such as quality education (SDG 4), good health and well-being (SDG 3) and reduced inequalities (SDG 10).
The engagement in partnerships with nonprofits and community organizations demonstrates an integrated approach to addressing systemic issues. The success of such impact initiatives is often measured by both the direct outcomes, such as the number of individuals helped and the indirect outcomes, such as the overall improvement in community well-being. For investors, the challenge lies in quantifying these social returns and weighing them against traditional financial metrics. Transparency in reporting and clear metrics for measuring social impact will be crucial for assessing the true value of these initiatives.
Adds partnership with Entryway to open the door to employment and housing opportunities for at-risk individuals and families
Bridge to Opportunity focuses on three key pillars: Bridge to Education, Bridge to Healthy Communities and Bridging the Gap to Financial Wellness. These initiatives include:
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Expanded philanthropic commitments totaling approximately
$75 million $70 million - New Partnership with Entryway, a nonprofit organization providing apartment owners and operators with a pipeline of pre-screened, trained, and ready-to-work individuals at risk or facing situational homelessness for entry-level positions. As a program partner, Bridge will provide subsidized, affordable housing and residence-based, onsite property management employment opportunities in its Multifamily properties, helping participants on their path to being self-sufficient.
- Project Access Partnership: In 2023, BCEI funded 42 Community Centers in Bridge’s WFAH communities in partnership with Project Access, to provide leading on-site health, education, and employment services to residents.
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Driving Impact with Developments: Since 2019, Bridge has catalyzed community revitalization through its Opportunity Zone development activities. Bridge fosters community partnerships, delivers needed housing stock (including affordable housing), improves surrounding infrastructure and environments, and creates needed retail and commercial space for businesses to flourish. As of 4Q 2023, Bridge has raised
$4.2 billion $3.8 billion -
A program providing on-the-job training at a living wage with health benefits to at-risk and recently homeless youth in
Sacramento, California ; -
A partnership with New Yorkers for Children to provide educational support to foster-care students and back-to-school packages in
Queens, New York ; and -
A partnership in
Atlanta creating a model for new development that can positively impact the broader community through next-generation jobs and skills training, health and wellness support, and access to a service-based hub to build community.
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A program providing on-the-job training at a living wage with health benefits to at-risk and recently homeless youth in
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PREA Foundation/Urban Alliance Property Management Pathway: Bridge is a Founding Governor Donor of the PREA Foundation and Property Management Pathway program with Urban Alliance, providing a multi-year
$550,000
“Bridge to Opportunity combines our unique position as an investment manager and vertically integrated real estate operator to help improve the communities in which we operate,” said Jonathan Slager, Bridge’s Chief Executive Officer. Mr. Slager continued, “Additionally, as a leading Opportunity Zone and Workforce and Affordable Housing investor, we have delivered much needed housing to residents who represent the ‘Missing Middle’ low-to-medium income populations, while providing residents with life-enhancing social and community services. Our new partnership with Entryway furthers our efforts. We remain committed to creating tangible solutions that help everyday Americans while driving value for our communities and investors.”
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About Bridge
Bridge is a leading alternative investment manager, diversified across specialized asset classes, with approximately
Forward-Looking Statements
This press release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which relate to future events or our future performance or financial condition. All statements other than statements of historical facts may be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “outlook,” “could,” “believes,” “expects,” “potential,” “opportunity,” “continues,” “may,” “will,” “should,” “over time,” “seeks,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” “foresees” or negative versions of those words, other comparable words, or other statements that do not relate to historical or factual matters, including statements regarding commitments for future funding of initiatives. Accordingly, we caution you that any such forward-looking statements are based on our beliefs, assumptions and expectations as of the date made, taking into account all information available to us at that time. These statements are not guarantees of future performance, conditions or results and involve a number of risks and uncertainties that are difficult to predict and beyond our control. Actual results may differ materially from those express or implied in the forward-looking statements as a result of a number of factors, including but not limited to those risks described from time to time in our filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made. Bridge undertakes no duty to publicly update any forward-looking statements made herein or otherwise, whether as a result of new information, future developments or otherwise, except as required by law.
Nothing in this press release constitutes an offer to sell or solicitation of an offer to buy any securities of the Company or any investment fund managed by the Company or its affiliates.
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Shareholder Relations:
Bonni Rosen
Bridge Investment Group Holdings Inc.
shareholderrelations@bridgeig.com
Media:
Charlotte Morse
Bridge Investment Group Holdings Inc.
(877) 866-4540
charlotte.morse@bridgeig.com
Source: Bridge Investment Group Holdings Inc.
FAQ
What is the new partnership announced by Bridge Investment Group Holdings Inc. (BRDG)?
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How much has Bridge committed to philanthropic initiatives over the next 10 years?
What is the focus of the Bridge Community Enhancement Initiative (BCEI)?
How much has Bridge invested in Opportunity Zone developments?
