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Introduction & Market Context
Brookfield Asset Management (NYSE:BAM) released its first quarter 2025 earnings presentation on May 6, showcasing record financial results and continued growth across its diverse business segments. The alternative asset manager reported that its assets under management have now exceeded $1 trillion, marking a significant milestone for the company as it continues to expand its global footprint across renewable power, infrastructure, private equity, real estate, and credit investments.
The company’s shares were trading at $54.13, up 0.37% following the release of the presentation, reflecting investor confidence in Brookfield’s strong performance and growth trajectory.
Quarterly Performance Highlights
Brookfield reported record fee-related earnings (FRE) of $698 million for Q1 2025, representing a substantial 26% increase compared to the same period last year. Distributable earnings also showed impressive growth, reaching $654 million, up 20% year-over-year. The company’s fee revenues climbed to $1.3 billion, a 17% increase from the prior year quarter.
As shown in the following comprehensive financial performance overview, Brookfield maintained strong margins while growing its earnings base:
The company’s FRE margin at its share improved to 57% in the quarter, up from 54% in the prior year period, demonstrating Brookfield’s ability to scale efficiently while growing its business. This margin expansion reflects the company’s disciplined approach to cost management and the inherent operating leverage in its business model.
Brookfield’s stable and growing fee revenue base across its diverse business segments has been a key driver of its earnings growth, as illustrated in the following chart:
Capital Raising and Deployment
Brookfield’s growth continues to be fueled by strong capital raising and deployment activities. In the first quarter of 2025, the company raised $25 billion of new capital and deployed $16 billion across its various business segments. Over the last twelve months, Brookfield has raised an impressive $142 billion and deployed $53 billion, demonstrating its ability to attract investor capital and identify attractive investment opportunities globally.
The company’s fee-bearing capital reached $549 billion, representing a 20% increase over the last twelve months. This growth was driven by strong inflows of $135 billion, partially offset by outflows and distributions.
The following chart illustrates the composition of Brookfield’s fee-bearing capital, highlighting that 87% is comprised of long-term, permanent, or perpetual capital, providing the company with a stable and predictable revenue base:
Brookfield’s fundraising activities were particularly strong in the credit segment, which raised $14.2 billion in Q1 2025, followed by the real estate segment with $7.1 billion. The company’s ability to raise capital across diverse asset classes demonstrates the breadth of its platform and investor confidence in its investment capabilities.
Business Segment Performance
Brookfield’s business is diversified across five main segments: Renewable Power & Transition, Infrastructure, Private Equity, Real Estate, and Credit. Each segment contributed to the company’s overall growth in the quarter.
The Credit segment, which includes Oaktree Capital Management, remained the largest contributor to fee-bearing capital at $252 billion, followed by Real Estate at $100 billion, and Infrastructure at $96 billion. The following overview highlights the scale and composition of Brookfield’s credit business:
The Renewable Power & Transition segment, which focuses on clean energy and energy transition investments, manages $125 billion in assets and $58 billion in fee-bearing capital. This segment is strategically positioned to capitalize on the global shift toward net-zero emissions and increased energy security concerns.
Brookfield’s Infrastructure business, with $214 billion in assets under management and $96 billion in fee-bearing capital, continues to benefit from global trends including deglobalization, decarbonization, and digitalization. The segment generated $307 million in fee revenues during Q1 2025, contributing significantly to the company’s overall results.
Strategic Initiatives
During the first quarter, Brookfield executed several strategic initiatives to enhance its platform and liquidity position. The company increased its ownership stake in Oaktree Capital Management by an additional 1.5%, bringing its total ownership to 74%. This move strengthens Brookfield’s position in the credit markets and reflects its confidence in Oaktree’s business.
Brookfield also announced an agreement to acquire a majority stake in Angel Oak, expanding its partner manager network. Additionally, the company completed its inaugural debt offering of $750 million, enhancing its corporate liquidity position.
The company’s liquidity profile remains strong, with $1.4 billion in corporate liquidity and $119 billion in uncalled fund commitments. Of these commitments, $52 billion are not currently earning fees but represent approximately $520 million in potential additional revenue once deployed.
Forward Outlook
Brookfield Asset Management is well-positioned for continued growth, with significant uncalled capital available for deployment and a diverse range of investment strategies across multiple asset classes. The company’s focus on high-quality assets that generate stable, inflation-protected cash flows aligns well with investor demands in the current market environment.
The company’s strategic positioning at the intersection of major global trends—including energy transition, infrastructure modernization, and the growth of private credit—provides multiple avenues for expansion. With 87% of its fee-bearing capital in long-term, permanent, or perpetual vehicles, Brookfield has built a stable foundation for sustainable growth.
As highlighted in the company’s Q3 2024 earnings call, Brookfield aims to double its business to $1 trillion in fee-bearing capital over a five-year period. The Q1 2025 results demonstrate continued progress toward this ambitious goal, with fee-bearing capital growing from $539 billion in Q3 2024 to $549 billion in Q1 2025.
Brookfield’s record earnings, robust capital raising, and strategic acquisitions in Q1 2025 reflect the company’s strong execution and position it well for continued success in the alternative asset management industry.
Full presentation:
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