Brookfield Asset Management Ltd. Q3 FY2025 earnings call

• Bruce Flatt: Reported a strong quarter with record fundraising, earnings deployment, and monetization. Fee-related earnings up 17% to $754 million, distributable earnings up 7% to $661 million, fee-bearing capital at $581 billion. Mentioned acquisition of remaining 26% of Oaktree. - Connor Teskey: Highlighted growth initiatives including $30 billion raised/deployed in infrastructure, launch of AI infrastructure fund, final close of $20 billion renewable power fund, private equity seventh vintage, and real estate transaction activity. - Hadley Peer Marshall: Discussed financial results, $30 billion Q3 fundraising, fee-related earnings $754 million, distributable earnings $661 million, 58% margin, and balance sheet position with $2.6 billion liquidity.

Fee-related earnings grew 17% to $754 million, distributable earnings grew 7% to $661 million. Fee-bearing capital reached $581 billion, an 8% increase year-over-year. Over the past 12 months, fee-bearing capital inflows totaled $92 billion. In infrastructure, $30 billion was raised, $30 billion deployed, and over $10 billion monetized. The global transition flagship fund's second vintage closed at $20 billion. Private equity launched its seventh vintage focusing on essential service businesses. Real estate saw strong transaction activity and deployment. Credit business focused on real asset, opportunistic, and asset-backed finance.

Bruce expects 2026 to exceed 2025 fundraising levels, with FRE growth maintaining momentum. Hadley outlined a plan to double the business by 2030, aiming for fee-related earnings $5.8 billion, distributable earnings $5.9 billion, and fee-bearing capital $1.2 trillion.

Market uncertainties such as trade/tariff issues, competition in private credit segments, and regulatory approvals for acquisitions.

Q: Alex Blostein inquired about fundraising momentum and FRE growth.

A: Bruce Flatt expects 2026 to exceed 2025 fundraising levels, with additions like Oaktree, Just Group, and Angel Oak boosting fee-related earnings (FRE).

Q: Sohrab Movahedi asked about the credit business fee rate.

A: Bruce Flatt and Hadley Peer Marshall discussed an elevated fee rate in the credit business due to mix shift and one-off transaction fees in Castlelake, but noted a positive broader trend.

Q: Cherilyn Radbourne wanted to know about benefits of the pending Oaktree buy-in.

A: Bruce Flatt talked about collapsing Oaktree's balance sheet, operating leverage, and enhanced client service and product development.

Q: Bart Dziarski inquired about retail products momentum.

A: Bruce Flatt mentioned strong retail momentum, a new private equity product launching, and distribution via leading bank platforms.

Q: Craig Siegenthaler questioned credit business fees and expenses.

A: Connor Teskey explained half organic growth and half acquisition-related growth in the credit business, with lumpy transaction fees.

Q: Kenneth Worthington asked about margins.

A: Hadley Peer Marshall stated margins are expected to improve, with core business margins expanding to offset lower margins from partner managers and Oaktree.

Q: Daniel Fannon asked about private equity optimism.

A: Bruce Flatt attributed it to focusing on essential assets, consistent returns, and operational improvement driving demand.

Q: Jaeme Gloyn inquired about broadening the client base.

A: Bruce Flatt talked about dedicated teams targeting small/medium institutions, insurance, and family offices for a broader client base.