Brookfield Asset Management (BAM) Q2 2024 earnings summary

Executive summary

• Achieved approximately $1 trillion in assets under management, with $68 billion raised in Q2 and fee-bearing capital at $514 billion, up 17% year-over-year.

• Growth driven by expansion in credit, private equity, insurance, and renewables, supported by new fund launches, strategic acquisitions, and partnerships.

• Robust fundraising across institutional, private wealth, and insurance channels, with a growing presence in the Middle East and Asia.

• Major acquisitions and partnerships included Neoen, GEMS Education, nVent Electric's Electrothermal Solutions, and a landmark Microsoft PPA.

Financial highlights

• Q2 fee revenues reached $1.15 billion, up 6% year-over-year; last twelve months totaled $4.5 billion, up 5%.

• Fee-related earnings (FRE) were $583 million for the quarter and $2.3 billion for the last twelve months, up 6% and 4% respectively.

• Distributed earnings (DE) were $548 million for the quarter and $2.2 billion for the last twelve months, up 4% and 3% respectively.

• Annualized FRE and DE at quarter-end were $2.5 billion and $2.4 billion, up 11% and 12% year-over-year.

• Margins improved to 55%, up 1% from the prior quarter; consolidated margin at 53%.

Outlook and guidance

• Management expects robust deployment volumes and continued strong fundraising, with additional closes for flagship and new funds anticipated.

• Projecting another $1 trillion in AUM growth over the next four years, primarily organic.

• Margin improvement expected to continue, targeting 60% FRE margin as AEL mandate and other growth drivers run-rate through results.

• Anticipates increased monetization activity and attractive returns, especially in renewables and private equity.

• Expects incremental fee generation as insurance capital is reallocated from liquid credit to long-term private funds.