Brookfield Asset Management (BAM) Q3 2024 earnings summary

Executive summary

• Achieved record third-quarter results with fee-related earnings up 14% year-over-year to $644 million and distributable earnings up 9% to $619 million, driven by strong fundraising, capital deployment, and asset monetizations.

• Fee-bearing capital grew 23% year-over-year to $539 billion, supported by $135 billion in inflows and $101 billion in fundraising over the past year.

• Strategic acquisitions and partnerships, including Castlelake, SVB Capital, and Network International, expanded capabilities and added $7 billion in fee-bearing capital.

• Positioned at the center of major investment themes: private credit, AI infrastructure, and energy transition, driving future growth.

• Net income attributable to the asset management business was $544 million for the quarter, up from $494 million a year ago.

Financial highlights

• Fee-related earnings reached a record $644 million ($0.39/share), up 14% year-over-year; distributable earnings hit $619 million ($0.38/share), up 9% year-over-year.

• Fee-bearing capital increased by $100 billion to $539 billion, with $101 billion from fundraising and $25 billion from deployed capital.

• Total revenues for the quarter were $1.12 billion, up from $893 million in the prior year quarter.

• Margins improved to 58%, reflecting strong operating leverage.

• Liquidity at quarter-end was $2.1 billion, including a new $750 million undrawn revolver.

Outlook and guidance

• Expect strong earnings growth to continue, supported by market tailwinds, robust capital raising, and secular investment trends.

• Monetization activity is expected to accelerate in 2025, with a robust pipeline of assets ready for sale.

• Fundraising environment is the strongest in two years, with confidence in meeting or exceeding targets for 2024 and 2025.

• Five-year plan to double the business to $1 trillion in fee-bearing capital remains on track.

• Third-party insurance capital is anticipated to be a meaningful contributor to future growth.