Brookfield Asset Management (BAM) Q4 2023 earnings summary

Executive summary

• Q4-23 fee-related earnings (FRE) were $581M and distributable earnings (DE) were $586M; FY23 FRE and DE were $2.2B each, up 6% and 7% YoY, respectively.

• Fee-bearing capital reached $457B, up 9% over 12 months; $394B, or 86%, was long-term or permanent capital.

• FY23 fundraising was $93B, deployments were $58B, and deployed or committed capital totaled $63.3B over the LTM.

Financial highlights

• Q4-23 fee revenues were $1.106B, up $37M YoY; direct costs rose $38M to $492M, leaving total FRE of $614M before $33M attributable to non-controlling interests.

• FY23 fee revenues were $4.381B, up $333M YoY; total FRE was $2.367B, up $111M, and FRE attributable to shareholders was $2.241B.

• Q4-23 DE was $586M, versus $569M a year earlier; FY23 DE was $2.244B, versus $2.096B in FY22.

• U.S. GAAP net income was $531M in Q4-23 versus $613M in Q4-22, and $2.137B for FY23 versus $2.865B for FY22.

• LTM fee revenues increased 8% YoY to $4.4B; LTM FRE increased 6% to $2.2B and DE increased 7% to $2.2B.

Outlook and guidance

• $47B of uncalled fund commitments was not yet earning fees; deployment of this capital was estimated to generate an additional $470M of revenue.

• $107B of uncalled commitments was available for deployment, alongside $2.7B of cash and cash equivalents on the balance sheet.

• Long-term insurance allocation targets are 40% high-grade liquid strategies, 30% private credit and equity, and 30% long-term private funds; private fund allocations are expected to earn standard fees incremental to the 25 bps IMA rate.

• A $2B commitment to the second global transition fund and up to $1B from ALTÉRRA to the Catalytic Transition Fund support strategies targeting transition and development-market investments.