Brookfield Asset Management (BAM) Q2 2024 earnings summary

Executive summary

• Assets under management reached approximately $1 trillion, with fee-bearing capital at $514 billion, up 17% year-over-year.

• Raised $68 billion in Q2 2024, with $140 billion raised over the last twelve months and $63 billion becoming fee-bearing in Q2.

• Expansion driven by growth in private equity, credit, and insurance channels, with significant investments in renewables and infrastructure.

• Strategic acquisitions and partnerships, including Castlelake, Oaktree, Neoen, and Microsoft, have diversified offerings and enhanced scale.

• Focus remains on essential assets, operational value creation, and leveraging global expertise for superior returns.

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 for the remainder of the year, with $107 billion of uncalled fund commitments available.

• Anticipates significant monetization activity in H2 2024, especially in renewables and private equity.

• Projected to bring in another $1 trillion of AUM over the next four years, primarily through organic growth.

• Margin target remains at 60% over time, with current adjusted margins at 56%.

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