Brookfield Asset Management Q2 2025 slides: fee-related earnings up 16%, raises $22B

Introduction & Market Context

Brookfield Asset Management (NYSE:BAM) has released its second quarter 2025 supplemental information, showcasing continued strong performance across its diverse business segments. The alternative asset manager reported significant growth in key financial metrics while expanding its capital base and executing strategic partnerships.

BAM shares have shown strong momentum, closing at $62.93 on August 6, 2025, representing a 2.26% gain on the day. The stock has traded between $38.32 and $64.10 over the past 52 weeks, reflecting investor confidence in the company’s growth trajectory and business model.

Quarterly Performance Highlights

Brookfield reported fee-related earnings (FRE) of $676 million for Q2 2025, representing a 16% year-over-year increase. Distributable earnings reached $613 million, up 12% compared to the same period last year. The company maintained a strong FRE margin of 56% at its share, a one percentage point improvement from Q2 2024.

As shown in the following chart tracking fee-related earnings and distributable earnings over the past five quarters, BAM has demonstrated consistent growth in these key metrics:

Total (EPA:TTEF) fee revenues for the quarter reached $1.285 billion, a 12% increase year-over-year. This growth was driven by higher base management fees across all business segments, particularly in credit and infrastructure.

The company’s fee-bearing capital grew to $563 billion, representing a 10% increase over the last twelve months. Notably, 88% of this capital is classified as long-term, permanent, or perpetual, providing BAM with a stable revenue base.

The composition of Brookfield’s fee-bearing capital is illustrated in the following chart:

Capital Activity

Brookfield continued its strong fundraising momentum, raising $22 billion in the second quarter and $97 billion over the last twelve months. The credit segment was particularly active, accounting for $16 billion of capital raised in Q2 2025.

The following chart breaks down capital raised by strategy over recent quarters:

The company deployed $14 billion of capital in Q2 2025 and $58 billion over the last twelve months across its various platforms. Credit investments accounted for the largest portion at $8.7 billion in the quarter, followed by real estate at $2.0 billion, private equity at $1.8 billion, and renewable power and transition at $1.1 billion.

Brookfield’s capital deployment strategy across segments is visualized in this chart:

The company also highlighted its strong liquidity profile, with $128 billion in uncalled fund commitments and corporate liquidity of $1.5 billion. BAM maintains strong credit ratings of A/A- from Fitch and S&P, respectively, with approximately $4 billion in debt capacity.

Business Segment Analysis

Brookfield’s business is diversified across five main segments: Renewable Power & Transition, Infrastructure, Private Equity, Real Estate, and Credit.

The Credit segment, BAM’s largest by fee-bearing capital at $254 billion, generated $399 million in fee revenues during Q2 2025. The composition of the credit portfolio is illustrated in the following chart:

The Infrastructure segment, with $100 billion in fee-bearing capital, produced $315 million in fee revenues for the quarter. Renewable Power & Transition ($64 billion in fee-bearing capital) generated $197 million, while Real Estate ($102 billion) contributed $261 million and Private Equity ($43 billion) added $113 million.

Brookfield Wealth Solutions (BWS) has emerged as a significant growth area for the company, with over $125 billion in assets under management following the Just Group acquisition. The segment’s fee-bearing capital composition is shown below:

Strategic Initiatives & Partnerships

During the quarter, Brookfield announced several strategic partnerships that position the company for future growth. These include a $10 billion agreement with Sweden to support next-generation AI infrastructure build-out and a 3,000 MW agreement with Google (NASDAQ:GOOGL) to deliver hydroelectric capacity across the United States.

The company’s comprehensive overview highlights its global scale and diversification:

Forward-Looking Statements

Brookfield Asset Management enters the second half of 2025 with strong momentum across its business segments. The company’s $128 billion in uncalled fund commitments, including $54 billion not currently earning fees, represents significant potential for future revenue growth. Once deployed, this capital is expected to generate approximately $540 million in additional annual revenue.

Building on its Q1 2025 performance, where fee-related earnings reached $698 million and distributable earnings hit $654 million, BAM’s Q2 results demonstrate continued execution of its growth strategy despite a slight sequential decrease in these metrics.

The company’s focus on expanding its Brookfield Wealth Solutions platform and repositioning its liquid credit portfolio toward private credit and long-term private funds is expected to generate incremental fees consistent with standard market rates.

With its diversified business model, strong capital raising capabilities, and strategic partnerships, Brookfield Asset Management appears well-positioned to continue its growth trajectory through the remainder of 2025 and beyond.

Full presentation:

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