Brookfield Asset Management Ltd. Q4 FY2024 earnings call

Bruce Flatt's Remarks - Highlighted secular trends driving the business: alternative asset industry poised to more than double, consolidation of managers, and alignment with digitalization, power grid upgrades, and private credit. - Emphasized strong 2024 performance with over $135 billion raised, $48 billion deployed, and $30 billion monetized. ### Connor Teskey's Remarks - Highlighted 2024 highlights including acquisitions (Neoen, GEMS Education, FirstEnergy), partnerships (Microsoft renewable power deal, French government infrastructure investment). - Noted growth of credit group to $250 billion fee-bearing capital, with 60% of 2024 organic capital raise from credit business. ### Hadley Peer Marshall's Remarks - Discussed strong fourth quarter financial results with record fee-related earnings and distributable earnings. - Highlighted record fundraising in Q4 with $29 billion organic capital raised. - Announced completion of corporate structure simplification to enhance index inclusion.

The credit group is the largest business by assets with nearly $250 billion of fee-bearing capital. In the renewable power and transition business, over $4 billion of capital was raised in the quarter, including $3.5 billion for the second vintage of the global transition flagship strategy. The infrastructure business raised $2.5 billion in the quarter, including $700 million for the super core infrastructure strategy. The credit group raised $20 billion in the quarter, including over $10 billion across Oaktree and other partner managers. Revenue contribution details were not explicitly broken down by percentage in the transcript but key segments' capital raising and deployment were highlighted.

- Expect strong fundraising in 2025 with flagship funds (fifth vintage of real estate flagship fund and second vintage of global transition flagship fund) slated for final close in first half of 2025. ### - Complementary strategies to see significant growth with new products like catalytic transition fund, financial infrastructure fund, etc. ### - Insurance fundraising channel expected to see annual inflows over $25 billion. ### - Private wealth channel growth to continue with dedicated strategies. ### - Anticipate robust capital recycling in 2025 due to picking transaction volume.

- Market uncertainties affecting the duration of favorable capital deployment and monetization environment. ### - Regulatory changes impacting alternative asset industry growth and index inclusion. ### - Interest rate fluctuations potentially affecting credit markets and investment returns.

Q: How long can the favorable environment for capital deployment and asset monetization persist?

A: Connor Teskey expects it to last through 2025 and possibly longer, driven by strong liquidity, robust sentiment in relevant asset classes, and significant pipeline of sales processes.

Q: Outlook for fundraising in 2025?

A: James Flatt expects better fundraising in 2025 with growth in flagships, complementary strategies, insurance, and private wealth channels, with flagship funds closing in the first half of 2025.

Q: Impact of U.S.-Canadian trade war on cross-border business?

A: James Flatt states the business is domestically oriented and largely insulated from tariffs, with critical infrastructure assets having inelastic demand and being indexed to inflation.